5 Types of Legal Trouble to Avoid as a Business Owner

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Philadelphia Business Attorneys at Sidkoff, Pincus & Green Help You to Avoid Legal Issues.

Establishing a business helps to create economic opportunities for owners, investors, and workers alike. It takes more than obtaining a business license and a location to be successful. Proprietors of any type of businesses are susceptible to making legal mistakes that may seem minor, but can be detrimental to the business.

Whether your business is new or established, the following are five types of legal trouble that you should do your best to avoid.

  1. Choosing the Wrong Business Structure

Establishing a formal business entity with a legally recognized structure can help you to protect your personal assets. The four most common business structures are:

  • Sole proprietorship
  • LLC
  • Partnership
  • Corporation

A sole proprietorship will not protect your assets against business liability where an LLC or a corporation might. A partnership might leave you vulnerable to liability, but an experienced business attorney could help you to ensure that it does not.

  1. Not Paying Taxes

Businesses must pay taxes to federal, state, and many local governments. A variety of business taxes could apply to your enterprise. If you do not pay them, a tax collector might force your business to fold and claim its assets.

A business attorney can help you to understand business tax liabilities and help to ensure that the business pays them.

  1. Ill-Prepared for Employment Issues

Job providers must do their best to fully prepare for possible worker injuries, complaints, and other commonly occurring employment issues.

Obtaining workers’ compensation insurance is required by law and helps to protect you and your business against injury liability. If you do not have it, your business is vulnerable to potential lawsuits filed by injured workers.

Establish formal workplace rules, accepted practices, and safety procedures. Regularly training your workers can help you to prevent accidents and complaints regarding workplace harassment or discrimination.

Ensure workers are paid properly for hourly wages and any overtime that they might accrue. Failing to pay in accordance with state laws could trigger a wage complaint and lawsuit.

  1. Poor Record-Keeping

Stay on top of your business paperwork and keep it organized. If your business records are in disarray, so is your business. A professional record-keeping or bookkeeping service could help you to prevent bad record-keeping from wrecking your business.

  1. No Succession Plan

An enterprise with a strong business model could last beyond the working career or lifetime of the owner. You should ensure your business has a succession plan that enables a smooth transition of ownership and power to an acceptable individual or party. A clearly defined and detailed succession plan can help your business to succeed after you cease your ownership due to retirement or passing on.

Philadelphia Business Attorneys at Sidkoff, Pincus & Green Help You to Avoid Legal Issues

The experienced Philadelphia business attorney at Sidkoff, Pincus & Green P.C. can help you to best manage your business’ legal risks. You can contact us online or call 215-574-0600 to schedule an initial consultation at our Philadelphia law office. We represent clients in South Jersey, Pennsylvania, and New Jersey.

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Should I Opt In For a Surety Bond for my Business?

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The Philadelphia Business Attorneys at Sidkoff, Pincus & Green P.C. Can Help You Choose the Right Kinds of Surety Bonds for Your Business.

A surety bond is like a guarantee from one company to another party and is business as normal for many organizations. At its core, the word “surety” signifies a formal engagement provided for the fulfillment of an activity. For business purposes, it could be a bond to ensure timely payment to vendors or contract completion; there are other kinds of surety bonds as well.

How Can I Get Surety Bonds?

Companies need to have licenses and insurance coverage to operate, and surety bonds may or may not be optional. Unlike traditional two-party insurance policies, surety bonds are three-way agreements between businesses, the other party, and the surety company. That surety provider is not directly responsible if the agreement is broken.

State insurance departments regulate surety providers, and this underwriting is seen as a form of credit. Because of this, surety companies look at a business’s financial history, credit history, and so forth. When claims are made, the surety company gets reimbursed by the business that purchased it.

The three main kinds of surety bonds are bid, performance, and payment.

  • Bid bonds guarantee that a contractor will submit a bid in good faith and enter the contract at the designated price.
  • Performance bonds protect business owners from financial losses when contracts do not fulfill their contract document requirements.
  • Payment bonds assure that contracts get paid.

