CALIFORNIA CHANGES LAW TO ALLOW CONTRACTORS TO OPERATE AS LLCs and ENGINEERS AND LAND SURVEYORS AS LLPS

On September 30, 2010, Governor Schwarzenegger signed SB 392, which will permit the California State Contractors License Board to issue contractors licenses to limited liability companies no later than January 1, 2012.  As with other professionals who organize as LLCs or limited liability partnerships (“LLPs”), an LLC holding a contractors license will be required to maintain a minimal level of security for consumer claims.  Security (Insurance) Requirements.  The security can be satisfied through insurance, as set forth below: 1.         For LLCs with five or fewer persons listed on the “members... Read The Rest →

EMPLOYEE E-MAIL PRIVACY ISSUES

            E-mail has become the preferred method of communication for millions of individuals.  Because of the relative ease in accessing personal e-mail accounts at work, many employees routinely check their personal e-mails and respond to them from the workplace.  Many employees assume that the e-mails they send and receive are protected from review by their employer and, in certain limited circumstances they may be right.  Employees may also assume that when they hit the “delete” key on their keyboard, that an e-mail is removed from their computer.  However, many systems... Read The Rest →

UNPAID INTERNSHIPS

The U.S. Department of Labor has recently announced that it is stepping up enforcement efforts against employers who offer unpaid internships.  The Department – which formerly had a more flexible approach is assessing unpaid internships – is now prohibiting unpaid internships in the vast majority of circumstances.  Nancy J. Leppink, a former Minnesota Assistant Attorney General and the current Director of the Department of Labor’s Wage and Hour Division, has stated, “If you’re a for-profit employer or you want to pursue an internship with a for-profit employer, there aren’t going... Read The Rest →

HOW CORPORATIONS ARE TAXED

How Corporations Are Taxed It pays to learn the ups and downs of corporate taxation before you start your business. Corporations are taxed differently than other business structures: A corporation is the only type of business that must pay its own income taxes on profits.  In contrast, partnerships, sole proprietorships, and limited liability companies (LLCs) are not taxed on business profits; instead, the profits “pass through” the business to their owners, who report business income or losses on their personal tax returns. Understanding Corporate Taxation Because a corporation is a... Read The Rest →

UPDATE ON CALIFORNIA COMMISSION AGREEMENTS (2013)

  Reminder: written and signed commission agreements are required by January 1, 2013 It is time to think about that to-do list for year end. One item on that list for all California employers should be to make sure you have updated, accurate, and signed commission agreements on file. Last year AB 1396 was passed, requiring that any employer who pays commissions to employees must have a written contract setting forth “the method by which the commissions shall be computed and paid.” The employer must give a copy of the... Read The Rest →

CALIFORNIA WAGE THEFT PREVENTION ACT (2012)

A recently-passed piece of California legislation that will impact employers is the Wage Theft Prevention Act of 2011 (WTPA), which takes effect January 1, 2012. This law adds a new section to the California Labor Code  (Labor Code Section 2810.5). The WTPA requires that employers provide written notice to employees at the time of hiring regarding: 1) rates of pay and the basis for compensation, including whether the rates involve payment per hour, per shift, per day, per week, or by salary, piece, commission, “or otherwise”; 2) any credits or... Read The Rest →