Pautsch, Spognardi & Baiocchi Legal Group LLP
Monday Morning Minute
In This Issue
Mid Term Effect on Labor and Employment Law
2019 IRS Retirement Limits
                  November 12, 2018
 
COMMON SENSE SOLUTIONS
FOR
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EFFECT OF MID-TERMS ON FEDERAL LABOR and EMPLOYMENT LAW DEVELOPMENT:FAVORABLE TO MANAGEMENT
The mid-term election outcome will have a positive impact on the development of federal labor and employment favorable to management under such laws as the NLRA, Title VII, ADA, FLSA, and ADEA. While the Democrats now have a majority in the House of Representatives, the GOP has at least a majority of 51 out of 100 as of this writing, with outcomes still pending in AZ, FL and MS.
Only the Senate plays a role in the confirmation process.  Due to this it appears that the President will be able to achieve confirmation of most, if not all of his appointees to Article III (life tenure) courts and federal agencies such as the NLRB, EEOC and cabinet posts such as the Secretary of Labor. The effect in the Circuit Courts of Appeal is particularly important for labor law issues as all NLRB orders cannot be enforced on their own and either enforced or are reviewed on appeal by these Circuit Courts of Appeal, and since the Supreme Court take very few cases they are really the courts of 'last resort'.
 
The President has taken dramatic steps in the first twenty-two months of his Term to nominate a record number of Article III judges and most if not all appear to be favorable to a pro-business 'read' of the law. This should continue and the courts which had tilted liberal due to Democratic appointments (Clinton/Obama in 16 out of 24 past years) should move towards the center. Even the notoriously liberal Ninth Circuit will moderate.
 
As of this writing, the US Senate has confirmed 84 Article III judges nominated by President Trump. including 2 Associate Justices of the US Supreme Court, 29 judges for the US Court of Appeals, and 53 judges for the US District Courts. President Trump has appointed 3 members of the National Labor Relations Board.
 
There are currently 57 nominations to Article III courts awaiting Senate action, including 7 for the Courts of Appeals, 48 for the District Courts-----none for the Supreme Court. There are currently 11 vacancies on the U.S. Courts of Appeals, 111 vacancies on the U.S. District Courts.  There are also  20 announced federal judicial vacancies that will occur before the end of Trump's first term (4 for the Courts of Appeals and 16 for District Courts). There is one vacancy on the NLRB.
 
For more information on this important development, please feel free to contact any PSB attorney. 
CLIENT ALERT:  2019 IRS RETIREMENT SAVINGS LIMITS ISSUED
The contribution limit for employees who participate in 401(k), 403(b), and most 457 plans is increased to $19,000 from $18,500.  The catch-up contribution limit for employees aged 50 and over who participate in 401(k), 403(b), most 457 plans and the federal government's Thrift Savings Plan remains unchanged at $6,000.
 
The limit on annual contributions to an IRA, which last increased in 2013, is increased to $6,000 from $5,500. The catch-up contribution limit for individuals aged 50 and over remains $1,000.

The income ranges for determining eligibility to make deductible contributions to traditional Individual Retirement Arrangements (IRAs), to contribute to Roth IRAs and to claim the saver's credit all increased for 2019.
Taxpayers can deduct contributions to a traditional IRA if they meet certain conditions. If during the year either the taxpayer or their spouse was covered by a retirement plan at work, the deduction may be reduced, or phased out, until it is eliminated, depending on filing status and income. (If neither the taxpayer nor their spouse is covered by a retirement plan at work, the phase-outs of the deduction do not apply.) Here are the phase-out ranges for 2019:

·         For single taxpayers covered by a workplace retirement plan, the phase-out range is $64,000 to $74,000, up from $63,000 to $73,000.
 
·         For married couples filing jointly, where the spouse making the IRA contribution is covered by a workplace retirement plan, the phase-out range is $103,000 to $123,000, up from $101,000 to $121,000.
 
·         For an IRA contributor who is not covered by a workplace retirement plan and is married to someone who is covered, the deduction is phased out if the couple's income is between $193,000 and $203,000, up from $189,000 and $199,000.
 
·         For a married individual filing a separate return who is covered by a workplace retirement plan, the phase-out range is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.

The income phase-out range for taxpayers making contributions to a Roth IRA is $122,000 to $137,000 for singles and heads of household, up from $120,000 to $135,000. For married couples filing jointly, the income phase-out range is $193,000 to $203,000, up from $189,000 to $199,000. The phase-out range for a married individual filing a separate return who makes contributions to a Roth IRA is not subject to an annual cost-of-living adjustment and remains $0 to $10,000.

The income limit for the Saver's Credit (also known as the Retirement Savings Contributions Credit) for low- and moderate-income workers is $64,000 for married couples filing jointly, up from $63,000; $48,000 for heads of household, up from $47,250; and $32,000 for singles and married individuals filing separately, up from $31,500.
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PAUTSCH, SPOGNARDI & BAIOCCHI LEGAL GROUP is a law firm dedicated to finding common sense, affordable solutions for businesses to labor, employment, human resource and general business needs. With over 75 combined years of experience among its 3 founding partners in these areas, we can assist businesses in developing custom solutions to today's tough issues.  And as litigators, who combined have over thousands of trials  "under their belts" before state and federal courts as well as administrative agencies (such as the NLRB) you will find no better advocate and partner. 

 

For more information on the firm, please go to our website at www.psb-attorneys.com or Lisa at lab@psb-attorneys.com