MS&K Alerts - News - Mitchell Silberberg & Knupp LLP ~ Full service entertainment law firm

U.S. Employers Should Prepare for On-Site Visits by USCIS February 2012
Mitchell Silberberg & Knupp Immigration Alert

By Frida P. Glucoft and Janice K. Luo
The U.S. Citizenship and Immigration Services has increased its antifraud staff with contractor inspectors to perform thousands of on-site visits to U.S. companies that employ H-1B and L-1 foreign workers. These on-site inspections illustrate the U.S. Department of Homeland Security’s new attitude and enforcement efforts focusing on employer prosecution for noncompliance with U.S. immigration laws. These visits are performed by the USCIS Fraud Detection and National Security (FDNS) unit funded by the mandatory antifraud fee of $500 that U.S. Employers must pay the USCIS when filing H-1B and L-1 visa petitions for temporary foreign workers. These ongoing USCIS visits to H-1B and L-1 employer sites occur regardless of whether the employers are large well-known corporations and nonprofit institutions or smaller companies.
DLSE Issues Revised FAQs Regarding Required Wage Notice January 2012
Mitchell Silberberg & Knupp Labor & Employment Alert
by Anthony J. Amendola and Jorja A. Cirigliana
The California Wage Theft Prevention Act (WTPA), which became effective on January 1, 2012, requires private-sector employers to provide a written wage notice “at the time of hiring” to nonexempt employees (excluding most employees who are covered by a collective bargaining agreement.). The notice must contain specific information identified by the legislature, as well as other information deemed “material and necessary” by the Labor Commissioner (DLSE).
Labor And Employment Law 2011: A Year-End In Review January 2012
Mitchell Silberberg & Knupp Labor & Employment Alert
by Steven M. Schneider, Jorja A. Cirigliana, and Jennifer A. Zimbroff
The following is a review of important labor and employment developments in 2011 and a look forward to important issues pending for 2012.
Disclosure of Charitable Remainder Trusts on Form 990 January 2012
Mitchell Silberberg & Knupp Charitable Sector Alert
by David Wheeler Newman
IRS Form 990, the information return filed by tax-exempt organizations, got a major overhaul in 2008. One feature of the overhaul is detailed information that must be provided on a series of schedules to be attached to the core Form 990. Schedule R requires reporting of information regarding entities that are related in some way to the nonprofit organization filing the Form 990. This schedule requires a reporting charity to identify charitable remainder trusts that are related to the reporting organization.
“How Will the IRS Find Out?” Here’s How January 2012
Mitchell Silberberg & Knupp Trusts & Estates Alert
by Jeffrey K. Eisen
“If I make a gift and don’t report it on a gift tax return, how will the IRS ever find out?” is a common question asked by clients during the gift planning process. Other than the obvious answer that the law requires gifts in excess of the annual exclusion ($13,000 per donee for gifts made in 2012) to be reported to the IRS, there often isn’t a concrete answer as to how the IRS discovers unreported gifts made during life.
Pending FTAs, Proposed Consolidations, and a Win for IPRs January 2012
Mitchell Silberberg & Knupp International Trade Alert
by Susan Kohn Ross
One of the many important questions being asked at the start of 2012 is when should international traders expect to take advantage of the new free trade agreements (FTAs) with Korea, Panama, and Colombia? Once President Obama issues the authorizing Executive Orders, Customs and Border Protection (CBP) will still need to publish proposed regulations. Based on the number of FTAs already enacted under U.S. law, it appears the general format and content of those regulations are fairly well set. However, the formalities must nonetheless be followed.
IRS Says “Let’s Make a Deal” (Regarding Misclassified Workers) January 2012
Mitchell Silberberg & Knupp Charitable Sector Alert
by Jeffrey D. Davine
This alert summarizes the salient terms of the voluntary classification settlement program (“VCSP”) that was recently announced by the Internal Revenue Service. The VCSP gives employers who may have incorrectly classified workers as independent contractors a chance to “come in from the cold” without triggering a significant income and employment tax liability.
Lindsey Manufacturing Exonerated – What Is The Lesson? December 2011
Mitchell Silberberg & Knupp International Trade Alert

by Susan Kohn Ross
On December 1, U.S. District Judge for the Central District of California Howard Matz vacated the Foreign Corrupt Practices Act convictions of Lindsey Manufacturing and its executives Keith Lindsey and Steve Lee, citing numerous instances of misconduct by the prosecutors--prosecutors once so proud of the jury convictions of Lindsey, et al., that Assistant Attorney General Lanny Breuer announced, “Lindsey Manufacturing is the first company to be tried and convicted on FCPA violations, but it will not be the last.” How far out of bounds did Justice run in pursuing the prized convictions, and what does that mean for other targets of Government investigations?
California Law Confirms E-Verify Is Voluntary for Private Employers December 2011
Mitchell Silberberg & Knupp Immigration Alert
by John E. Exner IV
In the last several years many states throughout the United States have enacted laws making E-Verify mandatory for private employers; however, California stands by the position that the E-Verify program is a voluntary program.
California Loosens Its Geographically-Based Restriction on Property Tax Exemptions for Nonprofits December 2011
Mitchell Silberberg & Knupp Charitable Sector Alert
by Ofer Lion
While California’s Board of Equalization continues to deny property tax exemptions to charities that do not “primarily benefit persons within the geographical boundaries of the State of California,” pursuant to a new Letter to the Assessors issued December 7, 2011, the “primarily” standard is met if the charitable activities performed by the nonprofit confer some “meaningful,” “important,” or “significant” benefit to persons within California.
Oral Arguments In Brinker v. Superior Court Hint At How The Supreme Court May Decide Critical Issues Regarding Meal And Rest Periods December 2011
Mitchell Silberberg & Knupp Labor & Employment Alert
by Lawrence A. Michaels and Jorja A. Cirigliana
On November 8, 2011, the California Supreme Court heard oral arguments in Brinker v. Superior Court (Sup. Ct. Case No. S166350). This case raises issues about meal and rest periods that are of crucial importance to California employers.
California Transparency in Supply Chains Act of 2010 November 2011
Mitchell Silberberg & Knupp International Trade Alert
by Susan Kohn Ross
As a reminder, this new California state law takes effect on January 1, 2012, and requires retailers and manufacturers with worldwide sales of $100 million or more who do business in California (and doing business is broadly defined) to add information to their websites regarding their efforts to combat slavery and human trafficking. Whether you are directly affected and therefore taking steps to timely add the required information to your website, or you are a supplier to companies that must report under the Act and so are being asked to certify your operations, the deadline to comply is fast approaching. Are you ready?
ACGA Issues New Rates for Charitable Gift Annuities November 2011
Mitchell Silberberg & Knupp Charitable Sector Alert

by David Wheeler Newman
On November 18, the American Council on Gift Annuities (ACGA) issued new recommended maximum rates for charitable gift annuities issued on and after January 1, 2012. The new rates replace those that became effective on July 1, 2011. The new rates are lower – generally by fifty to eighty basis points (0.5% to 0.8%) – than those they replace.
New Employment Laws Mean More Burdens for California Employers November 2011
Mitchell Silberberg & Knupp Labor & Employment Alert

by Steven M. Schneider and Nicole M. Herter
At the close of the first legislative session after he was again elected Governor of California, Jerry Brown signed into law several bills that will impose significant burdens on California employers. They include the potential of even more litigation against employers, including class actions. This Alert highlights some of the important new employment-related legislation in California that will take effect on January 1, 2012.