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Recent Blog Posts
When Can Breaches of Non-Compete Agreements Lead to Litigation?
There are multiple types of industries where non-compete agreements are used regularly by employers to protect their business interests. These agreements may restrict a company’s employees from engaging in certain types of competitive behavior after they leave the company or even while they are still working for an employer. If a former employee commits a violation of a non-compete agreement, a company may need to take legal action to address this issue. There are several possible situations where litigation may be necessary to address the financial losses that were caused by the violation of an agreement or to prevent a business from suffering harm.
Employment Law Disputes: Wages, Hours, and Worker Misclassification
In many cases, businesses will be looking to avoid legal disputes, since litigation can be costly and time-consuming, and an unfavorable decision in court can have a significant impact on a company’s bottom line. While many of these cases involve disputes with other companies or outside individuals, there are some situations where employees or former employees may take legal action to address issues related to the wages a company pays or other employment law matters. Understanding how to avoid these disputes or address these concerns can be crucial, and taking the right approach will ensure that a company will be able to hire and retain workers and continue operating successfully in the future.
Wage and Hour Disputes
Some of the most common disputes with employees involve the wages paid by an employer. A business must pay at least the minimum wage to all employees, and it may be penalized if it fails to do so. In Florida, the current minimum wage is $10.00 per hour as of September 30, 2021. The minimum wage will increase by $1.00 each year until it reaches $15.00 per hour on September 30, 2026. For tipped employees, employers may deduct a tip credit of $3.02 from a person’s wages, meaning that the current minimum wage is $6.98 per hour, and in 2026, it will be $11.98 per hour.
What Is the Discovery Process During Business Litigation?
When business disputes need to be settled in the courtroom, the plaintiff and defendant will both need to be sure they have all the information they need to address the issues raised in their case. After a lawsuit is filed, the case will enter the discovery phase, and the parties will gather relevant information from each other or from other parties. Understanding the procedures that may be followed during discovery will help a person ensure that they are taking the correct approach to achieve success in business litigation.
Methods Used During Discovery
Information that may affect a case may be obtained in multiple ways, including:
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Interrogatories - One party may send written questions to the other party, asking for details about certain issues. These questions may be open-ended, or they may be specific. For example, one side may send the other a request to admit certain facts to ensure that these issues will not be in dispute during a trial.
How Can Force Majeure Clauses Affect Contract Litigation?
There are a variety of issues that can lead to contract disputes, but much of the time, these cases will address claims that one party has committed a breach of contract and failed to meet their obligations under a contractual agreement. During litigation of these disputes, one party may invoke a “force majeure” clause in the contract and claim that they were excused from meeting their obligations due to circumstances beyond their control. By understanding when force majeure clauses may apply and how they can affect the litigation of contract disputes, the parties involved in these cases can make sure they will be able to protect their rights and financial interests.
What Is a Force Majeure Clause?
Most contracts contain terms that define when a party may not be required to fulfill its obligations. The term “force majeure,” which means “greater force,” may be used to refer to clauses in a contract that excuse one or both parties from certain obligations due to issues that are unforeseeable and out of their control. The circumstances that trigger a force majeure clause are often referred to as “acts of God,” and they may include natural disasters such as storms, floods, or earthquakes. Other issues that may be covered by these clauses include wars, riots, labor disputes, or other qualifying events that make it impossible for one party to meet their requirements.
How Can a Business Address an Anticipatory Breach of Contract?
There are many situations where a party to a business contract may violate the terms of their legal agreement. When a breach of contract occurs by one party, the other party may experience financial losses or other damages, and they may seek to recover these damages through business litigation. However, there are some situations where an anticipatory breach of contract may occur because one party will be expected to violate the terms of a contract. In these situations, the other party will need to understand their options, including the steps they can take to protect their interests and minimize their financial losses.
Anticipatory Breaches and Repudiation
If one party refuses to honor the terms of a contract, this is known as repudiation. In some cases, one party may inform the other that they will not be meeting their contractual obligations. However, many anticipatory breaches involve suspicions by one party that the other will be unable to fulfill the contract’s terms. For example, if a company has entered into a contract with a manufacturer in which a large number of goods will be delivered by a certain date, and they later learn that the manufacturer has filled a large order of the same goods for another company, they may be concerned that the manufacturer has exceeded their production capabilities and will be unable to manufacture and deliver the goods on time. The company may then need to take action to respond to the expected breach of the contract.
