This Week: Tax Plan Reactions | Powell Appointed | Bad Hires | 401(k) Advice | Overtime | Immigration | Social Security
StaffLink’s Week Ending November 3 Highlights: This week, StaffLink takes a look at reactions to the GOP’s proposed tax bill and the naming of a new Fed chief. We also look at an update on the overtime rule litigation, new bills on immigration and farm labor, changes to the social security base rates, what the experts say about 401(k)s, and how to avoid bad hires.
Changes in Tax Plan and Fed Leadership Trigger Positive Market Response:
The stock market closed at a record high on Thursday for the 55th time in 2017. MarketWatch reported the details and offered some explanations for this latest remarkable close in Dow ends at a record as Trump taps Powell for Fed chief, GOP unfurls tax plan.
As noted in the MarketWatch article, President Trump announced his replacement for outgoing Federal Reserve Chair, Janet Yellen, this week. Reuters’ contributors Howard Schneider and Jeff Mason provide more details and their analysis of the move in Trump taps Fed centrist Power to lead U.S. central bank.
Of course, Powell’s appointment wasn’t the biggest reason for the stock market bump. That claim goes to the GOP’s proposed tax bill which caps the corporate tax rate at 20%. Reviewing the bill, Forbes contributor Tony Nitti notes that individual tax rates for many taxpayers would be lowered but we’ll also see significant changes in allowable deductions. Nitti explains the numbers in Breaking Down the House Tax Bill: What’s In and What’s Out?
This Week’s HR Legal and Legislative News:
A legal challenge to the Obama administration’s overtime rule which increased the minimum salary necessary to exempt workers from overtime payment requirements has been put on hold.
The Department of Labor asked the court to stay the litigation while it works on drafting a new rule. SHRM’s Allen Smith explains the history of the case and its current status in DOL Calls for Temporary Halt on Overtime Rule Case. Expect to see a bump in the current OT exemption to $33,000 when the administration does present its new rule.
Covering the legislative front this week, SHRM’s Roy Maurer gives us Mandatory E-Verify, Farm Labor Bills Clear First Hurdle explaining the complex interaction of two proposed bills approved by the House Judiciary Committee. Maurer writes that the Legal Workforce Act has been well-received by HR professionals while the Agricultural Guestworker Act is getting mixed reactions from members of the agriculture industry.
Employers and workers can expect to contribute a little more to social security retirement savings in 2018. Read about it in the HR Daily Advisor’s report Social Security Wage Base Limit Raised to $128,700.
But it’s not just the Social Security Administration that wants to see more money put away for retirement. In Push 401(k) Default Savings Rates Higher, Researchers and Plan Sponsors Agree, Stephen Miller of SHRM reports that experts believe employers should encourage workers to stash more money in their 401(k) plans by setting a higher default-contribution rate.
Hiring can be time consuming and expensive, but firing is even worse. This week, SHRM’s Roy Maurer put together some tips to avoid making a hire you’ll regret in 5 Common Bad Hire and How to Prevent Them.
THIS WEEK’S VIDEO – A SCARY GOOD SOUTH FLORIDA OFFER, VOTED ONE OF THE WORLD’S BEST.
One of the Week’s Best Global Ads – a Scary Good Offer that Hit south Florida Burger King Stores Halloween Night (they’re not clowning around with McDonalds anymore).
Enjoy Your Weekend.