There is a new Form I-9 that employers should begin using right away. U.S. Citizenship and Immigration Services (USCIS) recently announced the release of its newly updated Employment Eligibility Verification form, Form I-9. All employers are required to use Form I-9 at the time of hire to verify the identity and employment eligibility of their employees.

The Consumer Financial Protection Bureau (CFPB) has issued new regulations that require employers to use updated versions of Fair Credit Reporting Act (FCRA) forms. The new regulations went into effect January 1, 2013, and affect all employers using outside agencies to conduct background checks on candidates for employment.

A new, online version of The Maryland Entrepreneur’s Guide was recently released to the public. This guide provides basic information regarding starting a business in Maryland, including financing, entity choice, and tax credits, among other topics. Although the guide has existed in various forms over the last few years, the online version makes the guide more accessible to Maryland’s entrepreneurs.

Employers who anticipate hiring new H-1B employees under the FY2014 cap (for employment beginning October 1, 2013) should be aware that the first day to submit petitions for new H-1B employment is April 1, 2013.

Employers have long been required to verify each new employee’s identity and eligibility to work in the United States through the completion of the Employment Eligibility Verification form ("I-9"). Proper completion of the I-9 is required for all employees, regardless of citizenship. Despite its being in effect for more than 25 years, compliance with this law still eludes many employers.

 Recording some real estate instruments in Maryland will soon become more expensive. Apparently, the fiscal pressures of the recession have caused Maryland’s government to take action in an attempt to boost revenues. Effective July 1, 2012, the State & Local Revenue Financing Act of 2012 will require taxation of some indemnity deeds of trust and mortgages ("IDOTS").

A new law takes effect October 1, 2012, prohibiting Maryland employers from requiring employees to report for certain evening and night shifts after serving on jury duty.

On April 26, 2012, the Maryland Court of Appeals significantly modified the Maryland common law on liability for attacks by pit bulls and cross-bred pit bull mixes. As a result, the only corrective action that an owner or landlord may be able to take to avoid liability for harm caused to another by a pit bull or cross-bred pit bull mix on the premises is to exclude such dogs altogether.

If Governor Martin O’Malley signs it, a bill passed by the Maryland Legislature will make Maryland the first state to prohibit employers from asking or requiring their prospective or current employees to give access to their personal online accounts.

On June 8, 2011, the IRS published a list of 275,000 organizations whose tax-exempt status was revoked for failing to file a required Federal annual return. Of those organizations, more than 6,000 are Maryland tax exempts that have now lost their tax-exempt status based on their failure to meet the filing requirements.

Legislation establishing a new form for "do good" businesses – the Benefit Limited Liability Company – has passed the Maryland General Assembly and is en route to the governor to be signed into law. In December we covered the Maryland Benefit Corporation Act, the first law of its kind in the United States.

Not long after the Court of Appeals asked whether it could do away with the contributory negligence defense by making a rule change, Del. Benjamin F. Kramer introduced House Bill 1129, entitled "Maryland Contributory Negligence Act," which would make the contributory negligence defense part of Maryland’s statutes.

Your small business wants to refinance a mortgage that is about to mature, but can’t refinance in the private market because the economic meltdown has left your business with real estate worth near the amount of your existing loan, or less.  If this sounds like you, the SBA’s new program may help your business stay afloat.

Imagine one of your employees, driving a company vehicle, rolls through a stop sign and smashes into another driver. The other driver was speeding and was dialing a number on her cell phone. So who is at fault? And most importantly, who has to pay?

We thought it would be beneficial (and fun) to summarize how businesses were affected by laws, court decisions, and the like - in 2010.  For the next five days, we will give you our top 10 list and why it may be important to you and your business. 

Friday, February 4:
Well, we come to the end of our Top 10 for 2010.  In today's posts, Bryan Saxton explains why a limited liability company may be seeing less protection than was once afforded to not only this type of entity, but to its officers and managers.  For our construction clients (especially the general contractors), Bobby Mowell has some good news regarding your liability when using subcontractors.

We hope that you not only have enjoyed our Top 10 of 2010, but that you found them informative.  These stories and tips can help you make nformed decisions at the corporate level, and hopefully, avoid lawsuits and complaints.

Thursday, February 3:
We continue with our 4th installment of the Top 10 for 2010.  Today, Jessica Tupis tells you why you must accept Powers of Attorney - even if they are not your forms.  Also, Cate Hopkin has another cautionary tale for our friends in the banking and finance industry.

Wednesday, February 2:
We continue with our 3rd installment of the Top 10 for 2010.  This installment is good news for businesses and a warning for lenders.  For businesses, the courts have enforced the damages cap in cases of pain and suffering.  Chris Tully takes you through a 2010 case and its outcome.  Now, to our clients and friends who are lenders: Cara Lewis explains how a court decision in Philadelphia may affect your secured loans.

Tuesday, February 1:
We continue with our 2nd installment of the Top 10 for 2010.  Today, Jessica Tupis breaks down the Tax Relief Act of 2010 and, for those of you, who sell goods (retail or wholesale), Chris Heagy gives you a warning about doing so with a customer who has filed bankruptcy.

Monday, January 31:
Today, we start with two very different topics: (1) how your document management/IT practices can adversely affect you in the case of litigation and (2) the liability facing employers in the healthcare field.

First, Craig Haughton explains how a document retention plan can help you in the event you are sued.  He also explains how it can be a deterrent if not properly administered.  Second, for our healthcare provider clients and friends - a look at your liability as an employer.  Healthcare providers know that they may not retaliate against an employee who complains about violations that affect public health or safety.  But, in 2010, Maryland's highest court had the opportunity to interpret the Health Care Worker Whistleblower Protection Act.  Greg Garrett gives us a look at what happened.
 

