june 2015 dicta - dallas association of young lawyers · dicta june 2015 from the president...

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THE DICTA

In appreciation and support of the young lawyers of Dallas,THOMSON WEST helps bring The Dicta to you.

Vol. 32, No. 6

June 2015

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June 9 (Tuesday)DAYL Breakfast with Business Peers7:30 a.m., Belo Mansion

June 9 (Tuesday)DAYL Lawyers Promoting Diversity Committee MeetingNoon, Belo Mansion

June 10 (Wednesday)DAYL ACE Committee MeetingNoon, Belo Mansion

June 10 (Wednesday)DAYL Lunch and Learn CLENoon, Belo Mansion

June 10 (Wednesday)DAYL Solo / Small Firm Round Table Happy Hour6:00 p.m., Stoneleigh P

June 11 (Thursday)DAYL Generation Generosity Service Event6:00 p.m., West Dallas Legal Clinic

June 12 (Friday)DAYL Freedom Run Committee MeetingNoon, Belo Mansion

June 16 (Tuesday)DAYL Elder Law Committee MeetingNoon, Belo Mansion

June 17 (Wednesday)DAYL Coffee with the Court8:00 a.m., George Allen Courthouse

June 18 (Thursday)DAYL Animal Welfare Committee MeetingNoon, Belo Mansion

June 18 (Thursday)DAYL Sailing Social and Gazebo Party6:30 p.m., White Rock Corinthian Sailing Club

June 23 (Tuesday)DAYL Solo / Small Firm CLENoon, Belo Mansion

June 24 (Wednesday)DAYL Equal Access to Justice Committee MeetingNoon, Belo Mansion

June 25 (Thursday)DAYL Wine Tasting6:00 p.m., Kettle Art Gallery

June 26 (Friday)DAYL Traveling Lawyers Informational SessionNoon, Belo Mansion

June 26 (Friday)DAYL CLE Committee MeetingNoon, Belo Mansion

June 27 (Saturday)DAYL Ask-A-Lawyer Clinic10:00 a.m., North Oak Cliff Library

June 29 (Monday)DAYL Solo / Small Firm Committee MeetingNoon, Belo Mansion

June 30 (Tuesday)DAYL Aid to the Homeless Committee Meeting7:15 a.m., Breadwinners Uptown

DAYL Sailing Social and Gazebo Partyn Thursday, June 18, 2015,DAYL members have theunique opportunity to attenda Social at the White Rock

Corinthian Sailing Club. From 6:30 –9:00 p.m., Adams & Martin Group,Anderson Jones, and Esquire Solu-tions will sponsor us for an evening atWhite Rock Lake. The Hamburger Manwill make an appearance and beverages

will be available. A few sailing boats willalso be available to those who wish totake a short cruise around the lake.

The White Rock Corinthian Sailing Clubis located just a short drive from down-town Dallas, at 441 E. Lawther Drive ineast Dallas. The cost to attend is $3.00for DAYL members and $10.00 for non-members. RSVP to Cherie Harris([email protected]).

DAYL Annual Wine Tasting Moves to a NewVenue in Deep Ellum

lan to attend DAYL's annualWine Tasting to be held onThursday, June 25, 2015,beginning at 6:00 p.m., at the

Kettle Art Gallery, 2650-B Main Streetin Dallas. Kettle Art Gallery is a Deep Ellumgallery that features local emerging artists. TheGallery is owned by Frank Campagna. Va-let parking will be available.

In addition to highlighting the worksof local artists currently on display at theKettle Art Gallery, the event will feature thewines and tastes of Spain. Also, the DAYLwill present the Young Lawyer Pro BonoService Award to Natalie Smeltzer, anassociate at Weil, Gotshal, and Manges

LLP. The Young Lawyer Pro Bono Ser-vice Award is an annual award that honorsa DAYL member who has shown a highcommitment to pro bono legal work andpublic service. The Wine Tasting raisesmoney for the Dallas Volunteer AttorneyProgram, which provides free legal ser-vices to indigent citizens of Dallas.

