Small Business Toolbox

A library of business management info


Legal Tips
  • President Signs New Law to Expand Number of Workers Considered Disabled Americans
    10/10/2008
    President Bush recently signed a bill into law that will greatly expand the number of workers considered disabled under the Americans with Disabilities Act. The ADA Amendments Act of 2008 is designed to enlarge coverage by overturning a series of U.S. Supreme Court cases, which limited the number of persons who could demonstrate they were disabled. The amendments passed with strong support from both parties.
  • E-Verify Expanding to Federal Contractors
    08/20/2008
    On June 6, 2008, President Bush signed an executive order that will require federal contractors to use the U.S. government's E-Verify system to confirm the legal status of their employees or risk losing their government contracts. While a deadline for federal contractors to sign up for E-Verify has yet to be determined, the planned changes are expected to take effect in 2009.
  • Hiring Part I: Conducting Background Checks
    08/15/2008
    This column is the first in a two-part series on the hiring process. This month we'll discuss background checks, and next month's column will cover reference checks. Both background checks and reference checks can be critical components in the hiring process.

    When it comes to background checks, employers should be aware of the reasons for performing a background check, what basic information to request and what legal boundaries exist to protect an employee's privacy.
  • ADA Marks 18 Years
    07/25/2008
    July 26 marks the 18th anniversary of a critical milestone in our nation's history--the passage of the Americans with Disabilities Act (ADA). Signed in 1990 by President George H.W. Bush, this landmark civil rights law guarantees equal opportunity for individuals with disabilities in public accommodations, employment, transportation, state and local government services, and telecommunications.
  • New Form I-9 in Effect
    07/02/2008
    The U.S. Citizenship and Immigration Services issued a new Form I-9 to verify employees' eligibility for employment. Employers must begin using the new form by Dec. 26. Previous versions of Form I-9, in English or Spanish, are no longer valid after Dec. 26, 2007. Employers who are still using the old forms after this date will be subject to applicable penalties and fines.
  • Dress Codes Do's and Don'ts
    05/16/2008
    Ah, summer time. Think warm sunny days, family vacations at the beach and comfy casual clothes. Unfortunately, the warm days of summer can wreak havoc on your company's dress code. Ensuring that employees are appropriately attired can be tricky enough, without throwing today's casual wear of tanks tops and flip-flops into the mix.
  • Polygraph Testing and Employee Privacy
    03/25/2008
    There should be no argument with the contention that an employer has the right to ensure a workplace that's free from substance abuse, employee theft and general dishonesty. For years, a number of employers exercised this right in the form of employee polygraph testing. In fact, some businesses in which employees consistently handled cash and merchandise, such as retails stores or restaurants, subjected employees to random polygraph tests as a normal business practice.
  • The Final Paycheck: Paying Terminated Employees on Time
    03/21/2008
    There are two important issues that an employer must keep in mind when it comes to a terminated employee's final paycheck: When must the check be paid and what must be included in the paycheck. These issues are governed by state law, as there are no federal laws immediately on point.
  • Jury Duty 101: Your Requirements as a Small Business Owner
    02/15/2008
    There's no denying that jury duty presents challenges to both employers and employees. Thousands of Americans serve on juries every week and each one has family, employers and co-workers who are affected by their jury service. But jury service, like the right to vote, is one of those civic obligations that employers must allow and by virtue of some state laws is actually encouraged.
  • Preventing Violence with Workplace Weapons Policies
    01/18/2008
    Most employers are committed to providing a safe and healthy work environment for their employees. In keeping with the spirit and intent of this goal, many employers prohibit anyone—employees, contractors, vendors and visitors—from bringing firearms or other weapons onto company premises. The reason for these bans? Workplace safety and liability. If an employee is threatened or assaulted on the job, liability for injuries could fall on the employer. In fact, some insurance companies require workplace weapons policies before issuing coverage for employment claims.
  • Goodbye to the Old-Fashioned Holiday Office Party
    11/29/2007
    'Tis the season to be jolly and to celebrate. Times have changed, however, and one form of celebration—the once-popular "office party"—is no longer the welcome event it once was. This refers, of course, to the holiday gathering limited to staff only, with plenty of eating and drinking (both soft and hard) and socializing among employees. Many holiday gatherings have been held without a single problem arising, but some "office parties" have caused situations leading to damaged careers and relationships and placing businesses and individuals at considerable legal risk.
