What Are Insolvency Laws and How Do They Help Small Businesses?

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Contact the Philadelphia Business Attorneys at Sidkoff, Pincus & Green P.C. if Your Business Has Become Insolvent

The word “insolvency” signifies financial distress for individuals or businesses when debts cannot be paid on time. It is generally used after a company has entered into informal arrangements with its creditors to pay off what is due. When those do not pan out, further steps are taken.

Why Do Businesses Become Insolvent?

Businesses and companies become insolvent for a number of reasons. Poor human resources management and inadequate accounting are two main causes. It can also happen when businesses raise their costs and share that with large clients, who soon after end the relationships. Other reasons that lead to less income and high debt include not meeting customer needs, and costly lawsuits.

Insolvencies can be temporary when assets are liquidated and/or debts are restructured into manageable payments. Many times, smaller companies are bought by larger ones that assume the debt. Creditors tend to prefer those options over not getting repaid at all. A repayment plan has to be realistic and have evidence showing where the cash will come from while the business remains profitable.

Is Insolvency the Same Thing as Bankruptcy?

Insolvency and bankruptcy are two different things. Insolvency is a temporary situation that hopefully gets resolved. When that does not happen, a company may have to declare bankruptcy. During bankruptcy proceedings, a court decides how the insolvent party will handle the unpaid obligations. That could involve selling off more assets, and could negatively impact a company’s credit rating.

New Bankruptcy Laws

For the past few years, lenient lenders, low interest rates, and government stimulus money have worked to decrease the number of Chapter 11 filings. The 2019 Small Business Reorganization Act (SBRA) also made Chapter 11 more accessible to debtors; the CARES Act (temporarily) raised the debt limit to $7.5 million for many eligible small businesses. How did this happen?

In 2020, a subchapter was added to Chapter 11 through the SBRA: Subchapter V. Designed to help small businesses with limited time and resources, it lessened the time and money needed for bankruptcy cases. Through Subchapter V, businesses with less than $2.7 million in debt could apply for this program. Things changed after the $2.2 trillion CARES Act; now the threshold is $7.5 million. In essence, small businesses with debt up to $7.5 million can be eligible to file for bankruptcy under Subchapter V.

Impacts of Subchapter V

As a result of Subchapter V, more small businesses have become eligible to apply for faster, less costly bankruptcy filings. Since 2020, more than 3,400 small businesses filed for Subchapter V relief, bypassing traditional Chapter 11 filings. Insolvent businesses can reap these other advantages by filing for Subchapter V:

  • Creditors are responsible for uncovering debtor abuse and fraud because there are no appointed creditors’ committees. Debtors pay creditor committee expenses in typical Chapter 11 filings.
  • With Subchapter V, creditors are responsible for determining if debtors are properly qualified small businesses.

Contact the Philadelphia Business Attorneys at Sidkoff, Pincus & Green P.C. if Your Business Has Become Insolvent

The rules for legal bankruptcy filings have certainly changed these past few years and it can be challenging to know what best suits your needs. For a confidential consultation, contact the experienced Philadelphia business attorneys at Sidkoff, Pincus & Green P.C. Call us at 215-574-0600 or complete our online form today. We are located in Philadelphia, and help clients in South Jersey, Pennsylvania, and New Jersey.

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The Role of Contracts in a Business Relationship

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The Philadelphia Business Attorneys at Sidkoff, Pincus & Green P.C. Protect Your Business.

A contract is a legal document that outlines the scope of the agreement between two or more parties, as well as their respective rights and responsibilities. It also serves as a legal protection for both parties involved in case of a dispute or disagreement.

Why Use Business Contracts?

Contracts help define the scope of an agreement between two or more parties, as well as their respective rights and responsibilities. They also serve as a legal protection for both parties involved in case of a dispute or disagreement. Without a contract in place, either party may take advantage of the situation by not fulfilling their end of the bargain—with no recourse available to the other party.

In addition, contracts provide details about payment terms and other key items related to the business relationship. This includes information such as how long the agreement will last (or when it will expire), what happens if one party fails to perform according to expectations (legal repercussions), who owns any intellectual property created during the course of working together (copyrights) and more. Without these details laid out clearly in a contract, it is much easier for misunderstandings and disagreements between two parties to arise.

