New York Employment Attorneys & Lawyers

Updated July 27, 2020:

What Is Cliff Vesting?

Cliff vesting is the process where an employee gets fully vested on a given date. The employee receives his or her full benefits of the retirement plan on a specific date instead of in amounts over time. The "cliff" described is the date on which you become fully vested. A four-year vesting schedule with a one-year cliff is common.

Cliff vesting is the way that employees of a company can acquire full ownership of incentives or assets of the company's qualified retirement plan account on a specific, agreed-upon date, instead of over a longer period. This period cannot exceed six years. The "cliff" is usually one year in.

Companies put vesting

...

Updated October 7,2020:

What Is a Vesting Period?

The vesting period is the period of time before shares in an employee stock option plan or benefits in a retirement plan are unconditionally owned by an employee.

If that person's employment terminates before the end of the vesting period, the company can buy back the shares at the original price. The employee cannot sell or transfer the stock options during the vesting period.

The Tax Reform Act of 1986 established the minimum vesting rights for employees. Full vesting must occur within five years or at 20 percent vesting per year after three years of employment.

Vesting is the pr

...

Updated November 26, 2020:

HIPAA law is meant to protect information that could be used to identify a medical patient. This law also includes language that is meant to protect patients seeking healthcare from discrimination.

Learn about HIPAA Law

You may not be aware that the Health Insurance Portability and Accountability Act (HIPAA) is actually a 1996 amendment to the Employee Retirement Income Security Act (ERISA).

HIPAA was added as an amendment to help protect more workers and their loved ones by limiting new employers from excluding coverage for preexisting conditions. Additionally, it prohibits discrimination against employees and their family members based on any preexisting conditions and providing new rights to individuals who lose their coverage.

HIPAA also protects patients' paper and electronically stored medical information through the Privacy Rule, while the Security Rule r

...

Updated November 2, 2020: 

Preferred stock is a special class of equity that adds debt features. As with common stock, shareholders receive a share of ownership in the company. Preferred stock also receives special rights, including guaranteed dividends that must be paid out before dividends to common shareholders, priority in the event of a liquidation, is listed separately from common stock, and trades at a different price than common stock.

Why Is Preferred Stock Important?

Preferred stock gives you a financing alternative to taking on debt. You generally maintain greater control over your company than if you issue new common shares.

You can also re

...

What are Incentive Stock Options?

Incentive stock options (ISOs) are a type of stock option typically given to key employees or management to purchase stock in the company and can result in a better tax treatment.

Incentive Stock Options vs. Nonqualified Stock Options

Other options that may be available to employees who are not considered key employees or upper management may be eligible for nonqualified stock options or NSOs.

Unlike NSOs, an ISO would be treated favorably for tax purposes. When an ISO is exercised, the employee need not claim the income. When they sell the stock, the gains are taxed as ordinary income rates rather than at capital gains rates. It is important to be aware that the tax benefits are

...