The Department of Labor and the Internal Revenue Service jointly have provided in a final rule that all group health plans, disability and other employee welfare benefit plans MUST disregard the period from March 1, 2020 until 60 days after the end of the declared National Emergency related to the COVID-19 outbreak or such other date as provided by the agencies in future … [More]
Force Majeure May Be Answer to Contract Performance
The impact of the COVID-19 pandemic has and will be devastating to many Greater Phoenix businesses. Leases, product purchases, vendor contracts for service and employment agreements are just some of the potential casualties of a company’s inability to perform under a contract due to the pandemic. This new reality may cause businesses and individuals to have considerable … [More]
Protecting IP Assets
With so many people working from home, many of the safeguards and systems that companies rely on to protect their information become less effective, partially compromised or even completely obsolete. The fact is that a company's sensitive information is at greater risk of being pirated when it's being handled outside the office. For example, many of us have smart devices such … [More]
COVID-19 Impacts International Travel
Crossing U.S. borders has never been easy, but today’s business travelers face an unprecedented range of issues amidst a constantly-shifting legal and regulatory landscape. Within the past month alone, the U.S. government has rolled out three new sets of travel restrictions: an expansion of the “Trump Travel Ban,” a so-called “birth tourism” ban, and a travel ban designed to … [More]
The SECURE Act
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]