Contracts also help protect businesses from unexpected liabilities and unforeseen costs associated with entering into agreements with third-party vendors or partners. Having a contract can help protect your interests if you do end up facing unexpected liability or cost issues later on down the road.

Contracts are essential for any business relationship because they define each party’s rights and responsibilities while providing legal protection against potential disputes or disagreements that may arise during the course of working together. They also provide details about payment terms and other key items related to the business relationship which can save businesses from unexpected liabilities or unforeseen costs associated with entering into agreements with third-party vendors or partners down the line.

General Terms to Include

Every business contract should include, at a minimum, the following terms:

  • Parties Involved: All parties involved in the contract must be identified, with their name and address, as well as any relevant contact information.
  • Subject of Contract: The contract should clearly identify what is being agreed on, such as services rendered or goods supplied by each party.
  • Duration of Contract: The duration of the agreement should be specified and accepted by both parties.
  • Payment Terms: Payment terms for any goods or services provided should be detailed in the agreement. This will include any payment due dates and refund policies, if applicable.
  • Obligations of Parties: Both parties must understand their roles and responsibilities outlined in the agreement, which might also state how long a party has to perform its service or provide its goods before breach occurs.
  • Conditions of Termination: All contracts should detail procedures for termination of the agreement, including how either party can legally end the contract and any obligations that remain after it has been terminated.
  • Governing Law: It is essential to specify which law governs the agreement and where any disputes will take place if necessary.

The Philadelphia Business Attorneys at Sidkoff, Pincus & Green P.C. Protect Your Business

To make sure your business is protected, speak with the Philadelphia business attorneys at Sidkoff, Pincus & Green P.C. Contact us at 215-574-0600 or inquire online. With offices in Philadelphia, we proudly serve our neighbors in South Jersey, Pennsylvania, and New Jersey.

Do I Need an Employment Lawyer to File a Discrimination Claim?

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The Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Protect Your Rights as an Employee.

For complex legal situations like a workplace discrimination claim, it is often a good idea to seek advice and guidance from legal counsel. An experienced employment lawyer can help you navigate the difficult process ahead.

How an Employment Lawyer Can Help You?

An experienced employment lawyer can provide invaluable assistance to an employee who may have been discriminated against at work. An employment attorney can help the employee in various ways beyond mere representation, such as gathering evidence and determining how the employer violated any laws and to what extent.

Gathering Evidence

Gathering evidence is a critical step in filing a discrimination claim. Experienced attorneys can help employees collect and document relevant information that proves discrimination occurred. This includes collecting emails, text messages, witness statements, and relevant documents. An attorney can assist by conducting interviews with witnesses and obtaining the employer’s records on the case.

Determine Whether the Employer Broke the Law

Determining whether the employer violated any laws is another important role for an experienced employment lawyer. An attorney can review state and federal laws related to discrimination and advise their clients on whether they may have a valid claim. They can also review any applicable collective bargaining agreements to see if there were any breaches of duty by the employer.

Presenting Your Case in Court

Presenting a case in court requires knowledge of civil procedure. A seasoned employment attorney will be familiar with all the steps involved in litigation, including how to properly draft pleadings, file motions, respond to discovery requests, present oral arguments, and negotiate settlements with opposing counsel. An attorney’s knowledge of court rules and procedures can greatly improve an employee’s chances of success when pursuing a discrimination claim against their employer.

Examples of Illegal Workplace Discrimination

Potential illegal workplace discrimination could be a manager refusing to promote an employee solely based on their gender. The manager may have given other people with lesser qualifications the promotion and justified it by saying the passed over employee was not a “good fit” for the job despite their qualifications, while every other person promoted was of the same gender, different from the employee passed over. This type of gender-based discrimination is illegal in all workplaces and can leave employees feeling devalued and powerless.

Sexual harassment can also rise to the level of illegal workplace discrimination where a supervisor sexually harasses an employee. This type of discrimination is illegal and involves unwelcome conduct, such as physical or verbal advances, making derogatory comments, or sending inappropriate texts or emails. In the scenario, the employee may feel powerless and unable to speak up because they fear reprisal from their superior. Sexual harassment can create a hostile work environment, leaving employees feeling embarrassed, intimidated, and violated.

