Connie Bertram and Emilie Adams published an article in the February issue of OFCCP Digest titled “Federal Tax Bill Offers a Nod to the #MeToo Movement.” The article focuses on a provision in the recently-passed Tax Cuts and Jobs Act that addresses corporate settlements involving claims of sexual harassment and abuse. The provision prohibits companies from deducting settlement payments to employees for such claims – and attorneys’ fees and costs incurred in defending those claims – if the settlement is subject to a nondisclosure agreement. As discussed in more detail in the article, however, the provision is already raising a number of significant questions and practical concerns that will likely affect the way most employers approach settlement agreements with current or former employees going forward.
