Have a small business? YES.  Family depending on you? YES.  Employees and customers depending on you? YES. 

Have a plan for what would happen if were disabled or if you died unexpectedly?  NO.

Uh-oh! What's wrong with this picture?  Plenty, but unfortunately it's a common scenario.  So many small business owners are so busy trying to keep their heads above water that they feel they have no time to plan ahead for the unexpected.  

In this post, I'll tell you a few things you can do to alleviate the risk of what would happen if something bad should happen to you.  Some of these things require an attorney or an accountant or friend, and some require only a small investment of time.

1. Have someone who can "step in".   Whether it is a partner, co-worker, employee, friend, or your cousin from Des Moines, have someone you can trust to step in, open the doors, answer the phones, keep payroll going and field questions if something should happen to you. In order for this person to do his or her job effectively, you are going to have to have some tools ready. (more about that below).

2. Have a document that grants someone a Power of Attorney if you become disabled.   You can sign a power of attorney document that allows someone to step in for you if you are disabled (temporarily or permanently).  This person can call the cable company, visit the bank, sign payroll, and do any specific and urgent things that are needed to keep the business running.

3. Have a document or documents that transfers your interest in the business upon your death.  A will, trust, partnership agreement or corporate documents are some of the different types of formal documents that can transfer a business interest to beneficiaries or allow a partner or co-owner to "buy out" your share.  This can benefit both your family and the business. The type(s) of documents necessary will depend on type of organization you have (sole proprietorship, partnership, corporation, ect.)

4. Have your books/taxes in order and make sure someone knows how to get to them. Include your account or bookkeeper's name and phone number in this financial information which you will give to your trusted "stand-in" or put in a place where it will be sure to be accessible.

5. Have an "procedure manual" for your business.   This can be anything from a file on your computer (also back it up somewhere else, please!) to a paper file in a drawer to an actual "hard copy" looseleaf manual of several pages.  Here is some of the information that should be included:

 a. Banking: location and account numbers
 b. Landlord/rent or mortgage information
 c. Passwords and access codes for accounts, premises, and workstations
 d. Name and phone numbers of attorney, accountant, bookkeeper,insurance agent
 e. How and when to do payroll
 f. Supplier information and how and when to pay important ongoing bills
 g. Information about computer programs and updates and IT person (the "system" always goes "down" at the worst possible time!)
 h. Information about any licensing and permits that are required to keep your business going and when and how they need to be renewed (state board licenses, county alarm permit, inspection certificates and any other regulatory information).
 i. A company "calendar" with deadlines of what needs to be done when (yearly renewals on all business-related accounts and items).
 j. A summary of important office procedures and policies

DON'T BE DISCOURAGED!  Even if this sounds like a huge task, you can take it one step at a time! For instance, start by making a random list of everything that you think someone would need to know if they had to take your place TOMORROW.  Just type out anything that comes to mind.   The next step will be to fill in more details, or start pulling information together into an expandable file. You can work a this a little at a time and soon you will have a framework that is customized to your situation.   If you do not already have properly executed documents that are referred to in item 3, above, then you should schedule a consult with a business attorney as soon as possible.

NOW MAKE SURE THAT THE SOMEONE WILL KNOW HOW TO FIND ALL THIS INFORMATION IF NECESSARY!! 

Once you have taken these steps, you will feel better knowing that you have done  your best for your family, employees and the ongoing operation of the business that you worked so hard to build!

Kalish Law Office: Business Attorneys since 1984.  "Passionate, Professional and Personal"  The Woodlands, Texas

Social media provides an opportunity to “get to know someone” without meeting them face to face.  It can be a valuable tool for recruiters, employers, and hiring managers. 

Social media can tell you something about a person’s level of professionalism, and… maturity.   (or immaturity). 

However, not everything that you find belongs in the personnel file.   Just because you see it, doesn’t mean that you need to print it and save it.  In fact, doing so could create some problems for you later on.

You need to be especially careful about keeping information that deals with your employee’s race, religion and ethnicity.  This information could later appear to be kept by you for discriminatory purposes or it could appear that you have used this information to reject the person for a position in your company.   Also any information about a person’s health or possible disabilities could make it appear that you “should have known” about a particular condition, even if they didn’t see fit to share it with you.  