Illegal workplace discrimination can also look like a hiring manager passing over qualified applicants based on their race or ethnic background. In this scenario, the manager would place job postings with language designed to restrict certain applicants from applying, such as indicating they “prefer” an applicant from a certain background, requiring unnecessary qualifications, or offering lower pay for the same position based on a person’s race. This type of discrimination is illegal and violates an individual’s right to equal employment opportunities. Such discriminatory practices can discourage employees from applying for positions and leave them feeling frustrated and undervalued in the workplace.

The Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Protect Your Rights as an Employee

If your employer is discriminating against you, you may have a valid legal claim against them. To explore your legal options, speak with our experienced Philadelphia employment lawyers at Sidkoff, Pincus & Green P.C. Call us at 215-574-0600 or fill out our online form to schedule an initial consultation. With offices in Philadelphia, we proudly serve our neighbors in South Jersey, Pennsylvania, and New Jersey.

Managing Risk in Business

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The Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Help Companies Manage Risk.

Businesses that are not protected from risk are vulnerable when unpredictable situations occur and spiral out of control. While situations like skyrocketing interest rates and politics cannot be controlled by the business owner, entrepreneurs can protect themselves against lawsuits and other risks. Many businesses have shuttered their doors permanently because they did not prioritize risk management. With the stakes being so high, company owners should understand the importance of effective risk management strategies.

How Can I Determine What Risks My Business Faces?

A risk management strategy starts out by identifying sources of legal threats. The main dangers come from contracts, structural changes, regulations, and litigation. Specific threats can be pinpointed and compiled into a list that describes the risks in detail. Next, they can be categorized into the ones most likely to the ones least like occurring, taking the likelihood of financial loss into account.

Risks can also be frequent and infrequent: employees might steal things, there could be bad weather that cancels an outdoor festival, but insurance would cover these kinds of losses. Other legal risks include potential slips and falls inside a hardware store, intellectual property lawsuits, or a major fire. The legal consequences can be compensatory or punitive, like monetary fines or injunctions that close companies down.

Limiting Liability

Just like individuals, businesses have certain insurance needs, and having the same policy for years without regular reviews is risky. Business owners can also purchase life and disability insurance to cover losses and provide for their loved ones.

Businesses that sell products can hire attorneys to review their goods for litigation and regulatory risks. An example of a risk might be an improperly labeled product: if a consumer follows incorrect directions and becomes injured, the company might be held liable. Another area of risk management is contracting. Companies that hire vendors use contracts, which require the proper language to spell out what both parties’ responsibilities if the contract is broken.

Managing Physical Risks

Having the appropriate legal framework for risk management is crucial but business owners still need to be diligent about minimizing the chances of adverse events happening. One of the first steps is to analyze the location hazards and put an emergency plan in place.  An example of a location hazard might be a gas station down the street that could potentially catch fire. All employees must be made aware of emergency protocols, with a clear chain of command to step in should something happen.

Businesses should also have working alarms, smoke detectors, and sprinkler systems. If there are hazardous materials like toxic liquids on-site, employees have to be trained and properly equipped to handle them safely. These are just a few examples of physical hazards and there are other risks related to employee behaviors, technology, and strategy.

Managing risk might seem like an overwhelming undertaking, but modern legal technologies will help you and your employees streamline the processes so you can focus on running your company.

The Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Help Companies Manage Risk

At Sidkoff, Pincus & Green P.C., our experienced Philadelphia business lawyers can help analyze your company’s risks and develop a solid strategy to manage them and protect your interests. Contact our Philadelphia office at 215-574-0600 or complete our online form for more information. We serve clients throughout South Jersey, Pennsylvania, and New Jersey.

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Can Non-Compete Agreements be Banned?

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The Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Protect Your Rights as an Employee.

Recently, the Federal Trade Commission (FTC) announced that non-compete agreements could be banned, removing the standard workplace practice of restricting a worker’s ability to move between jobs. These contracts have been used in the past to protect companies’ trade secrets and other confidential corporate information by preventing employees from leaving for a rival company, competing with their current employer, or sharing confidential information.

The FTC states that these agreements can restrict innovation and harm workers’ ability to earn more money. With this in mind, it is essential to look at the pros and cons of banning non-compete agreements, both for employers and employees.

What is a Non-Compete Agreement?