In the United States, surety bonds can be written out by insurance company divisions and subsidiaries that handle these agreements. Surety companies are certified and regulated by the state insurance commissioner and may have more oversight. The Small Business Administration guarantees bonds for select surety companies, and this can be a green light for those companies to sell the bonds to small businesses that might not have qualified.

Why Should I Get a Surety Bond?

Surety bonds are required by law in many instances but even if this does not apply, your business could benefit from having one or more of them. They protect clients who sign contracts and make them more credible. Should you be unable to deliver on agreed-upon services, a surety bond could reimburse your client and protect your reputation.

If you hire subcontractors, having surety bonds will help reduce the amount of risk you are taking on. The bonds can relate to bids, performance, and payment, but keep in mind that the bond threshold requirements may change on different projects, reflecting the amount of the subcontract, timelines, and scope of work.

What Industries Use Surety Bonds?

Besides construction, the transportation industry also makes good use of surety bonds. The majority of these are necessary according to various laws. This makes sense because there is considerable risk involved with both.

The automobile industry is also big on surety bonds; auto dealers need them because of state government regulations. There are also certificates of title bonds and vehicle registration services bonds. Licensed insurance brokers, notaries, retail businesses, farmers, medical suppliers, assisted living facilities, and lawyers also often need to get bonds.

Individuals who own private businesses or take on private projects do not necessarily need to buy safety bonds, but they may enter into agreements that require them. As an example, a lender who is financing a private home renovation would probably want construction surety bonds from the contractor.

The Philadelphia Business Attorneys at Sidkoff, Pincus & Green P.C. Can Help You Choose the Right Kinds of Surety Bonds for Your Business

Surety bonds can protect your business, finances, and reputation from risk, but they are not the same thing as traditional insurance. To learn if one is right for you, contact the skilled Philadelphia business attorneys at Sidkoff, Pincus & Green P.C. Call our Philadelphia office at 215-574-0600, or complete our online form to schedule a confidential consultation. We serve businesses throughout South Jersey, Pennsylvania, and New Jersey.

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Can My Employer Ask About My Previous Salary History?

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Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Help Prospective Workers with Workplace Discrimination.

A new job search can be an exciting and fulfilling experience in your life, but it can also be quite stressful. You will face many questions during your search, some of which you may feel very comfortable answering, while other questions may intimidate you or feel uncomfortable or even inappropriate. For instance, if a prospective employer asks you about your salary history, you may not know how to answer that question. You may actually wonder if they are legally allowed to do so in the first place.

There are a few states that make it illegal for employers to ask about salary history or what your current wage is. These states include California, New York, New Jersey, Illinois, and Washington. Some cities have passed laws prohibiting the practice as well, including New York City and San Francisco.

The problem with being asked about your previous salary is that some employers believe it is a way to gauge your market value. Although that may be the case, it also pigeon-holes many people, especially women, people who are Black, Indigenous, or people of color (BIPOC), or members of multiple marginalized communities. This group of people experience a wide range of pay gaps, and if an employer asks them their previous salary, they may find it necessary to stay with that pay gap and not increase it. Many people believe that questioning a worker’s salary history reinforces the pay gap, which leaves many people getting paid less than what they are worth.

If a potential employer asks about your salary history, there are a few ways you can handle the situation without being disrespectful, such as:

  • Know your state’s laws: It is best to know before the interview if the state or city where you are going for the job has a law that prohibits salary history questions. If asked, still, you can simply say that you believe there is a new law prohibiting that type of question.
  • Practice redirection: Try to get back to the subject of salary requirements of your particular job or role, not your individual history. You can also chat about if the job is a good fit for both you and the employer. Use your education, skills, and experience as a good foundation of what your salary requirements are and not what you made before.
  • Lack of history: This job may be your first job out of college or after obtaining a new degree, where you lack history in the field, so there is no reason to be asked what your salary was before.
  • Share your history: Or you may feel comfortable with sharing your salary history, which is okay. Some interviewers discuss the range they are willing to pay, and if it is below what you have made before, then this might be a good opportunity to bring up your salary history.

