ATR President Grover Norquist was on CNBC’s Squawk Box to discuss the coming tax hikes when Biden is joined by a Democrat-controlled House and Senate, as well as the important fight against foreign Digital Services Taxes imposed by various different countries. 

“And the other big question we have is where will he (Biden) be on fighting against the European effort to put a Digital Services Tax on America's rather large and successful companies like Google, Facebook, and Apple that Trump people had fought it very hard. Unclear that Biden with his new 'let's get along with Europeans' will continue to try to stop those taxes targeting American companies, not European companies.”

WATCH:

DSTs pose an unprecedented danger to tax competition, innovation, and economic growth. These new taxes represent a dramatic and irreversible shift for the international tax system. While they are imposed on business revenues, DSTs will ultimately end up harming consumers and workers as the costs are passed down. This will result in fewer jobs and lower wages for businesses, especially third party suppliers and sellers that rely on tech companies for their livelihoods.

New York is benefiting greatly from the Tax Cuts and Jobs Act enacted by Republicans in 2017:

1,139,260 New York households are benefiting from the TCJA’s doubling of the child tax credit.

Every income group in every New York congressional district received a tax cut. Nationwide, a typical family of four received a $2,000 annual tax cut and a single parent with one child received a $1,300 annual tax cut.

6,266,750 New York households are benefiting from the TCJA’s doubling of the standard deduction. Thanks to the tax cuts, nine out of ten households take the standard deduction which provides tax relief and simplifies the tax filing process.

260,660 New York households are benefiting from the TCJA’s elimination of the Obamacare individual mandate tax. Most households hit with this tax made less than $50,000 per year.

Lower utility bills: As a direct result of the TCJA’s corporate tax rate cut, New York residents are saving money on utility bills. Lower electric, water, and gas bills help households and small businesses operating on tight margins. New York utilities that have passed along tax savings include -- but are not limited to -- Consolidated Edison Company of New York, New York State Electric and Gas Corporation, Rochester Gas & Electric Company, National Fuel Gas Distribution Corporation, National Fuel Gas Distribution Corporation, Corning Natural Gas Corporation, St. Lawrence Gas Company, Inc., (see below.)

Thanks to the tax cuts, New York businesses of all sizes are hiring, expanding, raising pay and increasing employee benefits:

Lupo’s Meat Plant (Endicott, New York) - Increased wages, ability to maintain healthcare coverage:

Company President Sam Lupo says recent tax cuts have allowed the business to raise wages and maintain healthcare.

He says maintaining a small business all comes down to building strong employees.

"Our long-term employees see that, they feel it, they've taken ownership, so then when we have new employees come in, they're taking those employees under their arm, and they're saying, 'hey, we're more than just a spiedie company, we're involved in our community," said Sam Lupo, Sam A. Lupo & Sons President.

The plant has been in businesses for more than 60 years and currently has 45 employees. - May 4, 2018, Spectrum News Article Excerpt

Fox Run Vineyards (Peter Yan, New York) -- The owner used savings from the Tax Cuts and Jobs act to pay the bills as well as buy new equipment, including two “falcon kites” that are meant to scare away birds.

"It's given us a little more money to pay bills and buy new equipment," said Scott Osborn, owner of Fox Run Vineyards in the Finger Lakes. He bought two "falcon kites" that are used to scare birds away in the vineyards, which has made a discernible difference. "We're not getting bird damage, and our vineyard manager figures we save a ton of grapes," he said.  -- Nov. 8, 2019 Wine Spectator article

Paychex, Inc. (Rochester, New York) — Increased investments; acceleration of technology projects; increased investments in employees:

On December 21st, 2017, the tax cuts and jobs act or tax reform was enacted. And it's the most comprehensive tax reform legislation in more than two decades. Paychex, as a corporate tax payer is a significant beneficiary of tax reform. Efrain will discuss the financial impacts in more detail. However, I want to mention that as a result of the significant income tax reduction, we plan to utilize some of this opportunistic benefit to make various investments in our business. These investments include accelerating certain technology projects for the continued evolution of our customer experience, increasing our spend in marketing demand generation and sales and service strategy enhancements, as well as investment in our employees. — March 26, 2018 Paychex, Inc. Q3 2018 Earnings Conference Call Transcript

Wood Boat Brewery (Clayton, New York) - Hiring new employees, expanding production:

Similarly, small producers of beer and liquor seem to be well positioned to take advantage of tax savings given the large cut to the federal excise charge across the industry.  Mix in a lower overall tax rate and the savings start to add up. Some are using the proceeds to hire and reinvest. For example, in Watertown, NY, the Wood Boat Brewery started posting ads for full-time help after the law passed.

Owner Michael J. Hazelwood told the Watertown Daily Times in December that he’d likely expand production and hire staff with savings realized from the reduced excise tax. Now, like the Klavers of SALUS, it appears he has. - April 18, 2018, Capital One blog post excerpt

Clayton Distillery (Clayton, New York) - facility upgrades:

Mr. Aubertine, who co-owns the Clayton Distillery, pays about $40,500 in excise taxes annually for the 3,000 gallons of spirits he produces at $13.50 per proof gallon. The tax reform, however, will reduce his expense to about $8,100 when it takes effect in 2018, which encouraged him to install upgrades to his facility at 40164 Route 12.

“We’re basically investing back into the business,” he said. “The tax plan — it also lets us write off some of the supplies a little bit differently.” - December 28, 2018, Watertown Daily Times article excerpt

Middle Ages Brewing (Syracuse, New York) – The Tax Cuts and Jobs Act allowed the company to reinvest in employees and equipment:

"For us it completely went back into the business or reinvested into employees or equipment,” said Isaac Rubenstein, the director of production at Middle Ages Brewing. “It was huge."

…

Newer breweries have been saving a few thousand dollars a year. Middle Ages has been saving about $20,000, so they're on edge about losing the tax relief.

"It would be devastating,” said Rubenstein. “Plans for next year might have to change, redo the budget a little bit. Some equipment that's on the list might get crossed off. It might be a part time employee. It would be really bad." – Dec. 18, 2019, Spectrum News article.

Shorewood Real Estate Group and Bridge Investment Group (Queens, New York) -- The companies are building an apartment complex in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Shorewood Real Estate Group announced today that in partnership with Bridge Investment Group, the firms closed on an $88 million loan to finance the construction of 1 Archer Avenue Apartments in Jamaica, Queens. The construction facility was provided by East West Bank and a syndicate of lenders to construct the first development financed with Opportunity Zone Capital from Bridge and Shorewood.

Shorewood's Opportunity Zone Fund was created shortly after the 2017 tax reform created Opportunity Zones, tracts of land across the United States that meet certain federal criteria to be considered "distressed communities." Investment in Opportunity Zones is encouraged--and rewarded with significant tax benefits. The intent was to incentivize investment in areas in need of revitalization.

The Archer Avenue site is within a Qualified Opportunity Zone. The full site, located at 160-05 Archer Avenue, will be a 320,000 square foot mixed-use development that will include a 23-story building with ground floor retail, below grade parking, and 315 residential units. Under the Affordable Housing New York Program and in adherence to the Inclusionary Housing Program, 30 percent of the units will be reserved for affordable housing. Anticipated rents for those units will be well below market value. According to Shorewood CEO S. Lawrence Davis, the affordability component was a critical consideration to the overall project.

"We are committed to quality development that serves our investors, and also the communities in which we build," said Davis. "Jamaica, Queens has a rich history and unique character and our project is being developed to enhance the neighborhood."

According to Davis, Opportunity Zones were designed to bring needed capital into communities just like Jamaica. -- June 22, 2020 press release

Quadrant Biosciences (Syracuse, New York) – Because of the Tax Cuts and Jobs Act, the company is planning to create new jobs and invest in research activities"

“That money that will go directly into our research activities. And that translates into more jobs,” Uhlig said. “We’ll be hiring more neuroscientists, [and] we’ll be hiring more programmers to help facilitate their quality research.” – Feb. 27, 2018, PBS News article.

Kris-Tech Wire (Rome, New York) - Expanding operations, purchasing new equipment:

On the tour, Graham Brodock the President and CEO informed Rep. Tenney that Kris-Tech Wire has reinvested in the company as a result of the Tax Cuts and Jobs Act. Kris-Tech is building an addition and acquiring new equipment-thanks to the newly created ability to write off equipment charges. Kris-Tech has over 400 employees and a deep commitment to continuing to invest in the facility and employees here in Rome. - August 2, 2018, Rep. Claudia Tenney press release excerpt

J Car Development (Albany, New York) -- The company is redeveloping a building into a data center which is located on a Opportunity Zone created by the Tax Cuts and Jobs Act:

If Jason Benedict got nothing else in his introduction to Albany politics, he got a show.

The Chicago developer, who sat through the Albany City Commission's meeting Tuesday to find out if his J Car Development team would get a $3 million loan from the city's Job Enhancement Fund — one of the final pieces of the financial puzzle Benedict needed to move forward with his $13.5 million development plan for the old Gordon Hotel/Water Gas & Light Building at 207 Pine Ave. — had a front-row seat for the sometimes tragicomedy that is an Albany Commission meeting.

After being questioned about the structure of the building, getting a history lesson from Ward VI Commissioner Tommie Postell, who operated elevators at the old Gordon when he was a youngster, having to sit through a rehash of the process that led to the redevelopment plan, and then hearing a citizen, William Wright, insist that the loan approval be put off for 30 days and follow up with pontification on how "hotel jobs" are not good jobs because members of his family had worked at hotels, Benedict got his loan and said work will start on the 207 Pine building "in the next few days."

The developer said his company would begin work on the data center that is part of the development with plans to have it operating within 90 days. His team, he told commissioners, will manage the data center.

