Free Enterprise

How Not to Deal With Disgruntled Customers

2013-05-17T15:34:01Z

The sad story of a chef killed over a meal raises an important issue for small business owners: How should you deal with disgruntled customers? Or more to the point, how should you not deal with them?

Japanese chef Miki Nozawa died from injuries that resulted from a fight with two customers in Germany who apparently thought their meal was poorly prepared, UPI reports. No one has yet been arrested.

As a business owner, dealing effectively with unsatisfied customers -- unpleasant as it may be -- is a crucial and necessary part of keeping your business afloat. It can also help fend off potential lawsuits.

Here are some tips you may want to consider:

Never, ever physically attack your customer. The same should go for the customer in return. Unless the act is done in necessary self-defense, a fight can often lead to an assault or battery charge -- or in a worst-case scenario, death, as it did for the chef killed over a meal.
Don't talk back to the customer or insult them. This can only hurt the conversation, is in bad business and professional form, and -- depending on what you say and who hears you -- could potentially lead to a slander case.
Try not to take their criticism personally. Remember that as an employee or business owner, you are an agent of the business and acting on behalf of your store, or restaurant, or service. The disgruntled customer's ultimate issue is likely going to be with your business, and not you personally.
At the same time, be personal with the customer. There's no cookie-cutter, one-size-fits-all solution to dealing with disgruntled customers. Learn about what led them to complain and understand how this affected them personally. The more sensitive you are to this, the less you'll end up with a discrimination claim on your hands.
Don't lie to remedy the situation. This may seem obvious, but it's very easy to instantly admit fault in an effort to validate a customer right away. Apologize for the situation, but not the actual problem if it's untrue or not proven yet. Intentionally or negligently falsely representing the company can lead to issues with misrepresentation and fraud.

Follow FindLaw for Consumers on Google+ by clicking here.

Related Resources:

Chef Allegedly Killed Over Meal Diners Thought Was Poorly Prepared, Reports Say (The Huffington Post)
How Are Slander and Libel Different (FindLaw's Injured)
How To Avoid Being Defamed By Your Customers (FindLaw's Free Enterprise)
Corporations: Persons Without Personal Privacy Rights (FindLaw's Decided)

e-Book Authors May Need a Legal Book Review

2013-05-16T18:53:01Z

As self-published e-books top best-seller lists, writer-entrepreneurs may be wondering: Should e-book authors who self-publish submit their books for a legal review?

If an author expects her book to get a decent amount of exposure, and the book contains material that isn't in the public domain, then consulting an attorney who knows a bit about publishing laws isn't a bad idea.

Here are five legal tips for those writing an e-book, self-published or otherwise:

Copyright registration can protect you. Questions about copyright are quite common for e-book authors, and for good reason. When you publish an e-book, copyright protection begins the moment it's created. Still, you may want to register your copyright just in case any legal disputes arise -- namely, if someone claims you're infringing on their copyright, or if you want to prevent someone from using your copyrighted material. By registering your copyright, you make it easier to receive compensation or have a court enforce legal protections for your e-book.
Your e-book's cover may need legal cover. Let's be honest, people often do judge a book by its cover. If you're making saucy claims, you might need to include a disclosure. You may also need clearance and possibly a license to use trademarked names, phrases, and logos, as well as copyrighted photos, artwork, and even digitally rendered fonts.
Speaking of trademarks... If you're using trademarked material, throwing in a ® (for registered trademarks) or a ™ (for common-law trademarks) might be enough. But depending on the circumstances -- like if your title includes a trademarked word or phrase -- it may also be wise to add specific legal language to your copyright page. Contact the trademark owner to see if referencing the owner of the trademark will suffice. Many large trademark holders have a standard protocol for granting permission that's often posted on the company website.
Be picture-perfect when it comes to copyrights. If an image in your e-book is copyrighted, you will likely need a license in order to use it. A license may be exclusive or nonexclusive, and can be restricted by factors such as purpose (like commercial versus non-commercial), territory, duration, and media (like e-book versus print).
Be fair about fair use. You might be able to use copyrighted material in your e-book without permission if it's being used for comment, critcism, scholarship, or parody. Determining fair use, however, isn't always easy since it's a fact-based gray area of the law. Consequently, courts make decisions on a case-by-case basis.

If you think you need to get your e-book reviewed for legal issues, consult an experienced intellectual property attorney in your area. With any luck, that'll be "The End" of all your legal concerns.

Follow FindLaw for Consumers on Google+ by clicking here.

Related Resources:

Determining Whether a Work is in the Public Domain (FindLaw)
Why it Pays to Self-Publish a Professional Ebook (FindLaw's Free Enterprise)
'Harry Potter' Font Lawsuit Settled With a Wave of NBCU's Wand (FindLaw's Celebrity Justice)
Ebook 'Owners' Don't Have Many Legal Rights (FindLaw's Law and Daily Life)

Is It Legal to Spy on Your Employees?

