The SECURE Act (Setting Every Community Up for Retirement Enhancement Act) was signed into law in late 2019 and is the most significant legislation affecting employer-sponsored retirement plans in many years. The SECURE Act is designed to increase employee access to tax-advantaged retirement accounts, help participants access retirement funds in times of need prior to … [More]
Don’t Get Ill Over Earned Paid Sick Time
Earned Paid Sick Time is a surprisingly complex law that requires exacting compliance. Failure to adhere to its requirements can expose a business to serious liability. But, it’s nothing to get sick over. Careful planning and thoughtful policies will help avoid potential litigation. I review employee handbooks on a routine basis. One thing I find most employers get wrong is … [More]
Legal Pitfalls of Unsolicited Texting and Calling
For businesses that use texting as a marketing tool, it is critical that they become familiar with the Telephone Consumer Protection Act (TCPA). Some of the largest well-known companies in the country have paid millions in settlements and verdicts for alleged violations of the TCPA. Capital One reportedly agreed to pay more than $73 million to settle a TCPA class action. Dish … [More]
Are Your Exempt Employees Paid Enough?
Almost every business has workers who are classified as exempt from the minimum wage and overtime requirements of the federal Fair Labor Standards Act. The most common exemptions, often referred to as the “white collar” exemptions, are for executive, administrative and professional (EAP) employees. For the past 15 years, the minimum salary for such employees has been $455 … [More]
Five Legal Issues to Consider when Starting a Special Needs Business
Finding employment is very challenging for people with disabilities across the United States. Most disabled adults will be unemployed or underemployed for a good part of their adult life. Some families and disabled individuals have gotten creative and have decided to solve this issue of employment by becoming entrepreneurs. They have started small businesses like making baked … [More]
Tax Issues for Arizona Retailers and Taxpayers
In the summer of 2018, the U.S. Supreme Court officially recognized our country’s significant shift from local to online sales of goods by overruling the longstanding precedent that previously prevented state and local governments from imposing sales taxes unless a seller had a physical connection or “nexus” with the state. While earlier decisions had determined that physical … [More]
Cutting through the Weed(s)
The legalization of marijuana in Arizona has created an exciting buzz in this State. Medical marijuana has proven itself a unique, and potentially lucrative, business endeavor. Medical marijuana has also caused some serious frustrations; this is especially so for employers. Many employers find themselves confused as to whether they can still drug test and, particularly, how to … [More]
Minimum Wage and Tip-Pooling
Wages are a constant pressure point for businesses, especially restaurants. Restaurant owners and managers face relentless pressure to minimize costs — particularly labor costs, which tend to overwhelm their balance sheets. Restaurant employers are understandably worried about the rapidly increasing minimum wage requirements. Just one year ago, most Arizona employers were … [More]
Navigating Arizona’s New LLC Act
Twenty-seven years ago, when the Dow Jones Industrial Average closed at 3301 and the price of a gallon of gasoline was $1.05, the Arizona legislature enacted its first Limited Liability Company Act. The prior law has been retired, updated by a comprehensive new law, signed by Gov. Ducey during the 2018 legislative session, that went into effect the first of this … [More]
Employee or Independent Contractor?
Imagine this: A business having difficulty attracting and retaining talent posts a job on its website and publicizes the opening on social media. Then, the post is viewed thousands of times, and hundreds of users comment. This sounds like a good outcome — except that the reason the post went viral was that the job was for a “full-time freelancer,” and users began criticizing … [More]
The Marijuana Proposition
Marijuana is a booming business and all eyes are on Arizona. With an estimated $400 million in sales for 2018, medical marijuana has proven a lucrative business opportunity. Adding to the excitement, Arizona is gearing up to issue industrial hemp licenses under the Industrial Hemp Program, which is scheduled to go live this summer. Those seeking to enter these markets should be … [More]
Multilevel Marketing – Legal Pitfalls to Avoid
For decades, multilevel marketing has permeated not only the business landscape but the American home. From Tupperware to jewelry to dietary supplements, the concept is familiar and widely utilized to grow brands from the mom-and-pop level to national powerhouse. Essentially, a multilevel marketing business model is one in which the company sells products directly to the … [More]
Business Buyers & Sellers Beware in 2019
A word of caution as you scan the business horizon for 2019. Depending on which side of a judgment you land on, it’s either a significant asset or obligation. Like a statute of limitations for filing a lawsuit, judgments in Arizona have a lifespan during which they can be enforced. When the enforcement period runs out, a judgment expires and is forevermore unenforceable — … [More]
USMCA: Agreed and Signed but Now What?
Trade representatives reached a deal just before the self-imposed midnight deadline on September 30, 2018, and the presidents of the United States, Mexico and Canada signed the US-Mexico-Canada Agreement — or USMCA — at the G20 Summit on November 30, 2018. The USMCA essentially replaces the North American Free Trade Agreement, commonly known as NAFTA, but many questions still … [More]
Merger in Sight?
In November 2017, the United States Department of Justice filed an antitrust lawsuit to block AT&T’s $85-billion purchase of Time Warner. The lawsuit was eye-opening and sent significant ripples across legal and business landscapes. In particular, the suit showed an inclination of the federal government to block a large merger between two companies that were not direct … [More]
Are You Unintentionally Discriminating against Pregnant Employees?
Despite clear laws designed to protect the rights of pregnant working women, discrimination against pregnant employees remains pervasive. Federal mandates like the Pregnancy Discrimination Act, Family and Medical Leave Act, and Americans with Disabilities Act, along with the state-level Arizona Civil Rights Act, serve to insulate pregnant women from unfair treatment. However, … [More]
Outsmarting the Smart Workplace
Smart technology can help employers forge a more motivated, efficient and effective workforce. But these devices also pose significant employment-law risks. While employee privacy concerns are one common issue, others are less obvious. Following the tips below can help employers avoid being caught off guard by addressing these legal risks early on. Be Vigilant and … [More]
Employers: Reject Sexual Harassment (Part II)
This article continues last month’s discussion of steps businesses can take to address the seemingly perennial issue of sexual harassment. But it is worth reflecting again on the fact that, although legislation in recent decades has begun to reflect a growing social consciousness of this as unacceptable behavior, laws, best practices and policies have failed to completely … [More]