Tickets for the event are available for$30 in advance and $40 at the door. Gov-ernment employees, law clerks, law stu-dents, and interns may purchase ticketsfor $25 in advance and $30 at the door.

Visit www.dayl.com for ticket infor-mation or contact Cherie Harris([email protected]).

June 2015THE DICTA

From the President

Jonathan Childers

Charles Gearing, Editor

214-220-7420 l 214-220-7422 faxwww.dayl.comCherie Harris

Executive Director

DAYL BOARD OF DIRECTORS

OFFICERS F

Published monthly by theDALLAS ASSOCIATION OF YOUNG LAWYERS

2101 Ross AvenueDallas, Texas 75201

THE DICTA

Copy Deadline for July Issue:

June 15, 2015June 15, 2015June 15, 2015June 15, 2015June 15, 2015

Charles GearingCharles GearingCharles GearingCharles GearingCharles Gearing

Phone: 972-731-6500

Email: [email protected]

Articles in The Dicta are provided forinformational use only, and are in no

way intended to constitute legaladvice or the opinions or

views of the DAYL.

Jonathan Childers, PresidentStephanie Gause, President-Elect

Paul Simon, Vice PresidentJennifer Larson, Treasurer

Charles Gearing, SecretaryMeyling Ly, Imm. Past President

DIRECTORS

Alex BoltonStefanie Bradshaw

Ann ChaoJustin Gobert

Terry James, JLTLA RepresentativeAndrew JenkinsWhitney Keltch

Jennifer LeeJodi McShan, DHBA Representative

Timothy NewmanDustin PaschalBarbara Pelaez

Ayesha Rafi, DWLA LiaisonJohn Ting, DAABA Representative

EX OFFICIO

Rebekah Brooker, TYLA PresidentAaron Burke, TYLA DirectorAaron Capps, TYLA DirectorLance Currie, TYLA Director

Lacy Durham, ABA-YLD ChairBill Gardner, TYLA DirectorKrisi Kastl, Chair, Fellowsof the DAYL Foundation

Kevin Pierce, SMU Law Student Rep

Ten Tips for Beinga Superb SeniorAssociate

or associates who are in theirfifth year or more of law prac-tice, here are ten tips for ex-celling:

1. Make your supervising partner’slife easier and become indispensable.Practice with sufficient independence, ex-cellence, and confidence such that your su-pervising partner does not need to micro-manage you and relies upon you as an inte-gral team member. Run point successfullywhen your supervising partner is out ofthe office.

2. Prioritize and organize. Make a listof projects, update it daily, and prioritize theitems on the list. Work on projects that ad-vance the case/deal. Don’t spend majortime on minor things. Create blocks of timeto write briefs and deal documents. Dedi-cate specific times during the day to returne-mails. Be on time or early for every meet-ing or call.

3. Be a team player and communi-cate effectively. Seek to advance the part-ners and your firm – not just yourself – andopportunities will flow your way. Discuss yourgoals with your supervising partner, and askwhat you need to do over the next few yearsto achieve them. During busy times: insteadof knocking on your boss’s door, schedule atime to meet, write down your questions, andthen ask all questions at once.

4. Navigate the challenge of per-forming exceptional work and tryingto bring in business. Your first prioritymust be performing exceptional work forthe partners. During that process, maintainbusiness development efforts. Partners don’texpect you to have a huge book of busi-ness now, but they do expect you to havethe propensity to benefit the firm economi-cally.

5. Be polished; don’t appear disor-ganized or exasperated. It is not enoughthat you produce quality legal work, andthat your work contributes to court victo-ries or successful deals. You must appearorganized and smooth during the process. Askyourself: Are you handling yourself the waya partner would?

6. Become a trusted advisor to thepartners’ clients, and they will becomeyour advocate. If the partners’ clients likeyou and your work, that is the second mostimportant endorsement next to the part-ners liking you and your work.

7. Hone your elevator pitch and haveat least two sub-specialties. Summarizeyour law practice in 7 seconds, using lan-guage a business person will understand.Never say you practice “commercial litiga-tion” or do “transactions.” Instead, tellpeople exactly what you do.