What you made in previous jobs should not dictate what your future earnings should be. There are websites that illustrate what kind of salary you should be making for the role you are looking for, and you should use those as a basis for when you go job searching.

Although Pennsylvania does not have a law prohibiting an employer from requesting your salary history, the city of Philadelphia does. In Philadelphia, an employer may not inquire about salary history or rely on an applicant’s previous salary history for any stage of the employment process. However, an applicant can knowingly disclose such information, and in doing so, the employer may then use it in the process. Employers are also prohibited from retaliating against an applicant should they refuse to comply with a salary history inquiry.

Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Help Prospective Workers with Workplace Discrimination

If you believe you have been discriminated against in the workplace, then you must get the best help on your side. Contact the Philadelphia employment lawyers at Sidkoff, Pincus & Green P.C. right away. Call us today at 215-574-0600 or fill out our online form for an initial consultation. With our offices located in Philadelphia, we proudly serve all clients of South Jersey, Pennsylvania, and New Jersey.

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What are RICO Charges?

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The Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Defend Clients Facing RICO Charges.

You may have only heard the term “RICO charges” on TV crime shows and in movies, but it is a very serious matter with severe consequences for those who are charged and convicted. The acronym “RICO” represents the Federal Racketeer Influenced and Corrupt Organization Act and applies to different kinds of criminal activities that take place throughout the country.

About the RICO Act

This federal law (§ 1961) was originally designed to fight organized crime and passed in 1970. The accused can be an “individual, partnership, corporation, association, or other legal entity,” but can also be a group of associated individuals. There has to be two or more acts of racketeering within a certain time frame. The prohibited racketeering activities listed in RICO include:

  • Acts or threats involving murder
  • Arson
  • Bribery
  • Extortion
  • Gambling
  • Kidnapping
  • Robbery

There are others as well, such as dealing in a controlled substance and dealing in an obscene matter. RICO lists other illegal activities, like wire fraud, money laundering, counterfeiting, collecting unlawful debts, and receiving income that’s derived from patterns of racketeering activity. In all, RICO covers over 30 kinds of crimes.

What are RICO Act Penalties?

Since RICO charges are of a criminal nature, those who are convicted of violating these laws face substantial penalties. To start, the hefty fines can be as much as twice the amount of any proceeds received from the illegal activities. The other consequence is even worse, as it involves prison time that can range from less than a year to a life sentence, depending on the crime and state laws. A first RICO conviction in Pennsylvania is a first-degree felony that comes with minimum of nine months in prison; the maximum is 20 years and a fine of $25,000. If convicted, the defendant’s total interest in the criminal enterprise is given to the federal government.

When RICO was passed, it also included procedural rules allowing the government to freeze defendant assets before cases went to court. This was done to ensure that the money would not disappear before the trial started and a guilty verdict was handed down.

Can the Government Prosecute Me Under RICO?

The RICO laws are not just for organized crime groups and their members. Those outside this realm can also be charged with the violent and drug-related crimes listed above. White-collar crimes like embezzlement, gambling, and mail fraud can also be charged, prosecuted, and convicted. Plaintiffs who were injured or otherwise harmed by RICO violations committed by other parties can also seek damages in civil suits. There is a four-year statute of limitations in these cases, but no cap on the damages.

In Pennsylvania, the state has to prove that you participated in two or more racketeering activities within a 10-year time frame in order to prosecute. They also must show that you participated or were invested in the illegal enterprise. Again, if charged under RICO, your assets related to the activity will be frozen until the case is completed and a verdict is handed down. If you are charged with multiple counts, the prison time and fines could be extended and increased.

The Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Defend Clients Facing RICO Charges

You should not face RICO charges without experienced legal representation, and the Philadelphia business lawyers at Sidkoff, Pincus & Green P.C. will fight to protect your rights if you have been charged. For a confidential consultation, call our Philadelphia offices at 215-574-0600 or complete our online form. We serve clients in throughout Pennsylvania and New Jersey.

Should I Continue to Work at My Job After Whistleblowing?

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The Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Assist and Protect Whistleblowers.

A whistleblower is someone who works within a private sector or government organization and reveals abuses of power and other bad behaviors done by their employer that betray the public’s trust. The information they share can be revealed internally or disclosed to Congress, other government channels, law enforcement, and/or the public. But since whistleblowers run the risk of facing repercussions from their employers, should they continue working after speaking out?

The Aftermath of Whistleblowing

Being a whistleblower can be stressful, even when the person has good intentions. It is often portrayed as a heroic action, if you consider the individuals who pulled back the curtain on Enron, released the Pentagon Papers, or shed light on the tobacco industry. The public might view them as heroes, but the truth is that a whistleblower’s career can change forever.

Even though the Whistleblower Protection Enhancement Act of 2012 was passed, approximately 30 percent of government workers claim they worry about retaliation for reporting wrongdoing. Since the government can have more oversight, it makes sense that private-sector whistleblowers worry even more in this respect. It has been reported that as much as 44 percent of these employees have experienced instances of retaliation.

What is the Whistleblowing Process Like?

You do not have to be working at the company that is the focus of the whistleblowing action, but if were taking part in the alleged illegal behavior you can consult a whistleblower attorney about how to handle it. All of the information will be kept confidential, and your identity will stay anonymous unless you decide to grant permission to provide your name.

Here are some of the programs in the U.S. that whistleblowers can pursue cases through:

  • The False Claims Act (FCA)
  • SEC Whistleblower Program
  • IRS Whistleblower Program
  • Commodity Futures Trading Commission (CFTC)

Claims can be filed under more than one of these, and there are statutes of limitations that apply. You must work with an attorney to file a case under the FCA, and using one for the SEC and CFTC will let you file anonymously. In any case, having an experienced lawyer may help facilitate your claim and increase the chances of success.

A successful case that leads to the recovery of fraudulently gained funds is a good thing, as the whistleblower can receive a percentage of the amount of money recovered as a reward. This can range from 10 to 30 percent, but every case is different.

Can I Keep Working After Whistleblowing?

If you work with an attorney, your identity will remain confidential throughout most of the process unless you grant permission to share your name. Federal law protects you from being retaliated against at work after reporting illegal company actions to the government. This means that you cannot be subjected to adverse employment decisions like demotions or firings based on what you did to expose the illegal conduct. If the employer does retaliate, you could be entitled to additional damages in a subsequent employment lawsuit.

There are also state laws that protect public employees from that kind of retaliation, but these might not apply to your situation. The amount of protection will receive depends on if the company is private, public, or a government entity, who your report the wrongdoing to, they kind of wrongdoing, and the applicable laws. The option of returning to work may be viable or then again, it may not.

If you are thinking about whistleblowing, you are taking on the risk of being suspended, demoted, transferred, fired, or facing other kinds of retaliation. That is why it is important to consult with an experienced employment lawyer before filing the claim – this way, an experienced professional who has your best interests in mind can guide you through the process.

The Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Assist and Protect Whistleblowers

It takes courage to become a whistleblower, and trusted legal guidance to help you make your claim. For a confidential consultation, contact the skilled Philadelphia employment lawyers from Sidkoff, Pincus & Green P.C. Reach out by calling 215-574-0600 or completing our online form. From our office in Philadelphia, we proudly serve clients throughout South Jersey and Pennsylvania.

Do Women Over 50 Face More Employment Discrimination?

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Whether searching for employment, aiming for a promotion, or simply trying to hold on to their current position, older women face extra challenges in the workplace. They face the dual threat of age and gender discrimination, which often hinders their chances of success.