  • Legal Liability: The Uninvited Guest at Company Holiday Parties
    11/27/2007
    The holiday season is a great time to show employees appreciation for all their hard work, and to be honest, they expect this. But as you’re planning this year’s bash, there are some things you need to keep in mind so your company doesn’t end up getting more than expected—like sexual harassment lawsuits, discrimination claims, workplace violence and the legal liability associated with the alcohol-fueled misbehavior on the part of employees.
  • New Form I-9 Reduces Documentation Required for Employment Eligibility
    11/26/2007
    On Nov. 7, 2007, the U.S. Citizenship and Immigration Services issued a new Form I-9—the document all employers must complete to verify employees' employment eligibility. Employers should download the new form, note the form's changes (also discussed below) and begin using the new form immediately.
  • Show of Support
    11/09/2007
    November 11 took on storied meaning when the armistice ending World War I went into effect on the 11th hour of the 11th day of the 11th month of 1918. In the words of President Wilson, November 11 has since been a day to reflect "with solemn pride on the heroism of those who died in the country's service and with gratitude for the victory, both because of the thing from which it has freed us and because of the opportunity it has given America to show her sympathy with peace and justice in the councils of nations …"
  • NFIB Legal Foundation Offers Useful Legal Guides for Members
    10/26/2007
    With more than 75,000 pages of rules to keep track of, it's not surprising that many small-business owners don't know or understand the laws that apply to them. In its role as educator, the NFIB Legal Foundation continues to develop useful legal guides to help small-business owners navigate the increasingly complicated maze of federal laws and regulations. Additional information on the legal guides is found below; each of these guides is available as a benefit of membership for NFIB members.
  • Promoting a Drug-Free Workplace
    10/19/2007
    National Drug-Free Work Week 2007 was held Oct. 14-20, and employers and workers across the nation were encouraged to participate. The purpose of Drug-Free Work Week is to highlight the fact that being drug free is key to protecting workplace safety and encouraging workers with alcohol and drug problems to seek help.
  • LLC: The Right Entity for Your Business?
    09/21/2007
    Choosing a legal business entity is one of the most important decisions a small-business owner will have to make. The ability to easily form a business in a way that shields personal assets while reducing the tax burden is an important, evolving area of law. A limited liability company (LLC) provides many small-business owners with the flexibility and personal asset protection they need to focus on what they do best-- providing their employees with rewarding jobs and their customers with the highest quality products and services.
  • How to Survive a Labor Union Organizing Campaign
    08/10/2007
    A labor union organizing campaign can mean a lot of stress and headaches for small-business owners. Owners, managers and supervisors are all under special obligations not to unduly interfere with an organizing effort. Failure to follow these rules could mean legal trouble with the National Labor Relations Board. Faced with these restrictions, it might seem like there's little you can do to fight a campaign. Not so. Employers can communicate to their employees the disadvantages of union membership, including the financial costs and potential for work-related loss from strikes or picket lines.
  • Small Business at the Court: A Review of the 2006-2007 Supreme Court Term
    07/20/2007
    The Supreme Court concluded its 2006-2007 term on a divisive note with a number of 5-4 decisions on issues related to free speech, abortion and affirmative action. Less polarizing for the justices was many of the Court's rulings on business issues. The Court upheld important restrictions on employment discrimination claims, punitive damages and union dues. Its rulings in the business arena represented important wins for NFIB, which offered support in three critical cases.
  • Know the Rules Before Hiring Young Workers
    06/29/2007
    Many businesses look forward to the end of the school year almost as much as students. Why? Because these companies see teenagers with three months of free time as a good match for summer job openings.
  • Finding the Best Summer Help
    06/15/2007
    Almost every industry has peak periods when some extra help around the office would be welcome. Fortunately, if that time of year is during the summer months, you may be able to forge a mutually beneficial relationship with some temporary help through either summer interns or teenage employees.