"It's a business that we're doing elsewhere right now, but we plan to consolidate it here," Benedict said. "We've had a pilot program going for the last four months, and it's worked really well."

Benedict said the second floor of the 207 Pine building will be used for the data center.

"There's a fair amount of infrastructure work that has to be done before we move in," he said. "We're going to put advanced cooling technology in there and get a new server in place. Once we take care of those things, we'll move pretty quickly."

Ward V Commissioner Bob Langstaff, noting that a significant amount of the funding plan for the development comes from EB-5 funding, asked Benedict if he had a contingency plan if that funding source fell through.

"We feel like we're in a high priority position for that funding," Benedict said of the government fund that is paid by employers who bring foreign workers into the country. "It's about creating local jobs, and not only will we be doing that, we'll be training students at Albany State University for technology jobs that will keep them here in the community."

The developer said, though, that if that particular funding source, estimated at $5 million of the project cost, doesn't come through, he has a contingency plan in place.

"We, essentially, have four funds that we're working with that are looking for projects like these," he said. "We're not concerned that funding will be an issue."

Benedict said he sees no reason why development of the project cannot move according to the schedule presented in the project plan. That schedule calls for the data center to begin operations in July, closing on the property in August, permitting approvals in October or November, a groundbreaking and construction commencement in December or January, and a grand opening in January 2021.

"Things look good; we're excited about this project," he said. "It looks like we're squarely in the sweet spot for opportunity zone investment. Our team is ready to begin the day-to-day work on the project; in fact, one of the lead team members will be moving to Albany real soon." -- April 10, 2019 Albany Herald article

BrightFarms (Greene County, New York) -- The company is building a greenhouse in an Opportunity Zone created by the Tax Cuts and Jobs Act:

BrightFarms Inc. is looking at sites in Greene County and surrounding areas to build a 280,000-square-foot greenhouse, enabling the company to supply supermarkets in the Albany region and Hudson Valley with its packaged lettuce, baby spinach and other produce.

The goal is to break ground by the end of this year and open in the second or third quarter of 2020.

The $21 million greenhouse would employ 55 people and mark the latest expansion for BrightFarms, a Westchester County firm with four greenhouses in four states.

The strategy is to build hydroponic greenhouses outside large metropolitan areas, where land is relatively affordable and nearby cities are easily reached by highways.

BrightFarms is able to get its produce to markets faster than larger growers who ship from southern California, Arizona and Mexico. The system extends the shelf life and provides a fresher alternative, said Paul Lightfoot, founder and CEO.

"We are essentially bringing local produce to supermarkets in a commercial scale," Lightfoot said. "People want to know where their food comes from."

BrightFarms products are sold at large chains such as Walmart, Kroger and Albertsons.

BrightFarms doesn't disclose revenues but last August it made the Inc. 5000 list of fastest-growing private companies, the only produce company on the list.

Two years ago the startup raised $30.1 million in Series C funding to expand.

BrightFarms talked to the Greene County Industrial Development Agency about building a greenhouse south of the village of Catskill between the Hudson River and Route 9W, according to the minutes of the last IDA meeting.

The location is in an Opportunity Zone, making investments there eligible for lucrative federal tax credits, but there are "significant issues" due to the topography, access and railway, according to the minutes.

An alternative site was suggested but wasn't disclosed in the minutes. Rene VanSchaack, executive director of the IDA, declined to comment because the discussions are "very preliminary at this point."

Lightfoot didn't specify the locations but said BrightFarms is exploring "multiple counties in the area and still open-minded to proposals."

He wants to find municipalities "that want us and hopefully provide some incentives, and where we feel we can operate in an economically favorable climate." -- March 8, 2019 Albany Business Review article

Empire Recycling (Utica, New York) - Employee quarterly bonuses increased by 50%:

Congresswoman Claudia Tenney (NY-22) toured Empire Recycling to see firsthand the important work Empire Recycling has done for our community over the past 100 years. On the tour, the Kowalsky brothers informed Rep. Tenney that as a direct result of the Tax Cuts and Jobs Act, Empire Recycling’s quarterly bonus given to their employees increased by 50%.  - May 2, 2018, Rep. Tenney press release 

RXR Realty (Brooklyn, New York)-- Launched a fund to invest money in Opportunity Zones:

“The fundraising efforts could help fund the company’s existing developments in designated census areas, like its $170M project in New Rochelle or redevelopment efforts in the Brooklyn Navy Yard.” -- October 24th, 2018, Opportunity Zones Database

Starwood Capital and AB Capstone (New York City, New York) -- The partnership is building a mixed-use property that will host a charter school and a 992-unit affordable housing development that is located in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Starwood Capital and AB Capstone have landed a $51 million construction loan for the development of 425 Westchester Avenue in the Bronx, Commercial Observer has learned.

Centennial Bank provided the debt in a deal arranged by  Newmark Knight Frank’s Dustin Stolly, Jordan Roeschlaub, Nick Scribani, Chris Kramer and Drew Ahlers.

The 10-story, mixed-use property will be anchored by a charter school that’s operated by Zeta Charter Schools. The building sits directly opposite La Central, a 992-unit affordable housing development owned by Related Companies and Hudson Companies.

The rest of the building will house office and ground-floor retail space. Starwood and AB Capstone are currently negotiating with a non-profit organization interested in leasing the office space in its entirety.

The property is Starwood’s first Opportunity Zone investment, as reported by The Real Deal last year. -- April 2, 2020, Commercial Observer Article.

Lionsgate (New York City, New York) -- The movie production company is building a new movie studio in an Opportunity Zone created by the Tax Cuts and Jobs Act:

Real estate development firm National Resources of Connecticut and U.K.-based asset management firm Great Point Capital Management have secured financing for the first phase of the studio complex, estimated to cost $60 million.
 
Construction of the complex will consist of a $100 million investment across two phases. It's expected to create up to 420 new jobs in Yonkers, according to National Resources.
 
Plans for the development call for the construction of 70,000 square feet of studio space and 38,600 square feet of additional space next to the former Otis Elevator Co. building in Yonkers' iPark Hudson in Getty Square.
 
Lionsgate's studio will be located near the former Yonkers Herald Statesman building and the recently completed Avalon Yonkers apartment complex on Alexander Street.
 
IPark Hudson is owned by National Resources. CIT Bank has provided a $40 million construction loan to fund the first phase of the project.
 
Robert Halmi, the founder of Hallmark Channel and manager of Great Point Capital, said the loan closed on March 31. Financing for the first phase of the project includes $10 million in federal Opportunity Zone financing and an additional $10 million in equity financing.
 
"We are hoping to break ground in four weeks," Halmi said. "But if we have to delay another two weeks from there or another four weeks from there, we will add crew and work overtime to make sure the first phase still opens around the end of this year." -- April 13, 2020 The Journal News article

Golf Technology (Buffalo, New York) -- The company announced they will be building a golf entertainment complex in an Opportunity Zone created by the Tax Cuts and Jobs Act:

It's tee time on the riverfront in downtown Buffalo – on Noah's Ark.

The group planning a new entertainment complex on Ganson Street, not far from Buffalo RiverWorks, unveiled details Friday of the $30 million golf-focused project, which the developers – including OnCore Golf Technology CEO Keith Blakely and RiverWorks co-founder Doug Swift – hope will set a new standard for such facilities worldwide.

Designed to fit on a small urban space, officials said the new OnCore Buffalo facility is envisioned as a year-round sports and hospitality venue, aimed at golfers and others, of all ages and demographics.

The OnCore Buffalo project is the latest in a string of developments along Buffalo's waterfront, particularly along the once-polluted Buffalo River, where environmentalists and city officials have worked to both restore the natural habitat and make Ohio Street more attractive for investment.

Starting with RiverWorks on Ganson several years ago, followed by a pair of new apartment buildings on Ohio, and more recently the additional spinoff projects on neighboring streets, the area is rapidly becoming a destination for sports, recreation, entertainment and dining, alongside the growing residential presence.

“It's a natural next step for the trajectory that Buffalo is on, and for where the Buffalo River is going," Swift said. “These kinds of projects are going to keep coming. It's the wave of the future."

At a time of declining interest in golf nationally, the new venture is intended to lure new people to the sport, and is also geared to attract corporate meetings, private parties and other events. At $40 to rent a bay for one hour, for up to six people, it's also meant to be affordable.

It will feature a long driving range with 72 stacked hitting bays on a four-story structure, topped by a six-story hotel with at least 120 rooms, a sports bar and restaurant, and meeting space. The artificial turf range, with 11 bright-red target greens, will be enclosed by a giant wall of tensile fabric and polyester mesh netting across a lightweight steel frame to keep the balls inside, and to shield golfers from the elements. The building will be heated, but the range will not be completely covered.

The entire ship-shaped complex – a tribute to Buffalo's maritime history – will be supported on piers above a level of covered parking underneath, for 225 vehicles. Pedestrians in the parking area will be able to look up through the ceiling to see the balls coming onto the greens. Additional surface parking will also be available for another 125 spaces.

The project will encompass about 4 acres of a 7-acre brownfield parcel, leaving plenty of additional room for future development, including along the Buffalo River and a 550-foot concrete wharf.

The project is fully funded, and Blakely and Swift hope to start construction next year, with an opening in 2021 after 12 to 16 months of work. It will likely qualify for state brownfield tax credits, and is located in a qualified opportunity zone, but the team is not seeking other public funding. -- September 21, 2019 Buffalo News article

Dayton T. Brown Inc. (Bohemia, New York) -- $400 bonuses for each of the 210 employees:

A small Bohemia company is following the lead of large corporations that are passing on some expected savings from tax reform to employees in the form of bonuses.

