HOLIDAY PARTIES – KEEP THE GRINCH AND THE LAWYERS AWAY! By: Gregg Paley, Esq.

 

A recent survey shows that 83% of businesses are planning some type of year-end holiday party. Unless you’re one of the deadbeat companies not having fun, proper planning is essential to keep the legal Grinch away.

Treat All Religions Equally

While this should always be the practice, it can be tricky to implement during the holidays. For example, a private employer can decide whether or not to allow holiday decorations if the policy is applied uniformly to all employees and their religions. So, if you’re going to allow Christmas trees be prepared to let employees display Hanukah menorahs and Kwanzaa harvest baskets as well.

“Holiday” Party

In this age of political correctness, it’s easy to get carried away but this is one that makes sense. By calling your fiesta a “holiday” party rather than a Christmas or Hanukah party, you’re making all employees feel welcome and avoiding any claims of religious discrimination or preferential treatment.

As for the party itself, make it clear that employees are not required to go unless it’s held during normal business hours. If it is mandatory, employees can reasonably expect to be paid – hourly non-exempt workers must receive at least minimum wage for every hour of mandatory attendance.

Sexual Harassment at the Holiday Party

Although workplace sexual harassment is finally getting the attention it deserves, the combination of alcohol and informality at the holiday party can result in unwanted sexual comments or advances. Make sure to remind your employees that the sexual harassment policy will be in effect at the party and reiterate its importance by republishing a copy to each employee via email or other company-wide communication.

Drinks Anyone?

If alcohol is being served, find a way to limit the amount people can drink by either closing the bar early or handing out a limited number of drink tickets for each person. Of course, don’t allow self-service or unlimited access to the bar which can lead to liability for the company if there’s an alcohol related incident at or after the party. Also make sure to provide a variety of non-alcoholic drinks and plenty of food to soak up the libations and don’t forget a camera to take pictures of all the embarrassing dancing and speeches.

Finally and most importantly, provide safe transportation home for anyone who drinks too much. Tell all your employees in advance and arrange for taxi, uber or limo service to make sure everyone gets home safely to enjoy the holidays.

Happy Holidays and let the parties begin!!

If you have any questions or would like to discuss any labor or employment law issues contact Gregg Paley at Colson & Paley, LLC in Lighthouse Point, Florida.Gregg Paley: Colson & Paley

 

THE CORPORATE VEIL – PROTECTING SMALL BUSINESS OWNERS FROM PERSONAL LIABILITY By Gregg Paley, Esq.

THE CORPORATE VEIL – PROTECTING SMALL BUSINESS OWNERS FROM PERSONAL LIABILITY   By Gregg Paley, Esq.

One of the many smart reasons to incorporate your company is protecting the owners from personal liability for business transactions. Just in case the business plan doesn’t work out, there’s no reason to risk your home and savings account to pay off corporate debt.

By creating the right protective umbrella or “corporate veil” around your assets, it’s nearly impossible for business creditors to hold you or your partners personally responsible for anything the company does. However, you’re not protected against valid fraud allegations so do things right and you’ll have no worries.

Although the laws vary slightly between states, the general rule is that owners, partners and shareholders won’t be held personally responsible for company debt without clear and convincing proof of fraud or other illegal conduct. And we’re not talking run of the mill fraud fun as most states require evidence that the company itself was organized to defraud creditors. This is much harder to prove and why the corporate veil is so effective for business owners.

So how is this magical umbrella created? Tap your heels together and repeat “there’s no place like home” … if that doesn’t work start with the following suggestions and call me if there’s more questions. The first step is choosing the right corporate entity and deciding whether a partnership, corporation or LLC is best for the business. Once the company is set up, you’ll need a business bank account for all company activities and make sure not to comingle business and personal assets. For example, never use personal checks or credit cards to pay business expenses or business funds to pay personal debts.

There’s a lot more involved in properly setting up and running your company to avoid personal exposure such as meeting all “corporate formalities” by making sure your books and records are up to date and complying with the state and federal requirements for your business.  For more information contact Gregg Paley at Colson & Paley, LLC. Attorney Gregg Paley

PREPARING INSURANCE CLAIMS FOR HURRICANE RELATED DAMAGE How to get better and faster results from your insurance company.

 

How to get better and faster results from your insurance company.

By: Gregg Paley, Esq.

If you thought hurricane Irma was bad, wait for the fun you’ll have trying to get reimbursement from your insurance company for storm related damages. With the entire state of Florida impacted by Irma which followed on the heels of the catastrophic flooding from hurricane Harvey in Texas, insurance companies will be overwhelmed by the size and number of claims for assistance. As a result, reimbursement for your damages may take months if not years to resolve unless you follow the basic steps outlined below.

I’ve had many years of legal experience on both sides of the fence defending insurance companies and handling a variety of different lawsuits against them. In nearly all of these cases, the most successful claims have been well-organized, thoroughly documented and presented with a firm approach so your claim is taken seriously. Despite the constant barrage of positive advertising, most insurance companies are not your friends and their “good hands” are reaching for your wallet to help shareholders so don’t be fooled.

GETTING ORGANIZED

The first step is figuring out which insurance company covers the damage to your home or business and the amount of your deductible for that policy. Although some companies cover all hurricane related damage, many others separate wind and water damage with your primary homeowner’s insurance handling wind and a secondary policy covering water and flood. In fact, you may need to submit two separate claims for wind and water damage depending on the scope of each policy and the nature of the damage itself.

Once you’ve decided which policy covers the damage, the next step is getting a claims form from the company or companies which should be available online at their main website.  With your claim form in hand and a hardy spirit, you’re ready for the main part of your project which is gathering documentation to support your case.

