202108.09
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2021 COVID-19 SUPPLEMENTAL PAID SICK LEAVE

With the 2021 COVID-19 Supplemental Paid Sick Leave law, which became law effective March 29, 2021, many qualifying employees now have access to 80 hours of paid time off for virus-related reasons.  Covered employees in the public or private sectors who work for employers with more than 25 employees are entitled to up to 80 hours of COVID-19 related sick leave. Here’s what workers are now entitled to, and what employers are obligated to do in response to the law: Covered Employee A covered employee may take leave if the employee is unable to work or telework for any of the following reasons: Caring for Yourself – the employee is subject to quarantine or isolation period related to COVID-19 Caring for Family Member – the employee is caring for a family member who is subject to the COVID-19 quarantine or isolation period, or is caring for a child whose school or place of care is closed due to COVID-19. Vaccine Related – the employee is attending a vaccine appointment or cannot work or telework due to vaccine related symptons. Companies with 25 or more Employees Employees who cannot work or telework due to COVID-19 related reasons are entitled to paid sick leave if they work for an employer with more than 25 employees.  The Supplement covers the period of time between January 1, 2021 through September 30, 2021.  This means that employees who took qualifying leave prior to the law taking effect can request retroactive payment.  Employees are entitled to up to a maximum of $511 per day and $5,110 as a whole as part of the 2021 COVID-19 Supplemental Paid Sick Leave Companies with less than 25 Employees Those who work for employers with under 25 employees are not entitled to the 2021 COVID-19 Supplemental Paid Sick Leave.  Workers may be able to get partial pay through programs such as state disability insurance and paid family leave. Employer Obligations Employers with more than 25 employees must provide 2021 COVID-19 Supplemental Paid Sick Leave, including retroactive payments for qualified leave that was taken going back to January 1, 2021.  Employers are obligated to make the leave available to covered employees immediately upon the employee’s oral or written request and must provide payment for the leave no later than the payday for the next regular payroll period after the employee took the leave. Employers are required to make retroactive payments only if the employee makes an oral or written request to be paid for the leave.  The retroactive payment must be made by the payday for the next full pay period after the worker requests payment, and the employer is obligated to indicate how many 2021 COVID-19 Supplemental Paid Sick Leave hours are left to the employee on their itemized wage statement.  2021 COVID-19 Supplemental Paid Sick Leave must be made available in addition to regular paid sick leave, and employers are required to list it separately from regular paid sick leave on employees’ itemized pay stubs or in separate writing when wages are paid. Burden on Employers The new paid sick leave requirement is challenging for employers.  One issue is the relatively short period of time employers have had to come into compliance with the rules.  Another issue relates to the retroactive payment to employees as employers going back in time, may or may not have done a very good job on documenting the reasons why employees were out. And trying to reconstruct that to see whether it meets one of the qualified reasons is going to be a challenge.  The 2021 COVID-19 Supplemental Paid Sick Leave poster must be displayed where employees can easily read it or disseminated to employees electronically. For more information on how to legally start and grow your business please visit my website at www.golegalyourself.com Disclaimer:  This information is made available by Bagla Law Firm, APC for educational purposes only as well as to give you general information and a general understanding of the law, and not to provide specific legal advice. This information should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

202108.06
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MINIMUM WAGE LAW IN CALIFORNIA

With the new year comes new laws and the one that every employer needs to know is the minimum wage increase in California.  The minimum wage is the minimum hourly rate that nearly all California employees must be paid for their work by law.  In California, the applicable minimum wage depends on the size of the employer.  STATE MINIMUM WAGE California law establishes annual increases in the minimum wage until 2023.  The increases are scheduled to take effect on January 1st each year.  On January 1, 2021, California’s minimum wage became $13.00 per hour for employees that work for employers with 25 or fewer employees, and $14.00 per hour for larger employers.   LOCAL MINIMUM WAGES The California Constitution allows local governments to set a minimum wage, applicable within the government’s jurisdiction, that is higher than the state minimum wage.  Several cities and counties have enacted ordinances that set a higher minimum wage for some or all employees who work within the boundaries of the local government. Several of California’s larges cities’ current minimum wage rates range from $14.00 per hour to $16.00 per hour.  MINIMUM WAGE CANNOT BE WAIVED A California employer must pay the California minimum wage to employees even if an employee agrees to work for less.  An employment agreement that attempts to pay an employee at a lower than the minimum wage is unlawful and will not be enforced.  MINIMUM WAGE AND INDEPENDENT CONTRACTORS California’s minimum wage law applies only to employers and thus only protects employees.  It does NOT protect independent contractors.  Importantly, however, the fact that an employer labels a worker as being an independent contractor does not necessarily mean that the worker is not an employee.  Whether a worker is an independent contractor or an employee will depend on several factors, including the degree of control that the employer exercises over the work performance.  You can incorporate your business, find contracts, and download a free COVID-19 liability waiver form from www.GoLegalYourself.com  For more information on how to legally start and grow your business please visit my website at www.golegalyourself.com Disclaimer:  This information is made available by Bagla Law Firm, APC for educational purposes only as well as to give you general information and a general understanding of the law, and not to provide specific legal advice. This information should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.

