What Should Be Included in Your Employee Handbook?

Both large and small companies can benefit from providing their workers with employee handbooks. These texts help employers answer key questions and clearly document that the same standards and rules govern their interactions with everyone. After all, no one wants to work for an employer who grants special privileges or benefits to some workers and not to others.

Employee handbooks also let employers set forth all their behavioral standards and procedural rules in a manner that can help them limit future liabilities — should anyone ever try to sue them for wrongful termination or acting in a discriminatory manner.

Before reviewing some crucial sections that many businesses like to include in their employee manuals, here’s a quick look at some of the topics that most workers want to see addressed.

Employees often search for information about key standards and office procedures

  • Be sure to outline your behavioral standards, attendance rules, office attire and the level of respect required for all relationships. Most employees are eager to learn how you view tardiness and what you consider acceptable clothing. Likewise, new workers want to learn about your conduct standards — and if your office has a “zero tolerance” policy toward all forms of sexual harassment and discrimination;
  • Always provide clear information about pay grades, qualifications for receiving medical insurance, pay periods and all forms of employee benefits. Workers usually start to relax more once they’re told how often they’ll be paid and the exact size of their payroll deductions. Likewise, it’s important to tell employees when (and if) they may be considered qualified for healthcare insurance;
  • Always state how often employee evaluations are conducted and the best ways workers can try to position themselves for future raises and promotions;
  • Be sure to note any individual or family leave policy provisions that your company honors. Always have your Houston employment law attorney read over this information for you, to be sure it fully complies with all current federal, state and local laws; and
  • Describe your most crucial emergency and safety procedures. Always tell your workers how they should evacuate from the office during extreme weather events, fires and even possible shooting incidents. Each new worker should be shown the proper way to exit the building on their first day on the job – and be shown where fire extinguishers and first aid kits are kept.

While these are just a small sampling of the general topics most employees want to see covered, they should help remind you of many other important subjects that you should cover in your employee handbooks.

The following list is compromised of some of the most commonly used sections in employee handbooks.

Key headings or sections most employers include in their employee handbooks

  • A “Preface” section. You may want to provide a general history of the company here, along with information about the founding members of the business. You can also note who currently heads up various office branches. The company’s key values and goals for the future are also often stated here. If you like, you can also add a brief congratulations to each new employee for being hired;
  • Material explaining all basic pay arrangements, promotions and current employee benefits. You can describe any 401k or stock options in this section, as well as the various types of retirement benefits. Overtime pay policies should also be covered;
  • A section that describes “at-will” employment versus jobs offered under contract;
  • Standards for employee behavior. Be sure to address the need for regular attendance; rules governing personal cell phone use during the work day – and any restrictions on using work computers for private purposes. (Ask your attorney if you need to obtain written permission from all employees to monitor their computer usage);
  • Formal leave policies. In this section, you’ll need to list all paid office holidays, how employees should handle vacation and sick leave, personal days off, family medical leave and time off to honor current military service commitments;
  • Employee termination policies. Be sure to note that these can vary, depending on; if an employee is considered an “at-will” worker who can be dismissed rather informally or if the person was hired under a formal contract.
  • Confidentiality policies. Be sure to clearly state what information and trade secrets the company considers confidential and trade secret. Ideally, all employees would signed a confidentiality and non-disclosure agreement.

Should you wish to review a large number of sections that different employers have included in their employee handbooks, consider reading 53 Key Sections of an Employee Handbook (and Other Helpful Tips).”

The Texas Workforce Commission also has a number of policies and a form of Employee Handbook available for free at https://twc.texas.gov/news/efte/table_of_contents-az.html. However, choosing the right sections for any employee handbook often requires a keen understanding of employment law and many complex human resources issues.

Please feel free to contact one of our Murray Lobb attorneys for help in drafting your new or updated employee handbook. We can provide you with the proper legal terminology required to meet your company’s unique needs.

Q & A: Job Accomodations Often Requested by Disabled Workers

Like most Americans, people living with chronic disabilities know that their best physical and mental health is often easiest to maintain when they’re doing meaningful work. Yet despite their strong work ethic – many of the disabled must still combat negative stereotypes that often don’t match the excellent work they do.

Fortunately, the Americans with Disabilities Act of 1990 (ADA) made it illegal for employers to discriminate against job applicants with known disabilities. The ADA applies to all employers with 15 or more employees and to all state and local government employers. The Equal Employment Opportunity Commission (EEOC) enforces all the provisions of the ADA.

Once employers become aware of the untapped talents and skills of the disabled, they still hesitate to hire people because they’re concerned about the “reasonable accommodations” they may need to make to help disabled workers function at their full capacity. However, most of the time, the special requests made by the disabled are relatively simple to handle.

