Doctors, lawyers, accountants and other professionals face particular challenges in their succession planning. Unplanned exits are at high risk for losing clients, revenue, and good will. Client replacement costs and other continuity challenges abound for the remaining partners and staff. On the other hand, an action plan to maximize profit in the sale of a…READ MORE
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For those of you with children that have attained their 18th birthday and, especially, for those with children that may be heading off to college in the future, it is important that they have a health care power of attorney (HCPOA) in place. Young adults are highly susceptible to injuries, illnesses and accidents for which…READ MORE
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Groups of workers just became eligible for overtime pay following the adoption of new regulations by the Department of Labor. It is estimated that 1.4 million additional workers will now be in line to receive overtime compensation. Effective as of January 1, 2020, the base salary level at which administrative, executive and professional employees can…READ MORE
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Of all the questions which we are receiving from clients these days, “force majeure” is the one that can be hardest for clients to grasp and lawyers to give definitive answers on. Although little known and seldom used, this legal concept can be tremendously helpful to prevent a costly contract dispute when a party cannot…READ MORE
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On December 15 2020, the D.C Council joined a growing number of other jurisdictions that have enacted legislation limiting the use of non-compete agreements. The new law, known as the “Ban on Non-Compete Agreements Amendment Act of 2020 (the “Act”), effectively prohibits employers from entering into, or enforcing, non-compete agreements. The Act will still require…READ MORE
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Many employers routinely include mandatory arbitration agreements for resolving employment disputes with their employees. To the surprise of many employers, such clauses are often ruled invalid. To help assure that your agreement requiring arbitration of employment disputes is enforceable, be aware of the following factors: Consider using a separate, stand-alone agreement. Especially in the context of…READ MORE
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There are two new laws in Maryland impacting estate planning and administration. The first deals with what is known as the “spousal election”. Under Maryland law, a surviving spouse has the right to make an election to take a one-third share of their deceased spouse’s estate in lieu of what they were to receive under…READ MORE
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Consider the situation faced by an employer that does not, typically, allow employees to work remotely. Then consider what happens when an employee with pregnancy related complications is instructed by her physician to go on bedrest for the remaining three months of her pregnancy. Moreover, the employee lacks sufficient PTO to cover the anticipated leave….READ MORE
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A recent case from the Circuit Court for Montgomery County, Maryland underscored the growing trend by courts across the country to limit the application of non-compete and non-solicitation agreements. These agreements, typically referred to as “restrictive covenants”, are integral to many employment agreements. Restrictive covenants in employment contracts serve as a means of assuring the…READ MORE
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If you own a business, having a buy-sell agreement is a necessity. Without it, a closely-held or family-owned business is in jeopardy in the event of the owner’s death, disability, retirement, divorce or bankruptcy, or if a dispute arises among the owners. A buy-sell agreement is a legally-binding contract among the owners addressing the terms…READ MORE
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Employers often look to temporary staffing agencies to fill pressing employment needs. Historically, an employee hired this way has been considered to be solely an employee of the agency. That may be changing, and if your business hires temps through an agency, you should be aware of this development. Last month a federal Circuit Court…READ MORE
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Few of us still remember the acronym “TEFRA.” It stands for the Tax Equity and Fiscal Responsibility Act of 1982. TEFRA focused on standardizing audit procedures and closing tax loopholes. It is back in the news. The Bipartisan Budget Act of 2015 (the “Act”), which was signed into law last November, repeals the TEFRA audit rules and…READ MORE
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A growing issue involves what happens to our digital assets upon death. On a daily basis, we create vast quantities of “digital assets” in the form of text messages, as well as images such as photos and media. Common examples include Facebook, LinkedIn, Twitter, websites, contact lists, Netflix, Amazon, iTunes, electronic books (such as Kindle),…READ MORE
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COMING SOON — MARYLAND ESTATE TAX RELIEF: Last week, the Maryland General Assembly passed a law raising the estate tax exemption. The Maryland estate tax exemption has been pegged at $1.0 million dollars for years. With many other states having higher (or unlimited) exemptions, Maryland residents were incentivized to move out of State as…READ MORE
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Unlike many other states, Maryland does not have a “dram shop” act that places liability on bars and restaurants for serving or continuing to serve intoxicated individuals. Recently, the Court determined that there is no relationship between a tavern and an injured third party as a result of the tavern’s serving alcohol to the drunk driver responsible…READ MORE
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Summer has turned into the season of the unpaid internship. Job-hungry students with little or no hope of a paid position agree to take their “compensation” in the form of practical job experience. It sounds too good to be true, and it probably is now that the Department of Labor (DOL) is focusing on the…READ MORE
