• Use an LLC. An LLC is a Limited Liability Company which can be made legitimate with only an owner and a member and can be used to include assets under, as long as the LLC does not directly pay for personal expenses. Property is protected under an LLC in that creditors cannot seize it and it cannot be taken for the payment of personal judgements. Be careful with this one, however, as property can be seized if lawsuit is brought against the LLC itself.
• Use a Trust. Prepare for the possibility of creditors attempting to seize property ahead of time and create the appropriate trust to protect your assets. Trusts can help you avoid probate, lower your estate tax liability, and keep your assets safe for beneficiaries. Remember, the type of trust you should use will differ depending on the type of asset, or assets, you want to protect.
• Use Insurance. Purchasing insurance is almost a given when it comes to asset protection. Although insurance does work well together with the other methods of protection, it does not protect as well itself. Using an LLC or a trust both serve to prevent litigation or loss of property, while insurance is more of a compensation measure to make up for assets lost. Insurance, therefore, is important but should not be taken as the only method of asset protection.

A good amount of asset protection should be catered to the circumstances and what particular assets need to be protected. For more information on asset protection, or recommendations for your particular situation please contact us! We are happy to help.

Photo Credit: cliff1066

• Start Early. Avoid a time-crunch in the merger or acquisition process by giving your business plenty of time to prepare. The earlier you start planning, the more time you will have to come up with a strong plan and to anticipate any pitfalls you might run into. Starting early will also give you more time to deal with challenges when actually implementing the merger or acquisition, making for less stressful and more successful proceedings.
• Assemble a Team. It is important to have a strong team that will guide your merger along, plan ahead, and actually make the merger or acquisition happen. Your team should include an insider team from within your company and an outsider team of specialists or advisors, an attorney and an accountant. Make sure your insider team has strong leadership and is full of people motivated to work for what is best for the company rather than for themselves.
• Perform Due Diligence. Be informed as to what exactly you are getting into. No one wants to fly blind into a business-changing deal. Make sure you take an in-depth look at binding contracts the company has already agreed to, expenses the company has for operating and developing its product or service and the company’s tax history. Conducting due diligence is a lengthy process and it is important that you do not forget to check on certain aspects of a company’s history. Doing some research on what you should look at as well as employing an attorney will help you to be thorough.

A merger or acquisition may seem like an overwhelming step with a lot to be wary of. We are here to help. Our attorneys can be a part of your team and help guide you through the process. Contact us today to find out more!

Photo Credit: buddawiggi

Litigation is simply the legal process of taking someone through court, so it follows that employment litigation is when an employer or employee takes the other party before a judge. Therefore, employment law (or labor law) lays out regulations for business owners and workers to follow.

Employment Law Information

The United States Department of Labor’s convenient Employment Law Guide is a great site to keep handy and refer to as needed, although it can be tricky to wade though.

Another important thing to know is that, in addition to federal laws, every state has their own laws as well. Most state websites have the labor laws listed somewhere, so if you’re ever in doubt you can check out their individual sites (for example, see California employment law).

Common Employment Law Misconceptions

Obviously employment law is there for a reason; it protects employees and employers in various ways. Unfortunately, disputes still come up and employment litigation becomes necessary. Before you cross that bridge, are you aware of some common misconceptions?

According to eHow, “one of the most common misconceptions regarding the California labor law involves overtime and how it is calculated…There are specific duties, not job titles, that allow for the worker to be salaried, such as management of the enterprise or recognized department. To be exempt, an employee must earn twice the minimum wage of a full-time employee, as well as meeting other standards.”

eHow also explains that another common misconception is that employees can opt out of their meal period and leave 30 minutes sooner. This isn’t true. “The California law regarding meal periods requires employees to use the time as a break rather than opting out…Employees may remain on duty through the meal period and claim the 30 minutes as time worked only when the nature of their occupation and position makes taking an extended break impossible. In such cases, the employees must sign an agreement to work during her break.”

A third common misconception is that “an employer can search an employee daily, without good or specific reasoning. An employer may legally be allowed to search the employee’s desk or bags for suspected stolen goods if every employee is searched, especially if there is a company policy warning employees that they may be subject to search. However, an employee has the right not to have his body searched by an employer.”

Do you have questions about any specific labor laws and if a specific instance might lead to employment litigation? Contact us to find out!