Dayton T. Brown Inc., an engineering and testing company, is giving each of its roughly 210 employees a $400 bonus, Steve Marini, chief financial officer, said Friday.

President Donald Trump signed the tax overhaul bill into law Friday. The bill lowers the corporate tax rate in 2018 to 21 percent from 35 percent.

All of Dayton T. Brown’s full- and part-time employees will receive the bonuses, likely in January, Marini said.

“We’re going to save a significant amount of money on this new tax law and . . . certainly, we’re nothing without our employees,” Marini said.

The inspiration for the bonus was AT&T’s announcement Wednesday that it was giving its employees $1,000 bonuses, Marini said.

Dayton T. Brown, founded in 1950, is a private company that primarily serves the aerospace and defense industry. Its largest customers are the U.S. Navy, Sikorsky Aircraft Corp. and Northrop Grumman.

It has 170 employees in Bohemia. The rest work in Shelton, Connecticut, and Lexington Park, Maryland. -- Dec. 22, 2017 Newsday article excerpt

Finger Lakes Distilling (Burdett, New York) -- Used new savings from the Tax Cuts and Jobs act to hire more employees. 

"It's meant tens, if not hundreds of thousands of dollars to our business over the last couple of years," said Brian McKenzie, president of Finger Lakes Distilling, who makes various spirits and also has a winery license for his vermouth brand. McKenzie chose to put the extra cash into hiring people in sales and marketing. He added staff, and reports that his sales were up 25 percent this year. "All of a sudden we've invested in those jobs, and it's helped our business considerably," he said. -- November 8, 2019 Wine Spectator article

Environmental Construction Group, Inc. (Albion, New York) -- $500 bonuses for 50+ employees:

Environmental Construction Group, Inc. a small company from Albion, NY gave every one of their 50+ employees a $500.00 bonus. Employees were notified of this bonus the Friday before Christmas and bonuses where paid the Friday before New Years. ECG appreciates the work this administration has done to promote such a positive outlook on this nation, and will try just as hard to continue to help our employees. Robert Gibbs, Environmental Construction Group, Inc.   

Brookfield Property Partners (Bronx, New York) -- The company made a $165 million purchase to create affordable housing:

“They plan to build about 1,300 residential units across seven buildings on the property, 30 percent of which would be affordable.” -- September 11th, 2018, The Real Deal

LiDestri Food and Drink (Rochester, New York) – Double-paycheck bonuses:

The Rochester based producer of food, beverages and spirits gave all of their 1,200 employees at each of their five U.S. facilities an extra full paycheck.

They were notified on Wednesday that their mid-month paycheck had been doubled, because of strong company performance and the recently approved federal tax legislation.

“When we learned that the recent tax cuts would provide the company with some unaccounted-for funds, we immediately thought it should be shared with our workforce,” said Co-President Stefani LiDestri. “It just so happened that it came together on Valentine’s Day, the perfect time to let our employees know how much they mean to us.”

She said that the recent federal tax cuts will provide some unaccounted for funds, and the company thought it should be shared with the workforce.

Locally, LiDestri has facilities in Fairport and at the Eastman Business Park. – Feb. 15, 2018 WXXI news article.

Suit-Kote Corporation (Cortland, New York) – Pay raises for 800 employees; increased 401(k) contributions:

Paul Walts is getting a raise this year, thanks to the GOP tax plan. So is Louis Morgan. So are about 800 other employees at Suit-Kote Corporation.

The Cortland paving company is doling out raises and retirement bonuses using money saved from the new Republican-led tax plan.

Walts, a dispatcher who's been with the company 14 years, has three kids in college. He plans to put money aside to help pay for their education.

Morgan, too, said he's going to save more and possibly take a vacation.

"You hear it's in the pipeline and you hope it's going to happen, but you don't know how much it's going to be," Morgan said regarding the raises. "I'm definitely looking forward to it."

Walts, Morgan and a few dozen other employees watched Thursday as President and CEO Frank Suits Jr. announced the wage hikes to media alongside U.S. Rep. Claudia Tenney.

The average raise, Suits said, will be about $1,400. The company also increased its 401K contributions by about $1 million. – Feb. 22, 2018 The Post-Standard article excerpt

Sun Community News and Printing (Elizabethtown, New York) – Raises for all employees averaging $1,000 each; restoration of 2% match on employee IRAs; software and equipment upgrades:

“Sun Community News and Printing a small rural, free weekly newspaper serving the Adirondack Region of New York State is proud to announce as a result of the recent tax cuts and the uptick in the economy we have announced raises for all employees averaging approximately $1,000 each and will now be in a position to resume our 2% match to employees IRA accounts.

The combination of these two announcements will total approximately $75,000 for our 50 employees.

We will also now be in a position to invest in some long overdue software and equipment upgrades to smooth out production flow and further support our customers and employees.

It feels good to get our economic engine running again and create a winning attitude for our small firm.” – Dan Alexander, President and Publisher, Sun Community News and Printing

Starwood Capital Group and AB Capstone (Bronx, New York) -- The firm is developing a mixed-use facility within a Bronx Opportunity Zone:

“... the 10-story development will be anchored by a pre-K through eighth grade school, run by Zeta Charter Schools. The building will include office space for a non-profit and ground-floor retail….

The facility will have modern finishes, state-of-the-art classrooms, a double-height gym, floor-to-ceiling windows, open plan offices and more than 11,000 square feet of outdoor space...

“The Bronx is New York City’s fastest growing borough and we see continued opportunity to help bring new investment in the services, schools, office space and retail that have long contributed to the Bronx being such a vibrant community,” says Anthony Balestrieri, SVP and leader of Starwood Capital Group’s Opportunity Zone investment strategy.” -- May 10th, 2019, Globe St. 

Lok-N-Logs, Inc., I Wood Care, and Webb Properties (Sherburne, New York) –  Employees working for a year or more received a double paycheck; those working less than a year also received a bonus.

Northco Products, Inc. (Albany, New York) – This small business was able to hire one new employee, give all employees bonuses ranging from $100 - $971 after taxes; the company is also investing in a new building: 

The opportunity to do better for our employees and business was an exciting event. We took a leap of faith that congress would pass the historic tax reform. In doing so, we were able to hire one new employee, and give all of our employees bonuses including our intern, who is involved in a local high school’s program for students with autism. These bonuses varied from $100 to $971 (after tax based on the duration of their employment with us. On top of  this, we decided to invest in a new building and name for the business. The building we chose is the former headquarters of our family business. Moving into this new building will provide our employees with more space and higher quality work environment and location. The name we chose also ties in with our roots as a successful and respected family business. The Historic Tax Reform presents us with the opportunity to rebuild a once-great family-focused business, Standard Copy. -- AJ Crandall, President, Northco Products, Inc.

Henry Schein, Inc. (Melville, New York) -- $1,000 bonuses:

Taking into account changes to the federal statutory tax rate under the new U.S. tax legislation and its effects on state taxes and other permanent items, the Company expects its effective tax rate in 2018 to be in the 24% range. In recognition of our team members, following the recent U.S. Tax Cuts & Jobs Act, Henry Schein plans to distribute  up to a $1,000 one-time cash bonus to certain designated staff members in the U.S. with one full year of service as of January 1, 2018. – Feb. 20, 2018 Henry Schein, Inc. statement

JetBlue (New York, New York) – $1,000 bonuses for all 21,000 employees:

Today the JetBlue (NASDAQ: JBLU) Senior Leadership Team shared the following note regarding the airline’s plan to distribute $1,000 to all of its 21,000 crewmembers, excluding CEO and executive vice presidents, following recent tax reform legislation:

Dear Crewmembers,

You’ve likely seen the news about U.S. tax reform. We believe these tax changes will be positive for our company, and provide us the opportunity to do good things for our Crewmembers, Customers and shareholders.

When tax reform looked like a real possibility late last year, we formed a team to think through what it could mean for each of these important groups. Many ideas are on the table but we believe our Crewmembers should be the first to benefit. With that in mind, we are excited to announce we will be paying every Crewmember employed as of December 31, 2017, a $1,000 bonus by the end of February! – excerpt from Jan. 4, 2018 JetBlue letter to employees

Small Business Development Center at York College (Southeast Queens, New York) -- has given $30M in loans to opportunity zone businesses in Southeast Queens.

“Although most of the discussed EOZ development has been on real estate, there are some investors interested in opportunity zone businesses.

Harry Wells, Regional Director of the Small Business Development Center at York College/CUNY and Demond Wilkerson, Asset Management Consultant for SBDC highlighted the importance of leveraging the local institutions to build business capacity while planning for sustainability.

“Our SBDC center has done $30M in loans to businesses in Southeast Queens,” Wells said.” -- June 28th, 2019, NY State Senator James Sanders Jr. Page, ‘Economic Opportunity Zones Highlighted at Sanders' Community Clergy Breakfast’

BNB Bank (Bridgehampton, New York) – Base wage raised from $13 to $15; additional pay raises:

Separately, Bridgehampton-based BNB Bank said it was increasing its minimum wage from $13 to $15 in light of the lower corporate tax rate. The bank added that it was also increasing wages for employees in the tier above that. About 100 employees, or 20 percent of the bank's workforce, will see an increase, BNB said. – Jan. 30, 2018 Newsday article excerpt

Broadridge Financial Solutions (Lake Success, New York) – Base wage raised to $15 per hour; $1,750 bonuses to non-management employees, additional vacation days, expansion of paternal leave benefits:

Broadridge Financial Solutions on Wednesday said it was boosting workers’ pay, delivering bonuses and expanding employee benefits as a result of strong company growth and the recent federal tax law changes.