In today’s competitive business landscape, non-compete agreements are becoming an increasingly common way for employers to protect their trade secrets and other confidential information from competitors. These contracts usually involve a worker agreeing not to leave the company and join a rival business or take advantage of any opportunities with a competitor within a specified period of time. Additionally, they may also include clauses restricting employees from developing inventions using the same skills they acquired while working at their current job.

The purpose of non-compete agreements is to ensure that employees do not leave their current company with confidential information or use knowledge gained on the job to benefit other companies. On the flip side, some argue that these contracts can be overly restrictive and ultimately limit employees’ ability to progress in terms of wage increases or future opportunities. Ultimately, it is up to companies and their workers to determine if and when non-competition contracts should be used‌ and whether the FTC formally bans them as a corporate practice.

Pros of Banning Non-Competes

From an employee standpoint, one main benefit of banning non-compete agreements is that they will no longer feel restricted from pursuing new opportunities. This means they can join rival companies or pursue higher wages without fear of legal repercussions. Additionally, these individuals will have increased freedom to innovate, as they won’t be limited by any clauses restricting their actions.

For companies, a ban on non-compete agreements could result in access to a larger pool of qualified candidates and new ideas. Since the best talent may not want to work under conditions that limit their future opportunities, this would give them more incentive to come work for a new company. Moreover, having a wider selection of job applicants could create greater competition between potential employees, which could lead to better quality work overall.

Cons of Banning Non-Competes

Despite the potential benefits mentioned above, there are some downsides to banning non-compete agreements for both parties involved. For instance, it may become easier for former employees who know sensitive information about your business to leave with it and use it against your company if they move onto a new organization within the same industry. Thus, businesses need access to legal recourse if this situation arises.

Employers may argue that a ban on non-competes would make it too difficult for them to retain their top talent, since nothing would prevent them from going elsewhere. Companies might also worry that without any restrictions on development outside the workplace, some employees may contribute their own ideas towards competitors instead of developing new ones specifically for their current employer’s use.

The Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Protect Your Rights as an Employee

To discuss your legal options, speak with the Philadelphia employment lawyers at Sidkoff, Pincus & Green P.C. Contact us online or call us at 215-574-0600. With offices in Philadelphia, we proudly serve our neighbors in South Jersey, Pennsylvania, and New Jersey.

Does Pregnancy Stigma Exist in the Workplace?

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Pregnancy Stigma Exist in the Workplace.

Despite numerous laws banning pregnancy discrimination in the workplace, pregnant employees continue to report varying degrees of harassment and stigmatization. In fact, according to the most available Equal Employment Opportunity Commission (EEOC) and other government-run entities’ filings and data, more than 50,000 claims related to pregnancy discrimination were submitted in the last decade.

Recognizing signs of pregnant worker discrimination can be challenging at times. While some types of discrimination are obvious, others are more subtle. This is why many pregnant employees turn to employment lawyers to help them determine if they have potential pregnancy discrimination cases against their employers.

What Does Pregnancy Stigma and Discrimination Look Like?

The broadest possible definition of pregnancy discrimination is discrimination against a pregnant individual or a recently pregnant individual. The discrimination can be pervasive, feeling built into the culture of an organization. It may come directly from a single person, such as a manager or co-worker. Alternatively, it might appear in several forms over the course of the worker’s pregnancy, maternity leave, and return to the job.

The Pregnancy Discrimination Act was passed in 1978 to tackle pregnancy discrimination, and the Americans with Disabilities Act of 1990 touches upon pregnancy stigma. Unfortunately, even with these regulations and laws in place, plenty of pregnant workers say that they have experienced discrimination because they were carrying a child.

In one study of workers who were pregnant, around one-quarter of those surveyed said they were so concerned about being treated unfairly that they withheld news about their pregnancies out of fear.

What Are Some Examples of Pregnancy Discrimination?

There is no one kind of pregnancy discrimination. For that reason, the examples of pregnancy discrimination are quite widespread and all-encompassing.

  • Being inappropriately touched by colleagues, especially in the abdominal area.
  • Being skipped over for promotions.
  • Being forced to leave.
  • Being told that they cannot have temporary accommodations, such as being able to sit in a chair instead of standing.
  • Being called out for stereotypical “pregnant person” attributes, such as postpartum depression, inflexibility, lack of commitment, or mood swings.
  • Being denied employment despite having posted qualifications.
  • Being offered lower salaries than are offered to male counterparts performing the same roles.
  • Being taken off of prime job assignments.
  • Being overlooked for coaching, training, mentoring, and professional development opportunities.

