SPS Workflow | Making Your Life Easier

What Businesses Need to Know about Consumer Protection

Posted by Johnny on Apr 21, 2013 in Business |

Especially in the difficult financial situation of the past several years, many Americans have found themselves dealing with unmanageable levels of debt. There are a number of options available to both creditors and debtors to deal with this undesirable situation, but if you have customers who are in default or behind on payments, there are some important regulations in place that govern how these individuals can be treated.

It is essential for businesses to be aware of the consumer protection laws that are in place, because violations of these regulations could have serious repercussions on a business or business owner.

Consumer protection at the federal level

The Fair Debt Collection Practices Act (FDCPA) is included in the United States Code under Title 15 § 1692 and was first enacted in 1977. It is designed to:

Prevent abusive collection practices for consumer debt
Provide a way for consumers to dispute and validate debt information in terms of accuracy
Provide guidelines for the legal conduct of debt collectors
Establish penalties and sanctions for violators
Codify the rights of consumers in reference of debt collection

Individual consumer protection

The FDCPA, as applied in many situations, covers personal, family, and household debt including credit card debt, auto loans, and medical care debt. It polices the conduct of third-party debt collectors, who may be any person who regularly collects debts and may include lawyers. It does not include internal collectors of the creditor. Under most laws, a debt collector may only contact a debtor between 8 am and 9 pm, and may not call at the place of work if the employer does not allow it. If the debtor tells the debt collector in written form to stop calling, the debt collector may only contact a debtor to provide additional information, such as the intention to sue. A debt collector may also not inform anyone except the debtor that money is owed.

The FDCPA cannot be used to erase debt, but when debt collectors act in ways which violate the FDCPA, issue false statements, or engage in other illegal practices as defined under the Act, then a debtor may be able to file a private lawsuit citing FDCPA consumer protection violations.

Mandatory Auto Insurance in Illinois for Company-Owned Vehicles

Posted by Johnny on Apr 19, 2013 in Auto Insurance |

Auto insurance is required for all motor vehicles in the US with the exception of Virginia, Mississippi and New Hampshire. Each state has its own minimum coverage for third person (another car or pedestrian) liability, and in Illinois, these are:

Bodily injury (per person) – $20,000
Bodily injury (per accident) – $40,000
Property damage – $15,000

While many individuals make sure to get the auto insurance coverage they need, many companies forget about the importance of having the minimum amount of coverage required for company-owned vehicles. It is essential for businesses to secure at least the state-required amount of liability coverage, or they could face serious penalties under the law.

How the law is enforced

The law requires that proof of coverage, such as an insurance card, is always available in the car and has to be shown to any law enforcer when requested. Failure to do so, insured or not, will result in a traffic citation. If it turns out that you are not insured, your license plates will be suspended and you will have to pay a minimum of $500 in fines.

Illinois also makes random checks of vehicles by sending out a questionnaire regarding your insurance coverage. Failure to return the questionnaire, insured or not, will lead to a suspension of your license plates.

Getting your license plates reinstated

If this is the first time you were ever caught driving uninsured, you may have your license plates reinstated after paying a fee of $100 provided you already have insurance coverage. Repeat offenders will not be able to reinstate their plates within a four-month period. The suspension is only valid for a specific vehicle; it does not mean the driver is also suspended from driving other vehicles. Driving a vehicle with suspended license plates, however, carries a fine of a minimum $1,000.

You need auto insurance

Unless you rarely use your vehicle in Illinois, it is cheaper and less of a hassle to get at least the minimum required auto insurance coverage in Illinois. It serves not only to protect you from liability in case of an accident, it also protects the people you may injure or whose property you may damage. After all, a motor vehicle is a moving missile with the potential for causing a great deal of damage to yourself and other people. While it may seem like an unnecessary expense, auto insurance is still very important.