Lake Success-based Broadridge said its minimum hourly wage will increase to $15 per hour. It will also pay a $1,750 bonus to hourly, nonmanagement associates.

Broadridge added that it was enhancing employee benefits, including adding vacation days for employees who have been at the firm at least five years. It was also expanding paternal leave benefits.

Daly said about 1,000 employees on Long Island would earn the bonus. He said about 50 employees in the region would see a pay increase because of the higher minimum.

“The vast majority on Long Island already are over $15,” Daly said, adding that the company’s minimum “had been as low as $12 in some places.”

The bonuses will be paid around midyear while other benefits will be phased in throughout the year, the company said.

Broadridge has more than 10,000 employees in 16 countries, including about 1,800 in Lake Success and Edgewood. – Feb. 7 2018, Newsday article excerpt

Dime Community Bancshares, Inc. (New York, New York) -- $1,000 bonuses for non-executive employees.

Empire National Bank (Islandia, New York) – salary increases; 401(k) match increases; $1,000 bonuses for non-executive employees:

Empire National Bank is increasing salaries by 5 percent, upping its 401(k) match program and giving all nonexecutive employees $1,000 bonuses as a result of the benefits derived from the recent federal tax overhaul. – Jan. 30, 2018 Newsday article excerpt

Atlas Air Worldwide (Purchase, New York) -- $1,000 bonuses to 3,100 employees

“In appreciation of your significant efforts, the Company will be providing a special one-time bonus payment to all full-time flight and ground staff employees below the officer level. We are pleased to offer this bonus to our flight crew employees as the Union is in agreement. This bonus will be funded by a tax refund that the Company expects as a result of the newly enacted U.S. tax law.

The $1,000 bonus will be provided in early January and is subject to applicable federal, state and local withholding taxes.” – Atlas Air Worldwide CEO William J. Flynn in a letter to employees

National Fuel Gas Distribution Corporation  (Williamsville, New York) -- The utility is passing along tax cut savings to customers:

On December 29, 2017, the Commission issued an Order Instituting Proceeding to address utility rate effects of the tax law changes required by the Tax Cuts and Jobs act od 2017 (Tax Act), which was enacted on December 2017. The Tax Act made significant changes to the federal income tax structure that materially impact the tax liabilities of New York's utilities, including a 40% reduction of the corporate income tax rate from 35% to 21%. The 2017 Order expressed the Commission's intent that ratepayers should receive the net benefit of the Tax Act's changes, and established a process to ensure that outcome." -- August 9, 2018, New York Public Service Commission Meeting

Everett J. Prescott Inc. (New York locations in Buffalo, Round Lake, and Syracuse) – $1,000 bonuses for employees with more than a year of service, $250 for employees with less than a year:

A Maine company says 300 employees will receive bonuses following changes to the federal tax code enacted at the end of 2017.

Everett J. Prescott Inc., a Gardiner-based waterworks materials company, says the bonuses will arrive Monday. The Kennebec Journal reports CEO Peter Prescott said Friday that many employees will receive a $1,000 bonus.

He says employees with less than a year of service will still receive a $250 bonus.

The family-owned company employs about 300 people across 26 locations in New England, New York, Ohio and Indiana. Prescott says the average tenure of an employee is 20 years. – March 5 2018, WABI article excerpt

ES Bancshares, Inc. (Newburgh, New York) -- $500 bonuses to non-executive full-time employees; $250 bonuses to part-time employees; creation of at least ten new jobs; further business expansion:

ES Bancshares., Inc the parent company of Empire State Bank, announced December 21, 2017 that due to the signing into law the tax reform legislation which provides a reduction of corporate tax rates from 35% to 21% , it will be investing into its most valuable asset, its employees. Empire State Bank has provided a one-time bonus of $ 500.00 to its full time and $ 250.00 to its part time employees. Executive management was excluded.

'We are happy to share the benefit with our employees who continue to provide outstanding service to our customers, as well as our shareholders who will see this benefit fuel the continued growth and bottom line results,' said Philip Guarnieri, CEO. 'We will be adding at least 10 new jobs and expanding our footprint in the Staten Island and Brooklyn communities,' said Thomas Sperzel, President and COO. – Jan. 2 2018, ES Bancshares, Inc. press release  

Flushing Financial Corporation (Uniondale, New York) -- $1,000 bonuses for full-time employees; $500 bonuses for part-time employees:

Flushing Financial Corporation (the "Company") (NASDAQ:FFIC), the parent holding company for Flushing Bank (the "Bank"), announced that the Company's Board of Directors approved a plan to increase the dividend in 2018 by two cents per share per quarter and provide each full-time and part-time employee with a one-time bonus, of $1,000 and $500 respectively, as a result of the benefits derived from the recent tax reform. – Jan. 22, 2018 Flushing Financial Corporation press release

Financial Institutions, Inc. (Warsaw, New York) – $500 bonuses:

“Recent tax reform will reduce our federal income tax rate in 2018 and provide opportunities to strengthen relationships with our most valued partners our employees, our customers and the communities in which we operate. The first action taken was a one-time award of $500 to employees not covered by certain incentive programs. Approximately 70% of our employees will receive this award, and they will also be eligible to participate in a new profit-sharing program to be based on the Company’s 2018 performance.” – Jan. 29, 2018 Financial Institutions, Inc. filing

Corning Natural Gas Corporation (Corning, New York) -- The utility is passing along tax cut savings to customers: 

On December 29, 2017, the Commission issued an Order Instituting Proceeding to address utility rate effects of the tax law changes required by the Tax Cuts and Jobs act od 2017 (Tax Act), which was enacted on December 2017. The Tax Act made significant changes to the federal income tax structure that materially impact the tax liabilities of New York's utilities, including a 40% reduction of the corporate income tax rate from 35% to 21%. The 2017 Order expressed the Commission's intent that ratepayers should receive the net benefit of the Tax Act's changes, and established a process to ensure that outcome." -- August 9, 2018, New York Public Service Commission Meeting

JPMorgan Chase & Co. (New York, New York) -- Base wage raised for 22,000 employees, to a range of $15 to $18 per hour; 4,000 new jobs added; 400 new branches; increased charitable donations; increased small business lending: 

JPMorgan Chase today announced a $20 billion, five-year comprehensive  investment to help its employees, and support job and local economic growth in the United States. The firm has always believed that the highest and best use of its capital is to support employees and local communities and businesses by doing what a bank is supposed to do: lending and investing. This long-term investment, which both increases and accelerates the firm’s current growth, is made possible by the firm’s strong and sustained business performance, recent changes to the U.S. corporate tax system and a more constructive regulatory and business environment.

Through this new investment, the firm will develop hundreds of new branches in several new U.S. markets, increase wages and benefits for hourly U.S. employees, make increased small business and mortgage lending commitments, add 4,000 jobs throughout the country and increase philanthropic investment.

The investment brings together the best of the firm’s business and philanthropic efforts to drive inclusive economic growth and help create opportunity for more Americans.

The $20 billion investment will focus on the following key areas:

1. Investing in employees with further increases to wages and benefits. Wages will increase 10 percent on average—ranging from between $15 and $18/hour—for 22,000 employees.
2. Expanding the branch network into new U.S. markets, leading to increased small business lending and philanthropic investments, and further support for local low-and moderate-income communities.
3. Increasing community-based philanthropic investments by 40 percent to $1.75 billion over five years.
4. Increasing small business lending by $4 billion.
5. Accelerating affordable housing lending by (a) increasing mortgage lending in low-and moderate-income communities and (b) accelerating commercial lending to build affordable housing. – Jan. 23, 2018 JPMorgan Chase & Co. press release
    

M&T Bank Corporation (Buffalo, New York) – Base wage raised to $14 to $16 per hour based on location, a $25 million investment; employees receive 40 hours of paid time annually for volunteer/charitable/employee resource group activities:

M&T Bank Corporation (NYSE: MTB) ("M&T") today announced a series of investments to perpetuate its legacy of support for its employees and the communities the bank serves. M&T is making these investments in anticipation of the improvement in after-tax income it expects to recognize as a result of federal tax reform.

M&T is committed to the following actions:

• The company will increase wages for hourly paid employees. Their rate of pay will begin at $14 to $16 per hour, based on geography. This increase will represent an investment in employees of $25 million, once fully implemented. This is part of the company's thoughtfully considered and ongoing commitment to provide sustainable career paths and professional growth opportunities for all of its employees.
• All employees will be granted 40 hours of paid time each year to participate in volunteer and/or employee resource group activities of their choice.
• Over the past 31 years, The M&T Charitable Foundation has consistently invested in a diverse range of civic, cultural, health and human services organizations that strengthen M&T communities. To sustain that commitment, M&T contributed $50 million to The M&T Charitable Foundation during 2017—the largest amount in the company's history. By comparison, a total of $178.7 million was contributed by M&T to The M&T Charitable Foundation over the past 10 years. – Jan. 17, 2018 M&T Bank Corporation press release

Marsh & McLennan Companies, Inc. (New York, New York) – Base wage raised to $16 per hour; $1,000 bonuses for employees earning less than $55,000:

Marsh & McLennan Cos., the world's largest insurance brokerage, said it will increase its minimum wage to $16 per hour after the U.S. cut corporate tax rates.

