How to Keep Your Nonprofit in Good Standing with New York State

On August 20, 2024, a Federal Court in Texas struck down the FTC's nationwide ban on non-compete agreements that was set to take effect on September 4. The Court's ruling applies to all employers across the country. While it is possible that the FTC may appeal the ruling, it faces significant challenges in doing so, leaving the future of the ban in question. What Should Employers Do Now? • Employers who have existing non-compete agreements no longer need to scramble to amend their contracts or notify employees of the change. • However, New York was already considering a state-wide ban of non-compete agreements and may revisit the issue now that the federal ban has been struck down. • Employers should therefore be very careful when using non-compete agreements to make sure they are very narrowly tailored to follow existing New York requirements. • Alternative strategies, such as non-solicitation, confidentiality and ""work for hire"" clauses can still help employers protect their interests without the need to worry about a new ban to non-compete clauses. Please feel free to contact me with any questions you have.

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 Non-compete agreements will be banned nationwide starting September 4, 2024 unless there is a successful legal challenge to the recent FTC rule before then. There are steps employers must take before the rule goes into effect, and several recommended options they may wish to consider. The rule will ban almost all non-compete agreements across the country, including causing existing non-compete clauses to be void, with exceptions only made for certain company executives who reach set salary thresholds. This creates two key issues that will impact almost all employers: • Employers who have existing non-compete agreements will need to analyze if those agreements will be impacted by the rule and, if so, provide notice to these employees that the non-compete will no longer be valid; and • Employers will need to evaluate alternative options to protect their business interests. Steps You Can Take Now • Evaluation: Evaluate any existing non-compete agreements you have to determine if they will be affected by the rule on September 4, 2024. • Notice: For any agreement that will be affected, prepare written notice to the employees informing them that the non-compete agreement will no longer be effective on September 4, 2024. • Commence Legal Action: If you are aware of any employees who violated an existing non-compete, you should consider bringing a legal action before the new rule goes into effect. • Negotiate: Negotiate with any employees who would qualify as ""executives"" exempt from the FTC rule to add or update non-compete agreements before the rule goes into effect. • Alternatives: Discuss alternative ways to protect your legal interests. Some options may include: • Non-Solicitation: This prevents employees from targeting your other employees or your clients if they leave. • Confidentiality: This limits the employee's ability to use confidential information of the business. • ""Work for Hire"" Language: You can make sure that any work product created by your employees as part of their job belong to your company and not to the employee. It is important to understand your options and obligations before the FTC Rule begins. This is a complex area of law so feel free to contact us with any questions or concerns you may have. An experienced business attorney can help give you peace of mind.

In recent years, the rise of ADA (Americans with Disabilities Act) troll lawsuits has become a significant concern for businesses. These lawsuits are often used by opportunistic individuals or entities to exploit the ADA for financial gain, threatening lawsuits against businesses for alleged non-compliance with accessibility standards. As a business lawyer, I aim to shed light on this issue, provide guidance on how to protect your business, and explain how legal assistance can help if you find yourself facing an ADA lawsuit or threat. What Are ADA Troll Lawsuits? ADA troll websites are often started by individuals or organizations that systematically search for websites and physical locations that are not fully compliant with ADA accessibility standards. They then send demand letters or file lawsuits against businesses, seeking settlements or damages. While the ADA's goal is to ensure accessibility for people with disabilities, these trolls exploit the law for monetary gain rather than advocating for genuine accessibility improvements. Protecting Your Business from ADA Trolls • Proactive Compliance: • Website Accessibility: Ensure your website meets the Web Content Accessibility Guidelines (WCAG) 2.1 standards. This includes making sure your site is navigable via keyboard, providing text alternatives for non-text content, and ensuring sufficient color contrast. • Physical Location: Regularly audit your physical premises to comply with ADA standards, such as providing accessible parking, entrances, restrooms, and customer service areas. • Regular Audits and Updates: • Conduct regular accessibility audits for both your website and physical location. Use tools and consultants specialized in ADA compliance to identify and fix potential issues. • Stay updated with the latest ADA guidelines and ensure your business adapts to any changes in the law. • Employee Training: • Train your employees on ADA requirements and the importance of accessibility. Empower them to assist customers with disabilities effectively. • Documentation: • Maintain thorough documentation of your compliance efforts. This includes audit reports, records of updates made to your website or premises, and training logs for your employees. Legal Recourse: How a Lawyer Can Help If your business is sued or threatened with a lawsuit by an ADA troll, seeking legal assistance is crucial. Here's how a lawyer can help: • Evaluate the Claim: • An experienced business lawyer can assess the validity of the claim against your business. They will determine whether the alleged violations have merit and if the lawsuit is being used as an exploitative tactic. • Responding to Demand Letters: • If you receive a demand letter, a lawyer can help draft a response that addresses the allegations while protecting your business interests. They can negotiate on your behalf to reach a resolution that avoids costly litigation. • Defending Against Lawsuits: • Should a lawsuit be filed, your lawyer will develop a robust defense strategy. This may involve challenging the plaintiff’s standing to sue, proving your compliance with ADA standards, or highlighting any frivolous or malicious intent behind the lawsuit. • Settlement Negotiations: • In cases where settling is the best option, your lawyer can negotiate a fair settlement that minimizes financial impact and includes terms to prevent future litigation from the same plaintiff. • Preventive Legal Advice: • Beyond immediate defense, a business lawyer can provide ongoing legal advice to help you maintain ADA compliance and reduce the risk of future lawsuits. This includes advising on best practices, conducting regular compliance reviews, and keeping your business informed about legal developments. Conclusion ADA troll websites pose a unique threat to businesses, exploiting well-intentioned laws for profit. By proactively ensuring compliance, conducting regular audits, training employees, and maintaining thorough documentation, you can protect your business from such threats. However, if you do find yourself facing a lawsuit or demand letter from an ADA troll, seeking legal assistance is crucial. A knowledgeable business lawyer can help you navigate the complexities of ADA compliance, defend against exploitative claims, and secure the best possible outcome for your business.

