Blogs

Business and Financial Services

Successor Liability: a New Corporation is Not an Escape Route

A debtor business entity cannot shed its obligations by dissolving and reforming as a new and separate business. If the new business is a “mere continuation,” the debts will attach to the new company, but holding the owners liable for the debt is a more difficult issue, requiring a creative approach to maximize the chances of success. United States District Court Judge Anthony Trenga considered the possible liability of a successor entity and its principles individually when the owners of…

January 30, 2017

Business and Financial Services

Federal Court Halts Implementation of New Overtime Final Rule

Yesterday afternoon, the United States District Court for the Eastern District of Texas issued a nationwide preliminary injunction blocking implementation of the Department of Labor’s Final Rule that would have raised the minimum salary level for white-collar exempt employees under the Fair Labor Standards Act (“FLSA”) from $455 per week ($23,660 annually) to $913 per week ($47,476 annually), effective as of December 1, 2016. It should be emphasized that the Court’s decision to stay…

November 23, 2016

Business and Financial Services

Ten Things You Should Know When Buying an Existing Franchise Business

The typical path to becoming a franchisee is to sign a franchise agreement with a franchisor and open up a new franchise location. In a new, start-up franchise system, this is likely to be the only path to becoming a franchisee. But in an established franchise system with many existing franchisees, you may have an opportunity to become a franchisee by purchasing the business of an existing franchisee. If you are considering purchasing a franchise from an existing franchisee, here are 10 things…

November 9, 2016

Employment Law

Paid Leave Law in Montgomery County Maryland Is Expanded to Include Paid Parental Leave

On October 1, 2016, Montgomery County, Maryland (the “County”) joined the growing list of jurisdictions requiring paid sick leave for employees of all entities doing business in Montgomery County. The County’s Earned Sick and Safe Leave Law (“Paid Leave Law”) is applicable to all employers doing business in the County. This week, the County Council…

November 7, 2016

Construction

New Owner-Occupancy Rules for Condominium Developments

Effectively immediately, The Federal Housing Administration (FHA) has implemented new owner-occupancy rules regarding existing condominium developments. The owner-occupancy requirement for most projects has been lowered from 50% to 35%. The lower percentage only applies, however, if certain requirements are met: applications must be submitted under the HUD Review and Approval Process option, owners need to…

November 4, 2016

Business and Financial Services

Mandatory Paid Sick Leave Comes To Montgomery County Maryland

The Earned Sick and Safe Leave Law Montgomery County, Maryland (the “County”), has recently joined the growing list of jurisdictions requiring paid sick leave for employees. According to County legislators, paid sick and safe leave is necessary to promote the health and welfare of County residents and safeguard County employers from unfair competition from neighboring jurisdictions. Effective October 1, 2016, entities doing business in the County must be in full compliance with the Earned Sick…

October 19, 2016

Business and Financial Services

The Public’s Right to Access Trumps Trump University’s Confidentiality Claim

Pushing aside the political issues that seem to overwhelm the subject, the litigation involving Donald Trump and Trump University, now pending in the Southern District of California, demonstrates how a person’s status as a public figure can limit his ability to restrict access to confidential material during litigation. On May 27, 2016, in a class-action suit filed against Trump University, LLC (“TU”), United States District Judge Gonzalo P. Curiel ordered the unsealing of several…

June 20, 2016

Business and Financial Services

Creative Pleading in Business Torts

On January 5, 2016, the U.S. District Court for the Eastern District of Virginia, Newport News Division, handed down its Memorandum Opinion & Order disposing of two motions to dismiss filed in Tax International, LLC v. Kilburn and Associates, LLC et al . In denying these motions, Judge Raymond A. Jackson provided a succinct exposition of several federal pleading and practice rules while providing an assessment of the law on business torts in Virginia. Tax International alleged that former…

May 20, 2016

Business and Financial Services

Uber Reaches Settlement of Independent Contractor Misclassification Lawsuits in California and Massachusetts

Last week, Uber, the on-demand ride-hailing service, reached a settlement of two class action lawsuits pending against it in California and Massachusetts. These were filed by Uber drivers who claimed that the company had misclassified them as independent contractors instead of employees. The settlement is pending approval by the federal district judges overseeing the cases. The California and Massachusetts lawsuits reportedly cover more than 385,000 Uber drivers. Similar class action law suits…

May 20, 2016

Employment Law

NLRB to Begin Targeting Employer Misclassification of Workers as Independent Contractors as an Unfair Labor Practice

With the Complaint issued recently by the National Labor Relations Board’s (“NLRB”) Regional Director in Los Angeles, the NLRB appears poised to enter the fray on the issue of employer misclassification of workers as independent contractors instead of employees. The NLRB’s Complaint alleges that Intermodal Bridge Transport “has misclassified its employee-drivers as independent contractors, thereby inhibiting them from engaging in Section 7 activity and depriving them of the protections” of the…

May 19, 2016