  • ADA Tax Breaks Help Small Businesses Stay Accessible
    05/18/2007
    You may have heard about the Americans With Disabilities Act and wondered how it might affect your business. Perhaps you've heard about predatory plaintiffs using the ADA to extort small businesses in "drive-by" lawsuits. Even if you haven't heard of the ADA, the reality is that you have obligations to make your small business accessible for the disabled. Instead of waiting for a lawsuit to hit you, why not take care of some accessibility issues ahead of time? Fortunately, Uncle Sam offers a variety of incentives to help you become ADA compliant, taking a proactive approach that won't break the bank.
  • Juggling Fun and Safety at Your Next Company Party
    05/16/2007
    According to Carol Nelson, an independent Ohio human resources consultant with more than 25 years of experience, you should take some precautions if you are hosting a party where alcohol is served. "Small-business owners need to consider risks and be sure they are covered for those risks," Nelson says.
  • Protecting Employees' Social Security Numbers
    04/20/2007
    Identity theft is an ever-present danger to Americans across the country, since we all live in an increasingly digital world. This nightmare scenario requires, at the least, canceling accounts and repairing credit reports. Common sense counsels you to protect yourself by shredding bills and other documents before you throw anything away, but if you're a small-business owner, you must be equally as careful with employees' confidential information. Your employees' Social Security numbers are the penultimate example of information that must be kept under lock and key.
  • Medical Leave: Reconciling FMLA Leave With the ADA
    03/15/2007
    Many small-business owners have less than 50 employees, and therefore, are not subject to the federal Family Medical Leave Act. Nevertheless, there may be other laws besides the FMLA to be considered, such as the Americans with Disabilities Act, before deciding to grant or deny requests for medical leave. To better understand the nuts and bolts of federal law, employers must break down the demands that arise from the intersection of the FMLA and the ADA, since both require a covered employee to be granted medical leave in certain circumstances.
  • Pre-Employment Tests
    02/15/2007
    Many employers use pre-employment tests to weed out unsuitable applicants. These tests may include skills tests, aptitude tests, psychological tests, personality tests, honesty tests, medical tests and drug tests. Both state and federal law impose numerous restrictions on what sort of testing is permitted. These restrictions are often vague and open to contradictory interpretations. As a result, you should only use tests that are absolutely necessary and, unless the test is as basic as a typing test, you should consider consulting with a lawyer before administering it.
  • Don't Let "Put It on My Card" mean "Put It on Me"
    01/25/2007
    Tips from Solveras Credit Card Processing on protecting your business from credit card fraud
  • Providing References for Former Employees, Both Friends and Foes
    12/15/2006
    Employers today find themselves in the position of saying too little for fear of saying too much when it comes to providing references for former employees. Should you tell the truth and nothing but the truth whether good, bad or neutral? It may be surprising, but there is no right answer. As a former employer, you can generally say as much or as little as you like, as long as you do not knowingly provide false information. By definition, a reference allows you to disclose a significant amount of information about a former employee--but as with any business dealing, it pays to think before you speak.
  • Office Holiday Party Checklist
    12/13/2006
    The office Christmas party can be a wonderful end-of-the-year event, but there are several issues you should consider (or reconsider if this is not your first party) to make sure that it goes off without a hitch.
  • Gift Cards and Gift Certificates: Watch the Fine Print
    12/11/2006
    One of the hottest trends this holiday season is the sale of gift cards and gift certificates. Gift cards are prepaid cards containing a specific amount of future purchasing value, designed to be bought by one consumer (purchaser) and presented as a gift to a second consumer (recipient). Gift certificates are, similarly, prepaid certificates that entitle the owner to a specific amount of purchasing value. Rather than making an agonizing selection, consumers enjoy the convenience of buying an item someone else can use to obtain exactly what he or she wants. Generally, the laws regarding gift cards and gift certificates are essentially the same. However, there are a few things small businesses need to consider before offering these choice items to their holiday shoppers.
  • Don't Delete Yet––New Federal Court Rules Require E-mail and Electronic Document Retention
    12/08/2006
    Under new federal court rules that went into effect on December 1, businesses should ensure that they have policies in place to manage and maintain electronic documents and information, including e-mail communications. The reason: Court rules now require that businesses provide plaintiffs access to electronic documents that might be used in litigation even before a request for the documents has been made.