U.S. colleagues earning $55,000 or less will get one-time $1,000 payment

The wage hike will benefit about 780 employees, while about 5,000 employees will get the one-time bonus, according to a memo sent to employees

"The bulk of the tax savings will drop into earnings and improved free cash flow. However, we will make two adjustments for colleagues in the U.S. who are at the lower end of our pay scale," CEO Dan Glaser said Thursday on a conference call with analysts. -- Feb. 1, 2018 Bloomberg News article excerpt

Consolidated Edison Company of New York, Inc. (New York, New York) -- The utility is passing  along tax cut savings to customers:

"On December 29, 2017, the Commission issued an Order Instituting Proceeding to address utility rate effects of the tax law changes required by the Tax Cuts and Jobs act od 2017 (Tax Act), which was enacted on December 2017. The Tax Act made significant changes to the federal income tax structure that materially impact the tax liabilities of New York's utilities, including a 40% reduction of the corporate income tax rate from 35% to 21%. The 2017 Order expressed the Commission's intent that ratepayers should receive the net benefit of the Tax Act's changes, and established a process to ensure that outcome." -- August 9, 2018, New York Public Service Commission Meeting.

Maspeth Federal Savings (Maspeth, New York) – $1,000 bonuses for all full-time employees below the AVP officer level, $500 bonuses for all part-time employees; base wage raised to $15 per hour.

Mastercard Inc. (Purchase, New York) – increasing employer match for 401(k) plans to 10%:

“Mastercard Inc., Purchase, N.Y., is increasing the cap on the employer match in its 401(k) plan to 10% of an employee's salary, a spokesman confirmed.

Previously, the company match was 125% of employee contributions up to 6% of salary.

Michael Fraccaro, chief human resources officer, announced the change in a LinkedIn post last week. He cited recent U.S. tax reform as the impetus for the change.” - Feb. 5, 2018 Pensions and Investments article excerpt

Bank of New York Mellon Corp. (New York, New York) -- Base wage raised to $15 per hour; upgrades to dozens of technology programs.

New York State Electric & Gas Corporation (Liberty, New York) -- The utility is passing along tax cut savings to customers:

"On December 29, 2017, the Commission issued an Order Instituting Proceeding to address utility rate effects of the tax law changes required by the Tax Cuts and Jobs act od 2017 (Tax Act), which was enacted on December 2017. The Tax Act made significant changes to the federal income tax structure that materially impact the tax liabilities of New York's utilities, including a 40% reduction of the corporate income tax rate from 35% to 21%. The 2017 Order expressed the Commission's intent that ratepayers should receive the net benefit of the Tax Act's changes, and established a process to ensure that outcome." -- August 9, 2018, New York Public Service Commission Meeting.

0. St. Lawrence Gas Company, Inc. (Massena, New York) -- The utility is passing along tax cut savings to customers: 

On December 29, 2017, the Commission issued an Order Instituting Proceeding to address utility rate effects of the tax law changes required by the Tax Cuts and Jobs act od 2017 (Tax Act), which was enacted on December 2017. The Tax Act made significant changes to the federal income tax structure that materially impact the tax liabilities of New York's utilities, including a 40% reduction of the corporate income tax rate from 35% to 21%. The 2017 Order expressed the Commission's intent that ratepayers should receive the net benefit of the Tax Act's changes, and established a process to ensure that outcome." -- August 9, 2018, New York Public Service Commission Meeting

Rochester Gas & Electric Corporation (Rochester, New York) -- The utility is passing along tax cut savings to customers:

"On December 29, 2017, the Commission issued an Order Instituting Proceeding to address utility rate effects of the tax law changes required by the Tax Cuts and Jobs act od 2017 (Tax Act), which was enacted on December 2017. The Tax Act made significant changes to the federal income tax structure that materially impact the tax liabilities of New York's utilities, including a 40% reduction of the corporate income tax rate from 35% to 21%. The 2017 Order expressed the Commission's intent that ratepayers should receive the net benefit of the Tax Act's changes, and established a process to ensure that outcome." -- August 9, 2018, New York Public Service Commission Meeting.

MetLife Inc. (New York, New York) – Base wage raised to $15 per hour; creation of a $10 million skills development fund; establishment of a minimum group life insurance benefit, enhanced 401(k) plan:

“As a result of tax reform, we are making a significant investment in our employees. We are enhancing pay and benefit programs and helping them develop skills that will make them more valuable members of our team,” said Chairman, President and CEO Steven A. Kandarian. “We are investing in their future and strengthening their long-term financial security with structural improvements that will endure. We are also channeling most of the benefits to employees at the lower end of the compensation spectrum.”

To help the company’s global workforce identify and acquire the skills needed to compete in the 21st century digital workplace, MetLife is establishing a Workforce of the Future Development Fund. The company will invest $10 million to accelerate a culture of learning and innovation.

For all eligible U.S. employees, MetLife’s enhanced programs include:

•Establishing a company minimum wage of $15 an hour, well above the federal minimum wage of $7.25 an hour.

•Establishing a minimum MetLife-provided group life insurance benefit of $75,000, regardless of the employee’s pay. Previously, the benefit was set at one times annual pay.

•Introducing a $300 minimum monthly credit for the cash-balance formula of the company’s defined benefit pension plan, also regardless of the employee’s pay. MetLife is one of a limited number of Fortune 50 companies that continues to provide its employees with both a defined benefit pension plan and a defined contribution plan to help them build secure retirements.

•Enhancing the 401(k) plan design by moving to auto-enrollment for employee contributions and immediate eligibility for, and vesting in, employer matching contributions. This is scheduled to take effect in 2019.

•Extending company-paid group legal services offered through MetLife’s Hyatt Legal Plans. Currently approximately one third of MetLife employees in the United States are enrolled in this voluntary benefit. With this change, legal services will be provided to MetLife’s 18,000 employees in the United States at the company’s expense.” – Feb. 12 2018, MetLife Inc. press release excerpt

NBT Bancorp Inc. (Norwich, New York) – Base wage raised to $11 to $15 per hour; minimum 5% salary increases for employees making less than $50,000; increased capital expenditures:

The Company will realize a reduction in tax expense beginning in 2018 due to Tax Reform decreasing the federal rate for corporations from 35% to 21%. As a result, the Company is raising the starting hourly pay rate of $11 to $15 per hour and employees earning $50,000 or less will receive a permanent minimum increase of 5%. This will positively impact over 61% of the Company’s workforce. Moreover, in 2018 the Company will be increasing both its investment in infrastructure to enhance customer-facing technology and contributions to nonprofit organizations in its footprint. – Jan. 23 2018, NBT Bancorp Inc. press release

American Express (New York, New York) -- $200 million additional investments for customer-facing growth initiatives; increased contributions to employee profit-sharing plans:

“Overall, we believe the Tax Act will be a positive development for both the U.S. economy and American Express. Given the momentum in the business and the anticipated benefit of a lower tax rate, we now expect to invest up to $200 million more in 2018 than we originally planned for customer-facing growth initiatives. We’ve also made an incremental contribution to our employee profit-sharing plans to support the long-term financial well-being of our employees. And, for shareholders, we expect to use the remaining anticipated benefits to build capital and support earnings growth in 2018. -- Jan. 18 2018, American Express press release

Pfizer Inc. (New York, New York) -- $100 million in tax reform bonuses for non-executive employees:

"The company also has allocated approximately $100 million for a special, one-time bonus to be paid to all non-executive Pfizer colleagues in first-quarter 2018." -- Jan. 29, 2018 Pfizer Inc. press release

Pioneer Credit Recovery (Arcade, New York) -- $1,000 bonuses for 800 employees.

PepsiCo, Inc. (Purchase, New York) -- $1,000 bonuses to full-time front-line U.S. employees:

For 2018, we will be aided by the financial benefits provided by the recent U.S. tax reform, which will allow us to make incremental investments to further fortify our business. For example, in 2018, we will provide a bonus of up to $1,000 to full-time front-line U.S.-based associates to reward and recognize their dedication and contribution to making our business better and stronger. And we will invest in training our global associates to arm them with the skills to succeed in tomorrow’s workplace. – Feb. 13, 2018 PepsiCo, Inc. Earnings Call Transcript

Verizon (New York, New York) -- Non-executive employees will receive 50 shares of restricted stock.

Evans Bancorp Inc. (Hamburg, New York) -- $1,000 bonuses to non-senior level employees; increased charitable donations:

Evans Bancorp, Inc. (the “Company”) (NYSE American: EVBN), a community financial services company serving Western New York since 1920, today announced a number of investments, continuing a pattern of support for its employees and the communities it has served and invested in for almost a century. These investments are being made in conjunction with expected improvements in after-tax income as a result of Federal tax reform in the Tax Cuts and Jobs Act.

Aligned with Evans Core Principles is Valuing Others, which leads the Company to commit to the following initiatives:

▪Evans will provide all of its non-senior level associates a $1,000 bonus in recognition of their superior efforts on behalf of the Company and as part of an ongoing focus on providing excellent career opportunities and top-tier employment.

▪The Company recently made a $300,000 contribution to its Foundation, the largest such contribution in its history. Disbursements from the Foundation are invested in not-for-profit entities to enhance the quality of life within Western New York.

▪Benefits provided by tax reform will also allow the Company to increase its returns to shareholders and provide additional investment in our community. Evans is currently researching initiatives that will be impactful and make a difference in the fabric of the community that is responsible for our success.

“With a nearly 100-year record of serving our communities, employees, customers and shareholders, these actions will expand our efforts even further,” stated David J. Nasca, President and CEO of Evans Bancorp. “As we will be directly benefiting from the tax reform, we believe that it is our obligation to share it with all of our stakeholders for the advancement of Western New York.”—Jan. 31 2018, New York Business Journal article excerpt

T.J. Maxx – 79 stores in New York – tax reform bonuses, retirement plan contributions, parental leave, enhanced vacation benefits, and charitable donations:

The 2017 Tax Act benefited the Company in the fourth quarter and full year Fiscal 2018. The Company expects to continue to benefit from the 2017 Tax Act going forward, primarily due to the lower U.S. corporate income tax rate. As a result of the estimated cash benefit related to the 2017 Tax Act, the Company is taking the following actions:

Associates

• A one-time, discretionary bonus to eligible, non-bonus-plan Associates, globally

• An incremental contribution to the Company’s defined contribution retirement plans for eligible Associates in the U.S. and internationally

• Instituting paid parental leave for eligible Associates in the U.S.