2013-05-16T14:38:01Z

To snoop or not to snoop, that is the question. Employers might feel hesitant about spying on employees. It can give employees the impression that they aren't trusted.

Yet when employers find themselves in the midst of an embarrassing legal nightmare, monitoring employees may seem like a useful preventative measure.

But is it legal to spy on your employees? The answer may depend on how you're spying on them, and where your business is located.

Email Surveillance

Generally, employees have no privacy rights to their emails at work. Federal wiretapping laws allow employers to read email with employee consent or in the ordinary course of business, if the employer has a legitimate business purpose.

Many employers now have email systems that copy all email messages to check for productivity, illegal use, and other legitimate concerns.

If the computer system belongs to the employer, then the employer is allowed to monitor employee communications, as long as they have a valid reason for it.

Video Surveillance

Like reading email, video-only recordings of employees are generally legal, but they must be used for a reasonable purpose. Legitimate reasons include preventing theft, maintaining security, and measuring productivity.

Currently, federal law does not require employee consent for video monitoring. The employee doesn't even need to know about it.

Many state laws, however, have restrictions on where, how, and why an employer may record employees. In fact, courts have sided with employee privacy if the practice is physically invasive, such as hidden cameras in a bathroom.

Note that labor unions often negotiate limitations on video recordings of unionized workers. Video recordings can't be used to monitor union activity.

Regardless of the reason for use, employers must let workers know that cameras are being used in the workplace.

Audio Surveillance

Audio recordings are a different story, however. Under wiretapping laws, it's illegal to record oral communication in a surreptitious manner without one party's consent. In about 15 states, it's illegal to record audio without both parties' consent.

Social Media Surveillance

Many companies have social media policies that restrict what an employee can post on social networking sites about the company. It's important that social media policies not be overly broad -- especially when it comes to union or unionizing activities.

A number of states make it illegal for employers to discipline an employee based on off-duty activity on social networking sites, unless the activity can be shown to damage the company in some way.

Bottom Line: Put Your Policy in Writing.

Even if an employer's actions are legal, it's important for companies to have a written policy, accompanied by signed employee agreements, which clearly communicate to employees that they are being, or can be, monitored.

The policy should spell out who, what, when and where an employee can be monitored. But because laws about worker surveillance may vary depending on where your business is located, it may be wise to consult an experienced lawyer near you.

Follow FindLaw for Consumers on Google+ by clicking here.

Related Resources:

Can Employers Use Video Cameras to Monitor Workers? (FindLaw)
How to Hire a Social Media Expert for Small Biz (FindLaw's Free Enterprise)
Employer Monitoring Of Employee Social Networking Going To The Next Level (FindLaw's Technologist)
Is It Legal to Record Phone Conversations? (FindLaw's Law and Daily Life)

Ficticious Business Names: 3 Reasons to Register

2013-05-15T19:50:01Z

Registering your business with a fictitious name may sound like you're going to open your own magical candy factory or even a furniture company that produces suspiciously deep wardrobes. But it can be vital to your small business' success.

A fictitious business name, or DBA name, is required in many states if your business does not take the legal name of its owner. What are the benefits to registering a DBA name?

Here are three reasons for you to step into the non-fantasy realm of registering your business with a fictitious name:

1. To Reflect Your Business.

When you began your small business, you may have registered your company as a limited partnership or LLC, in which case the name on your articles of incorporation is the one the state legally recognizes.

But you don't want to be doing business as "Small Business Concern Group LLC" when your customers and future investors should know you as "Super Happy Great Times Emporium."

By registering your business with a fictitious name, your LLC or partnership can do business as (DBA) a name which will grow the brand of your business.

2. To Be Versatile.

Sole proprietors of multiple small businesses may not want to put "Humperdink Q. Pofferpock" on all of their companies' invoices. By using a fictitious name instead, Mr. Pofferpock may operate multiple franchises under multiple DBAs.

In some states, like California, you may be able to get away with doing business under a different name so long as you include your last name. But you probably want the option to not have to name your business "Pofferpock's Small Business."

3. To Enforce Contracts in Your Business' Name.

Part of the beauty of a registered fictitious name is that Mr. Pofferpock can legally enforce contracts done under the name of his business, instead of having to sue under his name alone.

Customers can also more easily find and serve the owners of businesses when they have complaints or potential lawsuits.

Just remember that if you want to do business under a fictitious name, you need to check if that name is available first.

Follow FindLaw for Consumers on Google+ by clicking here.