  • Just Say Yes to Notaries
    12/07/2006
    A notary public is a person with a special commission from a state or county government that allows him or her to acknowledge the official witnessing of another person's signature on a document. According to Tim Reiniger, executive director of the National Notary Association, there are 4.5 million notaries in the United States. That figure does not include the millions of lawyers nationwide who by virtue of being an attorney are also vested with that authority. Each state maintains its own rules about whether attorneys are automatically notaries.
  • Ensuring Safe Holiday Office Cheer
    12/06/2006
    As the year draws to a close, and the holiday season fast approaches, employers can chase away any holiday fears and ensure a business full of happy holiday cheer by avoiding a few common legal pitfalls. By taking some simple precautions, employers can ring in the New Year without worrying about any post-holiday headaches (or lawsuits).
  • Business Tips on Holiday Gift-Giving
    12/04/2006
    As a business owner, you do a lot of entertaining throughout the year. But when the holidays roll around, this aspect of doing business has much more significance. Not only is celebrating the season with your employees and clients a nice way to share the holiday spirit, the goodwill also can boost worker morale and reinforce business relationships.
  • E-mail Use and Abuse
    11/17/2006
    Communication in the workplace has changed dramatically in the past 10 years. Electronic communications like e-mail now exceed traditional communication media, such as phones, memos and meetings. While electronic communication provides many benefits, it has brought many headaches to business owners and managers. But protections are available for companies.
  • The Importance of Being Honest
    11/06/2006
    Advertising is regulated both by the Federal Trade Commission and at the state level, and non-compliance can be costly. Before you release any advertisement, it pays to check out the state and federal rules to make sure you are in compliance.
  • Pre-paid Legal Plans: Worth the Cost?
    10/20/2006
    Are you unsure whether you can fire an employee? Unclear about what details to include in a contract with a business partner? Business owners contemplate these legal questions routinely, yet often businesses shun legal consultation to avoid high legal costs. Small businesses wary of the cost of an attorney might want to consider enrolling in a pre-paid legal plan to handle their legal issues.
  • Tell Me About Yourself
    09/20/2006
    The legal boundaries of pre-employment background checks
  • So You've Been Sued––What Now?
    09/15/2006
    Someone enters your business, asks for you and hands you a sealed envelope stating, "You are served." Unfortunately, lawsuits are a part of doing business. After being served with a lawsuit, what should a small-business owner do? Don't panic. There are several acts that can bring advantageous results in responding to a lawsuit.
  • Dressing Employees for Success: Implementing a Non-Discriminatory Dress Code
    09/08/2006
    An employee's appearance can often make or break a customer decision. You naturally want to create appearances that shine a positive light on your business. But what about your employees' rights? Can an employee drag you into court for making her cover up a tattoo? Or, what about beards and body piercings? To establish a dress code that steers clear of discrimination remember three things: Be reasonable, communicate openly and think about your bottom line.
  • Due Diligence: Revealing the Good, the Bad and the Ugly
    09/06/2006
    The term "due diligence" is thrown around quite a bit in business circles, but what does it really mean? Due diligence is lawyer-speak for what is, basically, a business investigation. The term can be used for a multitude of business situations, but it is most commonly used when one business is about to purchase another.
  • English-Only Workplace Policies: Tread Cautiously to Avoid Discrimination
    07/21/2006
    Although English has long-held supremacy in our national conscious, the truth is at this time there is no official language of the United States. So you may be in for a rude awakening in the form of a civil-rights lawsuit if you have an English-only workplace. On the flip side, with a little understanding and some planning, you might find that an English-only policy is acceptable for your business.
  • Under Cover: Protect Your Business Against Human Error
    07/18/2006
    Also known as professional liability or malpractice insurance, errors and omissions insurance covers you or your company in the event that a customer or client holds you responsible for a faulty service you provided (errors)—or failed to provide altogether (omissions).
  • Credit-Card Fraud: Five Steps to Protect Your Business
    06/16/2006
    The media, consumer groups and even banks offer a wealth of information about how individuals can protect themselves from fraud. But how can business owners guard themselves against credit card thieves who place orders over the internet or by phone?