Don’t keep any revealing photos or suggestive comments, even if just an incidental finding on a larger page that you wanted to keep for other reasons.  This could come back to haunt you for obvious reasons.

Anyone who posts information publicly does take the risk that his employers or potential employers will see it.  However, employers need use good judgment in how the information is used in making decisions.

Kalish Law Texas

Business Attorneys since 1984. The Woodlands, Texas

281-363-3700

If you are a business owner and have never had to deal with a TWC (Texas Workforce Commission) telephone hearing before, the very idea may make your heart beat faster and your hands turn clammy.

The good news is that just a little preparation can go a very long way towards calming your nerves and helping the hearing officer to make his/her decision.

Although the hearings are somewhat formal, they are not quite as formal as a courtroom.   Some similaries are these: anyone testifying will be placed under oath, documents must be "admitted as evidence", the hearing officer has authority and deserves respect and attention, and the hearing proceeds in an orderly fashion with testimony in the basic question and answer form.

Here are some steps to help you get ready:

1. Make sure you are clear on the date and time; and that you call the appropriate number within the proper time-  be ready to give your callback number and the name and callback number of any of your witnesses

2. Check out your telephone equipment/speakerphone in advance to be sure it is working properly

3. If you need a translator, or speakerphone equipment let TWC know in advance (check your hearing notice and also the TWC website, under "preparing for a telephone hearing")

4. Make sure you have submitted all the important documents that you want to rely on in advance (they must be given to TWC with a copy sent to the opposing party).

5. If you need something subpoenaed from the other party, notify TWC (using the process detailed in the hearing information/ website) several days in advance

6. Have any witnesses ready at the proper time, either in the room with you, or waiting by a phone

7. Have notes ready of the points you want to make, and the questions you want to ask of the other party and all witnesses (your own as well as the opposing's)

8.  Make sure you have looked at the "issues" in your case.   That is what you should concentrate on. You can bring up other information to make a point, but don't neglect the main issue(s)

9. Stay calm and answer only the question asked. If you can't hear, or don't understand, say so.

10. Don't forget to bring the "basic information" (how long has your employee worked for you?  Job description? What were his/her hours and pay at the beginning of employment and when last working for you?)

11. Be polite and respectful to everyone involved, even if emotions run high.

12. Review the information on the TWC website about preparing for a hearing. There is even a sample audio hearing.

You may choose to represent yourself or have an attorney represent you.  If you decide to represent yourself, you may want to consult with an attorney prior to the hearing to help you understand Texas or Federal employment laws, prepare your strategy, and organize your documents and facts.

Kalish Law Office: The Woodlands, Texas. Business Attorneys "Passionate, Professional and Personal. We Make the Difference. Since 1984."

Employers: be sure that you are keeping up-to-date with your state and federal posting requirements.  The required postings should be in a conspicous place, where employees can easily see and read them, alongside the other notices of employment.

Most private sector employees are covered by the requirement to post this NLRB (National Labor Relations Board) notice. 

It is available in two sizes, in English and several other languages, for free on the NLRB site.

Click here. 

If you are trying to stay out of trouble at work, it is always a good idea to pay attention to the people around you as well as the workspace around you. Many people are very cautious when it comes to physical safety, but don’t think about the other problems that can be caused by the “company they keep.”    

Even if your behavior is good, you can be drawn into a situation where you look guilty by association.

If you are the business owner, that goes double for you. You are “captain of the ship” and a good captain doesn’t turn away from danger onboard.   One who does so will soon have to deal with low morale, and maybe even a sinking ship!  

Here are some red flags that should warn a business owner to take action. (or a co-worker to make a report, speak up, or get away!)

1.       Sexually explicit, inappropriate or unwelcome comments, pictures, or jokes

2.       Jokes, comments or pictures that are racist or derogatory towards a particular ethnic group, race, religion, sex, or sexual orientation (these do not belong in company emails or on company computers either)

3.       Bullying in any form (yes, adults can be bullied too)

4.       Inappropriate comments or behavior towards someone who is disabled, or who has a particular medical or health condition

5.       Disregarding client/patient confidentiality (including talking too loudly in public- even on a cell phone, and posting client/patient business online).

