March 9, 2009

For Delaware Employers With ADA Questions

If you're an employer in Delaware, you might consider meeting with your business attorney to discuss the changes to the Americans With Disabilities Act that became effective January 1, 2009. Under what is referred to as "the 2008 amendments," there are significant changes in the law, including the definition of the word "disabilities."

Here are just a few things you need to know.

Employers who are covered by the ADA law are required to make sure that individuals with a disbility have an equal opportunity to apply for jobs and to work in jobs that they're qualified for. Once an individual with a disability is hired, you have to make sure that they have an equal opportunity to be promoted. You also have to make sure that such person is given equal access to the same benefits offered to other employees. And you have to make sure that such persons are not harassed because of their disability. This last point about harassment has to be taken seriously. If you receive a complaint from one of your employees that he or she is being harassed because of their disability, you should conduct an immediate investigation and take whatever action is needed to fix the situation.

Most employers know that they can't ask certain questions during a job interview. But what exactly are the questions that can't be asked? You can’t ask the job applicant about their physical or mental impairment. You can’t ask how they became disabled. You can’t ask the applicant about the medicines they take. And you can’t ask the applicant about their workers' compensation history.

The subject of accommodations is brought up a lot by employers, and this will be explained in future articles.

March 1, 2009

Junk Faxes And Your Delaware Business

How often do we all go to our fax machines only to find an advertisement that we crumble up and throw in the trash as we mumble an expletive deleted? Well, you can do more that throw it away. You can actually file a lawsuit against a company that sends you “junk” faxes, and you can collect up to $500 in damages for each violation. In fact, the court may even award you up to $1,500 for each violation if it’s determined that the company knowingly committed the violation.

Under federal law, it’s unlawful for someone to send to your fax machine an unsolicited advertisement without your express prior invitation or permission. On the other hand, it would not be a violation if the sender has an established business relationship with you. And even in those circumstances, if you tell them to stop, they're required by law to stop sending you these junk faxes no later than 30 days after you make your request. If they fail to honor your request, that’s another violation.

In my next articles on this topic, I’ll discuss other options besides filing a lawsuit, and I’ll go into greater detail about the rules concerning established business arrangements (also known as “EBRs.”

January 15, 2009

Can An Employee Who Quits Her Delaware Job Collect Unemployment Compensation?

As a Delaware business owner, what would you think if one of your employees who quit her job applied for unemployment compensation? At first, you’d probably think that there’s no way she could possibly qualify for benefits. But then you check with your Delaware business lawyer and learn that there are situations where an employee who resigns can in fact collect unemployment compensation.

The case is usually decided on a finding of whether she voluntarily quit her job with or without good cause. Under Delaware law, in order to be eligible to collect unemployment compensation benefits, the employee must show that (1) she either voluntarily quit her job with good cause or involuntarily quit, and (2) that she’s eligible to work.

If the employee quit her job involuntarily and is available for work, she can collect unemployment benefits. If, however, she quit her job voluntarily, in order to be eligible for unemployment compensation, she has to show that she had good cause to quit her job.

What’s considered “good cause to quit?” Good cause has been defined as such cause as would justify one in voluntarily leaving the ranks of the employed. It can include a substantial reduction in wages, work hours or a substantial deviation in the working conditions from the original agreement of hire to the detriment of the employee. The burden to show good cause is on the claimant. Good cause does not exist, however, just because the employer created an undesirable situation. The employee must first exhaust her administrative remedies by, for example, notifying the employer of the undesirable situation.

January 11, 2009

Business resources

The IRS has published a Tax Calendar For Small Businesses and Self Employed. This 2009 calendar of due dates and actions can actually be imported into Outlook. According to the IRS, this calendar is packed with useful information on General business taxes • Internal Revenue Service and Social Security Administration customer assistance • electronic filing and paying options • retirement plans • business publications and forms • common tax filing dates • federal legal holidays. Look for some brain teasers too! Each page highlights a different tax issue that may be relevant to your business. You may find it helpful to read through the entire calendar, then refer back to pages that pertain to you. Don’t miss the tear-out Hints & Help Guide at the end of this calendar. You’ll find room on each month to add your notes, such as state tax dates or appointments.

January 2, 2009

Delaware Unemployment Compensation Primer

If you're an employer here in Delaware, it's important to understand the rules relating to unemployment compensation. A great place to start is the Delaware Dept. of Labor's "Unemployment Insurance Handbook For Employers."

You should also become familiar with the term "just cause." Let's say you've just received written notice that an employee you recently fired has applied for unemployment compensation. You're going to have to decide whether or not to challenge this employee's eligibility for benefits. In making this determination, a term that often comes up is "just cause."

As a Delaware business attorney, I reviewed this issue just last week with a business owner. Simply stated, an employee who is fired for just cause is disqualified from receiving unemployment compensation benefits. The Courts in Delaware define just cause to mean a willful or wanton act or pattern of conduct that's in violation of (1) the employer's interest, (2) the employee’s duties, or (3) the employee’s expected standard of conduct.

“Willful and wanton conduct" means conduct that's evidenced by either a conscious act by the employee or reckless indifference that leads to a deviation from established and acceptable workplace performance.

Just cause has been found to exist, for example, where an employee failed to comply with his employer's policies. As the employer, you'll have to show that the policy actually existed, that the employee was aware of the policy, and that the employee knew a violation of the policy could be reason for termination.

November 2, 2008

What To Do With Unclaimed Property and How To Search For Your's

As a Delaware business attorney, part of my responsibility to my clients is to help them avoid legal problems. A legal check-up or legal audit can save a business owner a lot of time, money and aggravation in the long run if we can identify potential problems and deal with them before they get out of hand. In this series of articles, I’ll address various areas that appear on my legal audit checklist.

In this article, let’s discuss the topic of “escheat.” It turns out that many business owners are unfamilar with the concept of escheat, and they don't realize that they have a legal obligation to report and turn over to the Delaware Division Revenue abandoned or unclaimed property in their possession.

Like other states, Delaware has an unclaimed property law. There are lots of examples of unclaimed property. For instance, you issue a paycheck to an employee who has resigned, but the employee never cashes the check. Or you have a bank account that’s been dormant for several years. Or you send a supplier a check and the check is never cashed. The list also includes uncashed dividend checks, uncashed refund checks, unclaimed insurance proceeds, and stocks and bonds. In addition, if a person dies without a will and there are no known heirs, the deceased’s property is considered abandoned and unclaimed.

Once these funds or assets have been unclaimed for a period of 5 years, they're generally considered abandoned. Businesses with abandoned property have to send written notice to the last known address of the owner. If the abandoned proeprty remains unclaimed, a business has a legal obligation to report it to the State and turn it over to the Division of Revenue. Failure to comply carries stiff penalties.

The legal process whereby the government takes control of the money or assets is known as “escheat.”

Here’s the interesting part. You can search whether any state or even the federal government is holding funds or property that belong to you. In this regard, on October 31st, 2008, the Delaware Division of Revenue published in the News Journal and the Delaware State News the names of approximately 75,000 owners of unclaimed property in Delaware.

Delaware has a searchable database that lists owners who have a last known address in Delaware. There is even a national database that gives you the ability to search for assets that belong to you in other states.