Page de couverture de Legal News for Tues 12/16 - No Tax on Overtime is Bogus, Trump's $10b Lawsuit, Law School Enrollment Way Up, Ball Room Court Fight and SNAP Deadline Ruling

Legal News for Tues 12/16 - No Tax on Overtime is Bogus, Trump's $10b Lawsuit, Law School Enrollment Way Up, Ball Room Court Fight and SNAP Deadline Ruling

Legal News for Tues 12/16 - No Tax on Overtime is Bogus, Trump's $10b Lawsuit, Law School Enrollment Way Up, Ball Room Court Fight and SNAP Deadline Ruling

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 This Day in Legal History: West Coast HotelOn December 16, 1936, the US Supreme Court heard oral arguments in West Coast Hotel Co. v. Parrish, a case that would become a cornerstone in constitutional law and mark a significant turning point in the Court’s approach to economic regulation. At issue was the constitutionality of Washington State’s minimum wage law for women, which had been challenged by the West Coast Hotel Company after Elsie Parrish, a maid, sued for back wages.The case arrived during a period when the Court had consistently struck down New Deal-era economic regulations, relying on a broad interpretation of “freedom of contract” under the Due Process Clause of the Fourteenth Amendment. Earlier cases like Lochner v. New York had enshrined a judicial skepticism toward government interference in labor and wage arrangements.However, in Parrish, the Court’s posture shifted. The eventual decision, handed down in 1937, upheld the minimum wage law, effectively signaling the end of the so-called Lochner era. The majority reasoned that the state had a legitimate interest in protecting the health and well-being of workers, particularly vulnerable low-wage employees.Justice Owen Roberts, who had previously sided with the Court’s conservative bloc, voted with the majority—his move later came to be known as “the switch in time that saved nine,” as it followed President Roosevelt’s controversial proposal to expand the Court.The decision validated broader governmental authority to regulate the economy, and it cleared the path for many New Deal policies to take root. It also marked a recalibration in the balance between individual economic liberty and the public interest.West Coast Hotel remains a landmark case in US constitutional history, exemplifying how judicial interpretation can evolve in response to changing social and economic realities.The 2025 tax-and-spending law introduced an overtime tax deduction that was billed as relief for overworked, working-class Americans. But the reality shaping up for the 2026 filing season is far more complicated—and far less beneficial—than its political framing suggested. The deduction does not exempt overtime pay from taxation; instead, it offers a narrow, post-withholding deduction that workers must calculate themselves, often without support from their employers or sufficient guidance from the IRS.The structure of the deduction is flawed: it only applies to the “half” portion of time-and-a-half pay and is capped at $12,500. For lower-wage workers to take full advantage, they must clock extraordinary amounts of overtime—something not feasible for many. Meanwhile, employers are actively disincentivized from helping employees understand or claim the benefit. If they report eligibility and make an error, they could face legal penalties, while doing nothing carries no risk. The system thus favors inaction and leaves employees to fend for themselves.Without clear W-2 guidance or safe harbor rules, the deduction becomes accessible primarily to those with tax professionals or payroll tools—functioning as a quiet subsidy for the well-advised. For others, it’s a bureaucratic maze with limited reward. To prevent administrative failure, the IRS should at least provide a legal safe harbor for employers and model W-2 language. A more ambitious fix would be a flat-rate standard deduction for eligible workers, reducing complexity. Until then, this “relief” policy punishes transparency, discourages compliance, and places the greatest burden on those with the fewest resources.Trump Overtime Tax Break More a Political Tagline Than Tax ReliefDonald Trump filed a lawsuit in federal court in Miami seeking up to $10 billion in damages from the BBC, alleging defamation and violation of Florida’s unfair trade practices law. The suit stems from an edited segment in a BBC Panorama documentary that combined parts of Trump’s January 6, 2021 speech—specifically his calls to “march on the Capitol” and to “fight like hell”—while omitting language where he encouraged peaceful protest. Trump claims the edit falsely portrayed him as inciting violence and caused substantial reputational and financial harm.The BBC had previously admitted to an error in editing, apologized publicly, and acknowledged the clip could give a misleading impression. However, the broadcaster argues that there is no legal basis for the lawsuit. UK officials have backed the BBC’s position, saying it has taken appropriate steps. Despite this, Trump’s legal team claims the broadcaster has shown no real remorse and continues to engage in what they describe as politically motivated misrepresentation.The documentary in question aired before the 2024 U.S. presidential election and triggered significant fallout for the BBC, including the resignations of its top two executives. While the program did not air in the U.S., it was available via BritBox—a BBC-controlled ...
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