Your trusted source for Iowa business and franchise law insights.
Your trusted source for Iowa business and franchise law insights.
Major league baseball teams have not exactly been known for their employee relations over the years. But the Boston Red Sox are an excellent example of how treating employees the right way can pay big dividends.
Read attorney Jay Shepherd’s post on Division-leading employee management to find out why.
Due to a fantastic baseball season as the coach of nine year olds the posts have been few and far between the last couple of months. (I routinely write at night and it’s been tough to fit it all in). I’ll resume more regular posting very soon. Frankly, I am flattered by the number of people that continue to read this blog even though the posting has been sparse lately.
In the meantime, be sure to check out Iowa’s newest law blog, David Nelmark’s Mixed Martial Arts Law Blog. It’s a fascinating niche blog and David is a great writer. He is also not shy about taking on bloggers he doesn’t agree with. Should be a fun blog to follow. It’s great to see some great new Iowa law bloggers getting into the action.
The U.S. Supreme Court recently handed down a decision in Gross v. FBL Financial Services. The Court ruled that a plaintiff bringing a claim under the Age Discrimination in Employment Act (ADEA) must show by a preponderance of the evidence that age was the "but for" cause of the employer’s adverse employment decision, and that an employer need not show that it would have made the same decision regardless of age, even if the employee produces some evidence that age may have been a contributing factor in the decision. Accordingly, plaintiffs must now prove that age was a factor in a decision. The burden of proof no longer shifts.
The case is widely viewed as a big win for employers but some employment lawyers, like Daniel Schwartz, believe employers should largely ignore the decision. Daniel says that while it will be "technically" harder for plaintiffs to establish a claim, it is only marginally so, and he also expects "corrective" legislation at some point. From a practical perspective he does not see a huge change in the way employers will defend age discrimination claims or the way in which plaintiffs will bring those claims.
Ross Runkel of Law Memo says it is the biggest employment law case of 2009 and considers it a big surprise because the issue decided by the Court was not briefed and argued. But, like Schwartz, he too expects action from Congress so the impact may be short lived.
Read the decision here.
I am proud to be one of the authors of How Business Gets Done: Words of Wisdom By Central Iowa Experts. Thirty-two experts from Central Iowa have collaborated to share their best practices on a variety of subjects including marketing, leadership, accounting, and legal. It’s a great desk reference for any entrepreneur.
Visit lulu.com to pick up a copy of the book. Proceeds go to fund scholarships through www.bizci.org. Hats off to Mike Colwell and Drew McLellan for masterminding such a great book.
Whether you are starting a business from scratch or buying an existing business you should consider setting up a corporation or limited liability company (LLC) before you actually sign any agreements or documents relating to your new venture. To the extent possible, avoid signing any contracts, loan agreements or leases in your personal name. In many cases, however, you may be required to personally guarantee the loan or other debts but it is still recommended that you place those agreements in the company name. It is often surprising how the start-up documents may impact litigation issues down the road. If those agreements are in the business name it may help you avoid personal liability on unknown issues in the future. One of the most important reasons for starting a corporation or LLC is to protect your personal assets from the risks of the business. It is smart to start right from the very beginning.
A post from Ohio business lawyer Terri Rasmussen describes how one person went a little too far in trying to avoid personal liability. But the underlying advice in the blog post cannot be minimized. It is critical to sign documents in your corporate capacity (i.e. "President" or "Vice-President") and if you are signing on behalf of an LLC you should sign as "Member". Using catchy marketing titles such as "Big Cheese" or "Chief of Results" has no place when you are signing documents that could bind your business and subject you to personal liability.
Looking for money for your business? Check out the entrepreneurial resource guide from Biz. The guide explores and explains grants, loans and assistance programs.
I am excited to speak at the Biz on How To Choose the Right Business Structure for Your Business. The presentation is June 17th at 11:30 a.m. The admission fee is $10.00 and lunch is provided.
According to the Wall Street Journal, Iowa-based Casey’s General Stores agreed to pay $11.7 million to settle two class action wage lawsuits.
According to the Department of Labor and industry experts, it is believed that 70 percent (or more) of businesses are out of compliance with wage and hour laws. How can your business help avoid wage and hour lawsuits? See my previous post on the topic here.