Photo Credit: umjanedoan

There are additional problems with oral contracts as well:

• They can be hard to remember. Most people have trouble remembering what they ate for breakfast two weeks ago, so it’s no surprise that details of a verbal agreement can be forgotten or remembered incorrectly.
• Some states impose limitations. An article in Senior Mag did a nice job of explaining, “Some states may however, impose limitations on the verbal contract if the value of it exceeds a certain dollar value or the term of the contract is over a certain period of time. In other words, holding someone to an agreement to provide a service ten years down the road or a multi-million dollar verbal agreement would probably be very tough in most states.”
• There are instances in which they aren’t legally binding. Essortment shares four instances in which verbal contracts aren’t legally binding: 1) The agreement is made regarding something illegal in nature, 2) It is vague and does not tie down specifics, 3) Both parties involved in the oral contract transition had a misunderstanding about the main context of the contract and 4) Transactions that require written contracts like real estate transactions, credit agreements and employment contracts that last longer than one year.
• They can be more expensive. Because you don’t have a record for a judge to refer to, both parties can end up spending much more time in court. Written contracts make the agreement much clearer for a judge, which means less time in court and fewer legal fees.

In general, it’s best to opt for written contracts. It’s much easier to refer to details of an agreement clearly spelled out in black and white, and to enforce them should one of the parties defer from the agreed upon terms.

Do you need help creating a written contract? We can help! Contact us to get started.

Photo Credit: Cushing Memorial Library and Archives, Texas A&M

Here are a few dos and don’ts to keep in mind:

• Do find and read the will. Determining what the benefactor’s wishes are should be the first priority in the estate division process.
• Do come to an agreement regarding how to equally split what isn’t laid out in the will. One common method is “The Settlement Game,” which provides heirs with the opportunity to hold a family auction to determine who keeps specific items.
• Do try to gain an understanding of personality types involved. Although they have the same parents, two siblings will likely approach the situation very differently, so try to understand where the other person is coming from.
• Do commit to keeping peace within the family. Although loved ones are gone, relationships between those left still matter, and keeping those a priority will help prevent dragging the matter into court.
• Do respect what the executor decides. Ultimately, those that passed put them in charge of estate division for a reason, so respect the wishes of those that are gone and listen to the person they selected.
• Don’t simply take items from the estate prior to finding/reading the will and coming to an agreement regarding how to split what’s left. Let everything go through the process determined by the executor and all of the heirs.

As you prepare your will, how can you avoid estate division disputes among your benefactors? eHow recommends “establishing a clear process in a legal will that is free of ambiguities or areas that can be disputed,” “begin dividing [your] estate while [you’re] still alive,” and “establish a trust.”

If you’d like additional estate planning advice, or if you’re facing estate division and need help, please contact us! Our team of lawyers can help you navigate the process smoothly and legally.

Photo Credit: Southernpixel Alby

1. Forgetting to keep your will or trust up-to-date. Situations in your life change. The person you named as your child’s guardian may move overseas, or you may get divorced. When changes like this occur, it’s important to review your estate plan and make sure it’s updated with new, correct information.
2. Not using tax-planning strategies. It’s important to know how you can minimize or avoid paying estate taxes, so sit down with an accountant or financial planner to go over estate tax planning strategies and figure out the best ways for you move forward.
3. Remaining oblivious to legislation. As Congress changes tax law, it affects the total cost of estate taxes. As legislation changes, it’s important to know how it will affect your beneficiaries.
4. Not telling others where it is. It may sound simple, but would your children know where to look for your estate plan? Whether it’s in a safety deposit box or with your attorney, it’s important for your loved ones to know where to look.
5. Refusing to ask for help. Although you might be able to do some estate planning on your own, it’s always best to get help from an attorney that knows how to plan and advise you in your unique situation. An experienced attorney can make sure you dot the I’s and cross the T’s, and can help you navigate any confusing laws or documents.

Whether you need help creating an estate plan from scratch, or updating one you already have in place, we’re here to help! Contact us if you have any questions about the process.

Photo Credit: o5com

Here are a few basic dos and don’ts for employers to keep in mind as they put together a list of legal interview questions to ask:

• Do ask questions that will determine if a client is qualified, such as skills, certifications or related work history that would be relevant to the position.
• Do ask if they’re qualified to work in the United States or what languages they speak, read or write fluently.
• If the applicant was in the military, do ask about the training or education they received. You cannot ask if they were honorably discharged or which branch they served in, though.
• Depending on the job you’re hiring for, do feel free to “Google” the potential employee to see what information is public about them, but don’t ask for any social media login information (such as Facebook, Twitter, etc).
• Don’t ask questions of a personal nature, including those that relate to religious beliefs, family status, nation of origin, age, etc.
• Don’t ask about their current health status or if they have any disabilities. Instead, ask if they can perform the specific job duties or if they can fulfill the job responsibilities with reasonable accommodations.
• Don’t ask about any clubs or social organizations he or she belongs to. You can, however, ask about professional organizations or trade groups, like the American Bar Association.

Pacific University in Oregon has a great list of legal interview questions for employers and potential employees to refer to. Want additional advice? Feel free to contact us – we’re happy to help!