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Do you have a fair and well-thought-out policy for how your business sets employee compensation? It can go a long way towards preventing a claim for discrimination. A recent federal case arising out of Arkansas illustrates this point. Lakishia Hill was an employee for the City of Pine Bluff, working in its office of Inspection…READ MORE
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Can a mere real estate investor be liable for hazardous conditions in properties owned by others? That is not as clear as one might hope. A recent Maryland case sought to determine who the “owner” of an apartment was for purposes of assessing liability for an occupant’s exposure to lead paint. Many different parties were…READ MORE
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A recent case from the First Circuit has held that the timing between an employee’s leave of absence and his subsequent termination of employment may be sufficient to establish a Family and Medical Leave Act (FMLA) retaliation claim. In Pagan-Colon v. Walgreens of San Patricio, Inc., Juan Pagan was employed as an assistant manager by Walgreens….READ MORE
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A new law is scheduled to go into effect in Maryland later this year known as Maryland MOLST, an acronym for Medical Orders for Life-Sustaining Treatment. Essentially, it involves the creation of a portable and continuing medical order form that provides options for CPR and other life-sustaining treatments. The MOLST form must be completed for…READ MORE
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A major challenge for closely held family businesses is how to transfer ownership to the next generation without losing control. For some closely held family businesses, the owner will take whatever steps are necessary to maintain control over his business even if it means a viable succession plan is not put into place. Relatively few…READ MORE
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In today’s varied work environment, more and more employees are performing some type of employment related service from home. This triggers issues to determine when the compensable portion of the work day begins. If an employee reviews his work e-mails or remotely logs on to the company network from home before leaving for the office,…READ MORE
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A new law was enacted in the District of Columbia at the end of June that will require non-exempt remote vendors to collect and remit to the District sales tax on sales made via the internet to buyers located in the District. The new law, approved on June 29, 2011, will become effective after a…READ MORE
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A recent case from the Maryland Court of Special Appeals addressed the issue of whether the guaranty of a managing partner of a limited liability company triggered personal liability. In the case of Uduak J. Ubom v. SunTrust Bank, the Court focused on the nature of the signature by the managing partner of the LLC under…READ MORE
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Effective March 1, 2011, the Maryland Healthy Retail Employee Act (“Act”) went into effect. The new law requires retailers to provide their employees with mandatory shift breaks depending upon the number of hours worked. The Act applies to employers engaged in a retail business or retail franchise having the same trade name with 50 or…READ MORE
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A full year ago, estate planning attorneys were assuring clients that Congress would never allow the federal estate tax to lapse. There was near universal belief that Congress would either implement a permanent “fix” by establishing an exemption in the range of $3.5 – $5 million or, at a minimum, extend the 2009 exemption of…READ MORE
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Powers of Attorney are an easy and relatively affordable tool for use by individuals with diminishing mental capacity and physical abilities. They offer a ready means for managing the assets of another person as well as the payment of the day to day expenses. The ease of use has, unfortunately, also led to abuse. Over…READ MORE
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The gift tax annual exclusion allows an individual to gift $13,000.00 (as indexed for 2010) to an unlimited number of donees each year without paying gift tax. In order to qualify for the annual exclusion, however, a gift must be of a “present interest” in accordance with IRC 2503(b). To qualify as a present interest…READ MORE
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Section 4A-301 of the Corporations and Associations Article provides that a member of a Limited Liability Company (LLC) is not “personally liable for the obligations of the LLC, whether arising in contract, tort or otherwise, solely by reason of being a member of the LLC.” In what may prove to be a landmark decision, the…READ MORE
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The issue of whether an employer can reduce the rate of compensation to its employees who choose to work extended hours has been answered in the affirmative. In a case out of the 9th Circuit, the Court said that such actions were permissible by the employer as a strategy to control overtime expense so long…READ MORE
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Under a new Maryland law that went into effect last month, contractors that rely upon minority-owned companies in bids for the award of state construction projects but which fail to use such companies will be subject to felony charges. The new law, which went into effect as of October 1, 2009, provides for a maximum…READ MORE
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There are two things you can count on – death and taxes! Both of these issues can be addressed in a Will. If you die without a Will, the assets of your estate will be distributed according to the laws of intestacy in the state of your domicile. In Maryland, distribution of assets owned by…READ MORE
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With all of the turmoil in our economy, it would be easy to just hunker down and tighten the belt. There are, however, some real economic incentives to purchase certain machinery and equipment that will substantially boost your 2008 deductions. Under the Economic Stimulus Act of 2008 (the “Act”), there is a 50% bonus first…READ MORE
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