Grandfathering Under the ADA Is Not A Thing

100 Year old BuildingFor all of you businesses in cool brick lofts, I’ve got some bad news for you. Grandfathering under the ADA is not a thing.

Everyone thinks it is, though. It’s a persistent rumor leading to poor decisions. I hear the grandfathering rumor all the time. All. The. Time.

So I feel the need to say it again. Just because the building is old doesn’t mean that your business doesn’t have to comply with the ADA. Grandfathering under the ADA does not exist.

Most California businesses find this out the hard way.

In California, a disabled plaintiff can get damages and attorneys’  fees for going to a business that is not to code under the ADA. So these suits are rampant and entire law firms exist just to bring them.

In other states, the availability of damages varies. So the attractiveness of a lawsuit to lawyers also varies. But, that doesn’t mean the businesses can’t or won’t get sued.

And if you are a commercial tenant, you probably won’t be able to blame it on the landlord. Quite the opposite: your landlord will also get sued and you’ll be required to indemnify him.

So beware. This is a trap for those who live in old towns, like our headquartered city of Saint Louis, Missouri.

Video Transcript:

Say your business is in a 100 year old brick warehouse.

Is it correct I’m grandfathered out of the Americans With Disabilities Act accessibility regulations?

Sorry. Grandfathering is a myth. It doesn’t exist under the ADA.

That means two things. First, you may not receive permits from the city to open or improve your business until you bring your building up to code.

Second, you could get sued.

The ADA is what’s called a “complaints driven” law. So someone who notices your building isn’t ADA accessible has the right to sue you.

However, in many states the plaintiff won’t be entitled to damages even if they win because the state has to make an extra law to create damages.

California is an example of a state that gives a plaintiff damages for bringing an ADA accessibility case.

But in all states, a lawsuit can result in a court order requiring you to bring your building into ADA compliance, even if it is expensive.

Confused about possible risks or liabilities in your business? Get peace of mind by having us on call for less than $5 per day. Call us and ask about our Peace of Mind Plan at 800-449-8992 or visit http://peaceplan.biz for details.

Am I Liable If My Employee Gets Into A Car Accident Driving Home From Work?

Accident Leaving Work I recently had a very annoying experience.

I was sued.

I own a business, so I might as well have a target on my back that says, “SUE ME.”

It is seriously ridiculous. The lawyer part of me says, “why does anyone own a business?” The entrepreneur part of me says, “screw those guys, they aren’t taking me down!”

But I digress. I was sued. Why? Because I was driving a car when someone broadsided me in an intersection. As the insurance company dawdled on settlement, the woman who hit me learned that I owned a business (through the magic of Google, I presume). She thought she could threaten me and my business insurances and assets.

You see, if you or your employees are driving within the scope of business or employment, then the business can be liable if you cause an accident.

I wasn’t driving anywhere on business nor was I at fault, but those details didn’t seem to matter to her. Fortunately, I own a law firm, so her lawsuit did not last very long.

Still, it made me think about the employer liability rules for employees. Do you have a company car? Or do your employees sometimes go on errands, drive to see clients or take pit stops from lunch or work? Do they go to more than one office?

If so, you have some risk as a business and business owner if they get in an accident. (Uber’s strategy to avoid this is to classify everyone as independent contractors. It won’t work in the end and is not recommended. Uber has a lot of money to spare for legal fees so that they can delay and game the system; but most businesses don’t and this strategy will make things worse for them.)

Here’s a little video outlining some of the things you should consider when it comes to employees driving. Get insurance accordingly. And talk to your lawyer about ways to keep you lawsuit-free.

Video Transcription:

Say your employee got into a car accident driving home from work. Can you get sued or be held liable for the accident?

Like many questions in law, the answer depends on the facts.

The answer is “yes” if the employee was driving a company vehicle.

The answer is “no” if the employee was driving their own vehicle as part of their daily commute.

The answer is complicated when the employee sometimes uses his or her car for work during business hours.

Or if the employee is not commuting at the time of the accident.

For example, the employee is driving home from a different office or job site than usual.

Or from a side errand run for the employer.

In these scenarios, the employer may get sued, but may win at trial anyway.

Confused about possible risks or liabilities in your business? To get peace of mind, call us for a Business Risk Review at 800-449-8992 or email us at [email protected].

Can I Use A Public Domain Picture Of A Celebrity On My Website?

Celebrity Endorsing A lot of people on the internet are starting to become familiar with copyright laws.

They know, for example, that you are not supposed to save and use a picture from someone else’s website.

Sure, theft of images online is pretty rampant. But honest business owners avoid copyright claims by writing their own web copy and blogs, and buying licenses from stock phone companies.

Or they use images listed on Google or the public commons wiki with permissive use licenses.

Using images with commons license can save you a little bit of money. But you want to make sure you read the license grant and know what you are allowed to do with the image. Sometimes they exclude commercial uses (and if you are in business, you are a commercial use).

Copyrights, though, are not the only issues that arise when you put pictures on your website (or any digital or print products).

Advertising laws, for example, can be triggered. Does your image imply a promise of something that is not true?

People in the health, nutrition, financial and self-improvement areas are prone to fall into that trap. For example, if you are selling a vitamin and imply that someone will lose a ton of weight by a picture you include, without a claim being substantiated, you may find the FTC knocking on your door.

Same story if you are implying from a photo that people will make certain incomes from your product or service. Don’t promise incomes or cures for cancer, even by implication!

Just ask Kevin Trudeau. He’s in a Federal prison now….

If you use a celebrity’s image, they also have a property right in their “celebrity,” which they sell when they endorse a product. Using their image in a commercial setting, even with a disclaimer, could get you sued for big, big bucks.