Despite often having ample experience and qualifications, many sexist biases against women follow them while working during their older years. An employer’s preference for younger women at work could cause older women in the same workplace to experience gender and age discrimination. The compound discriminations could result in lower pay, fewer opportunities for advancement, and forced early retirement.

Age Discrimination Commonly Occurs in the Workplace

The American Association of Retired Persons (AARP) says 90 percent of workers surveyed in the United States say that age discrimination commonly happens at their place of work. A majority of women and men alike say that they experienced age discrimination while working.

Women are slightly more likely than men to say they experienced age discrimination at work. The AARP says 64 percent of women and 59 percent of men surveyed said that they experienced age discrimination.

While a vast majority of all workers say age discrimination occurs, very few file complaints. The AARP says only three percent of those surveyed said they filed a formal discrimination complaint.

What to Do if You Experience Workplace Discrimination

The Equal Employment Opportunity Commission (EEOC) says any age-based discrimination is illegal. The federal employment oversight agency investigates complaints filed by anyone age 40 or older.

If you have good reason to think you were passed over for a hiring opportunity, promotion, or other work-related matter due to your age, you could file a complaint with the EEOC. The EEOC will investigate a complaint and determine whether or not it has merit. When an age discrimination complaint has merit, you can then file a civil action in federal court.

An experienced business lawyer can help you to prepare an EEOC complaint and support it with evidence. The federal agency will have up to six months to investigate your claim and either approve or deny it. An approval enables you to move forward with a lawsuit against the discriminatory employer. That is true in the state court system, too.

Possible State-Level Action in Pennsylvania

Your attorney also can help with state-level filings that might enable you to file a civil complaint in the Pennsylvania court system. Pennsylvania law outlaws age discrimination and other forms of workplace discrimination.

The Pennsylvania Human Relations Commission (PHRC) investigates discrimination complaints. If it says your complaint has merit, you could pursue legal action in the state courts.

You do not have to file complaints with the EEOC and the PHRC. The federal and state agencies accept the decision of the other regarding workplace discrimination investigations. If you file with the PHRC and it says your complaint has merit, you can file a federal action as well as a state action.

Philadelphia Business Lawyers at Sidkoff, Pincus & Green Defend Workers’ Rights

If you were discriminated against at work, contact the experienced Philadelphia business lawyers at Sidkoff, Pincus & Green today. Fill out our online form or call 215-574-0600 to schedule an initial consultation at our Philadelphia law office. We represent clients throughout Pennsylvania and New Jersey.

How Can I Protect My Intellectual Property?

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Philadelphia Business Lawyers at Sidkoff, Pincus & Green Protect and Defend Your Intellectual Property Rights.

Intellectual property (IP) is defined as any product of the human intellect such as inventions, designs and symbols, artwork, business and product names, website content, and other creations used in commerce. While the internet is a useful tool for businesses to reach a wide range of people, it simultaneously provides wide exposure to theft and copying. The importance of protecting your intellectual property cannot be emphasized enough and the four main ways to do so are through copyrights, trademarks, patents, and trade secrets.

Copyrights are used to protect a creator’s manuscripts, song lyrics, photographs, paintings, sound recordings, and other original ideas. Although you own the copyright at the time you create something, registering the copyright with the U.S. Copyright Office gives you exclusive and enhanced rights such as the ability to seek damages when infringements occur. In most cases a copyright expires 70 years after the death of the of the creator.

Trademarks are protected symbols, logos, words, or phrases that identify your service or product. A trademark should be registered with the U.S. Patent and Trademark Office (USPTO) and renewed every ten years. Because a trademark identifies goods and services as belonging to one owner you could run into disputes if your trademark is similar enough to that of another company.

How Do Patents Protect My Intellectual Property?

Patents protect unique inventions such as machines, equipment, chemical composition, or processes. Once patented, no one else can make or distribute your invention unless you have given them license to do so. Patents are granted by filing an application with the USPTO and are usually valid for 15 to 20 years after the filing date. Note that a patent cannot be obtained for something that already exists.