8. Keep an open network, and workit. Don’t hoard contacts. Help others andconnect them with your contacts andfriends, and you’re guaranteed to have moremeaningful relationships, and as an indirectresult, to obtain more business.

9. Practice your management skills.If you are fortunate enough to work withparalegals or a legal assistant, delegate projectcomponents and supervise the process.Treat them well. Enter your time on time!Send your bills in a timely manner!

10. Be a good ambassador, and livelife in full. Be a firm ambassador both insideand outside of the office. Get involved in atleast one legal organization and one commu-nity non-profit, and represent your firm pro-fessionally and competently. Live life in full. In-corporate exercise and “down time” into yourweek. Both are essential for the mind, body,and spirit, and to practice law as a career.

June 2015 THE DICTA

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Dennis Siaw-Lattey Dennis Siaw-Lattey Dennis Siaw-Lattey Dennis Siaw-Lattey Dennis Siaw-Lattey has been se-lected as the June 2015 DAYL Oneto Watch! To find out why, visitwww.dayl.com.

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Managing Critical Mass – Law Firm Hiring & Growthhen your practice gets toobusy for you to managealone, it can be both a bless-ing and a curse. Join DAYL’s

Solo & Small Firm Committee at noonon Tuesday, June 23, 2015 at the BeloMansion to hear successful firm foundersdiscuss when they knew it was time forgrowth and how they navigated the

growth of their firm.Our panelists – James Holmes of

Holmes PLLC, Adam Fox of BrownFox Kizzia & Johnson PLLC, and AmyStewart of Amy Stewart PLLC – willdiscuss hiring, employee retention andmanagement, and developing referralsources. You’ll gain insight whether youare looking to make a hire or to be

hired. The panelists will also take ques-tions from the audience.

One hour of CLE credit will be avail-able to attendees. There is no charge forDAYL members to attend this program;the non-member fee is $10. Lunch is avail-able for purchase at the Belo Mansion.

RSVP to Cherie Harris([email protected])

Breakfast with Commercial Real Estate Business Peersoin DAYL for a Breakfastwith Business Peers event todiscuss commercial real es-tate at the Belo Mansion on

Tuesday, June 9th from 7:30 – 8:45 a.m.Thanks to the generosity of the must-callexpert witness and consulting servicesfirm Berkley Research Group(www.thinkbrg.com) and the support ofthe Texas Young Lawyers Association,

DAYL is hosting its second of a three-part free breakfast program as part of aseries this year featuring industry-specificpanelists and moderators to educate andenlighten interested DAYL members.

Attendees on June 9th will learnabout commercial real estate in Dallasfrom a panel featuring Katy Slade (De-velopment Director at Gables Residen-tial), Robert Baty (Director at Cushman

Wakefield), and Nathan Nash (Presidentat Nash Development Company, LLC).The panel will be moderated by DAYLPresident-Elect Stephanie Gause(Partner at Bell Nunnally & MartinLLP). Please join us for the free break-fast and stay to connect with young at-torneys and professionals interested in thereal estate industry. RSVP to Cherie Har-ris ([email protected]).

DAYL’s Traveling Lawyers Plans First Trip for October 2015

Join the DAYL on an exclu-sive vacation to the CrescentCity – New Orleans. Take abreak from work, meet in-

teresting people, indulge in Cajun andCreole cuisine, and explore the culturalheritage of New Orleans in the companyof fellow DAYL members this fall. An-ticipated activities include:

• A visit to the highly-acclaimedWWII Museum;

• An exclusive tour of the Fifth Cir-cuit Court of Appeals;

• An evening walking tour of NewOrleans haunted sites;

• A dinner jazz cruise on a steam-boat;

• A food tour of the French Quar-ter;

• An airboat tour to get an up-closeview of alligators;

• A social and service project withthe New Orleans young lawyers.

The trip is scheduled for October 22-25, 2015. We will keep the travel groupsmall. Thus, we expect spots to go quickly.

Significant others/spouses are welcome,but we ask that all guests be over the ageof 21. In order to finalize the reserva-tions, please indicate your interest by July15, 2015 by sending an email [email protected].