What Are the Effects of Work-Based Pregnancy Stigma?

A workplace that allows known pregnancy discrimination to continue can become emotionally toxic and stressful for both pregnant workers and the teammates who support them. Not only is pregnancy discrimination unlawful and unethical, but it can cause long-term health problems for pregnant employees and their babies.

One piece of research from Baylor University uncovered a correlation between pregnancy discrimination in the workplace and a host of unwelcome physical and mental symptoms for mother and child. These symptoms ran the gamut from lowered birth weight and higher risk of postpartum responses to increased need for doctor appointments.

What Should Pregnant Workers Who Experience On-the-Job Bias Do?

If you or someone you love experiences job-related pregnancy discrimination, you can take a few steps. First, get in touch with someone in the human resources or personnel department. Ask for a copy of the employer’s pregnancy discrimination policy. Be aware that some companies are more forthcoming than others.

Next, keep track of any discriminatory or biased infractions, discussions, or messages. Never delete Slack pings or emails, and keep all handwritten notes. It is easier to make a case against an employer with documentation.

Finally, speak with an employment lawyer. Employment attorneys have the background to advise you on your rights as an employee. Above all else, you legally deserve to be treated fairly no matter what your medical condition.

Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Hold Employers Who Allow Pregnancy Discrimination Responsible

Did you or someone you care about experience pregnancy discrimination, stigma, or bias on the job? Call our Philadelphia employment lawyers at Sidkoff, Pincus & Green P.C. at 215-574-0600 or fill out our online contact form. Our team has an office in Philadelphia and our attorneys handle employment law cases in Pennsylvania and New Jersey.

Can I Be Fired for Reporting Sexual Harassment?

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The Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Protect Your Rights as an Employee.

Experiencing sexual harassment in the workplace can be a frightening and overwhelming ordeal. It is important to know that reporting this behavior is not only necessary, but it is also protected by law. An employee cannot be fired simply for reporting sexual harassment, and employers are not allowed to take adverse employment actions against an employee who has reported such behavior.

What is Adverse Action?

The law protects those who have experienced or reported sexual harassment in the workplace. It applies to employees who report harassing behavior as well as victims of the harassment. The law prohibits employers from retaliating against either party by taking any adverse actions.

“Adverse action” is defined as any action taken by an employer that negatively impacts an employee’s job status. This can include demoting them, decreasing their pay, creating a hostile work environment, reducing their hours, or retaliating against them. An employee who reports sexual harassment should not have to worry about facing any kind of adverse action from their employer. If they do face any form of retaliation from their employer for reporting sexual harassment, then they may be able to file a claim with the Equal Employment Opportunity Commission (EEOC).

The EEOC is a federal agency that enforces civil rights laws and investigates allegations of discrimination in the workplace. If you have reported sexual harassment at work, your employer must investigate your claim. The EEOC will check up on them to ensure a full investigation occurred, and they will ensure you do not receive any adverse action. If you do, your employer could be subject to sanctions, including reinstating you in your job if you have been terminated.

What If I Was Fired?

If you have been fired for reporting sexual harassment in the workplace, there are several steps you can take to protect yourself. Besides reporting the issue to the EEOC and speaking with an experienced employment lawyer, document everything. It is important that you document every instance of what has happened since you reported the workplace sexual harassment incident. This includes any emails or conversations between you and your employer regarding the matter, as well as any other evidence that may help support your case. Having documentation of all events is crucial when making a legal claim against an employer for wrongful termination due to reporting sexual harassment.

It is also worth noting that you do not have to be the recipient of workplace sexual harassment to report it to your employer or the EEOC. If you witness sexual harassment in the workplace, you should speak out. Filing a sexual harassment claim with your company’s HR department will help make your workplace safer for everyone.

The Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Protect Your Rights as an Employee

It is against the law for your employer to terminate you for reporting sexual harassment. If you have lost your job after reporting sexual harassment in your workplace, discuss your legal options with the Philadelphia employment lawyers at Sidkoff, Pincus & Green P.C. Contact us at 215-574-0600 or fill out our online form. With offices in Philadelphia, we proudly serve our neighbors in South Jersey, Pennsylvania, and New Jersey.