About Workplace Discrimination

Posted by Johnny on Apr 16, 2013 in Employment |

Aside from the US Fair Labor Standards Act of 1938 or the FLSA, which prevents discrimination against work and compensation, many other laws have been passed which would help ensure fair labor practice all across the US. Just a few of these laws are the Americans with Disabilities Act (ADA), the Age Discrimination in Employment Act (ADEA), the Civil Rights Act of 1964, and the Equal Pay Act (EPA).

Despite all these federal decrees, many employers choose to turn a deaf ear to claims of discrimination, rather than addressing the unjust practices committed in their companies. And although an act of discrimination may oftentimes be obvious, many employees would find it hard to complain due to fear of being subjected to greater injustice or, worse, losing their job.

Discriminatory acts can inflict more and deeper harm that one can imagine. Oftentimes victims appear to be easily dismissing the issue; deep inside, though, the hurt can be much deeper. Not having any chance for promotion, getting lower pay compared to their peers, being laughed at by both their peers and supervisor, or never having been asked to participate in important meetings or company activities – these are just some of the unjust treatments employees may suffer from due to their age, race, national origin, gender, or disability status.

If you feel that you are being discriminated against in your workplace, you have every right to take action against the party responsible for the discrimination and pursue the equal treatment that you deserve under the law. If company policy cannot save you from the injustice you are suffering from, then it is likely that the best way to address the wrong done is through legal means.

Discrimination can have devastating effects on anyone and everyone in a workplace, and employers and employees alike should do everything they can to stop such illegal actions as soon as possible.

Invest in Good Writing for Your Business

Posted by Johnny on Apr 14, 2013 in Business |

Website content is what drives the market today, and we’re not just talking about online businesses. With the Internet filtering through every facet of daily life, the sure way to get market attention is by being online. This is why most businesses have an online presence even if it is just on a social network. And for an effective online presence you need a well-designed website and good content writers.

Good content writers know how search engines work, so they can optimize the copy to keep your web presence in the public eye. Aside from optimization, good writers preserve the correct form, function, and flow of the content so that it not only ranks well in search engines but also gives value to the reader. This makes a good impression on the target market, enhancing the credibility of your page or website which in turn reflects on your product or service. Most people take you at your face value; if you look good, then you must be good. The next step, providing excellent service or quality products, is up to you.

It would be tempting to try doing it yourself; after all, a penny saved is a penny earned. That’s true enough if you write well, and you have the time to do the necessary research. If not, you might be doing yourself a disservice by not trusting your content writing needs to a professional. You spent good money on your website design but it’s an empty shell without good content. Also, having mediocre content (or worse, none) on your webpage or website can turn away potential customers because they are not favorably impressed by what they see. Remember that your online presence is the first thing most people will see before they ever step into your actual place of business. You need to wow them from the get go, and investing in good content writers to provide you with excellent copy is the easiest way to do that.

Establishing LLCs for Multiple Businesses

Posted by Johnny on Apr 12, 2013 in Business |

If you are a born entrepreneur and have a wide range of interests, you may have several small businesses in operation at one time. Some of these may benefit from the protection afforded to limited liability companies (LLC).

Why form an LLC

Basically, an LLC is a hybrid business entity that combines the limited liability of a corporation with the tax benefits of a single proprietorship. If you have a business that would have significant tax consequences if it is turned into a corporation, or you don’t want to be personally liable for everything from lawsuits to debts under a single proprietorship, then an LLC is just right for you.

The potential for liability may prompt you to form an LLC from two or more of your businesses, but this is not always good practice. True, you save on time and money because you only have to go through the LLC formation process once. But that could be a bad decision for the following reasons:

Your businesses may not be related, so it would not be able to justify lumping them all under one LLC
You may want to eventually sell one business; it would be easier to establish the health and desirability of the business to potential buyers if you have separate accounts and books for each business
You may need to take out a loan with your business as collateral. If not all your businesses are doing well, it will dilute the value of the businesses that are actually successful

Forming an LLC is a relatively simple and inexpensive matter, and it is even easier when it is handled by an experienced business formation lawyer.

Can There be a Breach of Contract for Verbal Agreements?