The DAYL Traveling Lawyers Commit-tee (TLC) will be holding an informationalsession at noon on Friday, June 26, 2015at the Belo Mansion, where a more detaileditinerary will be provided. If you wouldlike to attend the informational session,or if you want to reserve your spot forthe trip, or if you have any questions, con-tact [email protected].

A block of rooms is being reservedat the Astor Crowne Plaza located at thecorner of Canal and Bourbon Street sothat we will be able to enjoy the excite-ment of the French Quarter during ourstay. The Astor has provided us with aspecial group rate of $199/night basedon double occupancy. Pricing of eventsand attractions is still being negotiated, butplease note there will be additional costsassociated with optional daily activities.

Travelers are responsible for all costs as-sociated with this trip. Additionally, travelarrangements to and from New Orleanswill be left to each traveler. More infor-mation will be provided at the session onJune 26th and to those who indicate theirinterest via email by July 15th.

DDDDDAAAAAYL LYL LYL LYL LYL Leadership Classeadership Classeadership Classeadership Classeadership ClassApplication DeadlineApplication DeadlineApplication DeadlineApplication DeadlineApplication Deadline

June 8, 2015June 8, 2015June 8, 2015June 8, 2015June 8, 2015

Contact Cherie HarrisContact Cherie HarrisContact Cherie HarrisContact Cherie HarrisContact Cherie [email protected]@[email protected]@[email protected]

June 2015THE DICTA

PCLE on Jury Charge and Charge Conference

lease join DAYL on Wednes-day, June 10, at noon at theBelo Mansion for a lunch andlearn CLE on jury charges

and the charge conference. This CLE is in-strumental for all litigators and will coverwhat lawyers need to consider in prepar-ing a jury charge, how to handle a formal

and informal charge conference, error pres-ervation, and common mistakes that hurtyour case on appeal.

Our all-star panel consists of JudgeCraig Smith of the 192nd Judicial Dis-trict Court, Stephanie Nelson ofHankinson LLP, John Guild of GruberHurst Elrod Johansen Hail & Shank. The

panel will be moderated by ChadRuback of the Ruback Law Firm.

The program is free for DAYL mem-bers. Non-members may attend for $10.Parking is available at Belo, and lunch isavailable for purchase.

RSVP to Cherie Harris([email protected]).

DAYL’s Generation Generosity Committee Partners with DVAP

Almost every lawyer remem-bers their first big hearing: theanxiety of saying the wrongthing, the fear of making a

mistake, or even wondering where tostand. Now, imagine facing a courtroomwithout an advocate or understanding ofthe legal proceeding. Generation Gener-osity is teaming up with the Dallas Vol-unteer Attorney Program (“DVAP”) to

help address this issue. DVAP works toprovide free legal counsel to low-incomepeople in Dallas County. You can be apart of helping low-income Dallas resi-dent by helping to staff DVAP’s WestDallas Legal Clinic on Thursday, June11, from 6:00 - 8:30 p.m.

It’s simple—you listen to people talkabout their problems and take notes. Youdon’t need to practice any particular area

of the law, and you have no obligationto take a pro bono case. Plus, DVAP hasnumerous forms to help you ask the rightquestions. Later, DVAP will use your notesto connect individuals with volunteer attor-neys. After volunteering, we’ll head to din-ner in Trinity Groves, so block some timeafter the event so you can join us. ContactCherie Harris ([email protected]) toRSVP or to get more details.

New Labor and Employment Lawyers Mentor Program

On April 15, 2015, the DAYLYoung Employment andLabor Lawyers Committee(YELL) hosted a happy hour

and dinner to launch its new mentoringprogram for labor and employment at-torneys and area law students interested inlabor and employment law. The mentoringprogram aims to foster relationships be-tween labor and employment attorneysin the DFW area and law students at thethree area law schools who are interestedin labor and employment law.

We had a great turnout for the dinner.Thank you to all of the lawyers and stu-dents who attended and thanks also goesto the University of North Texas, SMUDedman, and Texas A&M law schools fortheir sponsorship of the event and toHaynes and Boone LLP for hosting us attheir law office.

