Holiday Parties and Employer Liability

For many North Carolina and South Carolina businesses, the annual holiday party provides a festive, valuable opportunity to express their gratitude, reward company loyalty, and bolster goodwill amongst employees and, potentially, key customers, clients, and vendors. But with such an opportunity also comes potential downfalls or opportunities for employers to incur unwanted or intended liability.     So how can a wise employer capitalize on the positives of holiday gatherings without becoming a Scrooge? By focusing on how and where liability may arise and planning for your festivities just as thoughtfully and strategically as you would when handling other business opportunities. … Continue reading

Social Host Liability: Avoiding an Unwanted End to the Fun

After two years of being locked down or having to utilize caution and restraint when visiting and socializing with friends and family, North and South Carolinians are, understandably, ready to again indulge in and enjoy gatherings and, in particular, the festivities and frivolity of the holiday season!  Regrettably, parties, gatherings and other seasonal festivities can also create ripe opportunities for civil and, on occasion, criminal liability.  To avoid an un-jolly ending to the holiday season, property owners and hosts should keep in mind the following potential issues and obligations to minimize their personal liability: Premises Liability North Carolina property owners … Continue reading

Wage Disclosure Requirements for North Carolina and South Carolina Employers

Recently, lead segments on numerous national news programs focused on a new law, effective November 1, 2022, that requires covered employers to disclose a good faith salary range (including the minimum and maximum annual salary or hourly rate) for every job, promotion, and transfer opportunity that is advertised.  Anyone casually listening to such segments may not have realized that the much publicized and debated law, commonly referred to as a pay transparency law, was recently enacted in the State of New York. Today, more and more states have enacted or are creating pay transparency laws similar to that of New … Continue reading

EEOC Issues New COVID-19 Guidance to Employers

From time to time throughout the COVID-19 pandemic, the Equal Opportunity Commission (“EEOC”), who is tasked with overseeing and administering federal anti-discrimination laws, including Title VII of the Civil Rights Act and the Americans with Disabilities Act (“ADA”), has issued guidance to employers seeking to smartly balance compliance with federal laws and regulations against the need to keep workers, customers and visitors to their businesses safe. With more businesses re-opening their doors and vaccines readily available, the EEOC released updated guidance to help struggling employers. In particular, the EEOC confirmed that: Employers can require all employees physically entering their workplace … Continue reading

Is this the end of Contributory Negligence?

The North Carolina General Assembly is currently considering a bill that would significantly modify how claims involving negligence, including motor vehicle accidents and personal injury actions, are evaluated, handled and, potentially, adjudicated. Currently, North Carolina is only one of a few states that adheres to the doctrine of contributory negligence, which bars individuals from recovering for harm they’ve suffered due to the negligent act of a third-party if they were even one percent at fault themselves. (Most states, including South Carolina, utilize the doctrine of comparative negligence to allow an individual to recover his or her damages, less a proportionate … Continue reading

Department of Labor announces changes to independent contractor or employee determination

In the final days of the Trump Administration, the Department of Labor put forward clarifications to help businesses determine whether workers could properly be classified as employees or independent contractors. Under the new guidance, the Department of Labor would initially consider only two factors – specifically, the level of control the individual has over his or her own work and the opportunity for profit or loss due to his or her own personal investment. If, and only if, these factors were inconclusive would businesses then proceed to evaluate or consider the level of skill of the role involved, the permanence … Continue reading

The Expiring Family First Coronavirus Response Act

One of the many unanticipated issues employers have been required to familiarize themselves with and address throughout the pandemic is the quickly passed Family First Coronavirus Response Act (“FFCRA” or the “Act”). In particular, the Act requires most employers (i.e., those with fewer than 500 employees and even those not otherwise subject to the Family Medical Leave Act) to provide paid leave to employees for specific work absences related to COVID-19 and to provide notice to their employees of their rights under the Act. By its terms, the Act is set to expire December 31, 2020. With the new stimulus … Continue reading

Re-Opening Risks and Liabilities for Businesses in the Era of COVID-19*

As businesses throughout North Carolina begin to plan for and undertake re-opening, concern for the safety of customers and employees is a central focus for many. Prudent businesses of all types or areas including, for example, realtors, management companies, construction companies, retailers, and accountants or other professionals, should also pause to consider and understand their potential liability to those customers, employees and third-parties they serve, utilize and otherwise come into contact with while fulfilling their business functions. A business’ risk, however, isn’t as straightforward or simple as most of us would assume or like, and assessing your potential liability requires … Continue reading

Notices Required by Employers in the Era of COVID-19

Employers have long been required, in accordance with various federal and state laws and regulations, to provide notices to their employees concerning their rights.  Thanks to COVID-19, most North Carolina employers can add to that list.  In particular, employers should be aware of the following additional notices obligations: The Families First Coronavirus Response Act (“FFCRA”) provides employees of covered employers with paid sick and other leave related to COVID-19.  Employers are required to post notices to employees, which posters can be downloaded for free at https://www.dol.gov/agencies/whd/pandemic. Pursuant to newly enacted, emergency rule 04 NCAC 24G .0102, employers must, at the … Continue reading

Annual Reports Due April 15, 2020

It’s that time of year again when most entities, with only a few exceptions (such as non-profits), that conduct business within the State of North Carolina are required to file an Annual Report with the North Carolina Secretary of State.  More specifically, entities will be required to both submit their Annual Report and to pay the accompanying fee by April 15, 2020. Annual Reports can be filed quickly and easily through the North Carolina Secretary of State’s user-friendly website (https://www.sosnc.gov/divisions/business_registration).  Although it may be tempting to click through the screens to quickly complete and submit the filing, business officers and … Continue reading