Related Resources:

3 Things to Consider When Naming a Business (FindLaw's Free Enterprise)
Business Name Changes: 7 Legal Reminders (FindLaw's Free Enterprise)
Registering the Name of Your Business (FindLaw)
Get the Forms You Need to Register a DBA (LegalStreet.com)
(Disclosure: LegalStreet and FindLaw.com are owned by the same company.)

What Can Happen If You Take Workers' Tips?

2013-05-15T17:26:01Z

In the restaurant industry, it's a big, beefy no-no for employers to take an employee's tips. Generally, it's not legal for managers to pocket a worker's tips. Violations can be pricey.

But laws on gratuities can be confusing. With terms like "tip credits" and "tip pools" floating around, managers may also need some tips on how to make sense of it all.

Here are some general rules about tips -- and some insight on what can potentially happen if those rules are violated.

Tipped Employees and the FLSA

In general, most employers must comply with the Fair Labor Standards Act's rules for "tipped employees." A "tipped employee" is someone who gets more than $30 per month in tips. It covers restaurant servers, bartender, and valets -- basically, anyone who receives gratuities from customers.

Under the FLSA, tips are considered the sole property of the tipped employee -- though employers should note that mandatory service charges are not considered tips under the FLSA.

An employer can only legally use an employee's tips as a credit to offset the employer's minimum wage obligation to the employee (known as a "tip credit"), or to be included a valid tip pool.

Employer Liability and Damages

The potential liability for an employer who violates the FLSA can be significant. Any employee who did not receive her full wage can file suit against her employer for damages, including back wages, liquidated damages, and attorney's fees.

An employer will typically have to pay the balance between the hourly wages paid and the applicable minimum wage for every hour that was worked.

If the case also involved an invalid tip pool, the employer will be liable for the amount of tips the employee was required to contribute to the invalid tip pool.

Courts will then award that same amount in liquidated damages.

Since this calculation is performed for each injured employee, if there are many employees involved, the total award paid out can quickly skyrocket.

The amount can also be staggering because of the statute of limitations, which begins anew from each violation that occurs, and not from the first violation. The statute of limitations for filing a claim under the FLSA is two years. If the violation is willful, this time is extended to three years. Two or three years of owed wages per employee can add up to quite a pretty penny.

Get Tips on Tips

Tips are a sensitive matter. Employers who have questions about tips may want to speak with an experienced employment lawyer who's familiar with federal and state laws. As seen in a recent episode of Fox's "Kitchen Nightmares," employers who are known to take employees' tips could face a forkful of backlash from angry customers.

Follow FindLaw for Consumers on Google+ by clicking here.

Related Resources:

Wages and Benefits (FindLaw)
Obama's $9 Minimum Wage Idea: 9 Things to Consider (FindLaw's Law and Daily Life)
When You Don't Have to Pay Minimum Wage (FindLaw's Free Enterprise)
Tip Credits: Dept. of Labor Sued Over New Rule (FindLaw's Free Enterprise)

Should Your Business Accept Bitcoin?

2013-05-14T17:30:01Z

The digital currency Bitcoin has taken the interest of small businesses again, as a New Mexico legal startup, Law 4 Small Business (L4SB), has announced it will start accepting bitcoins in exchange for legal services. Should your business do the same?

L4SB attributes much of its recent success to offering their customers flexible payment methods and options, and adding Bitcoin to this list will appeal to their tech-savvy small business clients, according to a company press release.

Bitcoin is by no means a new option for businesses. But business owners should consider these risks before offering payments in digital cash:

Unstable Currency?

Created in 2009, Bitcoin is an entirely digital currency which is not backed by any government.

Unlike the dollar, yen, and other forms of national fiat currency, Bitcoins fluctuate wildly in value, making them pretty risky for businesses to accept.

In March, one Bitcoin was valued at $40.20, up from $5.56 for one Bitcoin in June 2012, reports CNN.

Questionable Legality

U.S. federal law prohibits the production and circulation of your own currency, but Bitcoin falls in a strange legal gray area by remaining entirely digital.

Accepting Bitcoins for a business' goods or services is essentially bartering, assuming it is not a legal currency. And while it may be legal depending on your state and industry, there may be unintended tax complications.

No PCI Compliance

Bitcoin is one of many payment services that allow mobile transfers of funds, but it is one of the few that does not require PCI security compliance for payments.

PCI security standards are used by online payment managers such as PayPal, mobile payment companies like Square and LevelUp, and cash register-linked credit card readers everywhere.

The virtual currency institution employs its own highly technical and reportedly secure form of encryption and verification for transactions made with Bitcoins, but it is easy to see how consumers and businesses might be skittish about using such a novel system.

Transactions Irreversible, Untraceable

Just like with cash, transactions with Bitcoin are final and untraceable, which has prompted use of Bitcoin for drug transactions and other illicit sales.