When Does My Business Need to File for Bankruptcy?

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No one wants to think about bankruptcy, but unfortunately, sometimes it may be the best solution for a struggling business. To determine if filing for bankruptcy is the right choice, it is important to understand what filing entails, as well as what situations might give rise to considering such an extreme financial measure.

What is Bankruptcy?

Bankruptcy is a legal process that allows businesses and individuals who are unable to pay off their debts to either have those debts completely discharged or restructured over time with payment plans. There are different types of bankruptcy for businesses and individuals, but all types require the filer to provide detailed information about their assets and liabilities, as well as their income and expenses. This helps creditors determine how much money can be repaid.

When Should a Business Consider Filing Bankruptcy?

Businesses should only consider filing for bankruptcy when other options have been exhausted or the debt far exceeds the company’s ability to repay it in a reasonable amount of time. Other options may include restructuring debt through loan modifications, refinancing debt at better terms or having creditors agree to accept less than full payment in exchange for eliminating late fees or interest charges. If none of these options are available, then bankruptcy may be necessary in order to protect the business from further damage due to mounting debt obligations that cannot be met.

Types of Bankruptcy Available

The two types of bankruptcy most commonly used by businesses are Chapter 7 (liquidation) and Chapter 11 (reorganization). With Chapter 7, most of the company’s assets are sold in exchange for cash that is then used to pay off creditors; any remaining debt is discharged by the court. The company ceases operations immediately upon filing Chapter 7. If you have incurred personal debt on behalf of the business, however, be aware that your obligations for those debts may live on after business bankruptcy and after your business has ceased operations. If you have taken on personal liability for loans or other debts for the business, you may want to consider filing personal bankruptcy under Chapter 7 protection to attempt to eliminate these debts on yourself.

With Chapter 11, the company continues operating while attempting to reach an agreement with its creditors regarding how much will be paid out over time and which obligations will be forgiven in exchange for future payments being made on time. Chapter 11 business bankruptcy essentially allows for a clean slate for the business, after reorganizing the company’s debts.

The Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Help Protect Your Business

Filing for bankruptcy can often be seen as a last resort option for businesses who find themselves in financial distress due to overwhelming debt obligations they cannot meet without outside help from creditors or other sources. If your business is facing extreme financial trouble, discuss your legal options with the Philadelphia business lawyers at Sidkoff, Pincus & Green P.C. Call 215-574-0600 or contact us online. We proudly serve not only Philadelphia, but also Pennsylvania and New Jersey.

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Am I Entitled to Unemployment Insurance Benefits?

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Federal law protects employees who work for companies and lose their jobs “through no fault of their own,” as long as the claimant worked for a certain amount of time and earned a minimum amount of money. These rules vary depending on the state. Unemployment benefits are not usually given to employees who quit or get fired unless the job loss or reduced hours was not their fault. Other guidelines apply as well. If approved, the former employee must apply for benefits once every one or two weeks.

Pennsylvania Unemployment Guidelines

To qualify for Pennsylvania unemployment benefits, you must have worked a minimum of 18 credit (calendar) weeks and earned $116 or more per week. The Pennsylvania Office of Unemployment Compensation also bases eligibility on the reason for the employer/employee separation. Your former employer will be contacted, and this information will be evaluated along with the details you provide.

You need to have a qualifying separation like being laid off or the company closing down to receive unemployment benefits, but others may qualify depending on the circumstances. Separations based on the following will generally result in benefit denials:

  • Failed drug and alcohol testing
  • Frequent absenteeism/tardiness
  • Poor work performance
  • Willful misconduct
  • Willfully damaging company property

To continue receiving benefits, you must be willing to accept new work and not turn down any legitimate offers. You’ll have to certify your benefits every week as well. The benefits last 52 weeks after your application date, so it is a temporary, not a permanent solution.

New Jersey Unemployment Guidelines

New Jersey’s unemployment eligibility guidelines differ somewhat from Pennsylvania’s. Applicants must have worked for at least 20 weeks and have earned a minimum of $240 a week or a total of $12,000 during that time. Layoffs and company downsizings are acceptable reasons for separations, just like in Pennsylvania. The guidelines are also similar for those who quit voluntarily. When you indicate this answer on your application, a claims examiner will be in touch with you and most likely, your previous employer.