• Enhancing vacation benefits for certain U.S. Associates

Communities

Made meaningful contributions to TJX’s charitable foundations around the world to further support TJX’s charitable giving. – Feb. 28, 2018 The TJX Companies Inc. press release excerpt

Walmart – 100 locations in New York -- Base wage increased; pay raises; bonuses of up to $1,000. The company also expanded maternity and parental leave and now provides $5,000 for adoption expenses.

Cintas -- (multiple locations in New York) -- $1,000 bonuses for employees of at least a year; $500 for employees of less than a year.

AT&T --  $1,000 bonuses to 3,149 New York-based employees; Nationwide, the company has announced a $1 billion increase in capital expenditures thanks to tax reform:

Today, Congress approved legislation representing the first comprehensive tax reform in a generation. The President is expected to sign the bill in the coming days.

Once tax reform is signed into law, AT&T* plans to invest an additional $1 billion in the United States in 2018 and pay a special $1,000 bonus to more than 200,000 AT&T U.S. employees — all union-represented, non-management and front-line managers. If the President signs the bill before Christmas, employees will receive the bonus over the holidays.

“Congress, working closely with the President, took a monumental step to bring taxes paid by U.S. businesses in line with the rest of the industrialized world,” said Randall Stephenson, AT&T chairman and CEO. “This tax reform will drive economic growth and create good-paying jobs. In fact, we will increase our U.S. investment and pay a special bonus to our U.S. employees.”

Since 2012, AT&T has invested more in the United States than any other public company. Every $1 billion in capital invested in the telecom industry creates about 7,000 jobs for American workers, research shows. -- Dec. 20, 2017 AT&T Inc. press release

Apple (Apple store locations in Albany, Brooklyn, Buffalo, Elmhurst, Garden City, Huntington Station, Lake Grove, Manhasset, Nanuet, New York, Syracuse, Victor, White Plains, Yonkers) -- $2,500 employee bonuses in the form of restricted stock units; Nationwide, $30 billion in additional capital expenditures over five years; 20,000 new employees will be hired; increased support of coding education and science, technology, engineering, arts, and math; increased support for U.S. manufacturing.

Home Depot - 100 locations in New York, bonuses for all hourly employees, up to $1,000.

Comcast (Multiple locations in New York) -- $1,000 bonuses for frontline and non-executive employees. Nationwide, the company will invest an additional $50 billion-plus in infrastructure in next five years.

Chipotle Mexican Grill (138 New York locations) – Bonuses ranging from $250 to $1,000; increased employee benefits; nationally, $50 million investment in existing restaurants.

Lowe's -- 10,000 employees at 70 stores and one distribution facility in New York. Employees will receive bonuses of up to $1,000 based on length of service; expanded benefits and maternity/paternal leave; $5,000 of adoption assistance. 

Ryder (Twenty-two locations in New York) -- Tax reform bonuses for employees.

Starbucks Coffee Company (Multiple locations in New York) – $500 stock grants for all retail employees, $2,000 stock grants for store managers, and varying plan and support center employee stock grants. Nationally, 8,000 new retail jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave. 

U-Haul (Multiple locations in New York) – $1,200 bonuses for full-time employees, $500 for part-time employees.

FedEx (Multiple locations in New York) – Accelerated and increased compensation; pension plan contributions:

“FedEx Corporation is announcing three major programs today following the recently enacted U.S. Tax Cuts and Jobs Act:

• Over $200 million in increased compensation, about two-thirds of which will go to hourly team members by advancing 2018 annual pay increases by six months to April 1st from the normal October date. The remainder will fund increases in performance- based incentive plans for salaried personnel.
• A voluntary contribution of $1.5 billion to the FedEx pension plan to ensure it remains one of the best funded retirement programs in the country.
• Investing $1.5 billion to significantly expand the FedEx Express Indianapolis hub over the next seven years. The Memphis SuperHub will also be modernized and enlarged in a major program the details of which will be announced later this spring.

FedEx believes the Tax Cuts and Jobs Act will likely increase GDP and investment in the United States. – Jan. 26 2018, FedEx press release

Taco John’s (New York locations in Jamaica and Lindenhurst): All full-time and part-time crew members received a $200 after-tax bonus:

Taco John’s International, Inc. announced today that in response to the 2018 Tax Cut and Jobs Act, the company gave part of its projected tax savings to its restaurant crews, general managers, corporate staff and CORE (Children of Restaurant Employees).

On Friday, Feb. 23, Taco John’s International, Inc.’s employees received a one-time bonus, as follows:

• Every restaurant crew member - full-time and part-time - received $200 (after taxes);
• General managers and employees at the Taco John’s Franchisee Support Center in Cheyenne received $1,000 each; and,
• The Executive Council of Taco John’s International, Inc. (Vice Presidents and above) donated their $1,000 bonuses (a total of $10,000) to CORE, a national not-for-profit organization that grants support to children of food and beverage service employees who are navigating life-altering circumstances.
   

“At Taco John’s International, our team is our family, so sharing the financial benefits that were a result of the recent tax reform legislation only makes sense,” said Jim Creel, CEO of Taco John’s International, Inc. “We encourage other restaurant brands to follow our example and give a portion of their savings to the people that are at the heart of what we do and to great organizations like CORE that support our crew. One hundred percent of CORE’s funds directly benefit children of restaurant employees who have been afflicted with life-threating conditions.”

“We are so grateful to the Taco John’s team for their generous donation to our CORE family members,” said Lauren LaViola, executive director of CORE. “Donations like theirs help us provide for our food and beverage service families experiencing loss, illness and other life-changing circumstances, and help us get closer to our goal of helping even more families across all 50 states in 2018.”

The total amount that Taco John’s International, Inc. gave exceeded $150,000.00. – Feb. 28, 2018 Taco John’s International, Inc. press release

Loud & Clear Communications (New York, New York) -- Tax reform bonuses for employees.

Note: If you know of other New York examples, please email John Kartch at jkartch@atr.org

The running nationwide list of companies can be found at www.atr.org/list

Idaho is benefiting greatly from the Tax Cuts and Jobs Act enacted by Republicans in 2017:

140,670 Idaho households are benefiting from the TCJA’s doubling of the child tax credit.

Every income group received a tax cut. Nationwide, a typical family of four received a $2,000 annual tax cut and a single parent with one child received a $1,300 annual tax cut.

539,500 Idaho households are benefiting from the TCJA’s doubling of the standard deduction. Thanks to the tax cuts, nine out of ten households take the standard deduction which provides tax relief and simplifies the tax filing process.

31,460 Idaho households are benefiting from the TCJA’s elimination of the Obamacare individual mandate tax. Most households hit with this tax made less than $50,000 per year.

Lower utility bills: As a direct result of the TCJA’s corporate tax rate cut, Idaho residents are saving money on utility bills. Lower electric, water, and gas bills help households and small businesses operating on tight margins. For example, Idaho Power, Intermountain Gas, Suez Water Idaho Inc., and Avista (see below) all passed along tax reform savings to their customers.

Thanks to the tax cuts, Idaho businesses of all sizes are hiring, expanding, raising pay and increasing employee benefits:

Telaya Winery (Boise, Idaho) -- The winery hired more employees and improved its marketing because of the Tax Cuts and Jobs Act.

At Boise’s Telaya Winery, grapes are sorted by hand onto a conveyor belt heading to the destemmer. Owner Earl Sullivan said the big bunches of fruit need to be pulled apart or they can explode in the machine.

“It’s a product of the freeze we just had a couple days ago,” he said, “We’re just having to work a little bit harder to make sure the fruit is as clean as we want it.”

 Sullivan is also the chair of the Idaho Wine Commission Board. Today’s grapes are processed and barreled for aging, but won’t be bottled and taxed as wine for two years. That delay can make tax law changes difficult to prepare for. 

 “We spend several hundred thousand dollars per year on production for two years down the road, so the most likely impact in the short term would be a reduction in production,” Sullivan said. He also noted the winery has beefed up its hiring and marketing in the last two years while the tax rates have been lower. -- Oct. 22, 2019 Boise State Public Radio

Melaleuca (Idaho Falls, Idaho) – All 2,000 employees received a $100 bonus for each year they have worked at the company:

“We’re going to be able to have quite a few substantial dollars after taxes,”[CEO Frank] VanderSloot said. “I suspect we’re one of the largest taxpayers in the state, so we’re going to have some more dollars to spread around. That money should go to the people who built the company.” – Dec. 21, 2017 Associated Press article excerpt

Colling Pest Solutions (Idaho Falls) -- Tax reform bonuses for employees:

Representatives from an Idaho Falls-based pest control and lawn care company are traveling to Washington, D.C., this week to meet with President Donald Trump after the company gave its employees bonuses after Congress enacted tax cuts.

Colling Pest Solutions is sending six employees, including its owner, to the “American Workers for Tax Reform” event scheduled for Thursday afternoon at the White House.

The event recognizes small businesses throughout the country that have used tax cuts to benefit employees, whether through salary hikes or additional benefits. The company is paying for the employee’s travel to the event.

Over the past year, employees at Colling Pest Solutions have seen an 8 percent quarterly bonus due to anticipated benefits from recent tax cut legislation. Eligible employees also can receive child care assistance, where the company will pay 50 percent of costs for parents at a local child care center.