Here’s a brief look at some of the questions employers often ask about properly honoring all the ADA’s provisions in the workplace.

Frequently asked questions concerning the Americans with Disabilities Act

Q:  What exactly constitutes a “disability” under this law?

A:  A job applicant’s disability is normally covered by the ADA if it involves a mental or physical impairment that substantially interferes with (or limits) an individual’s ability to handle a major activity like work.

Q:  Can my company require a job applicant to undergo a medical exam before extending a job offer?

A:  Generally, no. However, you can make a job offer that’s conditional, based on a satisfactory result of a post-offer medical exam (or inquiry) that’s required of all new employees entering in the same job category. Under certain circumstances, always best discussed in advance with your Houston employment law attorney, you can ask an applicant who has disclosed that s/he has a disability to either demonstrate the ability to perform the job’s required tasks – or at least describe how s/he will handle them due to the disability.

Q:  What constitutes a “reasonable accommodation?”

A:   Employers sometimes need to adjust or modify certain aspects of the job application process and how a job is performed so that a disabled person can readily enjoy the same rights and privileges extended to others without disabilities.

Q:  Do we have to grant preference to a disabled applicant over someone who is not disabled?

A:  No. One of the clearest examples provided by one source refers to a job where the employees may need to type rather fast. If the disabled job applicant’s best typing score (after being provided with appropriate testing accommodations) is only 50 wpm and a non-disabled applicant can type 75 wpm, the employer is completely free to hire the faster typist. Again, this holds true if fast typing skills are crucial to the job;

Q:  Can you provide concrete examples of reasonable accommodations that employers might need to provide?

A:  Yes. A sample list follows.

  1. You may need to modify how someone takes a qualifying exam, completes a training program or handles limited aspects of the job once hired. For example, a person with limited use of his hands may require special software that lets him dictate most of his work instead of typing it;
  2. You may have to honor certain lifting limitations or a requirement that someone remain seated in a regular chair most of the day. Depending on the disabled person’s special needs, particularly if she’s suffering from a spinal cord injury, you may need to provide an ergonomically correct chair. Of course, employers can object to some requests, if they can prove that purchasing the required equipment would likely impose an undue hardship on them;
  3. It may be necessary to allow a disabled person to work from home. Some disabled people need to work in either extremely high- or low-light environments. Others may need to telecommute so they can readily take certain medications — or periodically change, adjust or empty various medical devices they must wear. Still other employees may need to lie down and periodically rest their bodies due to various spinal cord or traumatic brain injuries that make sitting upright for lengthy periods of time too compromising or painful.

Please note that regardless of whether the disabled employee works at home or in a company’s office, no employer is required to lower their standards for the quality of work being done – nor lower their overall production standards;

  1. It may help to change an employee’s work schedule. This can help the disabled person perform the required tasks at a time of day or night that may be much more conducive for doing his/her best work;
  2. You may need to make special scheduling adjustments to help an employee with a known psychiatric or mental health impairment. This might include excusing the person from working rotating shifts; allowing the individual to take extra time to rest during the lunch hour — and making sure the employee has a work schedule that allows for regular therapy appointments during the day;
  3. It may be necessary to provide a TTY (text telephone) system to a worker who has suffered a significant hearing loss that’s been formally recognized as a disability;
  4. You may need to authorize a short-term leave from the job. This type of disability request will always revolve around special circumstances. For example, if a worker and his/her doctor both believe that such a leave is necessary to help improve the person’s health and ability to work, this might be useful. However, employers are not required to bear undue hardships and disrupt overall workflow by leaving critical positions unfilled for lengthy periods of time.

As all this material indicates, meeting ADA standards is usually a straightforward process. Odds are, you’ll soon discover that hiring disabled employees is a smart move since they’re normally highly qualified and eager to succeed.

Please feel free to contact one of our Murray Lobb attorneys so we can assist you as you try to conform with all the ADA’s provisions – while also creating a pleasant job atmosphere for all your employees.

7 Good Reasons for Starting a New Business in Houston

Although Hurricane Harvey took far too many lives and delivered devastating blows to Houston’s economy and infrastructure back in 2017, the city has since rebuilt much of what was lost and is once again helping many entrepreneurs start new companies.

Some outsiders unfamiliar with the Lone Star State’s “can-do” attitude are a bit surprised to hear this good news. After all, Hurricane Harvey flooded 165,000 homes in Harris County — and dumped more rain in the Houston area than any other storm in recorded U.S. history.

Yet despite the $80 billion or more in damages, Houston is busy thriving again. In fact, the city’s growing economy surely played a role in CNBC’s decision to name Texas the best state for business in 2018. The following list sets forth seven key advantages that are enticing various entrepreneurs to start their companies here.