“Trade secrets” are not registered with any government office but are intellectual property important enough to a company that it cannot be shared with competitors or become public knowledge. To do so might seriously jeopardize the prospects of the company. Trade secrets can be protected with nondisclosure agreements that prevent involved parties from sharing information with outsiders. If you can show that your company had protocols and procedures in place to protect your trade secrets and a theft occurs, you will be able to seek damages in court. Intercompany theft of intellectual property and corporate espionage are federal offenses.

Additional Steps to Take to Protect Your Intellectual Property

After registering your intellectual property with the government and enforcing any infringements you can further protect your published work and ideas by using digital rights management to limit online access, preventing others from copying, saving, and editing your work, blocking them from printing, sharing, and taking screenshots, and watermarking your work to show ownership.

Documentation is also helpful in proving ownership of intellectual property. At every step of your creative process document in detail what you are doing and how by using drawings, plans, descriptions, and written records. Including the date on each one is critical as evidence of when you first produced your original creation.

Deciding how to apply these different kinds of intellectual property protections can be complicated and should be done with the counsel of an experienced business lawyer.

Philadelphia Business Lawyers at Sidkoff, Pincus & Green Protect and Defend Your Intellectual Property Rights

Have you experienced copyright, trademark, or patent infringement? At Sidkoff, Pincus & Green we aggressively defend and protect our clients’ intellectual property rights. To schedule a consultation with one of our experienced Philadelphia business lawyers, call 215-574-0600 today or contact us online. Located in Philadelphia, we represent clients throughout Pennsylvania and nationwide.

What Happens if You Are Found in Breach of Contract?

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Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Help Parties Who Face Contractual Difficulties.

In an ideal contract situation, both parties would uphold their side of the agreement, both sides would obtain what was agreed upon, and no issues would come up. However, it can be difficult to maintain a contract, even when both parties want to. Unexpected situations can present themselves without warning, and disputes could arise causing delays. This could sometimes lead to a breach of contract.

A breach of contract happens when a party of a legal binding agreement does not honor their side of the contract, either by not performing an action outlined in the contract, whether it is not performed on time, not performed in accordance with the agreement, or not performed at all. There are three distinct ways a party can breach a contract, depending on the agreement’s subject matter:

  • Either partially or fully not performing the obligations set forth in the contract. This is known as an actual breach of contract.
  • Behaving in a way that shows intent to not perform the obligations set forth in the contract. This is otherwise known as a renunciatory or anticipatory breach.
  • Acting in a way that makes the obligations defined in the contract impossible to perform. This can also be known as a renunciatory breach.

Breaching a contract can have serious consequences. When a breach of contract occurs, the breaching party must pay damages to the aggrieved party. It typically can have significant financial consequences, such as:

  • Lost income
  • Lost profits
  • Increased rental costs
  • Lost rental income
  • Increased labor costs
  • Increase material costs

The nature of the breach typically determines how to remedy the breach. A minor breach, whereas the contract itself is not entirely violated and can still be performed in a certain manner, can often be remedied quickly because a minor breach is when one party fails to perform a small detail of the agreement. The contract typically allows a party a certain amount of time to fix the mistake.

A material breach, also known as a fundamental breach, is such an egregious error that it cancels the contract, and the nonbreaching party no longer must uphold their end of the contract and has the right to file a lawsuit. The contract will typically have the options to remedy the breach, either through mediation or arbitration before filing a lawsuit.

Pennsylvania law allows for damages to be recovered when a contract is breached, but it must total a sum that compensates the aggrieved party for their losses. The nonbreaching party must present evidence, however, that the damages they incurred were reasonably foreseeable at the time the contract was entered and reasonably certain in terms of calculations:

  • Reasonably foreseeable: The damages recovered for the nonbreaching party must be a direct result of the contract breach and reasonably foreseeable at the time the parties agreed in the contract.
  • Reasonably certain calculations: The nonbreaching party has the burden of proving the calculations of their damages by a fair degree of probability. It does not have to be exact, and the jury is forbidden to speculate the amounts. The amount should put the nonbreaching party in or as nearly in the same position they would have been if the contract had not been breached. If the damages cannot be calculated with certainty, then the nonbreaching party is entitled to damages made during or in anticipation of the performance of the contract.

Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Help Parties Who Face Contractual Difficulties

If you believe you are in breach of contract, or are facing contractual difficulties, then contact the knowledgeable Philadelphia employment lawyers at Sidkoff, Pincus & Green P.C. immediately. Call us today at 215-574-0600 or fill out our online form to schedule an initial consultation. With our offices located in Philadelphia, we proudly serve all clients of South Jersey, Pennsylvania, and New Jersey.

Does My NDA Prevent Me From Calling out Sexual Harassment?

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Philadelphia Employment Lawyers at Sidkoff, Pincus & Green P.C. Help Parties Who Face Contractual Difficulties.

Non-disclosure agreements, or NDAs, are a common component of employment contracts in today’s workplace. They are used to prevent employees from disclosing trade secrets and confidential company information, but do NDAs apply to sexual harassment complaints and other civil rights matters? The answer is complex and depends largely on the terms of your employment.

We will explore this issue and recommend next steps to protect your rights and your interests if you experience sexual harassment at work.

NDAs as a Tool to Keep Employees Quiet About Workplace Harassment

It makes sense that companies want to keep trade secrets under wraps. If inside company information gets out, it could seriously impact their bottom line. But is it fair to expect employees to keep the details of a sexual harassment complaint confidential?

It may not seem fair, but it is possible. Your right to speak out depends on the confidentiality agreement you sign when you take a job or settle a harassment case.

An Example of an NDA in a Settlement Agreement

Let us take the example of a male worker who files a sexual harassment complaint against a supervisor who repeatedly asks him out on a date—while he repeatedly declines the offer.

His boss even promises him a raise if he consents to a romantic relationship with her. When he declines again, she gives the job to another employee with less skills and experience. This scenario has all of the components of a valid sexual harassment case.

After finally having enough, he reports his supervisor. With texts and emails to support his claims, the employer has no choice but to act. To avoid litigation, the company negotiates a settlement with the employee. They agree to compensate the employee with a caveat—he must agree not to disclose the amount of the settlement or the details of the allegations.

If the employee violates this provision, the employer can sue them in civil court. However, because lawsuits are public record, they may refrain from enforcing an NDA to keep the case as quiet as possible.

There are other ways to discourage an employee from speaking out. Some settlement agreements contain a provision that states they can stop paying the employee if that employee discloses privileged information. Other settlement agreements have a “liquidated damages” clause that requires an employee who violates an NDA to pay the company a specific amount of money.

Why Are NDAs Problematic in Sexual Harassment Cases?

Of course, employers do not want the public to find out about sexual harassment and other civil rights violations that occur in the workplace. But when we are quiet about these pervasive issues, they are more likely to continue.

As we have seen with the recent “Me Too” movement, shedding light on the problem is the key to awareness and prevention of sexual harassment. Everyone deserves a safe, equitable, and inclusive work environment.

Bill 849: Disclosing Sexual Harassment in the Workplace Act

NDAs that prevent individuals from speaking out about harassment may be a thing of the past in Pennsylvania if House Bill 849 is approved. The bill, which has been referred to the state senate’s Labor and Industry committee for approval, would ban NDAs related to sexual harassment as a requirement for employment—unless it was agreed to by both parties.

Federally, the U.S. Senate Judiciary Committee in September unanimously approved the Speak Out Act, a bill that invalidates NDAs specifically designed to prevent employees from publicly disclosing instances of workplace sexual harassment or assault in order to prevent future harm to others. Similar state bills have already been passed in New York, New Jersey, California, and Illinois.