Tim Colling, owner of Colling Pest Solutions, believes it is his duty as an employer to pay added income from the business forward to his employees in order to maintain a competitive workforce. And he proposes other small businesses follow his company’s lead. -- April 9, 2018 Post-Register article excerpt

Ball Ventures (Idaho Falls, Idaho) - $100 bonuses for every year of employment.

DePatco, Inc. (St. Anthony, Idaho) - Tax reform bonuses for employees.

Mother Earth Brewing Company (Nampa, Idaho) -- The Tax Cuts and Jobs Act allowed the brewery to almost double their production, buy new equipment, and hire new employees:

Even the largest Idaho craft brewery has a fraction of that productivity. Mother Earth's Idaho brewery (the company has a second location in California) produced 10,000 barrels in 2018, the first year of the tax cut. This year, the brewery expects to produce 18,000 barrels, according to owner Daniel Love.

 ….

Mother Earth hired two new employees and bought two Unitanks, stainless steel fermenters, with the tax savings. -- Oct. 19, 2019 Idaho Press Article

Wigle Distillery (Pittsburgh, Pennsylvania) -- The distillery was able to save houndreds of thousands of dollars because of the Tax Cuts and Jobs Act, and was also able to hire three new distillers:

The Craft Beverage Modernization and Tax Reform Act reduced the excise tax rate on distilled spirits from $13.50 to $2.70 for the first 100,000 proof gallons per year, with smaller cuts to taxes on beer and wine.

“The tax relief, it’s well into the six figures for us,” said Meredith Meyer Grelli, co-owner at Wigle Distillery and Threadbare Cider & Mead in Pittsburgh. “Every dollar goes back into the business. And I think every small-business owner in the world can relate to that.”

Pittsburgh’s Wigle Whiskey Distillery produces a variety of small-batch whiskeys at its Strip District distillery. The 2017 tax relief allowed the business to immediately hire three distillers, Grelli said.

“It takes a year to train a new distiller, for them to be fully independent, safely operating a still,” she said. “So for every new distiller we bring on, we’re investing a year into them. If this tax relief went away and our taxes did go up 400%, we couldn’t grow our labor force in the same way. And we’d have to be much more careful about how we hired, because it is such a risk.” -- February 1, 2020 Pittsburgh Tribune-Review article

Idaho Power (Boise, Idaho) – The utility requested to pass along tax reform savings to customers:

Idaho Power has filed a settlement agreement with the Idaho Public Utilities Commission (IPUC) that, if approved, will result in reduced rates for customers within the company’s Idaho service area in 2018 stemming from recent federal and Idaho state tax rate changes.

According to an agreement between Idaho Power, IPUC Staff and the Industrial Customers of Idaho Power, customers will see a total benefit associated with reduced tax expense of $33.9 million, provided through: 1) a base rate reduction of approximately $18.7 million, 2) an additional $7.8 million decrease that will be provided through the 2018 Power Cost Adjustment mechanism, and 3) a non-cash annual benefit of $7.4 million in the form of an offset to other deferred costs.

If the proposal is approved by the IPUC as filed, the typical Idaho residential customer using 950 kilowatt-hours (kWh) of energy per month will see a monthly bill decrease of $2.15, beginning June 1. – April 13, 2018, Idaho Power Press Release

Intermountain Gas (Idaho Falls, Idaho) - The utility will pass along tax cut savings to customers:

State regulators have approved a rate decrease for customers of Intermountain Gas Company, to reflect the benefits of federal and state tax cuts.

The decision returns approximately $5.1 million to customers.

That is a 2.62-percent decrease for residential customers. It took effect June 1. - June 22, 2018 East Idaho News Excerpt

Suez Water Idaho Inc. (Boise, Idaho) - The utility will pass along tax cut savings to customers:

“A main feature of the tax law that took effect Jan. 1 was to reduce the federal corporate tax rate from 35 percent to 21 percent,” noted one such release, from the Idaho Public Utilities Commission. “Soon after the federal law took effect, Idaho Governor C.L. ‘Butch’ Otter signed into law House Bill 463, reducing the state’s corporate tax rate from 7.4 percent to 6.925 percent. Since a utility’s tax expenses are a factor in determining customer rates, the Commission directed all regulated utilities in the state with more than 200 customers to report the financial benefits of the law and how it planned to pass those benefits along to customers.”

Utility rate reductions are as follows:

Avista – 5.3 percent for electricity and 6.1 percent for natural gas

Idaho Power – 7.06 percent

Intermountain Gas – 2.62 percent

Rocky Mountain Power – 1 percent

Suez Water Idaho Inc. – 5.6 percent - June 19, 2018 Idaho Business Review Excerpt

AT&T -- $1,000 bonuses for 937 Idaho employees. Nationwide, $1 billion increase in capital expenditures:

Today, Congress approved legislation representing the first comprehensive tax reform in a generation. The President is expected to sign the bill in the coming days.

Once tax reform is signed into law, AT&T* plans to invest an additional $1 billion in the United States in 2018 and pay a special $1,000 bonus to more than 200,000 AT&T U.S. employees — all union-represented, non-management and front-line managers. If the President signs the bill before Christmas, employees will receive the bonus over the holidays.

“Congress, working closely with the President, took a monumental step to bring taxes paid by U.S. businesses in line with the rest of the industrialized world,” said Randall Stephenson, AT&T chairman and CEO. “This tax reform will drive economic growth and create good-paying jobs. In fact, we will increase our U.S. investment and pay a special bonus to our U.S. employees.”

Since 2012, AT&T has invested more in the United States than any other public company. Every $1 billion in capital invested in the telecom industry creates about 7,000 jobs for American workers, research shows. -- Dec. 20, 2017 AT&T Inc. press release

Avista – The utility will pass federal tax reform savings to customers:

Avista customers could collectively see a $50 million to $60 million annual benefit from federal tax reform, utility officials said Wednesday.

The savings on individual customers’ bills, however, won’t be known until later this year.

Corporate tax rates for the Spokane-based utility dropped from 35 percent to 21 percent effective Jan. 1. Savings from the lower taxes will get passed on to Avista’s utility customers in Washington, Idaho and Oregon, said Mark Thies, senior vice president and chief financial officer.

--

The anticipated $50 million to $60 million in annual savings is the result of the lower federal tax rate and changes to Avista's deferred tax liability related to depreciation costs. As the result of the depreciation changes, about $442 million will be returned to Avista customers over 35 years, Thies said. – Feb. 21 2018, The Spokesman Review article excerpt

Walmart – Idaho employees at 26 Walmart stores received tax reform bonuses, wage increases, and expanded maternity and parental leave. Walmart employees who adopt children will be given $5,000 to help cover expenses.

Home Depot -- 11 locations in Idaho: Idaho Falls, Meridian, Chubbock, Twin Falls, Coeur d'Alene, Eagle, Lewiston, Nampa, Ponderay, and two in Boise -- Bonuses for all hourly employees, up to $1,000.

Lowe's --1,000+ employees at eight store locations in Idaho: Idaho Falls, Boise, Coeur d'Alene, Twin Falls, Nampa, Pocatello, and two in Meridian -- Employees will receive bonuses of up to $1,000 based on length of service, for 260,000 employees; expanded benefits and maternity/parental leave; $5,000 of adoption assistance.

Ryder (Boise, Idaho) – Tax reform bonuses for employees.

Best Buy -- Six locations in Idaho: Nampa, Idaho Falls, Twin Falls, Coeur d'Alene, and two in Boise -- $1,000 bonuses for full-time employees; $500 bonuses for part-time employees. 

Cintas (Locations in Twin Falls and Nampa) -- $1,000 bonuses for employees of at least a year, $500 for employees of less than a year.

Taco John’s (Grangeville, Lewiston, Meridian, Mountain Home, Twin Falls): All full-time and part-time crew members received a $200 after-tax bonus:

Taco John’s International, Inc. announced today that in response to the 2018 Tax Cut and Jobs Act, the company gave part of its projected tax savings to its restaurant crews, general managers, corporate staff and CORE (Children of Restaurant Employees).

On Friday, Feb. 23, Taco John’s International, Inc.’s employees received a one-time bonus, as follows:

• Every restaurant crew member - full-time and part-time - received $200 (after taxes);
• General managers and employees at the Taco John’s Franchisee Support Center in Cheyenne received $1,000 each; and,
• The Executive Council of Taco John’s International, Inc. (Vice Presidents and above) donated their $1,000 bonuses (a total of $10,000) to CORE, a national not-for-profit organization that grants support to children of food and beverage service employees who are navigating life-altering circumstances.
   

“At Taco John’s International, our team is our family, so sharing the financial benefits that were a result of the recent tax reform legislation only makes sense,” said Jim Creel, CEO of Taco John’s International, Inc. “We encourage other restaurant brands to follow our example and give a portion of their savings to the people that are at the heart of what we do and to great organizations like CORE that support our crew. One hundred percent of CORE’s funds directly benefit children of restaurant employees who have been afflicted with life-threating conditions.”

“We are so grateful to the Taco John’s team for their generous donation to our CORE family members,” said Lauren LaViola, executive director of CORE. “Donations like theirs help us provide for our food and beverage service families experiencing loss, illness and other life-changing circumstances, and help us get closer to our goal of helping even more families across all 50 states in 2018.”

The total amount that Taco John’s International, Inc. gave exceeded $150,000.00. – Feb. 28, 2018 Taco John’s International, Inc. press release

Waste Management Inc. (Multiple locations in Idaho) -- $2,000 bonuses:

In light of the meaningful contributions of its employees and the new U.S. corporate tax structure, the company will distribute US $2,000 in 2018 to every North American employee not on a bonus or sales incentive plan; that includes hourly and other employees.