Parental Liability

A Guide for North Carolina & South Carolina Parents As the mother of two young children, I would like to think that my kids will always follow the rules, obey the law, and make good decisions.  The realist in me knows, however, that they won’t always act as they should or as they’ve been taught.  So what is my liability or legal exposure for the conduct of my children?  Can I be held financially responsible for their wrongdoing? Generally speaking, parents are not required to act as insurers against wrongs, harms, or damages inflicted by their children.  This maxim, however, … Continue reading

Annual Report Reminder

Entities conducting business within the State of North Carolina are required, with only a few exceptions, to file an Annual Report with the North Carolina Secretary of State every year by April 15th and to pay the accompanying fee with their submission. It is an easy task to overlook, but one that business owners or officers should take care not to miss!  While an entity caught sleeping will not likely be dissolved immediately, failure to file Annual Reports will eventually result in its administrative dissolution, thus leaving individual owners exposed to personal liability for debts and other wrongs that might … Continue reading

Update on Changes to Overtime Requirements Under Fair Labor Standards Act

The Fair Labor Standards Act (commonly referred to as the FLSA) applies to most employers throughout our country and, indirectly, their employees.  The FLSA sets the floor or minimum wage that must be paid to employees and dictates when employers are required to pay overtime to their employees.  An exception to such overtime requirement has long existed for administrative employees paid a set salary in excess of $23,600.00 per year.  In 2016, the Department of Labor announced changes to the minimum salary level, which changes would have raised the threshold to $47,476.00 per year.  Shortly before the changes were to … Continue reading

Avoiding an Un-Jolly End to the Holiday Fun: What Property Owners and Hosts Need to Know about Premises and Host Liability

The holiday season is a special time of year filled with visitors, get-togethers and mingling.  Most of us are already looking ahead to the joys of family and friends visiting, carolers, parties and yummy food aplenty.  Regrettably, the festivities of the season also open the door or create ripe opportunities for potential for liability.   Property owners and hosts need not, however, turn themselves into Scrooge; rather, personal liability can be avoided or greatly reduced simply by keeping in mind these potential issues and obligations: Premises Liability: North Carolina property owners may be held liable for injuries occurring on their property … Continue reading

Personalizing Your Personal Injury Claim

When people find out that I am an attorney, it is not uncommon for them to share with me their own experiences with the law.  Most often, these recollections involve a claim for personal injuries they suffered due to the negligence of a third party, like in a car crash or a slip and fall.  As a member of the legal profession, it is gratifying to hear when someone had legal representation and was pleased with the assistance they received.  All too often, however, the stories conveyed to me involve their dissatisfaction with the attorney retained or, for those who … Continue reading

AVOIDING CORPORATE DEADLOCK

Corporations, limited liability companies and other entities have become a standard resource or mechanism to help individuals shield themselves from personal liability when going into business, holding investments, or otherwise entering into a variety of undertakings.  The ever increasing use of such structures, however, can sometimes lead to other, unanticipated problems, particularly when the shareholders or directors of an entity cannot agree on matters impacting the entity.  In a worst case scenario, disagreements can escalate and eventually lead to complete gridlock, negating many of the advantages and corporate opportunities that once existed. In order to avoid such gridlock and protect … Continue reading

Changes to Overtime Requirements Under Fair Labor Standards Act Blocked

Employers and employees throughout the United States were significantly impacted yesterday following the issuance of a nationwide preliminary injunction entered by the U.S. District Court for the Eastern District of Texas. But for the Court’s ruling, which held that the Department of Labor exceeded the authority delegated to it by Congress in making changes to the overtime requirements of the Fair Labor Standards Act (“FLSA”), new regulations modifying the long-standing overtime requirements were set to go into effect, after approximately two years of public comment, consideration and advance notice, on December 1, 2016. Today, many employees and employers, who have … Continue reading

Corporate Veil or Corporate Fail?

By creating a corporate entity (whether it is an S-Corporation, C-Corporation or a limited liability company), many smart business owners seek to create an additional layer of protection between their personal assets or that of their family and the potential liability that can arise when operating a business. Unfortunately, what many do not realize is that simply creating the entity isn’t necessarily enough to achieve or maintain that protection. After the Articles of Incorporation or Articles of Organization, depending upon whether you decided to create a corporation or a limited liability company, have been filed and accepted by the North … Continue reading

ANNUAL REPORTS DUE TO NORTH CAROLINA SECRETARY OF STATE

With only a few exceptions (for instance, non-profit corporations), entities are required to file an Annual Report with the North Carolina Secretary of State by April 15th and to pay the accompanying fee with their submission.  Some business owners may not realize this requirement, while others may be so busy attending to the day-to-day affairs of their business that they forget to do so. The process to file an Annual Report with the North Carolina Secretary of State is not difficult.  Many individuals quickly handle the task themselves online or allow their accountant to do so when preparing their tax … Continue reading

Criminals Need Not Apply

Employers today face a wide variety of concerns when hiring new employees.  Can the business afford the costs associated with additional personnel?  What job functions must the new employee satisfy?  What skillsets are required?  How is the newly hired individual going to interact with its customers and, just as importantly, its other employees? More and more often, employers are turning to pre-employment criminal background checks as a means of answering or managing the perceived risk associated with at least some of these questions.  Seem reasonable?  Perhaps, but such checks can also open the door to even greater problems and potential … Continue reading