Posted by Johnny on Apr 11, 2013 in Business |

The concept of a contract is usually associated with something that is written down, signed and witnessed. It follows that when one talks of a breach of contract, one is referring to a formal, written legal document. But the fact is verbal agreements can also be considered legally binding and enforceable under specific circumstances, so a breach of contract can also apply to oral or verbal contracts.

Oral Contracts Defined

You may not realize it, but every time you make an arrangement with someone for the purchase, trade or repair of something, you are entering into an oral contract. There are a few elements that constitute a contract, and they apply to both oral and written contracts. These are:

the offer
acceptance of the offer
a common understanding (“a meeting of the minds”)
consent to of the terms of the contract by both parties
execution and delivery

When all these elements are present, the contract is considered binding. The difference between oral and written agreements is when it comes to a breach of contract. In most cases, oral contracts are entered into when the terms of the agreement is simple, easy to remember and short-term.

An example would be an agreement between two friends going on a trip to split the expenses where one pays for transport costs while the other pays for all other expenses. It is the responsibility of both parties to have the means to fulfill their part of the agreement. When one party forgets to withdraw money, forcing the other party to pay for everything, it could be construed as a breach of contract.

In most cases, however, there are no real consequences to breaching an oral agreement unless it results in injury, loss of income or damages to another person. A breach of contract lawyer would know if the oral contract is enforceable, and provide advice on whether to pursue litigation.

Employment Lawyers for Wrongful Termination in Texas

Posted by Johnny on Apr 9, 2013 in Employment | 1 comment

Employment laws in the US may differ from state to state, and there is no wrongful termination law that is universal for all states. In Texas, the practice of at-will employment makes it difficult to sue for wrongful termination except under specific circumstances. Employment lawyers will be able to assess your case for merit.

What is wrongful termination?

Wrongful termination is the dismissal or discharge of an employee under circumstances that breach employment law or an employment contract. These circumstances may involve one or more of the following:

Any type of discrimination
As retaliation for a claim of discrimination
As punishment for an employee refusing to participate in anything illegal
Failure to follow the company’s published (i.e. in the employee handbook) termination process

This is wrongful termination in general terms, but wrongful termination can mean different things from state to state. It should also be noted that a de facto legal relationship between an employer and employee is presumed in the absence of an employment contract, so the employer is still bound by a particular state’s employment law.

What is employment at-will in Texas?

Employment at-will means that an employer may decide to terminate an employee without providing a reason or cause. Employers in Texas and California often designate their employees under this category. The at-will statute, however, is not absolute. In most cases, if an employee can prove that their termination was due to discrimination or retaliation, then a case for wrongful termination may be brought against the employer.

It must be noted, though, that in Texas, the definition of wrongful termination is more stringent. The employee must prove that the termination was due to a refusal to perform or participate in a criminal act as defined by Texas or federal law. An act that construes a violation of civil law does not constitute an illegal act in this context. Dismissal due to an employee whistle-blowing on an employer for unlawful conduct is not recognized as a basis for a wrongful termination case, unless the plaintiff is employed by the government.

There are many ifs and buts in Texas when it comes to wrongful termination. Employment lawyers well versed with Texas employment laws would be the best judge of whether a wrongful termination case has merit or not.

Business Economic Losses Resulting from the Deepwater Horizon Oil Spill

Posted by Johnny on Apr 8, 2013 in Business |

The economic losses resulting from the Deepwater Horizon Spill nearly three years ago are still reverberating among those whose livelihood depended on the waters off the Gulf of Mexico, the area worst affected by the oil spill. These include fishers, and those working in the related seafood and tourism industries in Louisiana. The oil spill, rated as one of the worst ecological disasters in petroleum industry history, affected 60,683 square miles of the Gulf of Mexico, or 25% of prime fishing waters.

The Deepwater Horizon is a semi-submersible deep water drilling oil rig owned by Transocean, provided well-completion service by Halliburton Co., and chartered by BP to drill an exploratory well located in the Macondo Prospect off the Louisiana coast. The cause of the April 20, 2010 explosion that sank the rig, claimed 11 lives, and decanted more than 4 million barrels of oil into the sea has yet to be determined, but there is no question that it resulted from the negligent actions of those responsible for the Deepwater Horizon operations.

