In addition to Daniels, Cohen said he arranged a hush-money payment to another woman at Trump’s bidding.ĭaniels recently met Manhattan prosecutors and answered their questions about the payment from the former president. Cohen pleaded guilty in 2018 to federal charges relating to this payment. While Trump has denied having sex with Daniels and has contended the payment had nothing whatsoever to do with the election that he won, prosecutors persuaded a grand jury to charge that his method of repaying Cohen – in $35,000 monthly increments – was illegal, after an investigation aimed at determining whether he violated state campaign finance laws or falsified business records. Trump’s then lawyer, Michael Cohen, made the payment. Yet as Trump ran successfully for president in 2016, his relationship with Daniels evolved drastically.ĭaniels was negotiating a deal to go on television during the presidential campaign and discuss the purported sexual encounter with Trump when she received what prosecutors say was a $130,000 payment to hush up. She has claimed Trump had a bodyguard invite her to dinner, that they later had sex in his hotel room despite his being married to eventual first lady Melania Trump, and that they stayed in touch for a while because he offered her a role on his reality show, The Apprentice. The self-described “little girl back in Baton Rouge, just trying to survive” later met Trump at a celebrity golf tournament in Lake Tahoe, California, where she was hired to greet competitors between tees. “ compounds the harm and allows employers to hide the record of wrongdoing,” she said.And she eventually began appearing in and directing pornographic films, using a pseudonym drawn from the name Mötley Crüe bassist Nikki Sixx gave to his daughter – Storm – and her preference for Jack Daniel’s whiskey. Calling settlements “severance” continues the abuse survivors have experienced, according to Artika Roller, executive director of the Minnesota Coalition Against Sexual Assault. This would also be true of financial payments stemming from settlements that do not include a nondisclosure agreement. Second, payouts made to employees would be non-taxable by the Department of Revenue, effective with tax year 2023. In light of this, the bill would do two main things.įirst, when a sexual harassment or abuse claim is settled out of court, an employer could noy characterize the payouts as “wages” or “severance pay” if a nondisclosure agreement is also attached to the settlement. She was also kicked off the unemployment insurance rolls while the payments were being disbursed.īy contrast, employers are actually able to reduce their tax liability by claiming these payments and associated attorney fees as business expenses. She received a settlement, but it was a sliver of what she had expected because of taxes. “In 2014, I signed a nondisclosure agreement with my previous employer for sexual harassment,” said Julie Risser. In regard to employees, settlements described in this way are subject to state income taxes while also disqualifying claimants for unemployment insurance benefits. Terming legal settlements as “wages” or “severance pay” has several effects for employees and employers. House labor committee hears HF1056 2/16/23
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