Companies with NY employees need to be aware of two recent legal developments which impose new liability under discrimination rules. There are already an array of different federal, state and local statutes which protect employees (and potential employees) from discrimination on many grounds, including sex, race, disability, and even felony conviction status. These rules impact not only New York based companies, but also out-of-state businesses that require New York employers to follow their employment practices.
Articles written by
Michael Giusto
Don’t Leave your Heirs with Problems Probating your Will
Typically, probating your will is a straightforward process, but sometimes issues can arise especially when a will was executed years ago and witnesses have died or moved, or the attorney who drafted the will and oversaw its execution did not follow industry “best practices.” These issues could create problems for your chosen executor when he/she seeks to probate the will.
Tax Benefits of Converting a C-Corporation to an S Corporation
Many small companies are set up as Type “C” Corporations (“C Corp”), particularly those which have been in existence for many years. However, C Corps are subject to double taxation, and as a result, businesses may want to consider converting to an S Corporation (“S Corp”) to reap the tax benefits.
Tax treatment of C Corps vs S Corps
C corporations must pay taxes on earnings at the corporate level. In addition, their shareholders are also separately taxed on amounts distributed to them as dividends. Therefore, each dollar earned by a C Corp is taxed twice before it reaches the hands of the corporation’s shareholders.
Has the government “taken” your property with too many regulations?
Under the Federal (and most state) constitutions, the government cannot “take” private property for public use without just compensation. Historically, this meant physically seizing or intruding upon all or part of your property and is often referred to as “eminent domain”. But takings are not necessarily physical. They can result from government regulations restricting the use of your property. It can be difficult to determine when the regulations go so far that they constitute a taking and require compensation.
Can an “Irrevocable” Trust be Changed?
Under New York law, a trustee can modify an irrevocable trust in certain situations. The process, called “decanting,” permits alteration of a trust by “pouring” the existing (invaded) trust into a new trust. This gives the trustee surprising flexibility to create a new trust that will better accommodate changed circumstances, notwithstanding that the trust is irrevocable.
Risks of Personal Use of a Work Email Address
In our busy lives it’s not uncommon for many employees to send personal emails from their business email account. However, there can be unintended repercussions for both employers and employee in a litigation setting. New York law establishes a variety of “privileges,” which protect parties from being compelled to disclose certain broad categories of communications. Those privileges can be easily lost because of an employer’s email policy, thereby allowing an opposing party to get such emails as evidence.
An Executor’s Guide to Settling an Estate
Executors are responsible for handling the administration of an estate until it is “settled” or closed. Once the assets have been marshaled, bills have been paid, specific bequests distributed, and any outstanding issues resolved, the fiduciary (the executor or administrator) must prepare an “accounting.” An accounting must be done before the estate’s remaining assets (called the “residuary”) can be distributed to beneficiaries and before the executor will be released from all claims regarding the administration of the estate.
Don’t Risk Denial of Your Insurance Claim: Double Check Your Application
Filling out an application for insurance seems like a straightforward step, but it can cause problems if you are not careful. Mistakes can happen. Unfortunately, a recent court decision makes clear that such a mistake can be very costly and result in denial of coverage even if it was an innocent error.
When Can Executors Honor a Power of Attorney?
One of the responsibilities of an estate executor or administrator is dealing with beneficiaries of an estate. What appears to be a straightforward task can be complicated when the executor is contacted by someone who claims to hold a power of attorney (POA) for a beneficiary of the estate (also known as an “attorney-in-fact”). An attorney-in-fact is typically involved when a beneficiary is elderly or disabled and cannot act on his/her own behalf. There are special rules in place for New York executors when they deal with an attorney-in-fact. They cannot necessarily recognize the POA unless certain requirements are met.
Changes to Employer Responsibilities under the Family Medical Leave Act
Employers should be aware of a recent court decision regarding their responsibilities in considering an employee’s request for a medical leave under the Family Medical Leave Act (FMLA). FMLA is a federal statute, which applies to employers with 50 or more employees. It requires an employer to provide “qualified employees” with up to 12 weeks of leave in a year for family or personal medical circumstances. The court case which was just decided clarified who is responsible for determining whether an employee is eligible for FMLA and what steps employers have to take before they make a decision about eligibility.