California Enacts Stronger Laws to Prevent Fraudulent Solicitations*
Two New Subtypes of Corporations in California*
As of January 1, 2012, there are two new subtypes of stock corporations in California — a “flexible purpose corporation” and a “benefit corporation.” The new corporation subtypes allow entrepreneurs and investors to organize stock corporations that can pursue both economic and social objectives. The new stock corporation subtypes differ from traditional for profit corporations that are organized to pursue profit and nonprofit corporations that must be used solely to promote social benefits.
For more information, please click here.
California Begins Taxing the Internet
Governor Jerry Brown recently signed a California bill into law that imposes the collection of taxes from consumers on sales by online retailers. The law is designed as a run around the 1992 Supreme Court decision that ruled states cannot tax businesses that are not physically within their boundaries.This new statute would establish presence in California in two ways: either by sellers having an actual presence or related company operating in the state, or if they pay commissions to other internet sites operating in California who refer buyers. Amazon, Inc. acted quickly to alert the around 25,000 affiliate websites that it does business with in California that it would be terminating the relationships.
The California Board of Equalization says the tax will raise around $300 million a year for the cash-strapped state, but critics claim it will raise nothing because large internet retailers will simply stop doing business with the affiliate programs based in the state rather than pay the tax. Besides Amazon, Overstock.com has also told affiliates they should move to another state if they wanted to continue earning commissions.
A similar bill was passed by the California legislature last year but was vetoed by Governor Schwarzenegger when it became apparent that online retailers would simply stop doing business in the state, like they are now. Despite the online opposition, the tax is firmly supported by many retailers with brick and mortar locations, such as Walmart, Best Buy, and Barnes & Noble, who will be unaffected by the change. The president of the California Retailers Association, a major supporter of the bill, said, “You can’t give one segment of retail a 10% discount every day. It’s just not fair.”
California joins six other states, including North Carolina, that have enacted similar statutes. Lawsuits by Amazon are pending in Illinois and New York to determine the constitutionality of such laws.
For more Tax Law updates, please visit our website.
(c) Picture: renjith krishnan - freedigitalphotos.net
Employee Afraid to Ask for California Overtime
A bookkeeper and office manager for a real estate company in California with about 30 real estate agents—she was busy. She was also paid hourly by the agency which results in one conclusion: she was not qualified as exempt.
"Her boss always worked her overtime and never paid her for it" explains her husband... and then she was fired.
While this is a real case it leads to a few questions:
1. How do you document overtime at your company?
2. Do you calculate and pay according to the law?
3. Do you plan to fire anybody who may have worked overtime?
Many more questions, but most of all... it makes sense to follow the law. Not just regarding overtime.
Please call or email if you have any questions to the applicable Labor Law, the FLSA.
Reinhard von Hennigs
bdhlaw.net
Picture (C): winnond, http://www.freedigitalphotos.net/images/view_photog.php?photogid=1970
Wal-Mart Settles Wage and Hour Class Action for $86 Million
OAKLAND, Calif., Nov. 9, 2010 -- The United States District Court for the Northern District of California, Judge Saundra B. Armstrong, has granted final approval to the settlement of a wage and hour class action suit against Wal-Mart in California.
The settlement, which provides for a payment of between $43 million and $86 million (including claims, costs, and attorneys' fees), concludes more than four years of litigation concerning the payment of wages to California associates. In addition, as part of the settlement, Wal-Mart has agreed to continue to maintain electronic systems that will protect the rights of workers.
For more information, please click here.
Subscribe to:
Posts (Atom)