Currently in Pennsylvania, your NDA precludes you from sharing your experience, you can face possible legal action, damages, or a smaller settlement if you do. It is best to have your Philadelphia employment lawyer review any employment contract, non-disclosure agreement, or settlement agreement before you sign. This way, you are fully-informed of your rights and obligations at all times.

Philadelphia Employment Lawyers at Sidkoff, Pincus & Green, P.C., Are Committed to Protecting Clients’ Civil Rights

If you have experienced sexual harassment or other forms of discrimination at your job, the skilled Philadelphia employment lawyers at Sidkoff, Pincus & Green, P.C. can help. Established in 1958, we have a proven track record of success achieving good outcomes for our clients. Call 215-574-0600 or contact the firm online to schedule a consultation today. Located in Philadelphia, we serve all of Pennsylvania and New Jersey.

Is There a Transgender Wage Gap?

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Philadelphia Employment Lawyers at Sidkoff Pincus & Green Fight Workplace Discrimination.

Transgender workers earn nearly a third less than their cisgender coworkers, despite having similar levels of education and experience, a recent study shows.

The United States has more than 2 million workers who identify as transgender, so earning less impacts a significant number of working adults. Researchers with McKinsey & Company in 2021 reported transgender workers receive 32 percent less in pay than those who are doing the same job and are equally qualified.

The lack of equal pay is a serious problem for many transgender employees and may violate respective state or federal laws against discrimination.

Wide Pay Disparity for Transgender Workers

Virtually all workers who comprise the LGBTQ+ community say they are paid significantly less than their equally qualified and experienced counterparts. A recent study done by the HRC Foundation shows they are paid about 10 percent less than other workers, on average.

While 10 percent is a significant amount, it is much less than the 32 percent pay discrepancy among transgender workers. The disparity suggests transgender employees are among the least valued and lowest-paid workers regardless of their experience, education, and qualifications.

Majority of Transgender Employees Feel Excluded

The McKinsey report says more than half of transgender employees say they are not comfortable while at work. Many say they stay silent during work meetings and generally avoid socializing with coworkers.

The relative isolation of transgender employees makes it much harder for them to contest pay disparities orto simply feel included and respected while at work. Self-isolation will not help, but that often is a symptom of the workplace discrimination that occurs against transgender employees.

A lot of transgender employees say they do not feel as supported by employers as other employees. When they get paid nearly a third less than their equally qualified and experienced counterparts, the income disparity contributes to the feeling of alienation and a lack of support.

Pay Disparity Contributes to Transgender Poverty Levels

A darker side of the apparent pay disparity is its economic effect on transgender employees. Transgender people in general suffer high rates of poverty with about 22 percent living at or below the federal poverty level.

When paid almost a third less than others with similar experience and qualifications, the potential for impoverishment becomes much greater. Fortunately, you can fight pay discrimination and enforce your equal rights as a transgender employee when you retain an experienced employment attorney.

How to Fight Pay Discrimination?

Federal and many state laws say it is a type of sex discrimination to pay someone less due to gender identity. Pennsylvania and New Jersey laws ban discrimination based on gender identity, including lower rates of pay.

If you identify as transgender and are receiving less pay than your counterparts, you should retain an experienced employment lawyer to help uphold your rights. Your attorney can review your situation and help you to build a strong case that shows your employer is discriminating against you based on your gender identity.

There are steps that you must complete before a federal or state-level lawsuit could be filed. Those include filing a discrimination complaint with the federal Equal Employment Opportunity Commission.

When the commission affirms discrimination has occurred, employees can file lawsuits against their employers or other offending parties.

Philadelphia Employment Lawyers at Sidkoff Pincus & Green Fight Workplace Discrimination

If you are experiencing workplace discrimination of any kind, the Philadelphia employment lawyers at Sidkoff Pincus & Green can help to uphold your rights. You can call 215-574-0600 or contact us online to schedule an initial consultation at our Philadelphia law office. We represent clients who throughout Pennsylvania and New Jersey.