New Jersey Business Lawyers Discuss Common Business Law Issues

How Strong is the Corporate Veil?

Is your corporate veil a fortress between the company and your personal assets? Or is it a transparent curtain barely protecting shareholders’ individual assets? Speak with a Monmouth County business lawyer to find out if your corporate veil can withstand an attack from potential plaintiffs. If you operate your business as a corporation, you enjoy the benefit of shielding shareholders’ personal assets from the debts and liabilities of the company. Meaning, creditors can reach the corporation’s assets but once those are exhausted, the shareholder’s assets are safe. Or are they? In some case, creditors will try to “pierce the corporate veil,” which means they will attempt to have the corporation set aside in order to reach the shareholders’ personal assets. This usually occurs when the corporation has insufficient assets, causing the plaintiff to claim that the corporation is a “sham” or “shell.” The motive generally behind a sham corporation is…
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FLSA Changes Regarding Overtime

Our New Jersey Employment Lawyers Discuss Changes to the Overtime Regulations The Fair Labor Standards Act (FLSA) is responsible for setting all regulations regarding minimum wage, overtime, bookkeeping and youth labor in federal, state and local government as well as in the private sector. The Obama administration has set out to update the FLSA so that it will more accurately reflect the economic growth of our country since the original FLSA document in 1938. The result of this undertaking is a 295-page document the Labor Department titled Rewarding Hard Work, which is full of proposed regulation changes. Here’s a list of what these new regulations would do: Raise the minimum salary base from $455 per week to $970 per week for all professional, executive, administrative and highly compensated employees. Raise the annual income to be considered a highly compensated salary employee from $100,000 to $122,000. Establish an automatically escalating salary…
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The Benefits of In-House Legal Counsel for Small and Family Businesses

It should come as no surprise that large corporations need to have their own legal team to deal with the many legal issues that arise during their operations. Software giant Microsoft, for example, maintains a legal department of 459 lawyers and an additional 500 in legal support staff. In the past, its legal budget has come close to $1 billion. In addition to their own in-house counsel, the company also turns to a number of law firms for additional services. While small businesses and family-run enterprises may not require quite the amount of legal services as a large corporation like Microsoft, they too can benefit from having a cadre of lawyers to which they can turn for all of their legal needs. They do not have to seek out attorneys for any legal issue they may encounter, but can quickly turn to one source. Additionally, in-house counsel can develop an…
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Will New NJ Subsidies Help Businesses?

New Jersey Business Lawyers Consider the Consequences New Jersey’s economy has been stagnant as of late. Unemployment is at 6.4 percent, higher than the national average, and the state’s credit rating is the second worst in the United States. The pension and benefits system is desperately underfunded, receiving $2.4 billion less than promised due to budget shortfalls. As the state economy has dwindled, the state government has pushed increasingly aggressive corporate subsidies to keep companies from moving to other states. In 2014, New Jersey committed a record-breaking $2.1 billion to corporate incentives. The state’s subsidies have convinced a couple of companies to conduct business in the Garden State. Subaru, for example, was in talks to move its U.S. headquarters to nearby Philadelphia from Cherry Hill, N.J., but a $118 million tax incentive convinced them otherwise. A spokesperson from Pennsylvania admitted that New Jersey’s offer far outpaced Pennsylvania’s. Subaru chose to…
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