The mentor program will officiallylaunch in the Fall of this year andwe will have a welcome happyhour in September. We are cur-rently seeking additional men-

tors. If you would like to participate orif you have questions about the program,contact Justin Gobert([email protected]),Lauren West ([email protected])and/or Janet Ismail ([email protected]). All participatinglaw students and lawyers must be DAYLmembers.

June 2015 THE DICTA

ODAYL New Judges Reception A Great Success

n Apr i l 30 , 2015 , theDAYL Judic iar y Com-mittee hosted its annualSocial with the Judges at

the City Club in Dallas. Young law-yers and judges from local state andfederal courts gathered and talked overfree drinks and light appetizers generouslyprovided by numerous law firm spon-sorships.

At the event, the judges who hadbeen appointed or elected in 2015were specially recognized. Addition-ally, a moment of silence was heldfor the late Judge James Martin ofthe 254th Family District Court ofDallas, who recently passed away.

On behalf of the DAYL JudiciaryCommittee, we would like to thankthe following judges who were in at-

tendance: Judge Roberto Cañas(County Criminal Cour t No. 10),Judge Danielle Diaz (AssociateJudge, 330th Family District Court),Justice David Evans (Fifth DistrictCourt of Appeals), Justice RobertFillmore (Fifth District Court ofAppeals), Judge Bonnie Goldstein(44th Judicial District Court), JudgeDewayne “Cooter” Hale (U.S.Bankruptcy Court for the NorthernDistrict of Texas), Judge Jim Jor-dan (160th Judicial District Court),Justice Douglas S. Lang (FifthDistrict Court of Appeals), JudgeSheryl McFarlin (Associate Judge,44th, 95th, 101st, 134th, 160th, and192nd Judic ia l Dis t r ic t Courts ) ,Judge Sally Lundberg Montgom-ery (County Court at Law No. 3),

Judge Regina Moore (AssociateJudge, 256th Family District Court),Judge Eric Moyé (14th Judicial Dis-trict Court), Judge Nancy Mulder(County Cr imina l Cour t No. 4) ,Judge Monica Purdy (AssociateJudge, 14th, 68th, 116th, 162nd, 191st,193rd, and 298th Judicial District Courts),Justice David Schenck (Fifth DistrictCourt of Appeals), Judge Douglas W.Skemp (County Criminal Court No.3), Justice Craig Stoddart (FifthDistrict Court of Appeals), JudgeKen Tapscott (County Court at LawNo. 4), Judge Staci Williams (101stJudicial District Court), Chief Jus-tice Carolyn Wright (Fifth DistrictCourt of Appeals), and Justice BillWhitehill (Fifth District Court ofAppeals).

June 2015THE DICTA

OCrawfest: Claws for a Cause a Success!

n Saturday, April 25, 2015,approximately 350 peopleattended Crawfest: Clawsfor a Cause, hosted by the

2014 DAYL Leadership Class. Theweather was sunny and provided a beau-tiful background to hours of fun andcracking open crawfish. Everyone put ontheir bibs and enjoyed live music by Buf-falo Ruckus and the Matthew Bell Band,Four Corners Brewery beer, games, andthe best crawfish in Dallas.

The 2014 Leadership Class raised ap-proximately $37,000 to donate to theNorth Texas Food Bank’s Food 4 KidsProgram. The Food 4 Kids Programfights child hunger by providing back-packs containing non-perishable, kid-friendly food for children in Dallas areaschools to take home on Friday after-noons. The program supports 330schools in Dallas, Denton, Collin, and

Rockwall counties and provides back-packs filled with food each weekend dur-ing the school year to approximately11,000 chronically hungry children. It costsjust $5 to feed a hungry child over theweekend through the North Texas FoodBank’s Food 4 Kids program. Each back-pack sent home includes roughly fourpounds of food and features items suchas milk, juice, fruit and cereal bars andtrail mix. The 2014 Leadership Class’donation will supply approximately 7,000backpacks to hungry children in Dallas.

In addition to the 2014 LeadershipClass’ fundraising efforts, the Class vol-unteered to pack backpacks of non-per-ishable goods on Saturday, May 30 at theNorth Texas Food Bank. Volunteers arealways needed to support the Food 4 Kidsprogram. If you are interested in volun-teering, contact [email protected].