“We are about to get a tax benefit as our U.S. corporate tax rate goes from 35 percent to 21 percent. In considering how to best spend that, we wanted to find a way to help grow our economy, which in turn, will help grow our business, and give some of the tax savings back to those hardworking employees who do not get the opportunity to participate in our salaried incentive plans,” said Jim Fish, president and chief executive officer, Waste Management.

“So, we are offering each North American hourly full-time employee and salaried employee who does not participate in any sales incentive or bonus plan during 2018, a cash bonus of US $2,000 to show our appreciation to so many of our valued employees while growing our business and returning a good portion of the tax savings directly to the overall economy,” he continued. – Jan. 10 2018, Waste Management Inc. press release excerpt

Chipotle Mexican Grill (Chubbock, Nampa, Meridian, Twin Falls, Coeur d'Alene, and three in Boise) – Bonuses ranging from $250 to $1,000; increased employee benefits; $50 million investment in existing restaurants.

Comcast (Multiple locations in Idaho) -- $1,000 bonuses; nationwide, at least $50 billion investment in infrastructure in next five years.

Starbucks Coffee Company (67 locations in Idaho) – $500 stock grants for all retail employees, $2,000 stock grants for store managers, and varying plan and support center employee stock grants. Nationally, 8,000 new retail jobs; an additional wage increase this year, totaling approximately $120 million in wage increases, increased sick time benefits and parental leave.

T.J. Maxx – (Seven locations in Idaho: Boise, Coeur d'Alene, Idaho Falls, Lewiston, Nampa, Pocatello, Twin Falls) – Tax reform bonuses, retirement plan contributions, parental leave, enhanced vacation benefits, and increased charitable donations:

The 2017 Tax Act benefited the Company in the fourth quarter and full year Fiscal 2018. The Company expects to continue to benefit from the 2017 Tax Act going forward, primarily due to the lower U.S. corporate income tax rate. As a result of the estimated cash benefit related to the 2017 Tax Act, the Company is taking the following actions:

Associates

• A one-time, discretionary bonus to eligible, non-bonus-plan Associates, globally
• An incremental contribution to the Company’s defined contribution retirement plans for eligible Associates in the U.S. and internationally
• Instituting paid parental leave for eligible Associates in the U.S.
• Enhancing vacation benefits for certain U.S. Associates

Communities

Made meaningful contributions to TJX’s charitable foundations around the world to further support TJX’s charitable giving – Feb. 28, 2018 The TJX Companies Inc. press release excerpt

U-Haul (Multiple locations in Idaho) – $1,200 bonuses for full-time employees, $500 for part-time employees.

Dollar Tree, Inc. (Blackfoot, Boise, Burley, Caldwell, Chubbock, Coeur d'Alene, Eagle, Emmett, Idaho Falls, Jerome, Kuna, Lewiston, Meridian, Moscow, Mountain Home, Nampa, Oldtown, Payette, Pocatello, Ponderay, Post Falls, Rathdrum, Rexburg, Twin Falls) -- Increased base wages, enhanced benefits including maternity leave for qualifying employees and employee training, totaling $100 million nationwide.

Bank of America (Post Falls and Coeur d'Alene) -- $1,000 bonuses.

FedEx (Multiple locations in Idaho) – Accelerated and increased compensation; pension plan contributions:

FedEx Corporation is announcing three major programs today following the recently enacted U.S. Tax Cuts and Jobs Act:

• Over $200 million in increased compensation, about two-thirds of which will go to hourly team members by advancing 2018 annual pay increases by six months to April 1st from the normal October date. The remainder will fund increases in performance- based incentive plans for salaried personnel.
• A voluntary contribution of $1.5 billion to the FedEx pension plan to ensure it remains one of the best funded retirement programs in the country.
• Investing $1.5 billion to significantly expand the FedEx Express Indianapolis hub over the next seven years. The Memphis SuperHub will also be modernized and enlarged in a major program the details of which will be announced later this spring.

FedEx believes the Tax Cuts and Jobs Act will likely increase GDP and investment in the United States. -- Jan. 26 2018, FedEx press release

Gardner Company (Boise, Idaho) - Tax reform bonuses for employees.

GetFoundFirst.com (Idaho) - Tax reform bonuses for employees.

EastIdahoNews.com (Idaho Falls, Idaho) - Tax reform bonuses for employees.

Elite Roofing Systems (Idaho Falls, Idaho) - Tax reform bonuses for employees.

InUnison Inc. (Idaho Falls, Idaho) - Tax reform bonuses for employees. 

Elite Clinical Trials, Inc. (Blackfoot, Idaho) - Tax reform bonuses for employees.

Willow Creek Woodworks (Idaho Falls, Idaho) - Tax reform bonuses for employees.

Eagle Ridge Ranch (Island Park, Idaho) - Tax reform bonuses for employees.

McDonald’s (60+ locations in Idaho) – Increased tuition investments which will provide educational program access for 400,000 U.S. employees. $2,500 per year (up from $700) for crew working 15 hours a week, $3,000 (up from $1,050) for managers, and more:

McDonald’s Corporation today announced it will allocate $150 million over five years to its global Archways to Opportunity education program. This investment will provide almost 400,000 U.S. restaurant employees with accessibility to the program as the company will also lower eligibility requirements from nine months to 90 days of employment and drop weekly shift minimums from 20 hours to 15 hours. Additionally, McDonald’s will also extend some education benefits to restaurant employees’ family members. These enhancements underscore McDonald’s and its independent franchisees’ commitment to providing jobs that fit around the lives of restaurant employees so they may pursue their education and career ambitions.

The Archways to Opportunity program provides eligible U.S. employees an opportunity to earn a high school diploma, receive upfront college tuition assistance, access free education advising services and learn English as a second language.  

“Our commitment to education reinforces our ongoing support of the people who play a crucial role in our journey to build a better McDonald’s,” said Steve Easterbrook, McDonald’s President and CEO. “By offering restaurant employees more opportunities to further their education and pursue their career aspirations, we are helping them find their full potential, whether that’s at McDonald’s or elsewhere.”

Accelerated by changes in the U.S. tax law, McDonald’s increased investment in the Archways to Opportunity Program includes:

• Increased Tuition Investment:
  • Crew: Eligible crew will have access to $2,500/year, up from $700/year.
  • Managers: Eligible Managers will have access to $3,000/year, up from $1,050.
  • Participants have a choice for how they apply this funding – whether it be to a community college, four year university or trade school. There is no lifetime cap on tuition assistance – restaurant employees will be able to pursue their education and career passions at their own pace. The new tuition assistance is effective May 1, 2018 and retroactive to January 1, 2018.
• Lowered Eligibility Requirements: Increase access to the program by lowering eligibility requirements from nine months to 90 days of employment. In addition, dropping from 20 hours minimum to 15 hours minimum (roughly two full time shifts) per week to enable restaurant employees more time to focus on studies.
• Extended Services to Families: Extension of Career Online High School and College Advisory services to restaurant employees’ family members through existing educational partners Cengage and Council for Adult and Experiential Learning (CAEL).
• Additional Resources: Career exploration resources for eligible restaurant employees to be available later this year.
• Creation of an International Education Fund: Grants to provide local initiatives and incentives in global markets to further education advancement programs.
   

“Since its inception, Archways to Opportunity was meant to match the ambition and drive of restaurant crew with the means and network to help them find success on their own terms,” said David Fairhurst, McDonald’s Chief People Officer. “By tripling tuition assistance, adding education benefits for family members and lowering eligibility requirements to the equivalent of a summer job, we are sending a signal that if you come work at your local McDonald’s, we’ll invest in your future.”

After launching in the U.S. in 2015, Archways to Opportunity has increased access to education for over 24,000 people and awarded over $21 million in high school and college tuition assistance. Graduates have received college degrees in Business Administration, Human Resources, Communications, Accounting, Microbiology and more. – March 29, 2018 McDonald’s Corporation press release excerpt 

Wells Fargo (76 locations in Idaho) - Raised base wage from $13.50 to $15.00 per hour; $400 million in charitable donations for 2018; $100 million increased capital investment over the next three years.

Note: If you know of other Idaho examples, please email John Kartch at jkartch@atr.org

The running nationwide list of companies can be found at www.atr.org/list

The U.S. Department of Labor has released a final rule clarifying the difference between an independent contractor and a traditional employee under the Fair Standards Labor Act (FSLA). After implementation, this rule will protect freelancers by providing much-needed clarity and flexibility for American workers and businesses alike.

“This rule brings long-needed clarity for American workers and employers,” said U.S. Secretary of Labor Eugene Scalia. “Sharpening the test to determine who is an independent contractor under the Fair Labor Standards Act makes it easier to identify employees covered by the Act, while recognizing and respecting the entrepreneurial spirit of workers who choose to pursue the freedom associated with being an independent contractor.”

The rule includes several criteria designed to clarify whether or not a worker has independent contractor status. First, the rule contains an “economic reality” test to determine whether an individual works for himself or herself (as an independent contractor) or an employer (as an employee). 

Next, the rule identifies two “core factors” that help determine an individual’s status as an independent contractor or employee. The first is the nature and degree of control that the individual has over the work itself, such as the ability to set a schedule, choose assignments, or work with little or no supervision. The second is the opportunity for profit or loss based on the individual’s investment or initiative. 

In situations where the two core factors do not point to the same worker classification, the rule contains three additional guidelines to help determine an individual’s status, which are:

• The amount of skill required to do the work 

• The depth of working relationship between the individual and potential employer

• Whether or not the work is part of an “integrated unit of production,” i.e. if an individual works in a situation roughly equivalent to a production line. 

By clarifying the tests that determine whether or not an individual is an independent contractor or employee, this rule will simplify compliance for American businesses, reduce worker misclassification, and increase flexibility for American workers. ATR supports this rule.