 DOCUMENTATION TO SUPPORT YOUR CLAIM

Submitting a strongly documented claims package is the single most important thing you can do to help achieve a positive outcome. You’ll make it easier for the claims adjuster to review your materials and send a message that you’re serious about getting full reimbursement for your damages. If you’ve had different parts of your home or business impacted, prepare an individual package with pictures and supporting documents for each repair item.

It’s often said that a picture is worth a thousand words and this situation is a perfect example. Take multiple pictures from different angles and select the ones that best convey the full scope of the damage and be sure to use a format that lets you print the photos and save them to your computer for future use if necessary. Pictures of the impacted areas before the storm will also be very helpful but aren’t required if you don’t have them.

The second part of your package involves getting 2 or 3 repair estimates from reputable contractors in your area. This is a critical step that’s often overlooked that adds credibility to your claim and prevents the insurance company from exercising too much control over important repair decisions affecting your property. Because your repair costs must exceed the deductible amount under the policy, the insurer hopes to find that your damages do not meet the deductible threshold. Without your own estimates, there’s nothing to fight back with so do your homework early to avoid problems later.

What this means is that it’s your job to find out what it will actually cost to repair the damage to your property and to find a company that will do the job right. Keep in mind that local contractor fees may be 25% or more higher than pre-storm rates and try to find companies that friends and relatives have used in the past or have good reviews on local referral sites like Yelp or Google Business. Once you’ve selected a company to do the work, take a look at our prior post on Negotiating Effective Construction Contracts. https://wordpress.com/post/greggpaley.wordpress.com/469

The last step in completing your claims package is preparing a well-written cover letter summarizing each repair item and referencing the pictures and estimates for each subject. Conclude the letter by requesting immediate confirmation of their

receipt of the package together with the claim number, name of the individual adjuster assigned to your file and specific list of any additional items they may need before reviewing your claim.

BE FIRM AND PERSISTENT

One week after submitting your package and finding out who your claims adjuster is – or at least the claim number – call to find out the status of your submission. Until you get a satisfactory response, you’ll need to call and email every day without being rude but definitely being firm and persistent. Remember, the “squeaky wheel gets the grease” and this is no exception with the volume of claims the insurance companies are currently dealing with. After a few days of calls and emails you’ll likely get the adjuster’s attention and move your file to the top of the pile.

When you do get a response about the amount they’re willing to pay for your repairs, don’t settle for less than you’re entitled to. If you’re not satisfied, refer back to your repair estimates and ask for copies of the documents they’re relying on to come up with something less than your estimates. If that doesn’t work it may be time to bring in the hired guns or at least call our offices and ask for GREGG PALEY at COLSON & PALEY, LLC. Do not rely on public adjusters – Many have inappropriate relationships with contractors which may result in higher prices and fees and less willingness by the insurance company to cover your costs. GOOD LUCK!

HURRICANE DAMAGE TO YOUR HOME? IMPORTANT CONSIDERATIONS FOR YOUR CONSTRUCTION CONTRACT

 

By Gregg Paley, Esq.

If you own a house in Florida, hurricane season is one of the major risks of living here (along with drunk tourists, texting maniacs speeding along I95 and senile seniors!) and even minor storms can result in significant damage to your home.  If that happens and you need to hire a contractor to fix the mess, having the right language in your construction contract helps avoid disputes and makes all the difference in a lawsuit if the job goes sour.

The most common complaint from both our residential and commercial clients is that the job took much longer than initially projected. This may be particularly important following a hurricane when so many homeowners are looking for contractors who usually have more business than they can handle.Construction delays are not only inconvenient but often lead to unnecessary expenses such as temporary housing expenses, increased insurance premiums and business interruption costs that result in reduced revenue and client loss if they can’t access your company’s location.

So, what can you do to ensure that your work is done right and on time? First and most importantly – if you’re in Florida move to Montana immediately where there are no hurricanes!

If leaving Florida is not a good option, there are a few more practical solutions to consider. For example, one of the most effective ways to motivate an otherwise unmotivated contractor is including a “Penalty for Delay” clause in the contract. By adding a penalty of $100.00 – $1,000.00 for every day beyond the scheduled completion date, you can be sure that finishing your job will be a top priority for the construction company.

Another helpful provision to include in the contract involves linking the percentage of work completed with the percentage of payment made by the owner so that the contractor only gets paid for work that’s been done. As a result, there’s once again motivation to keep your job moving forward while making the other owners who weren’t lucky enough to read this article wait in line! When there’s so much work that it’s hard to keep contractors accountable, every additional protection you can build into the agreement will make your project a priority.

Additional important considerations include:

• ·       A provision that requires the losing party in any disputes to pay for the attorney’s fees and costs of the prevailing party;
• ·       A waiver of the Florida Statute §558 requirements which allows contractors to have an extensive amount of time to repair defective work before a lawsuit is filed;
• ·       A process to ensure that all subcontractors and workers are paid by the general contractor to avoid lien claims on the property;
• ·       A provision which lets owners retain final payment and both create a final punch list of incomplete items and have sole discretion to approve completion before final payment is due;
• ·       A clear itemization of the time frame and costs for all permits and inspections as well as assurances that the contractor is responsible for promptly resolving permit denials and that any permit related delays won’t affect the penalty for delay clause.

Of course, an experienced contract and construction attorney is in the best position to prepare an effective contract for you and will also be a valuable ally if the spam hits the fan. Gregg Paley at Colson & Paley, LLC has a vast amount of experience negotiating with insurance companies, drafting contracts and litigating your case in court if necessary.