We are all conditioned to click “agree” to terms and conditions when we get a new app, update our cell phone operating system, or purchase a product or service online. But most of us do not take the time to read what we have agreed to. And many do not fully appreciate that such terms and conditions are binding contracts — even if the user did not read them before clicking … [More]
How Employers Are Harnessing AI’s Value while Reining in the Risks
Developing employee policies around its use is critical
Two years after the public debut of ChatGPT, the adoption of artificial intelligence by companies throughout North America continues apace. This increased use of AI in the corporate world has, in turn, spurred continuing conversations about AI’s utility and value in the workplace along with its potential risks. Littler recently conducted its “2024 AI C-Suite Survey Report,” … [More]
Unpaid Wages, Compensation and Tips, Oh My!
Three legal issues employers need to know
It sure seems like wage-and-hour lawsuits are flooding Arizona court dockets these days. And most of the defendants appear to be small to mid-size business owners. These lawsuits — typically brought by employees against their former employers — usually arise from one of the following three situations: Unpaid overtime wages Unpaid commissions Unpaid tips This … [More]
A Short Guide to Navigating a Business Breakup
Set ground rules in advance to mitigate potential issues
Business co-ownership can end for many reasons — disputes, divorce, death, liability, sickness, retirement or even criminal activity. These breakups can be complex and emotional, not unlike the dissolution of a marriage. But proactively planning for “the end,” even one that may never come, is a best practice. Recognizing the Need for a Business Divorce Today Most people do … [More]
Six Essential Employment Law Conversations for Growing Businesses
Navigating legal requirements to create a safe and productive workplace
Responsible business growth in Arizona begins with a commitment to a fair and productive workplace. Understanding the impact of employment practices and legal requirements on business is essential to that growth, which is the expertise attorneys bring to the enterprise. Fair Hiring Practices Adding employees is an important step in business growth, but hiring isn't as simple … [More]
Employer Alert: The FTC’s New ‘Non-Compete Rule’
Federal courts are split on enforceability of the FTC’s nationwide ban on non-compete agreements; what does that mean for employers?
The Federal Trade Commission recently announced a nationwide ban on Non-Compete Agreements, set to take effect on September 4, 2024. The enforceability of the FTC’s ban has been challenged in Texas and Pennsylvania federal court. The results of those two cases are still pending, but some initial rulings by those two courts have left business owners scratching their collective … [More]
What CRE Can Learn from the Shockwaves Sent through RRE
Broker commissions are under scrutiny
With chaos in Residential Real Estate (RRE) over commissions, what is the message for Commercial Real Estate (CRE)? Is the sky falling? Will CRE commissions next be attacked in lawsuits? Although there are no guarantees and legal winds are difficult to predict, those in CRE should keep calm — but perhaps do more than just carry on in the same way. Recent lawsuits filed … [More]
Why a Business Needs a Trademark
And its role in customer recognition and loyalty
Every business starts with two things: an idea and a name. While entrepreneurs (rightfully) focus on executing on their ideas when launching or expanding a business, safeguarding the business name and brand becomes crucial. A key step for safeguarding is trademark registration. Registered trademarks are often essential for brand protection and may significantly enhance the … [More]
Legal Implications of the Shipping Disruptions in the Red Sea
Contracts and more in the global supply chain
Houthi rebel attacks on cargo ships in the Red Sea have caused major supply chain disruptions since the attacks began in November 2023. To date, there have been at least 80 incidents in the area, many of which involve private container ships carrying goods to Europe, the United States and other destinations around the world. These incidents have caused not only disruptions in … [More]
Who Really Controls Your LLC?
Nuances of three types of LLC management
Nineteenth-century British Prime Minister Benjamin Disraeli wrote, “All power is a trust; that we are accountable for its exercise.” Here, we define three types of LLC management: the controlling member, the manager-managed company and the member-managed company. The ‘Controlling Member’ of an LLC Whether a member “controls” a limited liability company usually depends not … [More]
New Year, New … Privacy Program?
Businesses are invited to celebrate this year’s Data Privacy Day in style, with a refresh of their privacy program
January is a time of renewal, providing an opportunity for new focus. With Data Privacy Day almost upon us, and the expansion of data privacy legislation in the United States, now is the ideal time for businesses to update their data privacy program with best practices and plan for the next stage. How? Go back to the basics. For the skeptics, Data Privacy Day is an actual … [More]
NLRB’s New ‘Joint Employment’ Rule Will Apply to More Franchise Relationships
Rule expands responsibilities
Franchise agreements have long been recognized as independent contractor agreements where a franchisor licenses its trademarks and business format systems to third-party franchisees — who each operate independent businesses using the trademarks and systems subject to the terms of the contract between them. This independent contractor model is favored by both franchisors and … [More]
Business Succession Planning Is Crucial for Successfully Sustaining a Business
Preparing for the expected and unexpected assures critical staff, customers, banks and vendors that the company’s future is seamless
Millions were glued to the screen for multiple episodes and seasons of “Succession,” watching the agony of a major corporation with nowhere to go when its charismatic leader was gone. It might have worked for binge streaming but, in real life, a failure to plan doesn’t end with the director yelling, “That’s a take.” Too many companies rest their future on a handshake and … [More]
The Corporate Transparency Act: How to prepare your business for the new reporting requirements
Historically, smaller companies in the United States have had minimal legal compliance obligations to operate. Founders selected the state of incorporation or organization, picked their legal structure, and filed a one- or two-page formation document. With the enactment of the Federal Corporate Transparency Act, that has all changed for those companies that are often the most … [More]
A Business Owner’s Primer to Lawsuit Settlement
Going to trial is not always the right thing for a client
Trials are very costly — in terms of both expense and the emotional exhaustion that comes from the weeks of preparation and the long days spent in the courthouse. Although most clients are keenly aware that settlement avoids the financial challenges of trial, most do not fully recognize the time-and-energy-value settlements can bring for an issue to be resolved — early and … [More]
AI in the Workplace: Promises and Pitfalls
Companies should consider developing guidelines regarding AI technologies
Discussion of Artificial Intelligence and its transformative role in the workplace is seemingly everywhere. Whether the issue is how employers can utilize AI to bolster their human resources and management functions, or employees’ utilization of AI tools for work-related tasks, companies are paying attention to both the promises and pitfalls inherent in these new … [More]
Navigating the Maze of Construction Defect Claims in Arizona
Key to a successful relationship is the binding agreement between the parties
The nationwide boom of residential and commercial construction has continued into 2023. The increase of construction in Arizona is largely due to the increase in population. In 2022, Maricopa County gained the most residents in the nation, adding 56,831 residents, a gain of 1.3% since 2021, according to March 30, 2023, figures from the U.S. Census Bureau. Also contributing to … [More]
Big Changes Are Coming to HIPAA Privacy Laws Heading into Summer
They include tiered structure for penalties and incentives for reporting
As we head into summer, the Health Insurance Portability and Accountability Act (HIPAA) will have its first major revisions in ten years. HIPAA is a federal law that required the creation of national standards to protect sensitive patient health information from being disclosed without the patient’s consent or knowledge. HIPAA has three major components: the Privacy Rule, the … [More]