Strong reasons why Houston is fully ready to help “grow” your new business

  1. The city is home to excellent business incubators and accelerators. They include the Houston Technology Center (HTC), once referred to by Forbes as one of “Ten Technology Incubators Changing the World.” In fact, Texas has ranked HTC as its largest technology business incubator and accelerator. Other incubators in the city include Station Houston and Fruition Technology Labs.

Back in 2015, our Texas Governor’s Office created a statewide list of business incubators that may also still prove helpful. Regardless of the type of product or service you’re trying to develop, you should be able to find an incubator in Houston that can help you creatively launch your business. Most of them offer unique resources – and can help you locate venture capitalists and others interested in investing in new companies.

  1. Based upon foreign tonnage, Houston remains the biggest port in the country. Back in 2016, the port handled 68% of all the Gulf Coast’s container traffic. You can ship your goods just about anywhere in the world from this port;
  1. Forbes’ 2018 list of best employers included eight (8) based in Houston. If you start a company here and regularly network with other corporate leaders, you may easily get the chance to learn how these other highly successful businesses are managing to provide the best working environments for their employees;
  1. There’s plenty of highly desirable office space available for businesses of every size. Furthermore, it’s often easy to find “co-working spaces” that can readily meet the needs of smaller companies with limited budgets;
  1. Houston remains a business-friendly city with leading companies representing a wide swath of industries. Depending on which business incubator or accelerator you choose to join, there’s a strong chance you’ll have the chance to network with leaders in the fields of energy, healthcare, aerospace, nanotechnology and information technology – just to name a few;
  1. The cost of living is reasonable – and there are no state taxes in Texas. Many Houston entrepreneurs choose to live in affordable suburbs such as Webster, Stafford, Katy, Deer Park and Brenham. Statistics indicate that many thriving new businesses are also run in those same areas;
  1. Houston has a well-developed and diverse transportation system. METRORail, busses, freeway systems and other options provide reasonable means for everyone to live and work in this large metropolitan city. With careful planning, you should be able to get to meetings across town without delay on most days;

If you have any questions about a business that you’d like to start, please contact one of our Murray Lobb attorneys. It’s been our privilege to provide general business and legal advice to entrepreneurs creating new companies for many years. When you get in touch, we can also help you decide which type of business structure will best serve your needs.

Many People Start New Businesses After Age 50

A large percentage of Americans launch new companies and careers after turning fifty. In fact, the term “encore entrepreneurs” has been coined to describe this steady trend. In her book, “Your Life Calling: Reimagining the Rest of Your Life,” Jane Pauley profiles some rather amazing people who’ve transformed their “retirement years.” Many of them are now realizing personal dreams that are helping others both locally and in distant parts of the world.

In a recent New York Times article addressing this topic, one man in his early sixties said that he’s so happy with his new company (which creates educational and training videos) that he may never retire. Fortunately, many larger cities often have “incubators” designed to help people get new companies off the ground — and venture capitalists who are eager to consider funding start-ups with a strong likelihood of success.

Texas remains a great state for new businesses

Every year, many media outlets rank multiple Texas cities as great places to design and build new companies. Be sure to review our Texas governor’s office publication entitled “Texas Business Incubators.”

Once you’ve got a great idea for starting a business, consider scheduling an appointment with your experienced Houston business law attorney to obtain the valuable legal advice you’ll need.

Here are some additional facts and figures that can provide useful insights into some of the best fields to enter (and others to avoid) as you move forward with getting your new company up and running.

Facts and statistics about older Americans starting new companies & becoming self-employed

  • Fifty-one percent (51%) of new start-up business owners are between the ages of 50 and 88. In fact, those aged 35-49 only start about 33% of new companies — and those age 35 or younger only form about 16% of them. Fortunately, you don’t often need a lot of money to get a new company off the ground. Many older entrepreneurs start their companies with $2,000 or less.
  • The Dallas Morning News reports that during each month in 2017, roughly 400 out of every 100,000 Texans became entrepreneurs. A large percentage of those individuals were seniors. Many of their businesses were formed in Austin, Dallas and Houston.
  • About 80% of new Texas business entrepreneurs start their businesses based upon immediately available opportunities – rather than the simple need to find work.
  • Between the year 2000 and 2016, the number of self-employed New Yorkers rose by 63.7 percent. While the country’s economic downturn back around 2008 certainly influenced that trend, it clearly isn’t the sole or main force behind it.
  • About 69% of Americans start their businesses at home.
  • Roughly 42% of all new businesses are formed as S-corporations and 23% are LLCs. Of course, a very large number of small businesses are simply run by solo entrepreneurs.

Which types of new businesses tend to succeed the most often?

