Weinstein Tax Introduced to Impact Confidentiality of Settlement Agreements
On December 22, 2017, the Tax Cuts and Jobs Act (the “Act”) was signed into law by President Donald Trump. In light of the #metoo movement and heightened awareness surrounding sexual harassment and abuse, the Act includes Section 13307, which has come to be known at the “Weinstein Tax.” The Weinstein Tax is actually a misnomer; it is not a tax at all, but rather, it prohibits settlement funds or attorneys’ fees arising out of confidential settlement agreements from being de