Many entrepreneurs (and their lawyers) are eagerly awaiting the new rule from the Securities and Exchange Commission (SEC) that will allow companies to engage in general solicitations, provided that securities are sold only to “accredited investors.” Originally, the SEC was directed to implement these rules by July 4, 2012, which was 90 days from Congress’… Read More
IRS Announces Guidance on Withholding of Tips
The IRS today released Internal Revenue Bulletin 2012-26 providing guidance on how taxes are imposed on tips under the Federal Insurance Contributions Act (FICA). The bulletin is in question-and-answer format and includes an explanation of both the employer’s and employee’s obligations. The bulletin also addresses the following issues: — The difference between a tip and… Read More
U.S. Department of Homeland Security to Grant Work Permits to Undocumented Individuals
The U.S. Department of Homeland Security (DHS) announced that, beginning sometime in the next 60 days, certain undocumented individuals who have continuously resided in the United States for at least 5 years will be eligible for “deferred action” from deportation and will be given work permits for 2 years. In addition, the individuals’ status and… Read More
Employee’s Refusal to Sign Discipline Form is “Misconduct” Warranting a Denial of Unemployment Insurance Benefits
When you present an employee with a performance review or disciplinary action form and ask that employee to sign it, his refusal constitutes “insubordination.” That is, by itself, grounds for firing the employee. But, is it also “misconduct” within the meaning of Section 1256 of the Unemployment Insurance Code such that you can also challenge… Read More
SF Mayor Ed Lee Presents New Business Tax Proposal
For the past several months, the S.F. Controller’s Office has been working with the S.F. Treasurer’s Office, the City Attorney’s Office, and local businesses on a redesign of the City’s business tax system. The current business tax system levies taxes based on a business’ total payroll, and many believe that such a payroll tax penalizes… Read More
Navigating Defamation Issues in Social Media
Many businesses are frustrated about what they believe are false and defamatory statements about their products/services on Yelp, Twitter, Facebook, Amazon customer reviews, and other social media. That frustration often intensifies when the business learns that, due to the federal law known as the Communications Decency Act, the business cannot sue the blog or ISP… Read More
Medical Marijuana Use Not Protected by ADA
The Ninth Circuit Court of Appeals has ruled in James v. City of Costa Mesa that an individual who is discriminated against because of his use of medical marijuana – even if lawful in his home state – has no claim under the federal Americans with Disabilities Act (ADA). The Court reasoned that the ADA… Read More
EEOC Issues Guidance on Employers’ Use of Criminal Records in Hiring
The Equal Employment Opportunity Commission (EEOC) recently published new guidelines for how employers should (1) handle inquiries into arrest and criminal conviction records of applicants and employees, and (b) make employment and hiring decisions when criminal backgrounds are part of the consideration. The full text of the EEOC’s Enforcement Guidance Memorandum 915.002 is available here…. Read More
The Prevailing Party on a Labor Code §226.7 Claim for Unpaid Meal and/or Rest Breaks Does Not Get Attorneys’ Fees
The California Supreme Court held that attorneys’ fees are not awardable to the winners in cases involving meal and rest period claims under Labor Code §226.7. In Kirby v. Imoos Fire Protection, Inc., the Court held that a Labor Code §226.7 claim is not a claim for which attorney’s fees can be awarded to a… Read More
EEOC Says Transgender Applicants and Employees Protected Under Title VII
On April 20, 2012, the Equal Employment Opportunity Commission (EEOC) ruled in Macy v. Holder that transgendered applicants and employees are protected from employment discrimination by Title VII of the Civil Rights Act of 1964. This landmark decision marks the first time that a federal court or agency has extended Title VII’s prohibition on sex discrimination… Read More