Specified Employee Determination Clause Samples
The Specified Employee Determination clause defines the process for identifying employees who are classified as "specified employees" under applicable tax regulations, typically for the purposes of deferred compensation rules. This clause outlines the criteria and timing for making such determinations, often referencing factors like compensation level or job title, and may specify the responsible party for making the determination, such as the employer or a plan administrator. Its core function is to ensure compliance with tax laws, particularly Section 409A of the Internal Revenue Code, by clearly establishing which employees are subject to special rules regarding the timing of deferred compensation payments.
Specified Employee Determination. Notwithstanding any provision herein to the contrary, in the event that Executive is determined to be a specified employee within the meaning of Code Section 409A under the default provisions established thereunder, for purposes of any payment on termination of employment under this Agreement, payment(s) shall be made or begin, as applicable, on the first payroll date which is more than six months following the date of separation from service (or, if earlier, upon Executive’s death), to the extent required to avoid any adverse tax consequences under Code Section 409A.