From time to time I enjoy featuring a business law blog worth reading. The San Diego Small Business Law Blog from Joseph Dang is definitely one to check out. Although the blog is centered on California law, Joseph has a number of general posts that are helpful to any small business owner.
In particular, I encourage you to read his posts on business formation and incorporation. Real good stuff!
The Iowa House and Senate recently passed legislation to give consumers a private right of action for fraud claims. Previously Iowa was the only state in the nation that did not provide such a right to its citizens.
Consumer advocacy groups say there are too many exemptions under the bill, which is expected to be signed by Governor Culver, including services provided by insurance companies, banks, lawyers, cable TV providers, doctors, veterinarians and architects. But overall this is a positive step for protection of Iowa’s consumers.
The Iowa Attorney General is understandably pleased as it will now allow private lawyers to pursue consumer fraud claims and will help alleviate a backlog of these claims which were handled previously by the AG’s office.
Consumers may be awarded up to three times the amount of the actual damages plus an award of reasonably attorney’s fees if successful. This will undoubtedly put pressure on businesses accused of fraud claims to resolve their differences with consumers.
One of the best things about blogging is the great people I have had the opportunity to "meet". One of my favorites is a franchise consultant and blogger from Cleveland, Ohio named Joel Libava. The Franchise King and I share a passion for helping prospective franchisees obtain information to properly research franchise opportunities. I have read his eBook on the Essential Steps to Researching a Franchise Opportunity and I encourage you to read it if you are interested in becoming a franchisee. The following is a guest post from the Franchise King on franchise research and a little about his eBook.
Information is power. Getting the right kind of information is even more powerful. It never fails. I’ll be packing up my presentation equipment after I’ve finished presenting a seminar or class on franchising, and someone will saunter on over to me and say:“I wish I would have met you before I bought my franchise. If I would have known then, what I know now….”Or, during the Q & A time I always set aside towards the end of a presentation, I‘ll hear this; “I never knew that I could call former franchisees of a franchise system, and find out why they weren’t franchisees anymore.”
It’s safe to say that almost no one knows how to really research a franchise opportunity. After all, how could they possibly know? Did you know how to do the right kind of research before you purchased your first new car? Did you know how to research an area to see if it was a good one for your first home? Let’s assume that someone had to teach you how to research major purchases like a car or your first home. If not, I’ll bet you bought a book or tow, and learned how to do it, right? You didn’t “make things up as you went along, did you?” I hope not.
Purchasing a franchise business of your own is also a major purchase. Do you know the proper research steps? If not, are willing to learn and follow them?
I wrote an eBook last year called “The Essential Steps to Researching a Franchise Opportunity.” It has had some nice reviews, and the people who have purchased it are glad they did. It lays out the research steps in an easy to follow format, and is essential reading if you are seriously thinking about investing in a franchise of your own.
When it comes to investing in a franchise, there are certainly some legal issues you need to be aware of. In my book, I discuss who to use and who not to use, in all things legal; “It’s now time to find and meet with a lawyer who is familiar with franchise law. Even though you may be tempted, this is not the time to use Uncle Sol, or Aunt Martha, your family attorneys. {Unless they also happen to be small business/franchise attorneys!}You may feel that using your Aunt or Uncle for a review of the Franchise Disclosure Documents would be wise, and that it is smart budgeting, but it may end up costing you more in the long run.”
In the book, I also explain how to go about finding some appropriate attorneys that are thoroughly familiar with the unique laws that involve the business model of franchising. I also give you some questions that you should ask prospective franchise attorneys;
The legal aspects are really important, and you definitely need to have a good understanding of what is involved in starting and operating a franchise. The laws that are in place are complex, but a good lawyer can help you understand them.
There are several steps in researching a franchise, and the legal portion is only one of them. If you learn how to conduct your research correctly, your decision on becoming a franchise owner will be a little easier. It may be a little safer, too.
{Joel Libava is The Franchise King, and is the King over at Franchise Selection Specialists Inc. a Cleveland, Ohio franchise consulting and marketing firm. His award winning blog is The Franchise King Blog. His eBook can be found at http://www.FranchiseResearchSteps.com.}