  • Those offering insurance, real estate or financial services. After four years, about 58% of these are usually still viable.  Businesses in the financial realm often offer tax preparation, bookkeeping or payroll services.
  • Companies renting or leasing automotive equipment.
  • Legal service businesses.
  • Medical, dental and other healthcare services.
  • Religious organizations.
  • Specific types of administrative or company management services.

Types of new businesses that frequently fail sooner than others

  • Stores selling beer, wine and liquor
  • Auto dealerships
  • Oil and gas extraction service companies
  • Grocery stores
  • Beverage manufacturers
  • Furniture stores
  • Companies selling lawn and garden equipment

After going over your business plans with trusted family members or friends, consider reading more about the different types of business structures you can choose from and what’s normally involved with starting a new Texas company.

Hopefully, you’ll decide to join the many other Texans who’ve discovered that running a business when you’re older can be a very gratifying experience – one that can add even greater purpose to your life.

Our law firm invites adults of every age to contact one of our Murray Lobb attorneys for legal advice when either starting a new business – or simply needed help with one that’s already thriving.

Why It’s Often Wise to Moniter Employee Computer Usage

While all employees benefit from believing that their companies trust them, they must still accept the modern workplace reality that certain privacy interests must be carefully weighed against protecting valid business interests. Furthermore, employers have a need and a duty to make sure that all employees are putting in their fair share of time while completing assignments. No one should be allowed to waste valuable work time surfing the Internet or responding to personal emails while others are shouldering their proper tasks.

Do many employers regularly monitor computer and Internet usage?

At present, about 80% of large companies carefully monitor how their employees use workplace computers. They also routinely review all company website and social media postings and randomly review email exchanges and software downloads. Internet usage is also closely monitored. These practices can often help businesses avoid future lawsuits and financial losses.

Once your company decides to begin monitoring practices, you really should talk with your Houston business law attorney about all the legal concerns that can develop.

Before addressing other key issues involved with monitoring your employees, it will be helpful to note how many companies provide notice to their workers that their computer usage and Internet activities will soon be regularly reviewed.

When and how do employers bring up computer and Internet monitoring to employees?

  • At the time of hiring. You can make this a condition of accepting employment;
  • When all periodic performance evaluations are conducted. At the end of these sessions, you can produce a carefully worded document, asking for the employee’s written consent for monitoring their computer usage and business communications. It may be helpful to note how this can help protect some of their own interests — and limit the harassment that some employees might otherwise engage in if no such monitoring existed;
  • Include several paragraphs on the topic in your employee handbook. Always be sure that you later ask each new employee if they have any questions about this policy;
  • Place a warning above the company’s computer network sign-in page. This warning might reference the employee handbook – or the written consent form you should have already obtained from each employee;
  • Include a very clear and obvious “Notice” paragraph at the bottom of each outgoing email. This is an attempt to provide notice to third parties (such as non-business contacts who may include workers’ friends and family members who write to them at work – that any or all such emails are subject to monitoring and review).

Your signed consent forms should remind employees (along with the company employee handbook) that certain types of improper communications and usage of the Internet can result in disciplinary actions – and even firing.

As the following information indicates, your careful review of how employees are using their computers can prevent many serious workplace conflicts.

Harmful activities pursued by some using company computers, email and the Internet

  • Harassing behaviors. Making illegal and damaging statements in emails may constitute sexual, racial – or other forms of harassment;
  • Likewise, some types of email (or typed letters) may contain defamatory comments or illegal threats against others. No employee has the right to make serious threats against other employees or outside email recipients. These negative communications may simply imply that a specific person may lose his or her job if certain improper demands aren’t met;
  • Critical company information (like trade secrets and intellectual property) may be stolen and then shared with others;
  • Employees may download and then share copyrighted material or software, allowing others to make additional copies. This can also include the illegal download of porn materials — that are then sent off to others – or stored on your business databases;
  • Workers may accidentally share harmful email and general computer viruses while using their computers in unauthorized ways;
  • Employees may spend lengthy time periods surfing the net — unrelated to legitimate work assignments. Many companies wind up paying significant amounts of money each year for time that employees spent playing online games or enjoying other unauthorized Internet activities;
  • Some workers may maliciously sabotage company files and data for no apparent purpose;
  • Other employees may use their work computers and printers to complete tasks for their separate, private business needs.

Do employers have broad rights to monitor all employee activities at work?

Federal, state and even global laws can limit these rights. Also, most employers do not have the right to invade employee privacy by placing intrusive cameras or audio devices in restrooms or lunchrooms. However, they do have some specific rights to monitor how employees use equipment provided to them. And under certain circumstances, companies can even monitor how employees use their own personal computers while logged on to company networks and databases.