The 2014 Leadership Class thanks all

attendees, sponsors, and vendors formaking Crawfest a huge success. In addi-tion to financial support, sponsors gen-erously donated items such as loaves ofbread, water, signage, koozies, wetnaps,chair and tables, silent auction items, bev-erages, and photography. Check out allof our incredible sponsors at http://www.daylcrawfest.com/current-spon-sors/.

The 2014 Leadership Class thanks itsmentors and emeritus mentors (LauraBenitez Geisler, Judge Roberto CañasJr., Rob Crain, Dena DeNooyer Stroh,Terry James, Karen McCloud, MarkMelton, Aaron Tobin, and RobertWitte) for all of their support and guid-ance while planning Crawfest. The 2014Leadership Class also thanks Cherie Har-ris, Jonathan Childers, and the DAYLBoard of Directors for the numeroushours of assistance and support.

June 2015 THE DICTA

June 2015THE DICTA

Welcome New Lawyers

The Dallas Association ofYoung Lawyers was pleasedto host its bi-annual Swear-ing-In Ceremony at the Belo

Mansion on May 12, 2015 for newly li-censed attorneys who passed the Febru-ary 2015 Texas bar exam. Over thirty-five attorneys were sworn in, many ofwhom were able to share the special event

with friends and family.DAYL would especially like to thank

Justice Craig Stoddart of the TexasFifth District Court of Appeals whogave an impassioned speech on “Car-rying the Torch” and who swore-in thenewly licensed attorneys. Special thanksare also given to Terry James of West& Associates, L.L.P. for his speech titled

“Godspeed” and to Aaron Burke ofHartline, Dacus, Barger, Dreyer L.L.P.for his introduction of Justice Stoddart.Many thanks to the DAYL Law Stu-dent Assistance Committee for planningthis event. The Committee looks for-ward to another successful swearing-inceremony for July bar exam takers in thefall.

DAYL's Ask-A-Lawyer Committee, DVAP, and J.L. Turnerare teaming up to provide free legal advice to the Dal-las community at the North Oak Cliff Branch Library(302 West Tenth Street, Dallas, TX 75208) on SaturSaturSaturSaturSatur-----daydaydaydayday, June 27 , June 27 , June 27 , June 27 , June 27 from 10:00 a.m. - 12:00 p.m. Law-yers are needed to provide advice about small claimscourt, landlord/tenant disputes, estate planning, andfamily law. Resources are provided. To volunteer orreceive emails about upcoming opportunities, contactLeslie Chaggaris Leslie Chaggaris Leslie Chaggaris Leslie Chaggaris Leslie Chaggaris at [email protected].

On WWWWWednesdayednesdayednesdayednesdayednesday, June 17, 2015, June 17, 2015, June 17, 2015, June 17, 2015, June 17, 2015, from 8:00 a.m. to9:00 a.m., the Honorable Mary BrownHonorable Mary BrownHonorable Mary BrownHonorable Mary BrownHonorable Mary Brown, PresidingJudge of the 301st Judicial District Court of Dallas County,Texas, will provide practice tips for the 301st on topicssuch as basic procedures for the 301st, dos and don’ts,and likes/dislikes. Judge Brown will also answer questionsfrom attorneys in attendance. Coffee will be provided.

Seating is limited. RSVP to Cherie HarrisCherie HarrisCherie HarrisCherie HarrisCherie Harris([email protected]).