Although Bitcoin touts this feature as good for businesses by saving them the hassle of dealing with reversed payments, a small business may alienate customers if it doesn't offer them a method of accepting payments with some sort of consumer protection.

Follow FindLaw for Consumers on Google+ by clicking here.

Related Resources:

6 New Bitcoin Educational Resources (Forbes)
Should You Accept Bitcoin for Your Services? (FindLaw's Technologist)
Considering Mobile Payments? 5 Legal Tips (FindLaw's Free Enterprise)
Top 5 Reasons Small Businesses Must Go Mobile (FindLaw's Free Enterprise)

A Biz Owner's Legal Guide to Summer Hiring

2013-05-14T14:19:01Z

With summer just around the corner, now is the perfect time for business owners to refresh themselves on the legal issues surrounding summer hiring.

Before business heats up in the summer, consider these legal tips when hiring seasonal employees:

Start your hiring search early. The early bird gets the worm. But more importantly, the early bird doesn't get the lawsuit. Legal disputes can arise from poorly drafted employment contracts and hasty job interviews, just to name a few common pitfalls.
Be careful about hiring teenagers. When school's out for the summer, it's convenient for business owners to hire teens to save money and increase temporary staffing for the season. But be careful. Teens are often covered by different employment laws.
Be careful about "hiring" unpaid interns, too. In this economy, it's becoming more common for businesses to take on unpaid interns. The experience can be mutually beneficial. But it's important to remember that in the name of labor laws (and common decency), unpaid interns can't just be free labor. If you're concerned about the law, look to the Labor Department. The agency issues and enforces rules for using unpaid interns.
Know how to provide a safe working environment. Even though seasonal employees have to hit the ground running, you need to make time to keep them safe. Provide safety training to make sure they understand workplace risks and hazards and what to do if they are injured on the job. And make sure you comply with all OSHA requirements.
Don't cut corners. Play by the rules. Part-time, temporary, or seasonal employees are covered by both Federal and state laws. Where your state laws are more restrictive, you will need to follow state law. Generally, all the federal protections regarding minimum wage and worker safety apply equally to full-time and seasonal/part-time workers. The law doesn't have summer hours. No paying seasonal employees under the table!

Follow FindLaw for Consumers on Google+ by clicking here.

Related Resources:

How Not to Get Sued Over Unpaid Interns (FindLaw's Free Enterprise)
Are Seasonal Employees Entitled to Overtime? (FindLaw's Free Enterprise)
Can Seasonal Holiday Employees Get Unemployment?(FindLaw's Free Enterprise)
Browse Employment Law -- Employer Lawyers by Location (FindLaw)

McDonald's Wage Theft? Timesheet Fraud Alleged

2013-05-13T13:55:01Z

You've heard of employees tampering with their timesheets, but a New York McDonald's employee claims his employer was fraudulently altering his time cards in order to cut his pay.

Frustrated ex-employee Jeff Schuyler claims his bosses at the Syracuse-area McDonald's modified his timesheets in order to avoid paying him overtime, reports The Huffington Post. His lawsuit seeks class-action status.

As wage theft continues across the country, employers should take a careful look at the laws relating to time and wage requirements.

McDonald's Employees Not Given Fair Shake?

One part of Schuyler's lawsuit against McDonald's Corp. and the Syracuse franchisee is that he and other employees were not paid for work done during their 30-minute lunch break, reports HuffPo.

After repeatedly complaining to management about the time-shaving and compensation issues, Schuyler was allegedly fired by the franchise owner, according to The Post-Standard.

Under the protections of Fair Labor Standards Act (FLSA), employers are required by federal law to track and record time for non-exempt (non-salaried) employees.

Employers can violate this act by:

Giving time off instead of overtime. Federal law prohibits giving employees time off in lieu of overtime pay.
Paying less than 1.5 times normal salary for overtime. Giving employees something less than the federal amount for overtime or paying them in gifts is illegal.
Refusing to pay for work done during breaks. Employers must pay employees for work done, even if federal law does not require employers to give lunch breaks.

New York Requires Lunch Breaks

Depending on the state, a business owner may be required by law to give her employees lunch breaks if they work long shifts.

Almost half of states require some sort of 30-minute lunch break. This includes New York, which would require McDonald's to give him a half-hour mealtime for "shifts of more than six hours that extend over the noon day meal period," according to the United States Department of Labor.

As Schuyler's former employer may be found liable under federal and state law for alleged wage theft, and the franchise owner is probably not "lovin' it."

Follow FindLaw for Consumers on Google+ by clicking here.

