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Compensation Clawbacks
In light of recent events in the financial markets, employers are exploring the use of "clawbacks" to recover bonus compensation payable to employees. Clawbacks are contractual provisions that allow employers to recoup compensation paid to employees in the event of an employee's misconduct and/or termination of employment, or voluntary departure to go and work for a competitor. There are special legal issues that may arise in drafting, negotiating and enforcing such clawbacks that employers need to be aware of to ensure compliance.

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Cafeteria Plan Rules Require Employer Action
Failure to meet the requirements of Code Section 125 will result in benefits being taxable to all employees participating in the cafeteria plan. Therefore, it is imperative that employers prepare to meet these new requirements now. Given the significant consequences for noncompliance, employers should take immediate note of the following and engage the services of a qualified professional to ensure compliance prior to the anticipated effective date of January 1, 2010.

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