Contrary to popular belief, a limited liability company (LLC) does not offer absolute protection. As with corporate officers and agents, members and managers of LLCs can be personally liable for wrongful acts they commit, even when acting on behalf of the LLC. The protection a LLC does offer was further diminished by Maryland’s highest court when it decided that a member of a LLC may be personally liable for lead paint injuries suffered by children who occupied a dwelling that the LLC owned.

Effective October 1, 2010, the Maryland Legislature enacted the Maryland General and Limited Power of Attorney Act (Act).  The Act creates a statutory form power of attorney and provides that no one can require an additional or different form of power of attorney for any authority granted in the statutory form power of attorney (this includes anyone -- banks, insurance companies, title companies, and anybody else dealing with a power of attorney).  Failure to accept an appropriate acknowledged statutory form power of attorney may subject you to liability for attorneys’ fees and costs incurred in an action or proceeding to confirm the validity or mandate acceptance of the statutory form power of attorney.  To avoid liability for noncompliance with the Act, be familiar with and able to recognize the new statutory form power of attorney and be sure to accept it.

For more information on the Act, see Maryland’s Statutory Power of Attorney – Learn It, Accept It, or Get Ready for Liability. ...

If so, there may be changes in the way your loans are handled in bankruptcy court. Although lenders never want to be creditors in bankruptcy proceedings, in the past they thought that if their collateral was sold, they could bid up to the full amount of their claim, without putting out any cash. To the contrary, in 2010, a federal appeals court ruled that secured creditors do not have an absolute right to "credit" bid when their collateral is sold under a Chapter 11 plan of reorganization.

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (Act) signed by President Obama is expected to stimulate the economy by providing tax relief to individuals and businesses.  The Act reinstates many Bush-era tax cuts that expired in 2009 and extends others that were scheduled to expire on December 31, 2010.  The Act also overhauls the current estate and gift tax regime by providing generous estate and gift tax exemptions and rates for 2011 and 2012.  Some of the more notable provisions of the Act affecting businesses are described below.

Income Tax, Capital Gains, and Preferential Dividend Rates.  The current rates are extended through 2012.

2011 Employee Payroll Tax Cut.  Effective for 2011 only, the social security tax rate is reduced from 6.2% to 4.2% and the self-employment tax rate from 12.4% to 10.4%.

100% Bonus Depreciation.  The 50% bonus depreciation now applies to qualified property acquired after December 31, 2007, and before January 1, 2013, and...

We live in an era where litigation is an ever-present, and a sometimes overwhelmingly frequent, consequence of doing business. Businesses must be aware of their obligations under the law to prepare for potential litigation on an ongoing basis. The advent of email and other forms of electronic transmission and storage of information increases the need for a reliable electronic and paper document retention plan (that is communicated to all employees); having one can sometimes enhance the chances of efficient and successful litigation and avoid the imposition of court sanctions for failure to preserve records relevant to litigation. In addition, all businesses and their employees must know when, even with a document retention plan, the law triggers a further obligation to retain documents, also known as a "litigation hold."

Recently, Golden State Bridge, Inc. was attacked by spyware designed to steal the construction company’s banking credentials.  Within hours, hackers created fraudulent payroll transactions totaling more than $750,000.  Fortunately, Golden State Bridge’s security team caught the breaches early and prevented much of the loss.  In addition, the company’s cybersecurity insurance coverage compensated it for losses that it was not able to prevent.   

On October 1, 2010, the Maryland Benefit Corporation Act – the first law of its kind in the United States – went into effect. The Act creates the "benefit corporation," a new corporate form that unites two formerly incompatible concepts: making a profit and advancing social and environmental goals. Benefit corporations can focus on the so-called "triple bottom line" of people, planet, and profit.

Your corporate headquarters is in Maryland; you have another location in Northern Virginia.  Are your non-compete agreements written according to Maryland law or Virginia law?  If you said Maryland, read "Competition Challenges" to find out why Virginia law may also matter.  Inside Counsel contacted our own Melissa Jones when writing this story, and she shares her experiences with them.
 

A person walks into your office or local branch, presents a power of attorney, and wants to sign a legal instrument or contract on another person’s behalf or asks you to change title to or withdraw money from another person’s account.  Sound familiar?  If so, then listen up.

On September 27, 2010, President Obama signed the Small Business Jobs Act (the Act) into law. The Act will benefit small businesses in several ways, including extensions of Small Business Administration (SBA) lending programs and tax breaks. 

This is a time of joint ventures and partnerships.  With commercial financing still difficult to come by, business owners are entertaining loans and investments from private parties and joint ventures/partnerships with other businesses.  So, lots of Non-Disclosure Agreements ("NDAs") are being used. 

Take a look on the Maryland State Department of Assessments and Taxation Website and you’ll notice there are a lot of limited liability companies whose right to do business and name have been forfeited for failing to file personal property tax returns. It happens. The returns are among the last things that many LLC members think about.

In an effort to create new Maryland jobs for unemployed Maryland residents, Governor Martin O'Malley signed emergency legislation enacting the Job Creation and Recovery Tax Credit.

The countdown is on. The District of Columbia is in the midst of a Tax Amnesty Program for many categories of taxpayers including individual income, corporate and unincorporated franchise, withholding, sales and use, and personal property taxes for returns that should have been filed prior to December 31, 2009. Real property taxes and the ball park fee are not included in the tax amnesty program. The tax amnesty period will last until September 30, 2010, so employers should consider taking advantage of this opportunity to pay back taxes with no civil or criminal penalties.