DAYL Coffee with the CourtDAYL Coffee with the CourtDAYL Coffee with the CourtDAYL Coffee with the CourtDAYL Coffee with the Court

DDDDDAAAAAYLYLYLYLYL’s L’s L’s L’s L’s Lawyers Pawyers Pawyers Pawyers Pawyers Promoting Diversity Committee invites you to the Tromoting Diversity Committee invites you to the Tromoting Diversity Committee invites you to the Tromoting Diversity Committee invites you to the Tromoting Diversity Committee invites you to the Tenth Anniversary of Dinner & Dialogueenth Anniversary of Dinner & Dialogueenth Anniversary of Dinner & Dialogueenth Anniversary of Dinner & Dialogueenth Anniversary of Dinner & Dialogue

10 Y10 Y10 Y10 Y10 Years of Changing the Fears of Changing the Fears of Changing the Fears of Changing the Fears of Changing the Face of the Modern Wace of the Modern Wace of the Modern Wace of the Modern Wace of the Modern Workplaceorkplaceorkplaceorkplaceorkplace

ThursdayThursdayThursdayThursdayThursday, July 16, 2015 , July 16, 2015 , July 16, 2015 , July 16, 2015 , July 16, 2015 6:00 - 8:30 p.m. 6:00 - 8:30 p.m. 6:00 - 8:30 p.m. 6:00 - 8:30 p.m. 6:00 - 8:30 p.m. Belo Mansion Belo Mansion Belo Mansion Belo Mansion Belo Mansion

With opening remarks by Judge TJudge TJudge TJudge TJudge Tonya Ponya Ponya Ponya Ponya Parkerarkerarkerarkerarker, Dallas County Civil District Court, and closingremarks by PPPPPeter Seter Seter Seter Seter S. V. V. V. V. Vogelogelogelogelogel, Partner at Gardere Wynne Sewell LLP. 1.5 hours of ethics credit is pending

approval.

Visit www.dayl.com for more information and to register.

Volunteers Needed!Volunteers Needed!Volunteers Needed!Volunteers Needed!Volunteers Needed!

June 2015 THE DICTA

Four Things You Should Know About Employer Provisions of the Af-fordable Care Act Penalties by Aaron Borden

Both Large and Small Em-ployers Are Subject to Sec-tion 4980D Penalties

Section 4980D imposes a$100.00 per day per employee excise taxon employers for failure to meet certaingroup health plan requirements. Most em-ployers and their advisors paid little attentionto this portion of the law until the Depart-ment of Labor issued an FAQ stating thatemployers reimbursing employees for theirpurchase of individual policies could triggerthe excise tax in section 4980D1. This was fol-lowed by IRS guidance adopting the DOL’sinterpretation and further stating that the planwould be a discriminatory plan under section4980D even when the reimbursement was in-cluded in the employees’ taxable income.2

Earlier this year, the IRS issued guidancereiterating that reimbursing employees forthe cost of individual health insurance plansmay subject employers to the excise taxunder section 4980D.3 However, in thesame guidance, the IRS provided tempo-rary relief for small employers. The excisetax will not be asserted against employersfor 2014 if they were not an applicable largeemployer in 2014, and it will not be assertedagainst employers for January 1 through June30, 2015 for employers that are not applicablelarge employers for 2015. After June 30, 2015,the section 4980D excise tax is applicable toany employer that reimburses employees forpurchasing individual health insurance.Part-Time Employees Matter

Much has been said and written aboutlarge retailers limiting employees to thirty-hour workweeks to avoid ACA penalties.While limiting employees to thirty hours ofservice per week may allow applicable largeemployees to avoid penalties under Section4980H, part-time employees can negativelyimpact employers near the threshold forapplicable large employer status. An appli-cable large employer is defined in section4980H as an employer that employed anaverage of at least 50 full-time employees(including full-time equivalent employees)during the preceding calendar year. The

average is determined by taking the sumof full-time and full-time equivalent em-ployees during each calendar month of thepreceding year and dividing by 12. Eachfull-time employee counts as one employee,no matter how many hours of service cred-ited to the employee during the month. Allhours of service credited to part-time em-ployees during the month (up to 120 perpart-time employee) are summed and di-vided by 120 to determine the number offull-time equivalent employees during themonth. Thus, 360 hours of service in amonth performed equally by two full-timeemployees will result in two employees to-wards the 50-employee threshold. However,the same 360 hours of service performedequally by three part-time employees results inthree employees towards the 50-employeethreshold.Applicable Large Employers May BeSubject to Penalties Even if They Of-fer Employees the Opportunity toEnroll in Group Health Insurance.