6.       Discussing company policy, plans, or day-to-day activities with outsiders, including online

7.       Gossiping

8.       Unconstructive complaining and bringing down the morale of the team, office, or company

Co-workers should ask that the behavior stop, get away, and/or report the behavior to the appropriate supervisor.  Business owners must take swift action, either taking aside the perpetrator(s) and having a private conversation, or addressing the problem in team meetings, as appropriate.

The more serious the behavior, the more serious the steps that must be taken.   Business owners should remember to document employment files when appropriate, address the team/employees together, if warranted, and be sure that the company policy is understood by all.   Employees who refuse to comply but are “doing a good job otherwise” are nonetheless exposing the business owner and the company to loss of morale, loss of business and community support, and legal liability.

“I’ve made a lot of mistakes. I’ve bonded with some people who use you, and some people that take advantage of you.” – Larry King

Unfortunately, there are people who do take advantage of others, and who know how to work the system.  It can be a shock, especially in a small business, to discover that the employees or co-workers that you thought of as “family” have shown that they are only out for number 1.

The state unemployment system exists for a reason, and should be used for that reason. If you are a small business owner who has treated your workers shabbily so that they would quit, or discriminated or retaliated against your workers, this post definitely isn’t for you.   If you have laid off workers, or caused them to be unemployed through no fault of their own, this post probably isn’t for you, either (because in these situations it is acceptable and legal for the worker to file for unemployment compensation).

But if you are an employer who had someone quit, only to be shocked when the former employee filed a false claim for unemployment, or has had an employee purposely refuse to work in hopes that you will fire him/her, read on.

In order to receive unemployment compensation, certain criteria must be met. The first has to do with how many “qualifying quarters” of work that the worker has to his/her credit prior to the event of unemployment.   The second has to do with being unemployed “through no fault of his/her own”.

Unemployment claims are up, due to the economy. People feel desperate and may be willing to do or say things that they wouldn’t ordinarily.

If someone is truly entitled to unemployment compensation then there is no reason to fight it.  If a case is in the “gray area”, you may want to contest it and get all the facts out on the table, which will allow the professionals at the Texas Workforce Commission to make a determination.  HOWEVER, if you know that a claim is false, you should contest it. 

In my experience, the most common bad faith claims are 1) the employee quits, then says s/he was fired or was forced to quit, or “didn’t mean it”; and 2) the employee does a terrible job because s/he really wants to be fired so s/he can collect benefits.

The most common reasons that employers seem to be willing to “just let it go” are these:  1) feeling sorry for the former employee;  2) not understanding the system and how to dispute the claim; or 3) feeling that it will take too much time away from the business.

Here are the reasons why you, as an employer, should dispute any claims made in bad faith:  1) if the claim results in a “chargeback”, you will have to pay some money back to the state, out of your pocket; 2) your unemployment tax rate may rise; 3) the TWC has made the process much easier, explaining it on the forms you receive, on the website, and there is even an 800 number that employers can call for help; 4) people should not be encouraged to “work the system” at the expense of others  5) this could set a precedent with existing or future employees and 6) allowing someone to take advantage of you (even out of sympathy) is not a good choice and one that you are certain to regret later.

Here is more information from the Texas Workforce Commission for Texas Employers.  You can also seek the help of a business attorney who can guide you through the process, if your case warrants it.

Kalish Law Office has been representing businesses since 1984. The Woodlands, Texas.

Here's a simple step that can pay big benefits for your business.  Keep up with the severe weather conditions in your area by signing up for phone or text alerts.  Knowing what's going on can help you plan your day, lookout for the safety of your employees and customers, and avoid property damages at your business and home.

There are a variety of ways to sign up for these weather alerts through the Weather channel or local stations.   In Montgomery County, Texas, there is an emergency notification system called "Code Red". You can view the site here: Code Red; Montgomery County, Texas.

Kalish Law Office: The Woodlands, Texas Business Attorneys

CHECKLIST FOR BASIC COMPLIANCE ISSUES IN A SMALL BUSINESS*

Continuing on with our discussion about business set-up, it is now time to review other issues and calendar them on your master administrative calendar. (you should keep both a “paper” and a digital version of the calendar).

