Business Law Articles

Company gets sued for mentioning a celebrity in its advertising

The Duluth Trading Company was looking for a way to promote its men’s Henley-style collarless polo shirts. It thought of Don Henley, the lead singer of the Eagles, whose first big hit in 1974 was called “Take It Easy.” So it created an ad that said, “Don a Henley and take it easy.” Result: The company got sued – by Don Henley.

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What businesses need to know about commercial leasing

Companies that are leasing their own space for the first time are often surprised by the terms of a commercial lease – and even companies that have leased space before sometimes overlook important points where they might be able to negotiate matters to their advantage. Here’s a quick guide to what to look for:

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New rules make it easier for unions to organize workers

The National Labor Relations Board has adopted new, “streamlined” rules for union elections that create additional requirements for businesses and could dramatically shorten the time between when a union files a notice and when a vote is held. Union elections could now be held as little as 13 days after a union files a petition. This means companies will have to scramble to meet very short deadlines, and may have little or no time to respond

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Poor expense records cost business owner $27,000

Owners of smaller businesses can sometimes be careless about keeping records of business expenses for tax purposes. The good news is that there’s no one right way to keep these records. According to the IRS, you can use any method of tracking expenses you like if it works for you and your business. However, whatever method you use, you still have to be able to substantiate the time, place, amount, and business purpose of each expense,

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How to keep out competitors if you lease retail space

Most stores that lease space in a mall or other commercial area would like a guarantee that the landlord won’t also rent to a competing business. This guarantee is known as “exclusive use,” and you can negotiate for it in a lease. If you’re negotiating a right to exclusive use, here are some things to consider: What’s the use? You’ll want to specifically define your “use,” and what kinds of other businesses are allowed. For instance,

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Are your LinkedIn contacts a trade secret?

If salespeople connect with their business contacts on LinkedIn or another social media site, can they take that information with them when they leave the company? Maybe not, according to a federal court in California. David Oakes worked for six years as a salesman for a cell phone accessories company. He had signed an agreement saying that he wouldn’t disclose any proprietary information, including the company’s customer base. When the company terminated him, he started a

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Government is suing businesses over wellness programs

The federal government has filed two lawsuits against companies that set up “wellness programs” for their employees. According to the government, wellness programs are perfectly fine if they’re voluntary – but these two companies’ programs weren’t really “voluntary” because workers were penalized if they didn’t participate. Many employers have started wellness programs recently as a way to reduce health insurance costs. The programs are now used by about 94% of businesses with more than 200 workers.

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Company sued for copying ‘look’ of competitor’s website

If you’ve put a lot of time and money into designing a distinctive website or online store, and a competitor comes along and copies your site’s look, can you sue? Yes, according to a federal court in California. The “look and feel” of a website is protected by the trademark laws. Surprisingly, this is one of the first court rulings ever on this question. Of course, a website is different from a trademark. But a website

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Wage garnishments are skyrocketing – and they’re a minefield for businesses

More than 10 percent of employees between the ages of 35 and 44 had their wages garnished last year, according to a new study by payroll company ADP. That’s a staggering figure, and it creates a serious problem for employers, who are subject to complex state and federal laws about garnishment and can be sued if they do something wrong. For years, wage garnishment was generally limited to people who fell behind on child support payments

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Companies can’t prohibit workers from discussing their salaries

A company can’t prohibit its workers from disclosing and discussing their salaries, according to a federal appeals court in New Orleans. That’s because federal labor law says that employees always have a right to talk about the terms and conditions of their employment. And that’s true regardless of whether the employees belong to a union. The case involved a non-union trucking company in Fort Worth, Texas that made its workers sign a confidentiality agreement. The agreement

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