202108.04
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MUST HAVE CHECKLIST FOR STARTUPS

Starting your own business can be a difficult task and complying with all of the legal requirements can be overwhelming. The following list includes the most important elements any startup should meet to avoid a list of potential legal issues. 1)         Form the proper business entity Choosing the proper business entity for your startup is crucial because it affects your personal liability, how much you and the entity pay in taxes, and your ability to raise funding. It’s a good idea to first decide whether you want to raise capital from any outside investors. If so, it’s usually best to form a C-corporation. A C-corporation’s structure could result in double taxation, but investors are usually more open to investing in this type of structure and startups that raise venture capital are unlikely to distribute dividends. For that reason, double taxation usually is not as large an issue. An S-corporation would be the best structure for a business that intends to stay small with only a few owners who are all U.S. citizens or residents. 2)         Incorporate in Delaware You should incorporate your startup in Delaware no matter where you are located, but you should also look into incorporating in your home state. Delaware’s court system is known to provide maximum flexibility in business entity structures with its well-developed case law. Corporate attorneys are more familiar with Delaware law mainly because more than 80% of U.S. publicly traded companies have their legal home in Delaware. Your startup will reflect credibility as a Delaware incorporated business when approaching outside investors as well, since most require it. 3)         Create a written agreement between your business owners If you are working with multiple business owners, it’s important to make sure that each person knows and understands his/her rights and responsibilities. If you are forming a corporation, this means creating a shareholder agreement and the Articles of Incorporation. The Articles must contain the number of authorized shares, state the purpose of the company, identify the incorporators and the agent authorized to receive service of process, and provide the name of the corporation. 4)         Apply for an Employer Identification Number (EIN) In order to open a corporate bank account and to properly file your business tax returns, you will need an Employer Identification Number (EIN). You must request one from the IRS and may apply over the phone or by using an online application on the IRS website. You will need the social security number of the person completing the form for the company (usually the President or CEO). Include information on your business entity and date of incorporation. Make sure to keep a signed copy of this application in your files – ask for one if you apply over the phone. 5)         Perform due diligence on your investors Venture capitalists and angel investors are certainly doing an abundant amount of research on your startup; therefore, as a founder you should do the same. You want to make sure that your investors are just as committed as you are to your brand because they will be your long-term partners. You also want to make sure you know enough about their background and industry expertise. Conduct LinkedIn searches, learn about their expectations, and even get to know them on a personal level to make sure they are the right fit for you. 6)         Create a vesting schedule for the founders A common issue among founders is the level of commitment each person brings to the table. Upon incorporation, founders should create a vesting schedule that states that stock ownership will vest over time. This is important not only because it prevents one founder from quitting and being able to keep all of his/her stock, but it is also usually required from investors before the first round of financing. You want to have a vesting schedule created before negotiations with investors take place or else, they may want to impose a certain schedule. If you already have an existing system, they are more likely to follow what you have implemented. 7)         Protect your Intellectual Property The road to success requires that you maintain a strong intellectual property (IP) portfolio. Remember that IP not only includes patents but copyrights, trademarks, and trade secrets as well. File any patents as soon as possible, for the process to issue a patent can take more than 5 years. Investors are more likely to invest in a company that has protected its IP. Make sure you have the exclusive right to reproduce and display your work. Pick a name for your company that is specific to the products/services you provide and prevent others from using a similar mark. Decide what is considered a trade secret and keep that information secure against unauthorized access. Since IP can entail a vast array of legal to-do’s, you should consult an experienced IP attorney who can help you through the process and provide you the utmost protection. 8)         Know how your employees are classified A very common mistake when startups first hire employees is misclassifying them. Know the difference between an employee and an independent contractor. The main difference between the two boils down to control, regardless of what the worker may be called in any sort of agreement. If the startup requires that the worker show up at a certain time, work a certain number of hours, and be under a great deal of supervision, it is unlikely that he/she is an independent contractor. More control over the worker means it is more likely that a court will deem the worker an employee. 9)         Comply with Securities Laws Founders and investors of LLC’s, corporations, and partnerships are subject to federal and state securities laws. These laws were made to require companies to provide reliable and accurate information about their businesses to enable a fair market. They also protect from insider trading and trading fraud. Failure to comply with these laws can result in the startup having to repurchase…