Related Resources:

McDonald's, franchise owner face class action for time-shaving (Inside Counsel)
Wal-Mart Settles Dozens of Suits Over Wage and Hour Practices (FindLaw's Common Law)
Burger King Franchisee Settles Harassment Suit (FindLaw's Free Enterprise)
Browse Employment Law -- Employer Lawyers by Location (FindLaw)

3 Tips for Business Owners Going on Reality TV

2013-05-10T15:04:01Z

As reality TV shows featuring small businesses become increasingly popular, other entrepreneurs may be wondering how they can get a piece of the reality TV pie.

However, a better question may be how to deal with some of the legal issues that often accompany a business owner's 15 (or more) minutes of fame.

Before you sign up to be the next "Pawn Stars" or "Duck Dynasty," or even just to be featured in a commercial TV segment, consider these tips about protecting yourself and your business once you're in the limelight:

Don't Tune Out During Contract Talks.

Most small businesses on reality TV see a huge boost in sales after the airing of their shows. Case in point: Sales at the pawn shop featured on The History Channel's "Pawn Stars" is five times higher now than when the show began in 2009, reports the Associated Press.

Even though this agreement may be favorable for your company, reality TV contracts can potentially go sour by:

Endangering your health. For exapmle, MTV's Real World participants sign contracts which absolve the network of any liability from STDs spread by other cast members.
Inviting lawsuits by relations. Miami Heat player Chris Bosh sued his ex-girlfriend after she signed an agreement to go on VH1's "Basketball Wives," which he argued was trying to capitalize on their past relationship.
Not paying you enough. Even though a show may be great windfall for your business, the contract should provide you with decent salary for appearing on TV, as well as any personality rights.

Remember Your Right of Publicity.

Generally, any TV production company seeking to use your likeness, name or persona has to pay you for the rights to use your image in commercial contexts, and the same may be true for your business.

Laws about the "right of publicity" vary from state to state, and in some states, your rights are only implicated when you become a celebrity or a public personality. The contract you sign when you go on TV may also spell out how your name, image, and business can be used commercially, and how you'll be compensated.

Sometimes, Reality TV Bites.

Getting a call from a reality TV producer may be exciting, but don't get reeled in too easily. You'll want to make sure the price is right, and that you (and your business) won't be cast in a negative light.

That's why it may be wise to consult an experienced media lawyer in your area before you enter contract talks. You don't want to leave any publicity money on the table, and you'll also want to have someone on your side in the event "lights" and "camera" is followed by "legal action."

Follow FindLaw for Consumers on Google+ by clicking here.

Related Resources:

7 Business Deals That Require a Written Contract (FindLaw's Free Enterprise)
3 Things to Know About Employee Contracts (FindLaw's Free Enterprise)
Practitioner's Guide to California Right of Publicity Law (FindLaw)
The Situation Sues Over Vodka Endorsement Deal (FindLaw's Celebrity Justice)

How to Avoid Being Sued Over Pregnancy, Maternity

2013-05-09T16:46:01Z

Being sued over maternity leave or a worker's pregnancy is an employer's nightmare, and can end up costing you in terms of money and time. How can you avoid such lawsuits in the first place?

Cases alleging pregnancy discrimination at work are more common than you may think, as are maternity-leave lawsuits. So this Mother's Day, business owners may want to give their maternal employees an incredibly useful gift: clear communication about maternity leave at your workplace. It's a gift that keeps on giving, since you'll be in a better position to avoid potential legal problems.

Here are a few suggestions to avoid getting sued over maternity leave or pregnancy discrimination:

Spell out your maternity leave policy in writing. Company maternity leave policies can get pretty complicated and confusing. To keep everyone on the same page, print your policies in a handbook. Summary charts and diagrams can be a boss' best friend. Also, it's wise to get employees to sign something saying they've read and understand your policies.
Document everything. Along with a clearly written and signed handbook, a great way to avoid lawsuits over maternity leave is to keep meticulous written records. Document which employees are on maternity leave, when they're set to return, and any issues that may come up. Keeping good records is an effective way to prevent lawsuits because it keeps interactions transparent.
Don't violate maternity leave laws. If your employees are eligible for Family and Medical Leave Act, a new mother is guaranteed 12 weeks of unpaid time off, in most cases. Financially strapped businesses should take note that there's no requirement to pay employees during that time. But many companies now offer paid and/or extended leave.
Don't violate the Pregnancy Discrimination Act. Don't make derogatory comments about pregnant women or pregnancy, don't deny a promotion because a woman is pregnant, and don't reduce responsibilities against a pregnant employee's wishes. Not only are these actions rude, they're also illegal.
Be careful if you're firing workers. It's against the law to fire an employee for getting pregnant or asking for maternity leave. Employers can't dismiss employees for any complications that require them to miss work in connection with having a child, though it's unclear if postpartum depression counts.

Laws about pregnancy discrimination and maternity leave can get complicated, and every situation is unique. To get legal advice on a specific issue, or if you're being sued over maternity leave, you may want to consult an experienced employment-law attorney near you.