Among the hardest hit by this disaster have been small entrepreneurs and independent fishers who depended on their catch to sustain their businesses and families. Immediately after the explosion, the demand for Gulf seafood products, which supplies more than 30% of the US market, dropped drastically as news of possible contamination spread. This led to closure of many businesses and sharply raised the prices of seafood in the US due to reduced supply. The economic loss affected thousands of people, culminating in civil and criminal charges against BP, Transocean, Halliburton, and Cameron International Corporation, which provided the blowout preventer that was supposed to prevent inadvertent oil spills but which failed in its function.

Fortunately, many of those who have suffered business economic losses are taking legal action to pursue compensation for the losses they have been forced to endure.

Federal Laws Governing Overtime Wages

Posted by Johnny on Apr 5, 2013 in Employment |

“A laborer is worth his wage.” Whether you look at it from a moral or legal point of view, the message remains the same – any employee ought to be paid for every minute spent working.

There are numerous laws and regulations, both on the state and federal levels, which outline the protections that are to be given to workers, and this includes financial protections for individuals who work more than the standard 40 hour work week. One of the most important and well-known employment regulations is the Fair Labor Standards Act of 1938 or the FLSA, also called the Wages and Hours Bill, a US federal decree which defined the legal numbers of hours of work per week, the national minimum wage, the allowable number of hours of work and legal pay for overtime, and the prohibition of the hiring of minors to perform “oppressive child labor.” In 1947 another law was executed, the Portal-to-Portal Act, which specified that all work done for the benefit of the employer, regardless of time, ought to be considered as work time under the FLSA and should, therefore, be compensated.

Despite these laws many employees still experience unfair wage practices in the workplace, resulting in unpaid overtime. While there are some employees who, because of the work they perform or their job descriptions, are exempt from overtime pay, even if they work in excess of 40 hours a week. Unfortunately, many employers wrongly classify employees as being exempt in an attempt to disqualify them from receiving time-and-a-half for any hours worked over 40 hours in one week.

Whether you are a temporary employee, a part-time employee, a full-time employee, an hourly or salaried worker, you may be entitled to overtime pay based on the requirements of your position. If you are a business owner, it is essential to familiarize yourself with overtime pay laws so that you don’t wrongly deprive an employee of earned overtime wages and face legal action in an overtime dispute down the road.

The Scope of Business Law

Posted by Johnny on Apr 2, 2013 in Business |

To say that business law applies to every facet of business is not an exaggeration. Most business transactions have legal aspects that it would not be wise to ignore. This applies to all types of businesses; whether it is a single proprietorship, partnership, corporation or limited liability company.

Business law is not designed to make running a business difficult; its purpose is to provide clear-cut and enforceable rules and regulations to avoid issues and conflicts. It is the responsibility of both big and small business owners to comply with the law, but not everyone has a handle on what needs to be done and how to do them. Retaining a lawyer to ensure compliance with the law is the safest method for good business practice.

Some of the areas where business law applies include but are not limited to:

Compensation
Business formation
Stockholders’ agreements
Investigating business fraud
Financial transactions
Regulatory compliance (i.e. business license)
Lawsuits

A little knowledge of business law can be risky; not knowing the whole picture and its impact on other aspects of the business can lead to making bad decisions. Having a competent and conscientious lawyer on board, especially if there has already been past incidents, means that you can concentrate on managing and growing the business. You will never have to worry about business law compliance.

An in-house legal counsel can also ensure that your business does not get into trouble when dealing with potential clients, other businesses or financial institutions. Contracts and agreements can be properly vetted and analyzed before final commitment, and this lessens the amount of unnecessary work later on.

Business law is designed to protect everyone’s interest and legal rights. It can work for you if you have a thorough understanding and/or if you have competent legal counsel to oversee legal business matters.