In general, any efforts you make to monitor employee communications must agree with the provisions of the federal Electronic Communications Privacy Act (ECPA). Fortunately, it does allow certain types of monitoring that fall within an acceptable “business purpose exception.” In other words, your monitoring efforts must have a direct tie to protecting a “legitimate business purpose.”

As already noted above, it’s crucial to discuss all these matters with your attorney to be sure your approach to computer monitoring will not subject your company to any employee or third-party privacy lawsuits.

What global, federal and Texas laws address all these various legal topics?

Keep in mind that companies regularly interacting with international clients or companies must be prepared to observe all the following types of governing laws.

  • The European Union General Data Protection Regulation (GDPR) – and the laws passed by many of its members’ individual states;
  • The Electronic Communications Privacy Act (ECPA)
  • The Stored Communications Act
  • Various federal wiretapping laws
  • Texas statutes and case law that your lawyer can review with you

Some general guidance is also available on the Texas Workforce Commission website.

Conclusion

Companies of every size must give all these issues considerable thought before buying any types of computer monitoring software. You’ll also need to decide which DLP (data loss prevention) solutions or strategies are most likely to meet your company’s unique needs. For example, do you want to prioritize software that helps with network traffic monitoring, keystroke logging, natural language processing – or other methods? You’ll also need to consider what types of data encryption practices may be useful to you.

Fortunately, there are many outside consultants who can help you carefully evaluate all the current computer monitoring software that’s available – so you can find the best products that fall within an affordable price range for your company.

Please feel free to contact one of our Murray Lobb attorneys so we can address your current questions about monitoring your employees’ business communications and usage of the Internet. We can also help you draft the types of privacy consent forms and other paperwork that can help you more proactively safeguard your company’s business interests.

Protecting Seniors & Disabled Loved Ones Against Financial Abuse

At present, there are 3.2 million Texans (12% of the total population) who are age 65 and older. By the year 2050, that percentage is expected to rise to twenty percent (20%). Our state also has an unusually large number of disabled citizens – close to 11.7 percent of our population fits into this category.

All these individuals are at a higher risk of being financially abused than others. Furthermore, a highly regarded MetLife Study found that the annual cost of elder financial abuse equals about $2.9 billion – and that number would be far higher if we added in the losses incurred by the disabled population

For this reason, all honest adults should do whatever they can to help their older family members and friends protect themselves against being defrauded of their money and possessions.

Defining financial abuse – and noting who most often commits this type of crime

Before reviewing how the elderly and disabled can protect themselves against financial abuse and scams, it’s important to define “financial abuse” more precisely. According to the Centers for Disease Control and Prevention, this type of abuse involves the improper or unauthorized use of an older person’s resources for the wrongdoer’s personal profit, benefit or gain

Sadly, ninety percent (90%) of those who commit fraud against the elderly (and disabled) are already people known to them. A February 2018 article published by AARP entitled, “Fraud in the Family,” provides highly useful information on this topic.

Financial safety tips to share with the elderly and disabled regarding financial fraud

  • Each person should put together a small “team” of professionals who will help them manage their funds – and meet with them every few months for this purpose. This team should include two or more of the following individuals.
  1. A reputable Houston estate planning attorney
  2. A highly trusted family member – or friend
  3. A geriatric (or disability) case manager, social worker or therapist
  4. A bonded accountant or bookkeeper

           Advise your elderly or disabled friends to meet quarterly with their small group – and

           make sure their Durable Power of Attorney, Advanced Directive for Healthcare and other

           legal documents clearly indicate that no major life decisions should be made without the

           added input of the individuals named within those documents;

  • Always confer with others before making any major purchases, sales or life decisions. Never rush into to making any new financial investments or decisions about moving into a new home or senior care facility;
  • Keep important items either in a desk or safe at home. Put copies of the person’s Will and all other estate planning documents in their desk at home – making sure that at least one family member or close friend knows where they can be found in case the person becomes suddenly ill. It’s also wise to place all blank checks and major credit cards in a locked safe at home – and only take them out on days when they will be needed to make purchases. These actions can help the senior or disabled person greatly minimize chances of fraud and identity theft. All older bills and bank statements should always be shredded;
  • Never accept any phone calls from strangers. If the person accidentally takes a call from someone they don’t know and is asked to make some type of donation, tell the caller donations or only made by check – and only in response to a written request received by mail. Never, ever give out any bank or credit card information over the phone to such callers;
  • Seniors and the disabled should always ask a family member or friend to help them run a comprehensive background check on anyone them would like to hire as a caregiver in their home or current residence;
  • All routine bank and investment statements should be reviewed with a family member, a bonded bookkeeper or a trusted close friend. Any suspicious withdrawals from such accounts should be reported right away;
  • Consider having all credit reports frozen if any unauthorized credit card accounts are opened in the person’s name. Also, find out which type of fraud alert or security watch program is best suited to daily monitoring all larger financial accounts;
  • Never readily make gifts or loans to family members or friends – especially if they are currently battling drug or alcohol addictions. Ask other people to help address this problem;
  • Finally, advise the senior or disabled person to create a workable monthly budget, allowing for unexpected medical fees and limited travel and entertainment expenses.