Follow FindLaw for Consumers on Google+ by clicking here.

Related Resources:

Top 5 FMLA Reminders for Employers (FindLaw's Free Enterprise)
Are Employee Handbooks Enforceable Contracts? (FindLaw's Free Enterprise)
5 Legal 'Spring Cleaning' Tips for Your Business (FindLaw's Free Enterprise)
Moms at Work: Do Your Policies Help or Hurt? (FindLaw's In House)

Bad Call? 1 in 3 Businesses Aren't Going Mobile

2013-05-08T19:10:01Z

While many of us couldn't imagine life, much less business, without a mobile device, some business owners are choosing not to go mobile.

Despite the proliferation of iPhones and BlackBerrys in the workplace, a staggering 34% of companies use no mobile devices in their business, according to a new study by Constant Contact Inc. and reported by Daily Deal Media.

With a healthy one-third of businesses no using mobile technology whatsoever, maybe the old-fashioned methods are worth a second look.

Reasons to Not Go Mobile

Although many companies have put themselves on the map by providing exclusively mobile services, many companies feel that mobile solutions are not for them. Some common reasons include:

Customer demand isn't there. If your company's customer base isn't clamoring for a new way to connect with your product or service, why invite the hassle of mobile?
It requires learning and buying new devices. Technology progresses at an amazing rate, so it isn't a surprise when business owners and even legal professionals fall behind.
Not relevant to business. Your simple mom-and-pop business may not involve anything even close to requiring a mobile device, so why try to shoehorn it in?

Risks of a Non-Mobile Strategy

For those choosing to avoid the untethered route and stick to a more grounded strategy, consider these potential risks:

Print advertising is losing its punch. Direct-mail ads and newspaper ads are not as effective as digital ads, which can more narrowly target customers.
Paper records aren't disaster-proof. If the majority of your documents and contracts are swept away by a flood or hurricane, you'll be wishing you had a mobile or cloud backup.
You may fall behind your competitors. Your company may lose its edge over others in your industry if you ignore mobile and they jump on it whole hog.

Mobile Pitfalls Avoided

Although there are risks to staying with a more traditional form of business, there are certainly pitfalls to going to mobile. These include:

Customer data is vulnerable to theft. Depending on the security of your mobile solution, identity thieves may make off with sensitive information about customers, leaving you potentially liable.
Taxes become more complicated. Choosing to use a mobile payment service may seriously complicate your taxes.
Worries about transparency and customer trust. A more traditional interface with customers will not have them worried that their business is about the hands of a cold-hearted algorithm.

Keep these pros and cons in mind as you consider whether your business should go mobile. Bottom line: It's your call.

Follow FindLaw for Consumers on Google+ by clicking here.

Related Resources:

Small Business Is Missing The Digital/Mobile Revolution (Forbes)
5 High-Tech Mistakes Business Owners Must Avoid (FindLaw's Free Enterprise)
7 Ways You're Sabotaging Your Own Business (FindLaw's Free Enterprise)
New Mobile Credit-Card Readers Can Pay Off (FindLaw's Free Enterprise)

Mom Business Owners: Tips for Success

2013-05-08T15:25:01Z

Sure you're a mom, but you're also an entrepreneur running a successful business. And although those skill sets often overlap, there may be some pitfalls to treating your employees like your children.

The following tips will help keep mothers, and the businesses they own, on top:

1. Find Funding in Unexpected Places.

Women-owned businesses have a poor track record for attracting investors, with venture-capital funds flocking to traditionally white-male-dominated tech startups.

But don't be discouraged: There are plenty of good ways for moms to fund their budding businesses. Some potential routes that may pay off include:

Small Business Administration (SBA) loans. There are two kinds of loans backed by the federal government given to businesses with at least two years of cash flow.
Home equity loans. Moms put a lot of love into their homes, and this loan may allow you to get some love out for your business.
Loans from loved ones. Keeping strong family connections has its benefits, sometimes in the form of a low- or no-interest loan.

2. Interview Like a Pro.

Depending on the size of your business, you may be interviewing employee candidates every month, so it pays to remember these tips:

Be polite. but not informal. Every mom has her own interview style. But if you're too casual, an applicant may take your friendly demeanor as a sign of an informal chat and not an interview.
Don't get too personal. Questions about kids, partners, pregnancy and marriage may seem harmless, even if it's between two women, but these questions can potentially expose you and your business to discrimination lawsuits.
Interview in a smart space. Even if you work from home, choose a neutral, quiet space to interview -- and not a noisy neighborhood Starbucks.

3. Don't Be Your Employees' Mom.

Moms have enough to deal with from their own children, there's no need to invite more stress by being overly maternal with your employees.

Being friendly and open is fine, but even with a business partner, you may want to clarify your role as a boss in writing, along with your employees' roles and your expectations.