Sometimes it is fair to use a public celebrity image, though. Do you know how to tell the difference between fair use and stealing their rights to their publicity?

Watch our video if you want to learn more about when a celebrity image is permissible and when it raises red flags.

Video Transcription:

Say you found a public domain picture of a celebrity on Google Images. Can you put their picture on your website?

If you are a news website and using their picture to discuss something newsworthy about them, then sure.

If you are a parody website and using their picture as part of a parody, then go ahead.

But if you are selling a product or service of any kind and thought their picture would help sell it, then no way.

You cannot imply in any way that a celebrity approves, uses or endorses your product without their express permission.

A disclaimer will not be enough.

This would qualify as false advertising and violates advertising laws. Plus you would be risking a lawsuit from the celebrity.

Having a license to their image may avoid a copyright suit, but it will not avoid these other problems.

Do you know where your legal land mines are? To find out, call us for a Business Risk Review at 800-449-8992 or email us at [email protected].

I’ve Filed an LLC. I’m Personally Protected from Lawsuits, Right?

Filed LLCHow useful is a condom that is never taken out of its box and wrapper?

If you were the kind of person with enough forethought to buy a condom, you would probably want it to protect you from several things.

But it would not be very useful to go through the trouble of buying the condom and not taking the additional necessary steps to get its benefit.

Lawyers call certain legal services “prophylactic.” That’s because their purpose is to prevent problems and unwanted consequences.

Completing your necessary corporate compliance and regulatory paperwork is prophylactic. Buying an LLC and not taking it out of the box will not give you the desired results.

Video Transcript:

Say you filed an LLC using Legal Zoom. Are you personally protected from lawsuits?

Maybe a few, but mostly, no.

Because they don’t give legal advice, budget legal sites don’t tell you there are numerous things to do after you file the LLC to legitimately and legally set up your business.

After years of starting businesses, we have developed a list that is several pages long made up of single spaced bullet points.

If you don’t do all the things on this list for your LLC, then the “corporate veil” can be pierced.

But more likely, if you don’t do all of the things you are supposed to do to start up your business legally, you will violate one of several laws that carry personal liability even if you are incorporated.

There are legal traps in the areas of taxes, wage laws and even corporate laws and torts.

You may also be liable for some contracts and debts.

There are ways to limit your liabilities and protect your assets. While nothing is foolproof, a business-minded lawyer can help you significantly.

Do you know where your legal land mines are? To find out, call us for a Business Risk Review at 800-449-8992 or email us at [email protected].

Can I Incorporate In Nevada To Avoid California Taxes?

Nevada vs California Taxes take a big bite out of profits for small business owners.

True story: I pay five times my salary in taxes every year as the business owner. For every dollar I take home to feed my family, I have to earn five just for taxes.

Too bad those tax dollars don’t go to feed other families. I’d rather use that money to take care of orphans.

But I digress.

California is much worse for taxes (business and personal) than all other states in the country.

So it is not surprising that I am asked constantly whether a business operating in my home town of San Diego would be better off incorporating in Nevada.

Nevada takes advantage of this and encourages businesses to incorporate in their state.

But for most small businesses, the answer to where they ought to incorporate is the state in which they are doing business. You can’t get away from California taxes by incorporating in Nevada if you are going to do business in California.

You didn’t really think California would let you get away from taxes that easily?

Video Transcript:

Can I incorporate in Nevada to avoid California taxes?

You can incorporate in Nevada.

But if you plan to do business in California, you cannot avoid paying taxes in California.

No matter where you’ve incorporated, if you’re running a business in California you must pay taxes on any income earned from California sources.

This is the rule for any combination of states that you mention. California, while tax-greedy, isn’t the only state to have these laws.

But sometimes there are good reasons for incorporating in another state.

For example, you may be able to divert some of the income you earn to the more tax-favorable state.

And there may be other taxes, business laws, and regulations that favor incorporating in one state versus another.

The best way to figure out how to structure your business is to have a great CPA and business lawyer help you along the way.

Do you know how to hire the best professionals for your business? Learn the secrets other lawyers won’t tell you by requesting our free e-course, How to Hire A Lawyer. Call us at 800-449-8992 or email us at [email protected] to find out more.

Is It Legal For Me to Find Investors For A Friend’s Business?

Investor Introduction Maybe you have a rich friend who is looking to invest in something interesting or fun or worthy. And you have another friend who has just built a better mouse trap, but is living in his mom’s basement.

Together, the two could make millions. So you consider playing business matchmaker. Nothing wrong with that, right?

Even better… maybe you can get a cut in the business or a fee for a successful transaction. That’s just being enterprising. And your inventor friend is enthusiastically willing.

Someone tells me this story casually at least a few times a year.

And every time, I have to be a wet blanket.

Because if you are going to connect an investor with a business, you may be violating the securities laws. If things go wrong, you could be held responsible. Or worse, you could be prosecuted by the SEC and fined or put in jail.

Like many things in law, something with such good and innocent intentions can surprise the people involved by being illegal.

Watch the video to see what I mean.

Video Transcription:

Say you have a friend who wants you to introduce him to potential investors in your industry in order to raise money for his new start up business.

Can you take a percentage if he successfully raises money from my contacts?

Unfortunately, no.

Federal securities law requires a broker’s license for any person who gets paid any fee for obtaining an investor.

This is meant to protect investors from being scammed.

Even if you just make the introduction, you must still comply with this law.

If you are not licensed, the investor can later sue you for a return of his or her money.

You can still make a simple introduction to help out your friend, so long as you aren’t paid for it.

And, of course, you shouldn’t make any representations or guarantees about the wisdom of investing money in your friend’s venture.

Would you like to have a lawyer at your beck and call without it costing you an arm and a leg? Learn about our Peace of Mind Plan or call us at 800-449-8992 to find out how.