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" Are you considering buying a business? Congratulations on taking this exciting step ! However, buying a business requires careful planning, strategic decision-making, and thorough investigation. In this post, we will guide you through the essential steps involved in the business acquisition process, with a particular focus on the critical role of due diligence. Step 1: Perform Preliminary Assessment The preliminary assessment involves evaluating the initial information available about the target business. Review financial statements, market data, customer reviews, and any other relevant documentation. This step will help you narrow down your list and identify the most promising candidates for further consideration. Step 2: Conduct Comprehensive Due Diligence Due diligence is the cornerstone of any successful business acquisition. It involves a systematic and thorough investigation of the target business's financial, legal, operational, and commercial aspects. This process helps identify potential risks, opportunities, and hidden liabilities. Key areas to focus on during due diligence include: a) Financial Analysis: Review financial statements, tax records, and cash flow projections to assess the target business's financial health and profitability. b) Legal Compliance: Scrutinize contracts, licenses, permits, and any pending litigation to identify legal risks and ensure compliance with laws and regulations. c) Operational Assessment: Evaluate the target business's operations, including supply chains, inventory management, technology systems, and key personnel, to understand its efficiency and scalability. d) Customer and Market Analysis: Analyze customer demographics, market trends, competitive landscape, and growth potential to determine the target business's market position and future prospects. e) Intellectual Property and Assets: Assess the target business's intellectual property rights, patents, trademarks, copyrights, and tangible assets to ensure their protection and value. Step 3: Structure the Deal and Negotiate Terms Once you have completed due diligence and gained a comprehensive understanding of the target business, it's time to structure the deal and negotiate the terms of the purchase. It is important to seek professional advice from a business lawyer to ensure that the transaction is structured in a way that maximizes your interests and minimizes risks. Step 4: Close on the Purchase After finalizing the deal terms, it's time to close. This involves drafting and signing the necessary legal documents, transferring ownership, and fulfilling any outstanding conditions. Thoroughly review the legal agreements with your lawyer to protect your rights and ensure a smooth transition. Conclusion: Navigating the process of buying a business can be complex, but by following these essential steps and placing due diligence at the forefront, you can make informed decisions and increase your chances of a successful purchase. Remember, seeking guidance from a knowledgeable business lawyer throughout the process is invaluable in safeguarding your interests. Embrace this exciting journey with confidence as you embark on the next chapter of your entrepreneurial adventure. Please note that this post is a general guide and not intended as legal advice. For specific legal matters related to your business acquisition, it is advisable to consult with a qualified business lawyer. 

New York recently enacted a number of new laws that affect employers operating in New York. Employers should be aware of new obligations they now face. Below is a brief summary of some of the new requirements: Minimum Wage: Rates increased to $16/hour in NYC, Westchester, Nassau and Suffolk and $15/hour elsewhere, with annual 50 cent increases thereafter through 2027. Overtime Exemptions: Minimum salary thresholds for administrative and executive exemptions were raised on January 1, 2024 and will continue to increase annually through 2026, following Department of Labor guidance. Freelance Protections: As of May 20, 2024, freelancers contracting for over $800 within 120 days are ensured written contracts, payment terms, retaliation protections and a private right of action for noncompliance. Human Rights Act: The statute of limitations for unlawful discriminatory claims was extended from 1 to 3 years effective February 15, 2024, aligning with NYC standards. Social Media Privacy: As of March 12, 2024, employers cannot demand access to personal online accounts of employees or prospective employees. Pay Transparency: Regulations on posting minimum and maximum pay ranges for most job opportunities took effect September 17, 2023. Businesses with four or more employees must list compensation ranges for job postings, promotions or transfers. Non-Compete Ban: Earlier this year, the FTC announced a rule that would ban non-compete agreements nationwide. The rule has not yet gone into effect and it may still be challenged, but employers should be aware of the possible implications. Employers should review policies and monitor developments closely to ensure ongoing compliance. With new bills anticipated, the legal landscape in New York continues to rapidly evolve.

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On April 23, 2024, the FTC announced a rule that would ban non-compete agreements nationwide. The rule, which is scheduled to go into effect 120 days after being published in the Federal Register, would also make existing non-competes unenforceable. There is an exception for senior executives with existing non-competes, which may remain enforceable. The FTC largely views this rule as a big win for employees and expects it to result in a large increase in patents filed, business formation and employee earnings. Employers who relied on non-compete agreements may need to consider alternatives, such as non-disclosure agreements (NDAs). The FTC also encourages employers to compete on the merits by improving wages and working conditions. New York recently considered legislation to ban non-compete agreements within the State. The bill was ultimately vetoed to reconsider income limits associated with the ban. However, it was likely that the State would impose some sort of ban on non-competes in the near future. There is a possibility that the FTC rule will face legal challenges that may delay or stop it from coming into effect. However, employees and employers should plan for the possibility that non-compete agreements, including those already in effect, may be unenforceable later this year.