4. Get Some Legal Backup.

Running a business requires a lot of contracts and paperwork, and your reputation as a business owner depends on those items being immaculate and effective. How can you make sure you're complying with all the laws and regulations out there?

One way, of course, is to retain an experienced business lawyer. But another, and perhaps more affordable, option is to sign up for a prepaid legal plan like those offered by LegalStreet. LegalStreet plans include contract reviews and on-call access to local attorneys, among other benefits, for an average cost of less than $13 a month. For busy business-owner moms, that's a small price to pay for some legal peace of mind.

Disclaimer: LegalStreet and FindLaw.com are owned by the same company.

Related Resources:

Financing Small Businesses: Do's and Don'ts (FindLaw's Free Enterprise)
Sources of Small Business Financing (FindLaw)
How to Conduct a Legal Job Interview (FindLaw's Free Enterprise)
7 Business Deals That Require a Written Contract (FindLaw's Free Enterprise)

eBay Buyer Sues Seller Who Sued Over Bad Review

2013-05-07T18:16:01Z

On eBay, ratings equal social currency: They can make or break a seller's reputation. That's why Med Express, an eBay seller, sued a buyer who wouldn't take down her negative review. It was the only piece of negative feedback against the company.

Med Express eventually backed down, but the buyer's lawyer is pursuing a countersuit because of the company's troubling pattern of suing buyers over bad reviews.

But are Med Express' eBay lawsuits "completely frivolous," as the eBay buyer's lawyer claims?

A Dispute Over Small Change

The eBay buyer in question, Amy Nicholls, paid $175 for a microscope light, as well as $12 for shipping. She was annoyed when she had to pay an extra $1.44 in postage due and left feedback complaining about that inconvenience, reports Ars Technica.

Since the company offered to refund her the $1.44, the company says that she should have taken down the negative feedback, which could hurt its business.

Med Express touts 142 posts of positive feedback and only one negative review. Ironically, it's the lawsuit that may cause more damage to their sterling reputation.

The Countersuit

Nicholls is being represented by Public Citizen, a consumer-advocacy group. In a written statement, Public Citizen's Paul Levy called the lawsuit frivolous, reports Ars Technica.

Levy explained that his client's "opinion might be right, or it might be wrong, but harboring it and expressing it is not a tort. And it is certainly no reason to seek damages, attorney fees, and an injunction."

In a frivolous lawsuit, a party (or his lawyer) knows -- or should know -- that the legal claim he's making is baseless, but pursue the lawsuit anyway. Such lawsuits are commonly used to harass or intimidate the target of the suit.

In Nicholls' case, Levy says that Med Express has little negative feedback because it "bullies critics by filing or threatening to file frivolous lawsuits every time negative feedback appears."

Unfortunately for Med Express, "annoyance" is a feeling anchored by opinion. A review based on lies could lead to a defamation suit, but a review expressing an opinion is typically protected free speech -- even if it hurts a business just as much as an untruthful review.

But businesses should be careful about even pursuing defamation suits. For example, California's "anti-SLAPP" laws can protect defendants against defamation lawsuits that are brought to punish, deter or silence public debate on topics of public interest.

In both frivolous and "anti-SLAPP" cases, businesses that end up on the losing side can wind up paying the other side's attorney fees.

Given Med Express' alleged shady history of suing buyers, Levy is using the case to teach the company a lesson. He's going to pursue attorney fees and then some, reports Ars Technica.

Getting negative reviews is annnoying for any business, but it's better than pursuing a string of lawsuits that will definitely cost your company more than $1.44 -- and a pile of social currency.

Follow FindLaw for Consumers on Google+ by clicking here.

Related Resources:

$1.44 Dispute Reveals Billions at Stake in Online Customer Feedback (ABC News)
How to Avoid Being Defamed By Your Customers (FindLaw's Free Enterprise)
The Yelp Question: Are Free Online Reviews Good? (FindLaw's Free Enterprise)
Browse Business & Commercial Lawyers by Location (FindLaw)

New Moms at Your Workplace? Know These 5 Laws

2013-05-07T15:00:01Z

Everyone has a mom, and every small business owner needs to know the laws that protect and provide for their new mom employees.

Employers should strive to be vigilant and current in their understanding of the federal and state laws relating to motherhood and the workplace. Here are five laws that can be particularly important for business owners:

1. The Pregnancy Discrimination Act.

Passed in 1978, the Pregnancy Discrimination Act amended federal law to prohibit pregnancy discrimination under Title VII. This Act clarified that businesses which discriminate against pregnant women are essentially discriminating based on sex, and that both are prohibited.

The following are examples of pregnancy discrimination that employers will want to avoid:

Derogatory comments about pregnant women or pregnancy,
Denying promotion to a pregnant employee, and
Reducing responsibilities based on a woman's pregnant status.