  • Three Threats to Every Business Owner's Estate Plan
    06/15/2006
    Now is the time for business owners to get serious about planning their estates. When it comes to estate and business planning, however, many business owners make the same mistakes over and over again. Unless business owners and their advisors immediately respond to the three major threats to a successful business transfer described below, the economic loss to poor estate planning over the next 20 years will be staggering.
  • Advice on Finding Good Counsel
    06/12/2006
    Some type of law controls nearly every aspect of your small business. You must pay taxes because the Internal Revenue Code says you should, employees must earn a decent wage because Fair Labor laws demand it, and discrimination is unlawful since the Equal Employment Opportunity Commission's rules outlaw it.
  • MyVoice: Hotline for Help
    05/26/2006
    NFIB Legal Foundation's new hotline provides answers to questions on employment law.
  • Good Question
    05/25/2006
    Can you ask a potential employee if he's ever had a heart attack? No, and small-business owners looking to cut health-care costs by screening potential hires for health problems during interviews ought to look elsewhere.
  • Do You Need an Employee Handbook?
    05/19/2006
    Are you unsure about how to handle problem employees? Have you written more than one internal policy memo this past year? Do your employees constantly ask about sick leave, dress codes or promotions? If you answer yes to any of these questions, it may be time to create an employee handbook.
  • Protecting Your Ideas When Talking With Investors, Potential Partners
    01/26/2006
    Entrepreneurs need to protect proprietary ideas when approaching investors, potential partners, new employees and others. There are two stages to assuring this protection. The first takes place before actually contacting individuals; the second involves having proper legal documentation at the time of the meeting.
  • Exploring the Legal Limits of Web Links
    01/17/2006
    If interactivity is the defining characteristic of the Internet, linking is the defining characteristic of the Web. By creating hypertext documents and including links to related information within or outside of sites, Web authors can multiply the information they provide. Anybody who uses the Web becomes quickly aware of these links. But you may not be aware of the different types of links, and how some can even create legal liability for Web authors of business and personal sites.
  • USERRA: New Rules Protect Military Service Members
    01/06/2006
    The U.S. Department of Labor has announced new regulations under the Uniformed Services Employment and Reemployment Rights Act of 1994, the federal law that governs military service members' workplace rights. The new regulations are intended to protect the rights of those who leave their civilian jobs voluntarily or involuntarily to serve in the military, including the military reserves and the National Guard.
  • Finders Keepers, But Do I Still Have to Pay Taxes?
    06/23/2005
    The issue of unclaimed property and what to do with it if you are a small-business owner can be troubling. In some states, unclaimed property is defined as any tangible asset that is held, issued or owned in the ordinary course of a holder's business that has remained unclaimed by the owner for a specified period of time – or after it became payable or distributable.
  • Terminating Employment: Six Steps to Help in the Process
    06/17/2005
    The decision to terminate an employee is never easy and is usually a last-resort measure. But unfortunately, termination may be inevitable. To avoid legal problems down the road, you should establish a set approach to employee management that includes procedures for firing an employee. The following six steps can help you effectively handle terminations.
  • Performance Problems: Don't Let an Employee's Poor Performance Affect Your Business' Performance
    05/20/2005
    Most employers recognize that on occasion the work performance of some employees falls below the acceptable level that they've come to expect. As an employer it's important for you to take action when you notice than an employee's performance has deteriorated.
  • A Music-Downloading Policy Can Keep Your Business Out of Legal Hot Water
    04/12/2005
    Chances are you're too busy to keep track of everything your employees do when they're accessing the Internet from the workplace. However, one activity employees may be engaging in could land your small business in court, so take the time now to institute a policy that will protect your business in the future.
  • Document Retention Policies
    03/18/2005
    Have you ever wondered how long you should keep a contract, banking statements and employee records? Or are you keeping every single bill, tax return, insurance invoice and even the parking ticket that you received 10 years ago? If you answered "yes," you are not alone. Many business owners are unsure as to how long they should retain business documents and records.
  • Prepaid Legal Plans for Small Businesses
    02/24/2005
    Prepaid legal plans can help manage legal costs by enabling you to access legal assistance through an annual fee, rather than paying on an incident-by-incident basis. Fees are paid annually or monthly, and can run from about $30 a month up to considerably more. Prices vary with the number of free services or discount services provided.