If you or a senior friend or disabled person need additional advice and help with these issues, please contact one of our Murray Lobb attorneys. We would be happy to answer any questions you may have concerning this topic.

Legal Documents Often Needed by Caregivers

Careful planning is required once you agree to act as the legal caregiver of a family member or close friend. Always make sure the person making this request promptly provides you with copies of properly executed legal documents that will help you address their most critical needs on a timely basis.

Fortunately, your Houston estate planning attorney can help you decide which legal documents may be required by the person needing care. These documents can help you make such crucial decisions as where the person needing care may want to live — and choose the types of medical care they’re willing to receive from specific healthcare providers.

Depending on if you’re personally named in all the required documents, you may also need to handle burial needs – and make sure that all money and possessions are properly transferred to the correct beneficiaries once your loved one or ailing friend passes away.

Here’s a brief overview of the types of legal documents you’ll need the person you’ll be taking care of to obtain from a lawyer.

Key documents to consult while taking care of an ailing friend or family member

  • Power of Attorney. While many older or ailing adults can still often make sound decisions for themselves – they may want you to stand ready to step in and handle key business transactions for them with various companies should they become too ill to manage these matters on a temporary basis;
  • Durable Power of Attorney for Healthcare. This may also be called an Advance Directive for Healthcare and other similar terms. Its purpose is to clearly indicate the types of medical care the named party is open to receiving – and when certain types of life-extending treatments should be discontinued when the party named in the documents is suffering from a terminal or irreversible condition. The document also clearly provides authority for the person named as the Medical Power of Attorney to have full access to all medical records required while making decisions in coordination with doctors and other healthcare providers;
  • A Living Will. This document is different than an Advance Directive because it states how the person needing medical treatment wants their medical care to be handled – as opposed to the Advance Directive which states how another person (the agent) should handle the ill person’s medical treatment needs when that person is unable to do so. This type of Will also often addresses whether life support procedures should be provided under specific circumstances;
  • A Basic Will. This sets forth the name of the executor who’s been chosen to manage the ill person’s estate once they pass away — so the chosen beneficiaries will receive all the designated wealth and possessions. Hopefully, the person you’re helping will remember to ask their lawyer if they need to create one or more trust accounts so that all or part of the estate can be easily transferred without going through the probate process.

Be sure the person you’ll be taking care of informs their lawyer about any unusual or special circumstances that may need to be addressed in all the documents named above.

You may also want to obtain a document sometimes referred to as an Appointment of Agent to Control Disposition of Remains. This will allow the older or disabled person needing your care to state who will handle their remains once a funeral home has prepared them for burial (or placement in an urn). Many people today who’ve chosen to be cremated obtain this form, so they can state the location of a specific cemetery or columbarium where their remains will be interred.

Please feel free to have the person who’s asked you to act as caregiver to contact one of our Murray Lobb attorneys so we can help prepare all of these important legal documents. We are always available to respond to any questions you may have regarding any of these documents and the entire estate planning and probate process.

General Steps to Take While Preparing to Sell Your Business

Selling your company at the proper time can provide you with greater freedom and added income as you pursue other business or personal goals. Whether you’re a sole proprietor who can move forward alone — or someone who must confer with business partners or a corporate board of directors, there are basic steps you can follow that can help streamline the process.

As you further contemplate this move, give serious thought to timing and be ready to explain why you’re making specific choices to prospective buyers; They’re sure to ask why you’re selling your company now. Also think about whether you should hire a professional business broker, especially if you don’t want to manage the sale on your own and are concerned about locating the best potential buyers.

Each of these key topics are discussed further below.

Are you prepared to tell qualified buyers why you want to sell your business now?

If sales are dropping or you’re currently losing a sizable portion of your customer base, you may want to postpone the sale for six months or a year. During that time, you may be able to rebuild the company and make it more viable.

Of course, business owners often want to sell their companies for many other reasons, including the following ones.

  • They’re eager to retire and simplify their lives – letting go of business activities.
  • They have current disputes with partners, co-owners or corporate board members, so they would just like to move on. Obviously, you’ll need to reference these issues in a very tactful yet honest manner if you have no other reasons for selling.
  • The sole owner (or another party) is facing a serious illness or impending death.
  • You want to keep working — but in a less stressful capacity. Be ready to share this in as upbeat a manner as possible – while being open and honest about the pressures of running the business.
  • You’ve developed a keen interest in a different business field and are eager to get your new venture up and running.

