State Law Dictates Who May File Bankruptcy For A Corporation

A prior Ask the Receiver discussed Sino Clean Energy Inc. by and through Baowen Ren v. Seiden, 565 B.R. 677 (Nev. 2017), where a  district court’s affirmed of a bankruptcy court’s order dismissing a bankruptcy case. A state court receiver for a corporation removed the corporation’s board of directors and replaced them. The unhappy, removed, board members filed a bankruptcy petition for the corporation. The district court held state law determines who is authorized to file bankruptcy for a corporation. It rejected the petitioner’s argument that states cannot ...

A Reminder: The IRS Mileage Rates Have Changed

The 2019 mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical, or moving purposes have increased from last year, or remained unchanged. Specifically, as of January 1, 2019, the standard mileage rates for the use of a car (also vans, pickups, or panel trucks) are:

  • 58 cents per mile for business miles driven, up three and one-half cents from 2018;
  • 20 cents per mile driven for medical or moving purposes, up two cents from 2018; and
  • 14 cents per mile driven in service of charitable organizations.

The IRS standard mileage rate for ...

Employer Alert: Minimum Wage Increases

On January 1, 2019, the state minimum wage increased to $12.00 per hour for employers with at least 26 employees, and $11.00 per hour for smaller employers.  The state minimum wage governs the exempt employee threshold salary, which has increased accordingly.  The new minimum salary for employees exempt from overtime is $49,920 annually for employers with at least 26 employees, and $45,760 annually for employers with fewer than 26 employees.

Further, a number of California municipalities will raise their minimum wage rates on July 1, 2019.  Employers should take care to note these ...

Employer Alert: New Compensation Threshold for Computer Software Overtime Exemption

Effective January 1, 2019, the California Department of Industrial Relations issued a new compensation threshold for exempt computer software employees, reflecting an increase of 4.2% from last year.

To qualify for the overtime exemption, computer software employees must be paid a salary of at least $94,603.25 annually ($7,883.62 monthly), or an hourly wage of at least $45.41.  In addition, a computer software employee must also meet the duties test set forth in California Labor Code Section 515.5, which are also included in all Wage Orders except Orders 14 and 16.

More ...

How Receivers Should Deal With Secret Liens

 Q: I am the receiver for a small grocery store and restaurant owned by an uncooperative divorcing couple. I am in the process of selling the store and restaurant and paying claims. I have been contacted by a few parties who say they have liens that need to be satisfied. I have run a UCC search and obtained a title report and I don’t see the liens they claim. I told this to one of their lawyers and he said his clients have “secret liens.” What in the world are “secret liens” and how am I supposed to know about them and deal with them?

A: Unfortunately there are numerous “secret ...

Employer Alert:  SB 1343 Extends Harassment Training Requirements to Small Employers and Non-Supervisory Employees

Under current California law, organizations with 50 or more employees or independent contractors must provide two hours of interactive harassment and abusive conduct prevention training for their managers and supervisors every two years and within six months of placement into a supervisory or management position.  The training required must include information and practical guidance regarding the federal and state statutory provisions concerning the prohibition against, and the prevention and correction of, sexual harassment, as well as the remedies available to victims ...

A Brief Summary of the Music Modernization Act

On October 11, 2018, President Trump signed the Orrin G. Hatch-Bob Goodlatte Music Modernization Act (the “MMA”).[1] 

The MMA was unanimously approved in both chambers of Congress before the President’s signature and marks the first major copyright legislation since the Sonny Bono Copyright Term Extension Act of 1998 (aka the Mickey Mouse Protection Act). The MMA is actually a collection of three separate laws (the MMA, the CLASSICS Act, and the AMP Act) designed to address three specific areas of music law that have been rife with uncertainty since the Copyright Act of 1976 ...

Employer Alert: New Fair Credit Reporting Act Summary of Consumer Rights Form Required for Background Checks

Beginning September 21, 2018, employers must use the newly issued model Summary of Your Rights Under the Fair Credit Reporting Act form (or their own form based on the model) when providing the required written notice to an employee or a job applicant that a background check will be conducted. The revised federal form is also required if an employer plans to take adverse action against an employee or applicant based on the report.  

The revised form includes notification of the newly granted right under the Economic Growth, Regulatory Relief and Consumer Protection Act passed by Congress ...

The Three Stages of Technology Procurement

Technology procurement is quickly evolving from a tactical, organization-wide undertaking to one that is more strategic and catering to multiple units within a company’s infrastructure. More businesses are taking advantage of things like Bellwether procurement software as a way to improve their procurement process. As a result, the skill set of the CTO, CIO, General Counsel and other members of the procurement team must follow suit. Upgrades used to be about minimizing costs and lowering risks. But those were the old days. Now, the procurement team responsible for software ...

National Labor Relations Board Proposes Relaxed Rule on Joint Employment

On September 13th, the National Labor Relations Board (NLRB) announced that it will propose a new joint employer rule that represents a relaxation of the current standard for determining if businesses are joint employers.  Under the current rule, known as the Brown-Ferris rule, the definition of joint employer is expansive, so that an employer having only indirect or potential control over another employer’s workers can be found to be a joint employer. 

Under the proposed rule, an employer may be found to be a joint employer of another employer’s employees only if it possesses and ...

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