Cheryl Wilke Writes in Daily Business Review about a Change to Federal Tax Law that Penalizes Settlements of Sexual Harassment Charges that Include a Confidentiality Provision
Hinshaw partner Cheryl Wilke recently authored an article titled "Legislating Financial Penalties for Employers Seeking to Keep Sexual Harassment Settlements Confidential," in the Daily Business Review. In her article, Wilke discusses tax law changes that went into effect late last year. Specifically, she discusses a prevision in the new tax law that prohibits a tax deduction for a settlement of sexual harassment or sexual abuse charges that includes a confidentiality clause. "Employers will now be faced with a key decision," notes Wilke. "Is the benefit of keeping a settlement agreement confidential worth the financial impact of not claiming the settlement proceeds and associated legal fees as a tax deduction?"
Read "Legislating Financial Penalties for Employers Seeking to Keep Sexual Harassment Settlements Confidential," on the Daily Business Review website (subscription required)