Business Law Archives - Page 5 of 11

Businesses can’t agree not to ‘poach’ employees

03/31/201603/19/2016 by Report from Counsel

It might be tempting to informally agree with other business owners in a niche field not to poach one another’s employees, but it’s illegal – and recently, some businesses have paid a high price. For example, the Department of Justice went after several tech companies that allegedly had an informal “no-poach” understanding. The employees themselves … Read more

Business gets salary back from ‘disloyal’ employee

12/15/2015 by Report from Counsel

Did you know that executives and other employees may have a legal obligation to be “loyal” to their companies? This means that they have to act in the company’s interest, and not deliberately harm the company or take advantage of it for their own interest.

Social media: New issues for business

08/17/202009/29/2015 by Report from Counsel

Social media is a relatively new field, and the law is just beginning to catch up with all the issues that are being raised for businesses.

Here’s a quick checklist of concerns. It’s by no means exhaustive, which is why a thorough legal review of a company’s social media practices is always a good idea.

Do you look at employees’ (or job applicants’) personal social media accounts? These days, many employers want to keep tabs on their workers’ social media presence. Employers want to get out ahead of problems, such as employees bad-mouthing the company on Twitter or posting confidential information on Facebook.

Supreme Court gay marriage ruling affects employee benefits

09/29/2015 by Report from Counsel

The U.S. Supreme Court’s recent decision extending same-sex marriage to every state will have a big effect on many employee benefit programs.

Prior to the ruling, most states (and the federal government) recognized same-sex marriage. If all of your employees live in states that previously recognized gay marriages, then no changes are required. But if any of your employees live in previously “non-marriage” states, then the ruling will make a difference.

If some of your workers live in “non-marriage” states and you previously offered benefits to same-sex spouses, then for any employees in those states who have a same-sex spouse, you’ll need to adjust their state tax withholding to the “married” rate, and you may need to adjust their withholding to reflect the fact that spousal health benefits will no longer be subject to state tax.

‘Comparative advertising’ was close to the line but okay

08/17/202009/29/2015 by Report from Counsel

The Schick razor company recently complained to the National Advertising Division (an ad industry regulatory body administered by the Better Business Bureau) about ads created by the Dollar Shave Club. Schick believed the ads accused name-brand razor companies of engaging in price-gouging and ripping off customers by charging extra for useless features. One Shave Club … Read more

Businesses may be in more trouble for data breaches

08/17/202009/29/2015 by Report from Counsel

Two years ago, retailer Neiman Marcus suffered a data breach that resulted in some 350,000 customers having their credit card information compromised. About 9,200 of those customers ended up with fraudulent credit card charges.

That’s bad enough – but Neiman Marcus was then sued in a class action by customers who didn’t have any fraudulent charges on their cards. These customers said Neiman Marcus should nevertheless compensate them for the time and money they had spent on credit monitoring and other efforts to prevent fraud as a result of the hack.

Late-night e-mails might entitle workers to overtime

09/29/2015 by Report from Counsel

These days, many employees feel like they’re never really “off the clock.” They’re expected to check e-mails at home, and occasionally to respond to emergency text messages from their boss or co-workers. But the truth is, many workers in this situation might literally be “on the clock.” If they’re expected to check texts and e-mails … Read more

What businesses need to know about commercial leasing

08/17/202007/23/2015 by Report from Counsel

Companies that are leasing their own space for the first time are often surprised by the terms of a commercial lease – and even companies that have leased space before sometimes overlook important points where they might be able to negotiate matters to their advantage. Here’s a quick guide to what to look for:

Letter of intent. This sets out the basic terms of the agreement so everyone is on the same page before a formal lease is drafted. Be careful – the document should say that it’s non-binding. You don’t want to sign a general expression of interest and suddenly discover that it’s a legal contract.

Rent. Commercial rent is

Sale of business interests can trigger surprise tax result

08/17/202007/23/2015 by Report from Counsel

Did you know that if more than 50% of the interests in a partnership or LLC are transferred within a 12-month period, the business technically ceases to exist under federal tax law?

That’s true even if the business continues to operate as normal for all other intents and purposes.
This “technical termination rule” isn’t the end of the world, but it’s something you need to be aware of. For one thing, a special tax return is due within a few months after the “termination” occurs. Recently, one family business was hit with more than $12,000 in IRS penalties and interest because the family didn’t realize they needed to file such a return.

You may need a policy covering employees’ use of cloud storage

05/12/2015 by Report from Counsel

Employees are discovering that cloud storage services are a great way to access work-related data at home and on the road, and to collaborate with co-workers, especially those who work remotely.

Unfortunately, they’re also a great way to make your confidential data insecure – which is why you may need a thoughtful policy covering their use.