Employers may mistakenly believe thatoffering employees the opportunity to en-roll in health insurance satisfies the require-ments of the Affordable Care Act; how-ever, this is not true. To avoid penalties, ap-plicable large employers must offer at least95% of their full-time employees, and theirdependents, the opportunity to enroll inminimum essential coverage that providesminimum value and is affordable. Compli-ance is determined monthly and a full-timeemployee is defined as any employee that av-erages 30 hours of service per week duringthe month.5 Generally, any small or large grouphealth plan qualifies as minimum essentialcoverage.6 Health insurance coverage pro-vides minimum value if the plan’s share ofthe allowable costs of benefits is at least60% of such costs.7 And, the health insur-ance coverage is affordable if theemployee’s required contribution for thelowest cost self-only coverage does notexceed 9.5% of the employee’s householdincome.8

Transitional Relief is Available for 2015

In the preamble to the final regulationsunder section 4980H, the IRS provided tran-sitional relief for employers for 2015.9 Thefollowing transitional relief for is providedfor all employers for 2015: (1) applicablelarge employer status can be determinedby reference to any six consecutive calen-dar months in 2014 rather than the full yearrequired by the statute, (2) an employer canoffer coverage to 70% of full-time employ-ees rather than the 95% required by statute,and (3) the first 80 employees are excludedfrom penalties under section 4980H(a) ratherthan the 30 provided by the statute. The pre-amble also provided penalty relief for mid-size employers for 2015. For an employer withfewer than 100 employees, penalties under sec-tion 4980 will not be imposed on the em-ployer for any calendar month during 2015 if(a) the employer’s workforce size is 50 to 100employees, (b) the employer did not reduceits workforce size (other than for a bona fidebusiness reason) after the transitional relief wasannounced, (c) the employer continued tomaintain its previously offered health cov-erage after the transitional relief was an-nounced, and (d) the employer certifies eli-gibility on a prescribed form.

With knowledge of the above potentialpitfalls, you can help your clients spot potentialissues. However, identification of one of theabove issues may not be fatal; the code, regu-lations and other IRS guidance provide annumber of safe harbors and exceptions thatemployers may utilize to minimize the expo-sure to employers penalties under the Afford-able Care Act._______________1DOL FAQs about Affordable Care Act Implementa-tion (XXII), Issued Nov. 6, 2014. Available at: http://www.dol.gov/ebsa/faqs/faq-aca22.html.2Notice 2013-54.3Notice 2015-17.4I.R.C. § 4980H.5Id.6I.R.C. § 5000A(f).7I.R.C. § 36(c)(2)(C)(ii).8I.R.C. § 36(c)(2)(C)(i)(II).9See T.D. 9655.

June 2015THE DICTA

Through DAYL’s Wellness Committee, DAYL members had the oppor-tunity to have tea with Tibetian Monks and watch them create a commu-nity mandala.

Ashley Withers moderates a panel of young lawyers who spoke to SMUlaw students about A Day in the Life... of a family law attorney, criminaldefense attorney, or a young associate attorney at both a large firm andmedium sized firm. Jodi McShan, Rosebud Manning, Sheridan Lewis,and Joseph Hummel presented.

DAYL’s Assisting Young Lawyers in Transition Committee’s Aprilbreakfast on How to Stay Active While Looking for a Job had over 30attendees. Thank you to our panel members, Aaron Tobin and AmandaGhagar, and to moderator Sophilia Hsu.

DAYL’s Young In-House Lawyers Committee met for a committee meetingin mid-May.

Nathan Christensen, Hunt Consilidated Vice President and Assistant General Counsel, John Clark, Energy Trust Partners Senior Vice President,and Kimberly Lacher, Vendera Resources President recently spoke on a panel moderated by DAYL President Jonathan Childers. Jared Sladeorganized the program, which covered topics related to the energy sector, and he co-chaired the committee with Chris Simmons, Priya Bhaskar, andMargaret Allen. The Texas Young Lawyers Association provided a grant and Berkeley Research Group generously sponsored the free Breakfast withBusiness Peers event, at which over 70 young lawyers attended.

june 2015 dicta - dallas association of young lawyers · dicta june 2015 from the president...

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