These are just a few of the reasons why people often choose to sell a business. Whatever you decide to tell prospective buyers – be as honest as possible since a failure to disclose current problems is unethical and could damage your reputation in the community.

If your business is losing value, be prepared to tell potential buyers (after carefully qualifying them) how they might reverse that trend. You can also explain why they may still want to simply purchase all your valuable vehicles and equipment.

Decide whether you should sell the business yourself – or hire other professionals

  • Legal advice can prove crucial. You’ll also need help drafting the various legal contracts and documents required to support a sale.
  • You’ll want to work closely with your accountant. All your business and tax records must be fully updated.
  • A business appraiser can prove very helpful. This individual can help you determine a fair asking price for your company.
  • Even a brief consultation with a business broker can benefit you. This person knows how to locate a healthy pool of potential buyers. This process can prove extra challenging if you do not want to run any public advertisements.

Be prepared to locate or create various documents while trying to complete a viable sale

You must be prepared to share all your basic financial statements and records for the past three or four years. It’s also crucial to create a comprehensive list of all your company equipment and fixed assets tied to your business accounts. (Be prepared to spend the necessary fees to repair all valuable vehicles, equipment and other goods involved with the final sale).

It’s also important to create a detailed list of your ongoing sales transactions and the names of the companies that currently provide all your company’s most critical supplies. Copies of all current contracts and leases should also be made available so qualified buyers can review them.

Be prepared to carefully decide which buyers may be the most dependable ones

Many business owners prefer to sell their companies to close family members, trustworthy employees, friends or current customers. You’ll need to choose wisely, especially since this type of sale often takes from six months to two years. 

Of course, never disclose private information about your business to potential buyers until after they’ve each agreed to sign non-disclosure agreements and qualified for financing plans that meet your requirements.  Be prepared to negotiate carefully – or ask your attorney to handle the negotiations on your behalf.

If you’re ready to sell a business – or just want to learn more about all the various legal and practical steps referenced above, please contact one of our Murray Lobb attorneys. We look forward to answering all your questions.

Small Businesses Often Make Crucial Legal Mistakes

Even highly competent employees sometimes make serious legal errors while handling human resource, management, accounting and other business tasks. Since federal, state and local laws are constantly being updated, you must regularly speak with numerous employees to be sure they’re making timely and lawful decisions.

Should the feedback you receive concern you, it’s always best to consult with your Houston business law attorney to be sure you know how to promptly correct any possible errors. Lawsuits are often filed over very basic legal mistakes.

What are some of the most common legal errors that businesses keep making?

Most mistakes are made when employers try to be flexible with their rules. While compassion can go a long way toward helping you get along better with your employees, clarity and consistency are crucial. Always exercise caution when addressing the following issues.

  1. Each employee must be properly classified. You need to look at each position separately, based on all pertinent state and federal laws. If you simply decide to treat everyone as an “exempt” employee, you might be sued if you fail to provide proper overtime pay or adequate rest periods.
  2. Lunch breaks must be provided when required by law. Some employees may be entitled to a meal break after completing a specific number of hours during a shift.
  3. Make sure you’re properly labeling workers as either employees or independent contractors. You may hear from the IRS if you make this type of mistake. Take the time to speak with your lawyer about how you should carefully interact and communicate with independent contractors. Once a worker has strong legal grounds for believing that “employee” status has been conferred, you can be sued for specific benefits.
  4. You must be sure all employees understand what constitutes “sexual harassment.” If you’re sued in this field, one of your strongest defenses will be that you promptly trained all new managers and employees to help create a healthy work atmosphere. You must also develop a secure way for employees to submit complaints before problems escalate.
  5. You cannot punish or fire an employee for simply taking a leave of absence under the Family Medical Leave Act (FMLA). To protect yourself, keep accurate records of all employee evaluations being conducted at routine intervals. If you’re particularly concerned about the behavior of someone taking FMLA leave, ask your attorney when you should sit down with that employee to discuss why you’re carefully monitoring their work performance – before letting them go.
  6. Be sure to issue final paychecks on a timely basis to all employees who are leaving. Find out if you’re required to provide this type of check even before an employee has returned all employer-provided equipment, vehicles or other materials.
  7. You must handle making loans to employees in a very careful manner. While this is often a kind gesture, you must set up a formal repayment schedule. Never simply deduct a portion of what’s owed from each future paycheck.
  8. Be sure to properly handle all employer obligations under the Americans with Disability Act (ADA). You may need to make appropriate work accommodations and should always treat such workers fairly. Most disabled workers take great pride in being highly dependable and productive workers.
  9. COBRA healthcare coverage must be offered and administered properly. Give serious thought to creating a comprehensive package of this medical insurance paperwork so that it’s immediately ready to be given to qualified employees when they leave. Timing is critical so potential coverage won’t lapse.
  10. The Health Insurance Portability and Accountability Act (HIPAA) must be explained and handled appropriately. Employees have a right to privacy regarding their medical data and information – be sure you’re adequately protecting it while processing claims.
  11. Pension concerns must be addressed in a timely and proper manner. The Employee Retirement Income Security Act (ERISA) is a complicated law that requires extreme attention to detail. Always request legal advice when uncertain how to administer it.
  12. You must carefully handle all responsibilities under the Consumer Credit Protection Act (CCPA). You may need expert help calculating all your employees’ paycheck deductions for lawful wage garnishments – including those for child support and student loans. Look for highly respected software that may help your most experienced workers.
  13. Equal Pay Act. This law must be carefully followed since too many businesses keep failing to pay men and women fairly when handling similar work.
  14. Title VII concerns. Your company must avoid discriminatory practices when hiring, laying off and firing employees. Many businesses are learning to use multiple interviewers with highly diverse backgrounds so that fairness can be readily achieved.
  15. OSHA laws. You must make sure to keep adequate records covering all workplace accidents and injuries for an appropriate number of years — if you employ ten or more workers.