Check off each item as you complete it or write “N/A” next to it:

1.    I have employees, and I have given Texas Workforce Commission (TWC).my current information. I have an account with TWC and I keep good records of my employees’ hours and pay.  ______

2.    All of my employees have filled out current I-9 forms, and I know where they are located.  ______

3.    I will respond promptly to any inquiries from the IRS or TWC, or any filings by current or former employees for unemployment claims or EEOC issues and I have designated someone in my office to be responsible for following up on these.  ________

4.    I have a business building, and I have an alarm installed. If required, I have gotten an alarm permit from the county authorities so that I won’t be fined later.___________

5.    I have business personal property (items and equipment used in my trade) and I know when my yearly county property tax rendition will be due and I have placed that date on my administrative calendar.   _________

6.    I take credit cards in my business, and I have completed the yearly online certification and will therefore I avoid additional monthly fees for non-compliance. I  review my statements every month to be sure that I am aware of any new charges to my business or any changes in policy and I call the credit card company promptly if I do not understand something I read. _________

7.    I have a procedure for shredding any documents that have personal information on them, (such as address, social security numbers, health information, background checks, passport information, address and phone numbers, bank account or credit card numbers and the like) whether the information pertains to me or my customers.  __________

8.    I am careful not to release any personal information about my employees, or potential employees to unauthorized parties and I keep their personal information safe from prying eyes. ______

9.    I provide health care services, and I am aware of and I follow all applicable HIPPA regulations, and make sure that my office staff does as well. __________

10. I am informed about online and network security. I have a good virus program and firewall in place and have a trusted IT person to help me maintain that (or am an expert at doing this myself) ___________

11.  I have calendared a “yearly review” of my business practices and documents that is separate from my bookkeeping and tax preparation. (tax time may be the most convenient time to perform the review).

12. I have a business attorney who can help me if I get sued, or have questions about business issues and  can help me create and update my corporate books, draft and review contracts, leases and real estate documents, help with  employment disputes and audits, and help me create a risk management program for my business.  ___________

*This blog pertains to law of the State of Texas.

Kalish Law Office: The Woodlands, Texas. Serving Businesses and Families since 1984. 281-363-3700

Once you form a new company, you will need to be sure that you start it out in the best possible way, with good organization, procedures and understanding.  This will save you lots of time later on.

 This blog will explain how to get an employer identification number (EIN) from the IRS and help you decide whether you need to file for an assumed name.

FOR AN Employer Identification Number (EIN): For the most current instructions, go to www.irs.gov and type in “apply for EIN” in the search box.  You should not delegate this task. An authorized owner, officer, director or manager of the company must do this.  Although in some limited circumstances you may have someone act on your behalf, the IRS discourages this and it can lead to problems and delays.  It is best for you to do this yourself.

 ABOUT ASSUMED NAMES (“dba” or “doing business as”) You may want to apply for an assumed name in the counties where you are doing business.  If you have already filed as a business entity in Austin (such as a corporation, LLP,  LLC, PC or partnership). this is not an absolute requirement.  However, you may want to do so because it does put local people and companies on notice that this business name is “taken” and acts as a deterrent to someone setting up a business in that county with the same or similar name.  Also, if you run your business under a “local name” that differs from the formal name, your bank will require this step. 

In order to register an assumed name (also called a “D.B.A.”), you will need to register with the county clerk(s) in your area.  For instance, many business owners in our area register with both Montgomery and Harris counties.   You can search the appropriate county clerk office on the internet. 

“A stitch in time saves nine” is an old saying that definitely applies in today’s business world!  

Next time.... A checklist

Kalish Law Office is located in The Woodlands, Texas between Conroe and Houston. We have been helping businesses and families for many years.  In 2012 we will celebrate our 28^th anniversary!  www.kalishlawtexas.com  281-363-3700

Operating a small business is challenging in the best of times.  You will be amazed at the way that having a few "tips and tricks" will help you save LOTS of time. 

And.. because business blogs and writings can tend to be... boring, we'll try to make it more entertaining by using old sayings, songs and movies as a guide... ready, set, GO... enjoy our posts!  

Check out our main website business info pages!