Once approved, you’ll need to certify for benefits each week. To continue receiving payments, you have to be able to work, be looking for work, and not refuse any legitimate offers. If you meet the requirements and become eligible for benefits, you will get them for 26 weeks; that is half what Pennsylvania provides. Both states limit benefits for self-employed workers who own businesses and independent contractors. If you did not pay any payroll taxes, you will not be eligible.

Dealing with state unemployment offices can be frustrating, especially when you are put on hold for hours at a time or get disconnected. This can delay your application process if you have questions. It is also problematic if you were denied and need help with an appeal. Some employees lose their jobs because of discrimination or wrongful termination and others cannot get approvals. When these situations occur, a knowledgeable employment lawyer could be your best bet.

The Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Fight to Protect Their Client’s Rights

Losing your job is concerning enough but when you are denied the employment benefits you deserve, you will want to stand up and fight for your rights. Contact Sidkoff, Pincus & Green P.C. to speak with our skilled Philadelphia employment lawyers about your claim today. Complete our online form or call our office at 215-574-0600. From our offices in Philadelphia, we serve employees in South Jersey, Pennsylvania, and New Jersey.

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Why is January the Best Time to Start a Business? 

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Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Help Clients Establish New Businesses.

Starting or incorporating a business on January 1 has several advantages, the most notable being tax breaks and startup cost savings. However, beginning the process in the last few months of the year is the most beneficial by utilizing Pennsylvania’s “delayed-effective date.”

Delayed-effective filing allows you to select a future date for the business filing to be considered effective, reducing taxes and personal liability because your business starts in the first month of the calendar year. Pennsylvania has no limit to how far ahead you can forward-date the filing, providing you with valuable time to get a head start on setting up the business, and ensuring the business is approved and formed by the start of the new year. Advantages of a January effective date include:

Streamlining the Tax Process

Business owners must file tax returns for every year of the business’s existence, regardless of profit or revenue. Starting a business in the middle of a calendar year has negative tax repercussions by requiring you to file taxes in two separate periods: one for the term you operate as a sole proprietorship and another for the period after incorporation. In addition, owners of limited liability companies (LLC) are required to declare any profits and losses on their personal income taxes as well. Setting an effective date in the first month of the year eliminates the need for two separate tax filings during the fiscal year and possibly reducing the overall amount of tax owed.

Faster Processing

Many entrepreneurs choose to start their business in January for the reasons previously stated, however, a large majority wait until January to start the filing process. As a result, state corporation offices experience a backlog in the first few weeks of the new year, creating longer wait times for officially establishing your business. This can result in delayed profits and two tax filings. Filing in late fall and selecting a January 1 effective date avoids waiting in the backlog as state offices can process the filing in the order they receive it, thereby avoiding the new year rush.

State Compliance Advantages

Businesses are required to maintain compliance with state regulations to remain in good standing and operate legally, including identifying a registered agent, filing annual reports, and paying state franchise taxes. Typically, annual reports and state tax returns are not due until the first anniversary of the business’s formation. Just as the federal tax filing, choosing a January 1 effective date avoids the need to file franchise taxes and filing fees with multiple agencies for only a few months of operation.

Additional Preparation Time

Choosing a delayed-effective date several weeks ahead gives you extra time for preparing all other essential aspects of your business, such as:

  • Bookkeeping and payroll requirements
  • Business and financial plans
  • Creating a webpage
  • Developing employment contracts and hiring staff
  • Developing trademarks
  • Entering contracts with external vendors and customers
  • Establishing bylaws
  • Establishing lines of credit or securing capital
  • Naming the business
  • Obtaining business insurance
  • Organizational shareholder meetings, if applicable
  • Purchasing inventory
  • State and federal tax registrations

Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Help Clients Establish New Businesses

Starting a business is an exciting new adventure for entrepreneurs, and one of the most important factors is determining the most advantageous time to start. At Sidkoff, Pincus & Green P.C., our Philadelphia business lawyers advise and assist new business owners with becoming established. Contact us online or call 215-574-0600 for an initial consultation. Located in Philadelphia, we serve clients throughout Pennsylvania and New Jersey.

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