Should you have any questions about these topics, please contact your Murray Lobb lawyer to discuss your concerns. We have extensive experience providing legal advice to our clients so they can can readily comply with all federal, state and local laws.

Six Basic Types of Business Insurance You Might Need

Successful companies of all sizes readily address their insurance needs so they won’t later be caught off guard by either a baseless or valid legal claim. No matter how hard you try to provide flawless products and services to the public, there’s always a chance that a defective product or business transaction may render you liable for legal damages.

Although only certain types of companies must carry workers compensation, disability and unemployment insurance to meet federal guidelines, all businesses can benefit from protecting their company assets by purchasing basic and special types of business insurance.

Fortunately, there are only six basic types of business insurance that you and your business partners must carefully review while trying to protect your company against future legal challenges. All six are set forth below with additional information.

Six common types of business insurance

Before reviewing the following types of insurance, be sure to thoroughly discuss the precise nature of all your business transactions with your insurance agent.

  1. General liability insurance. This will provide you with legal defense support for a variety of alleged wrongs. For example, your company may be sued based on a personal injury claim or the alleged statements of one of your employees. For example, if one of your customers is seriously injured while visiting one of your offices or factories, this policy can help you compensate the injured party for all bodily injuries and medical expenses. In addition, this same type of policy could protect you if a court holds one of your employees liable for business libel or slander — for damages up to the maximum amount of coverage stated in your policy.
  2. Product liability insurance. Even some of the most reliable products on the market will occasionally malfunction and harm a consumer. For this reason, you must secure an ample amount of product liability insurance coverage for this type of claim.
  3. Professional liability insurance. If your company provides any types of services to customers, you must carry this type of policy – often referred to as “E and O” (errors and omissions) coverage. This policy will cover the costs of defending your company in a civil lawsuit that may be based on the alleged grounds of malpractice (often medical or legal). The insurance industry doesn’t view these types of claims as eligible for coverage under either general liability insurance or a homeowner’s insurance policy.
  4. Commercial property insurance. Industrial fires, floods, windy hail storms and other natural disasters can quickly destroy critical manufacturing plants, office buildings and valuable inventory. Always be sure to carry ample coverage under this type of policy — based on recent property value appraisals.
  5. Home-based business insurance. This type of policy is usually offered as a rider to a person’s homeowner’s insurance. It provides limited coverage for such problems as business equipment and inventory damages. This type of policy can also provide funds to cover liability claims brought by injured third parties.
  6. A business owner’s policy. This general type of coverage can let you bundle nearly all (or most) of your insurance needs into one policy. If you pursue this option alone – make sure it adequately protects you regarding all the most unique aspects of your company’s goods and services.

When discussing your insurance needs with your lawyer and insurance agent

Always talk about every reasonable type of harm that your business might suffer. Also, make sure you’ve chosen the best type of partnership or corporate structure to further protect your personal and business assets. Once you fully understand all the risks your company might face, find a highly respected business insurance broker. Always ask trusted business peers for their recommendations for this type of agent.

Finally, speak with your Houston business law attorney about all the specific types of insurance required by the state of Texas for a company like yours. And be sure to address all the federal government’s insurance requirements. Keep in touch with your insurance agent and lawyer throughout each year so they can each readily update you about new legal or policy requirements that may affect your current coverage during the upcoming year.

Please feel free to contact a Murray Lobb lawyer so we can talk with you about the legal aspects of obtaining adequate insurance coverage for all your business needs.