The Delaware Chancery Court has recently approved a demand by Facebook’s shareholders to see their books and records. This demand, called a Section 220 demand, was filed as a means of examining potential wrongdoing by Facebook’s leadership during the Cambridge Analytica scandal. Cambridge Analytica (CA), a now-defunct political consulting firm, was accused of stealing the data of 50 million American Facebook users which it utilized to influence the 2016 United States Presidential Election. Continue reading “Delaware Court Approves Shareholder Demand to See Facebook’s Books”
The holiday season is upon us and many businesses choose this time of year to celebrate workplace achievements and express gratitude to employees for their contributions. Although holiday parties are customary to some businesses, others are choosing to forgo these festive traditions in fear of legal liabilities stemming from alcohol use, injuries, and harassment. For businesses that choose to have a holiday party, it is important to take measures to minimize risk and promote safety. Continue reading “Reduce Business Liability at the Holiday Party”
On June 4, the U.S. Supreme Court ruled in favor of a Colorado baker who invoked his religious rights and refused to make a wedding cake for a same-sex couple in Masterpiece Cakeshop v. Colorado Civil Rights Commission. The ruling was 7-2. However, the court’s decision did not resolve the larger issue of whether or not business owners can refuse service to lesbian, gay, bisexual, and transgender (LGBT) individuals based on religious beliefs alone. Continue reading “Supreme Court Rules in Favor of Business in Same-Sex Wedding Cake Matter”
Whether or not an intern is paid is usually a deciding factor in considering hiring one. While many internships are not paid, labor laws usually allow the intern to work for college credit. However, there are restrictions to this exception. An internship must abide by specific criteria in order to be exempt from the Minimum Wage Act and Orders, which outlines New York’s laws regarding pay and overtime. In order to be exempt from this law, an intern cannot be considered an employee and an employment relationship cannot exist between the for-profit business and the intern. It can be determined that an employment relationship does not exist if the relationship meets all of the following criteria: Continue reading “What You Should Know Before Hiring an Intern”
In the past few years, the Supreme Court has had to make a number of decisions regarding the rights of businesses to accept and reject certain transactions and whether to provide certain benefits. In the 2014 case of Burwell v. Hobby Lobby Stores, Inc., the Court decided that laws that contradict or interfere with a business’ right to exercise religious freedom may be unconstitutional and impermissible. In that case, President Obama’s healthcare plan required that certain businesses provide healthcare coverage to their employees, which included the requirement to provide coverage for female contraception. Continue reading “The Religious Rights of Business Owners and the Right to Refuse Service”
A New York City hospitality owner should always remain compliant with both state and city regulations, otherwise he or she will be subject to hefty fines and penalties. In New York City, bars, restaurants, and nightclubs are the most likely to be subject to noise, food, or health code violations by agencies such as the Department of Health, Department of Buildings, FDNY, NYPD, NYS Liquor Authority, or even the Federal Alcohol Tobacco and Firearms Agency (ATF). Continue reading “Compliance Is Key to Running a Successful Business in New York City”
The first step to forming a business in New York State is to decide what type of entity is best. Each type of entity has their own benefits, but the decision is often made based on the structure, liability, tax, and management considerations surrounding your future business. A Limited Liability Company (LLC) offers a significant amount of flexibility and allows the business the liability protection of a corporation with the tax treatment of a partnership. Continue reading “Forming a Limited Liability Company”
When starting a business, there are many legal forms the venture can take. Two of the more well-known types are limited liability companies (LLC) and limited liability partnerships (LLP). Although both LLCs and LLPs have similar characteristics to corporations and partnerships, the way these structures are managed and taxed, as well as potential liability can differ.