What Is the Difference Between a Business Merger and an Acquisition?
There are many ways that a business may grow or expand its operations, such as by hiring new staff, building new facilities, and beginning to serve customers in new markets. However, rather than starting from zero and building a new area of business from the ground up, it can sometimes be preferable to combine with another company that already fills this role. This is often done through mergers or acquisitions. By understanding the differences between these types of transactions, business owners, partners, or shareholders can determine the best approach to take as they look to expand operations or combine with other companies.
Options for Purchasing or Combining With Another Company
While both mergers and acquisitions will involve the combination of two companies into one organization, the procedures followed will often depend on whether one organization will be the “primary” company going forward. In a true merger, both companies will be treated equally, and neither company will purchase the other. Mergers usually take place through mutual consent, and a new company will be formed, which may require a new name and organizational structure.
How Are Domestic Support Obligations Handled During Bankruptcy?
There are many types of debts that may cause a person to experience financial problems. When it becomes difficult or impossible to repay debts, bankruptcy may be the best option for avoiding serious consequences, such as a home foreclosure, the repossession of property, or legal judgments that may result in wage garnishment or liens against a person’s home. However, it is important to understand how different debts will be addressed during the bankruptcy process. Domestic support obligations such as child support or alimony are one type of debt that may need to be considered.
Domestic Support Obligations Are Priority Debts
While domestic support obligations are considered to be debts owed by the payor to the recipient, they are treated differently than other types of debts. Financial support paid by a person to provide for the needs of a child or ex-spouse may be necessary to ensure that the recipient can cover their ongoing living expenses. Because of this, a person will generally be required to continue making payments, and they will also be obligated to make up any payments that are past due.
How Can a Business Defend Against Wrongful Termination Claims?
There are multiple types of business litigation that a company may need to defend against. In some cases, former employees may take legal action against a business because they believe that they were fired or terminated for illegal reasons. In addition to the expenses involved in defending against these claims, a company may face significant penalties if a jury determines that it took illegal actions when terminating an employee. In some cases, a verdict may require a company to repay the employee for wages and benefits they lost due to the termination, as well as other damages, such as compensation for emotional trauma. To avoid these consequences, employers will need to understand their rights, the procedures they will want to follow when terminating employees, and the ways they can demonstrate that they have complied with the law.
How Can a Company Defend Against Securities and Shareholder Litigation?
Businesses will need to take a variety of steps to protect themselves financially. However, the more complex a business is, the greater the chance that it will face issues related to investments, reporting, and other financial issues. Failure to follow the correct accounting or reporting practices may lead to business litigation. In cases where a company encounters disputes with shareholders or investors, owners and partners may need to determine how to defend against litigation and resolve disputes while minimizing their financial losses.
Securities Litigation and Shareholder Disputes
The Securities Act of 1933 is one of the key laws that affects companies in the United States. This law seeks to protect investors by ensuring that companies that offer stock for public sale meet certain requirements. A company must register with the Securities and Exchange Commission (SEC) and publish a prospectus that provides potential investors with financial information that can help them determine the benefits and drawbacks of investing in the company. This prospectus must include information about the types of business the company engages in and its executive management, as well as independently-certified financial statements.
Is Equity Financing a Good Option for My Business?
Whether you are the owner of an existing business or are looking to create a startup company, you will need to make sure your business has enough funds to operate successfully. There are multiple options for financing and capitalization, and they usually fall into one of two categories: debt financing and equity financing. If you do not want to burden your company with debt by taking out loans, equity financing may be the preferred option. There are multiple different types of equity financing that may be available. By understanding the best ways to secure investments, you can make sure you will have the funds you need both now and in the future.
Types of Equity Financing
With equity financing, you will typically receive money from investors in return for an ownership share in your company. The advantage of this type of financing is that you will not have debts that will need to be repaid. However, you will typically be required to share your profits with investors, and in some cases, investors may be involved in the decision-making process for your company.
