Tips for Small Business Owners: the FMLA

The FMLA is also known as the Family and Medical Leave Act. The act mandates that certain eligible employees are entitled to take job-protected (though unpaid) extended leave for family and medical reasons. It is important for small business owners to be aware of the nuances of the FMLA so that your business does not get held in violation.

Those considered covered employers under the FMLA are the following:

-private employers with 40 or more employees, including a joint employer or successor in interest to a covered employer
-public agenciest
-public or private schools

Those considered eligible employees under the FMLA must fulfill the following requirements:

-those that work for covered employers
-has worked for a covered employer for at least a year
-has worked at least 1,250 hours of service for the employer during those 12 months before leave
-works at a location where the employer has at least 50 employees within 75 miles

Eligible employees are entitled to take up to 12 weeks of job protected leave each year if they or an immediate family member falls ill. Employees can also use the FMLA to take leave in cases of pregnancy or adoption. The leave can also be taken in whichever manner best accommodates the employee, whether that be a continuous 12 week absence, a reduced work schedule, or simply a few hours a week off for medical appointmemts.

As a business owner, it is important to be aware whether or not you are a covered employer and to fully follow FMLA guidelines if you are. If your business is not in compliance with the FMLA, the business will be at a significant risk for lawsuits. Covered employers must (1) post a notice explaining employees' rights and responsibilities under the FMLA, (2) include information about the FMLA in their employee handbook and inform employees of it upon getting hired, (3) if an employee requests leave, provide him or her with a notice concerning his or her eligibility for FMLA leave, and (4) notify employees whether leave is designated as FMLA leave and the amount of leave that will be deducted from the employee's FMLA entitlement. Additionally, when an employee returns from FMLA leave, he or she must be restored to his or her previous job or an equivilant one. Not adhering to these guidelines could result in serious consequences for your business, including monetary fines.

If you need assistance with a FMLA related legal matter, feel free to call my office at 718-317-5007.

The Affordable Care Act Helps Your Small Business!

Recently, the Obama administration was able to pass the Affordable Care Act. The ACA is an extensive bill that will have a lot of positive effects on small business.
Here are some ways that the ACA will help you improve your small business:

1. Everyone knows that insurance can be incredibly expensive. Part of the aim of the ACA was the make healthcare more accessible to all types of people. Starting in 2013, a new program called SHOP (the Small Business Health Insurance Options Profram) will open Marketplaces where businesses can "shop" around for affordable health care programs. According to the U.S. Small Business Adminstration, small business pay on average 18% more than large businesses for health care. This gap should decrease by allowing businesses a place where they can compare and negotiate insurance prices.

2. The ACA also increases the available tax credit designed to help businesses with their health care expenses to up to 50% for those who participate in the Marketplace. Before the ACA, these businesses could only receive 35% in tax credits.

3. The ACA also created programs to improve the quality of care in the workplace. Under the act, workplaces receive increased rewards for instituting programs to help employees quit smoking or use a health-contingent plan.

4. With the ACA greatly increasing the number of people who have health insurance, small business on a whole will benefit by having healthier employees. Research shows that healthier employees are on average more productive employees. They take less time off from work and accomplish more when they are actually at work. Therefore, the ACA could provide a boost to the productivity of small businesses.

If you are a business owner and you have questions about how the ACA will impact your business, feel free to call my office at 718-313-7563.

Starting a Business? Here's Some Tips That Will Help

If you are contemplating starting a small business in New York, you are not alone. According to NYS, 98% of all businesses in New York are small businesses, and together these businesses employ more than half than the private sector workforce. Starting your very own business is very different than buying a business, which we discussed here. Unlike buying a business, when you start your own business you are in total control from the very beginning. You get to select everything, from the business name, to the location, to its employees. One of the advantages of starting your own business is that, according to NYS Department of Taxation and Finance, it is one of the least expensive ways of starting a business. One of the major disadvantages, on the other hand, is that by starting from scratch you must build your clientele and reputation from the ground up. Before you make any major decisions, you should carefully consider all your options and evaluate your financial situation. If possible, you may want to consult with other small business owners in your area so you have a first hand account of what a similar business should expect.

If you have decided on beginning your own business, congratulations! Here are few steps you should take before you open the doors:

• Decide what legal organization your business will be. The most common forms are the sole proprietorship, the partnership, the corporation and the LLC. You can find a “Pros and Cons” list of these organizations here.

• Sketch out a business plan outlining your product ideas and market strategy. Your business plan should include a description of your products and/or services, a list of your business goals and a timeframe in which you expect to achieve them, such as “Sell X amount of product in Y amount of time”, your plans for targeting your customer base and current trends in the market, and your financial situation, such as cash flow and profit and cost projections.

• Begin the employment process. First, you will need to obtain two vital types of insurance: unemployment and worker’s compensation insurance. These can be found either on your own through a private company or through NYS. You will also need to set up your payroll. It is recommended have payroll set up at least a week before you hire your first employee.

• Get an employee handbook. While not necessary, most new business owners find having a professional and comprehensive employee handbook makes managing people a lot easier. The handbook should explain company policy and include things such as vacation time, holidays, cellphone and/or computer usage, and behavioral guidelines.

I hope these tips help you out as you start your new and exciting foray into small business. If you have any questions or need assistance with beginning your business, don't hesitate to call the office at 718-317-5007. Remember, when in doubt, it's always better to contact a legal professional!

Important Things You Should Know Before Buying a Business

Buying a pre-existing business is a hectic yet extremely exciting time for potential buyers. After all, there are so many things potential owners must do: narrow down locations, scope out the storefront, and examine the market, among others. And that's before you get to the paperwork! Luckily, there are some tips out there that can make the process much less stressful.

One important thing to remember is that buying a business is a big decision. It helps to do all your research before you actually begin talking to brokers and owners/sellers. Having all of your information prepared and organized beforehand not only ensures that you are informed, but that potential sellers will take you more seriously. One of most important documents you should prepare is an "Acquisition Criteria" sheet outlining your expectations for your new business.