  • Hiring a Lawyer: Remember to Do Your Homework
    02/18/2005
    Although no one likes to think about it, in the course of your business, there probably will come a time when you will need the assistance of a lawyer. Whether it is for a complex contract or a real estate deal, hiring a lawyer can be a complicated process that leads to many questions.
  • OSHA Inspection . . . Can It Happen to You?
    01/21/2005
    The Occupational Safety and Health Administration, more commonly known as OSHA, is part of the U.S. Department of Labor. OSHA ensures that employers adhere to DOL safety and health regulations. OSHA conducts workplace inspections to make certain that employers are complying with the standards and providing a safe and healthful workplace.
  • What Not to Ask and Other Tips for Conducting an Effective Interview
    12/17/2004
    Conducting an effective interview could be the most important step you take when it comes to picking the best applicant. In order to make an informed decision about a candidate's qualifications for a job, it is important to gather as much information as possible during an interview. However, you want to make sure that you do not ask inappropriate questions that could be the basis for an employment discrimination complaint.
  • Is Your Business Prepared for New Consumer Protection Requirements?
    11/19/2004
    Does your business print credit or debit card receipts for your customers? Starting in January, a federal consumer protection law changes the way you do business.
  • Federal Labor and Employment Laws – A Summary of the Basics
    10/15/2004
    There is a wide range of federal labor and employment laws that might affect your business and your relationship with your employees. Below is a brief summary of the most significant federal labor and employment laws for which employers are most frequently named in lawsuits.
  • E-Signatures: Are They Worth the Paper They’re Printed on?
    09/09/2004
    Traditionally, contracts have required the signatures of all parties involved to be enforceable. The unique and individual signature of a person traditionally has been the means to verify receipt of an item or to acknowledge the understanding of and agreement to terms within a contract.
  • Sexual Harassment: No More "Boys Will Be Boys"
    08/31/2004
    Sexual harassment in employment is a major issue these days. Sexual harassment, legally a form of sex discrimination, remains one of the two most frequently charged forms of discrimination for the majority of employers (the other is age discrimination).
  • Most Common Small-Business Legal Stumbling Blocks
    08/13/2004
    Many small-business owners are reluctant to establish ongoing relations with an attorney because of the costs involved. It’s true that attorney fees can be steep, but there are times working with an attorney is necessary, such as creating important contracts or being involved in legal proceedings that could result in significant financial loss.
  • Beware of Contracts Calling for Binding Arbitration
    07/30/2004
    Recently, two business partners refurbished a small office building they purchased in northwest Florida. They bid the job in sections: hardwood flooring, electrical,plumbing, etc.
  • How to Make Your Contracts Understandable and Legally Enforceable
    07/23/2004
    A small-business owner entering into important contracts should consult with an attorney. The varied, and often subtle, legal ramifications of contracts can be confusing, even to experts. But a general understanding of contracts -- of what makes them legally enforceable -- can benefit every small-business owner.
  • How to Survive a Deposition
    01/16/2004
    In these litigious times it's becoming more and more common for proprietors, managers and other agents of an employer to become involved in legal actions.
  • A Will Could Keep Your Business Growing Even After Your Death
    12/03/2003
    All small business owners should be thinking about protecting the futures of their businesses, long before death appears imminent.
  • For Free Legal Advice, Turn to the Web
    07/30/2003
    To assist you when sorting through your own legal matters, the Internet offers a wealth of legal guidance, from free advice to access to legal encyclopedias.
  • A Business Succession Plan Can Go a Long Way
    06/11/2003
    A business succession plan is a comprehensive look at the estate planning picture that can include everything from shareholder buy-sell agreements to management plans.
  • Internet Scams Can Cost You Money, Not Make It
    04/15/2002
    Today's Workshop discusses common Internet scams to watch out for.
  • Too Small to Sue?
    04/11/2002
    Any size company can be sued for discrimination.
  • It Sounds Too Good To Be True!
    03/28/2002
    Today's Workshop reviews 10 scams from the Federal Trade Commission's list of scams that proliferate via bulk e-mail.