Related firms count as one employer unless there is a real business reason
What the document says“all persons which are treated as a single employer under subsections (b) and (c) of section 414 shall be treated as a single employer.”
The section strikes paragraphs (3) and (4) of section 45S(c) of the Internal Revenue Code of 1986 and inserts a rule treating all persons treated as a single employer under section 414(b) and (c) as one employer, except where a person shows the Secretary a substantial and legitimate business reason for not having a written policy. That reason does not include running a separate line of business, the rate of wages or category of jobs, or State or local family and medical leave law, but may include the grouping of employees of a common law employer.
What the document actually says“all persons which are treated as a single employer under subsections (b) and (c) of section 414 shall be treated as a single employer.”
Firms that count as one employer under an older rule are treated as one here too.
A firm may get out of that. It must show the Secretary a real business reason. Wage rates and job types do not count as one.
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