2. The Family and Medical Leave Act (FMLA).

Passed under the Clinton administration, the FMLA requires most employers to provide employees with certain minimum amounts of time off for family or medical emergencies.

So if an employee has a baby or even adopts a child, an employer bound by the FMLA must provide the worker with:

Up to 12 weeks of unpaid time off,
Continued health insurance benefits during that time off, and
Their equivalent position once the employee returns to work.

Employers should also be prepared to offer FMLA time off for women who may have complications due to pregnancy.

3. Breastfeeding-at-Work Laws.

The idea of an employee breastfeeding in the workplace may make a business owner uncomfortable, but under federal law, in most cases you must provide a non-bathroom space and break time for a mother to breastfeed for up to a year after her child is born. (There are many exceptions to this law, however.)

State laws vary on this subject. For example, Colorado requires accommodation for breastfeeding moms for up to two years after a child's birth.

4. The Americans With Disability Act (ADA).

Pregnancy can also be considered a disability under the ADA, a law which requires employers with 15 or more employees to provide reasonable accomodations for a disability that affects work.

Employers should craft workplace policies which allow for less physical work, longer breaks, or less standing in the case of pregnant employees.

5. State Laws About Pregnancy and 'Disability.'

Depending on the state your business is located in, you may also need to comply with additional state requirements for pregnancy disability.

Employers in California, for example, should be familiar with the state's Pregnancy Disability Leave Law. The law allows up to four months of pregnancy leave which can be taken at any time over a one-year period.

To make sure you're complying with employment laws regarding new moms in your state, you may want to consult an experienced employment lawyer near you.

Follow FindLaw for Consumers on Google+ by clicking here.

Related Resources:

Legal to Fire Pregnant Waitress From Strip Club? (FindLaw's Free Enterprise)
Pregnant Woman Fired for Premarital Sex (FindLaw's Legal Grounds)
'Price Is Right' Model's Pregnancy Lawsuit Verdict Overturned (FindLaw's Celebrity Justice)
10 Ways the FMLA Can Work for You (FindLaw's Law and Daily Life)

Like Yahoo, Should You Extend Maternity Leave?

2013-05-06T14:54:01Z

Yahoo CEO Marissa Mayer is making Mother's Day a little more special for her maternal employees, with a new extended maternity leave policy.

Mayer, a working mom herself, got a fair share of backlash when she issued a ban on telecommuting two months ago. But she seems to be making amends with Yahoo's new offer of longer paid leave for new moms -- and dads.

Should your company follow suit and offer extended maternity (and paternity) leave too?

Yahoo's New Policy

Under Yahoo's new maternity leave policy, mothers can take 16 weeks of paid leave with benefits -- twice the length of paid leave under the old policy, reports the San Francisco Bay Area's KNTV. New fathers can take up to eight weeks each time a new child is born.

Both parents can receive eight weeks of paid leave for new children via adoption, foster child placement or surrogacy.

Yahoo will also give new parents $500 to spend on such things as house cleaning, groceries and babysitters, plus Yahoo-branded baby gifts.

The new policy puts the company in the same ballpark as other Silicon Valley rivals: For example, Google gives between 18 and 22 weeks off to new mothers, and Facebook gives new mothers and fathers four months of paid leave, according to KNTV.

Pros and Cons

Of course, tech giants may be better able to offer generous paid time off to new parents than your own small business. If you're considering an extended maternity or paternity leave policy, there are a few pros and cons to factor in, such as:

It's great for the company image. A progressive policy is attractive to talent -- including talented men. A corporate strategy that moves with the times gets the cream of the crop which, in turn, improves financial performance.
It can be expensive. What's more, the cost of extended paid leave may lead to the unfortunate consequence of managers looking for job candidates who won't use the benefit. But by passing up a qualified younger woman or man in favor of an older candidate, you could potentially be hit with an age discrimination lawsuit.
It motivates employees. Yahoo's "baby bucks" will encourage new parents to be engaged with the company and have a little more financial peace of mind. When companies look like insensitive penny-pinchers, it makes for an unpleasant environment.
It requires extra planning. Extra maternity leave is an adjustment for the new parents, and their employers. In Yahoo's case, 16 weeks is a long time, and they will have to make staffing adjustments during that period. But coming up with a clear plan and schedule can help companies and new mom business owners as well.

Follow FindLaw for Consumers on Google+ by clicking here.

Related Resources:

Marissa Mayer extends Yahoo's maternity leave (CNN Money)
Family and Medical Leave Act (FindLaw)
Breastfeeding at Work: What Employers Need to Know (FindLaw's Free Enterprise)
'Price Is Right' Loses Legal Showdown Over Maternity Leave (FindLaw's In House)