Photo Credit: Alan Cleaver

Employer Rights

What do you need to know before you hire, fire, set leave policy, offer wages and more? Make sure you don’t discriminate based on race, religion or disability. According to ehow, you can choose not to hire someone based on their behavior during an interview, the way they’re dressed, lack of experience or even a gut feeling that they don’t have the right personality for the position. But employers do not have the right to deny employment based on a person’s ethnicity, beliefs or disabilities.

As the employer, you do have the right not to offer paid sick days or paid vacation time. Regardless, be sure you set a leave policy that’s the same for each employee so as to avoid any discrimination charges.

Employers also have the right to fire an employee for a variety of legal reasons, including disruption of the workplace, frequently missing work or arriving late, harassment of other employees, inadequate work and poor work ethics. Just make sure you follow the terms of any contract between you and the employee.

Employee Rights

For any job you have, it’s important to understand your rights as an employee. Although rights differ a bit depending on the size and type of company you work for, there are standard rights that you as an employee have no matter where in the country you work. Most of them fall under one of these categories:

• The right to be free from discrimination and harassment of all types
• The right to a safe workplace free of dangerous conditions, toxic substances, and other potential safety hazards
• The right to be free from retaliation for filing a claim or complaint against an employer (commonly known as “whistleblower” rights)
• The right to fair wages for work performed

To find out more about rights specific to your workplace, check out Nolo’s Employee Rights & Law Center or the Employee Rights center on Chron.com.

Of course, we’re happy to help you understand employment law and how it relates to you as well, whether you’re an employer or an employee!

Photo Credit: mirimcfly

• There is no longer a “design professional lien.”
• As under the previous law, design professionals can record a mechanic’s lien. The change is that now the designer can record the lien before actual construction begins.
• The requirements for filing a mechanic’s lien are the same as before; the design professional needs to be in contract with the owner, and a building permit or other governmental approval of the work of improvement needs to have been obtained.
• This new law maintains the same notice and recording requirements as well:
  • Before recording a lien, the design professional needs to give at least 10 days written notice to the property owner stating that a default has occurred under the design contract, indicate the amount of the default, and make a demand for payment.
  • When recording a lien, the lien needs to include the name of the design professional, the amount of the claim, the name of the current owner of record, a legal description of the property, and must identify the building permit or other governmental approval for the planned work of improvement.
• There are two ways for a mechanic’s lien recorded by a design professional to expire and become null and void:
  • The commencement of the work of improvement.
  • The expiration of 90 days after recording the mechanic’s lien, unless the design professional begins an action to foreclose on the lien.
• A new addition to the law is that a design professional may convert a mechanic’s lien recorded pre-construction into what is essentially a regular mechanic’s lien within 30 days of beginning the work of improvement. To convert a pre-construction mechanic’s lien, the design professional needs to re-record the lien, which must indicate that it is a converted pre-construction lien. For the conversion, no preliminary lien notice is required.

It is important to understand exactly what new guidelines you need to follow as a design professional to make important legal claims. Omni Law Group is here to help. For more information about these new lien laws and for legal assistance, contact us today!

Photo Credit: Will Scullin

Basics For Employers
California Labor Code requires employers to have insurance for worker’s compensation, even if they only have one employee. The California Department of Industrial Relations provides a lot of helpful information about this, including:

• “You can purchase worker’s compensation coverage through an agent or a broker from any of the privately licensed insurers authorized to write policies in California. You can find a list of authorized insurers on the California Department of Insurance Web site at www.insurance.ca.gov.”
• “A number of factors go into determining the annual premium your insurance carrier will charge. These include your industry classification, your company’s past history of work related injuries (known as your experience modification), your payroll, any special underwriting adjustments such as use of a certified health care organization, and any special group or dividend programs you may be eligible for.”
• “Insuring for worker’s compensation is part of your cost of doing business. An employer cannot ask employees to help pay the insurance premium.”

Basics For Employees
According to California Labor Code, your employer is required by law to pay for worker’s compensation benefits if you have any type of work-related injury or illness. The California Department of Industrial Relations has some helpful information for employees, too:

• If you’re injured on the job, “Report the injury to your employer by telling your supervisor right away. If your injury or illness developed over time, report it as soon as you learn or believe it was caused by your job.”
• According to California Labor Code, workers compensation provides five basic benefits: medical care, temporary disability benefits, permanent disability benefits, supplemental job displacement benefits and death benefits.
• “Employees may call 1-800-736-7401 to hear recorded information on a variety of worker’s compensation topics 24 hours a day.”

Want to know more about the California Labor Code and how it relates to worker’s compensation? Whether you’re an employer or employee, Omni Law Group can help! Contact us today.

Photo Credit: DIAC Images