On April 2, 2018, the United States Supreme Court issued a decision on the Fair Labor Standards Act ("FLSA") exemption that provides the FLSA's overtime pay requirement does not apply to any salesmen, partsmen, or mechanics primarily engaged in selling or servicing...
PLDO Law Blog
Employment Law
PRIOR SALARY HISTORY MAY NOT ALWAYS BE LAWFUL BASIS TO SET PAY
The Equal Pay Act provides that men and women should receive equal pay for equal work. In a recent case, Rizo v. Yovino, No. 16-15372 (Apr. 9, 2018), the United States Court of Appeals for the Ninth Circuit held that an employer cannot justify a wage difference...
WORKPLACE SEXUAL HARASSMENT: A PARADIGM SHIFT?
With the seemingly daily news reports of sexual harassment scandals, business owners and investors are starting to realize an inconvenient fact: leaving the problem of workplace sexual harassment to the human resources department or middle-managers may no longer be...
Intern or Employee? Second Circuit Court of Appeals Weighed 7 Considerations In Recent Ruling
A very recent federal case highlights the rules of the road when employers utilize interns. Wang v. Hearst Corp., No. 16-3302, (2d Cir. Dec. 8, 2017). The case was brought by a group of unpaid interns that participated in a for-credit internship program that Hearst...
HOW LIFE INSURANCE PROCEEDS COULD AFFECT A COMPANY’S VALUATION FOR ESTATE TAX PURPOSES
A recent case brought to light the impact that a stock-purchase agreement and life insurance proceeds may – or may not - have on the valuation of a closely held company for estate tax purposes. In this case that caused a split between the 8th and 11th Circuits, the...
HASTE MAKES WASTE . . . CASH THE CHECK.
One never knows what corner the grim reaper lies behind. A final illness can often accelerate quickly and deprive a donor of adequate time to complete gifts for tax purposes that he intended to make. In a recent federal court case, the Third Circuit Court of Appeals...
ATTENTION SNOWBIRDS: DO YOU PASS THE DOMICILE TEST?
“A person doesn't know how much he has to be thankful for until he has to pay taxes on it.” This anonymous quote is timely. It is rumored that the Rhode Island Division of Taxation (“the Division”) is reviewing its procedures for determining whether a Rhode Islander...
HOW CLOSELY HELD BUSINESSES CAN PREVENT MANAGEMENT DEADLOCKS
Differences in opinion on how to achieve a stated goal in a closely held business can lead to disputes that block the enterprise from moving forward. Closely held businesses are characterized by a limited number of shareholders and a lack of public trading. The...
WHY ESTATE PLANNING FOR BUSINESSES IS CRITICAL (NOT OPTIONAL)
Owning your own business can be extremely demanding. From your customers to your employees, there’s hardly enough time in the day. While most entrepreneurs are consumed by the day-to-day challenges of running their businesses, they often neglect the critical task of...
