Imagine you receive an email from a known creditor containing an invoice for an account payable. The email contains instructions for you to pay the invoice through an accredited clearing house (“ACH”). The email further contains the creditor’s bank account information for depositing the ACH payment. You pay the invoice by depositing the ACH payment […]
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In a stunning proposal, the Federal Trade Commission (FTC) has proffered a universal ban on noncompete agreements. This proposal, albeit a considerable step away from the norm, was not necessarily unpredictable. Most recently, the FTC made a preliminary finding that noncompete agreements constitute an unfair method of competition and therefore violate Section 5 of the […]
Commercial construction projects of $3 million or more are subject to the Prompt Payment Act, G.L.c. 149, §29E (“PPA”), which ensures prompt payment, or resolution, of disputes about, invoices for periodic payment made by contractors during the course of work. It requires owners to approve or reject periodic payment requests within 15 days after submission […]
Creating incentives for employees to perform better can take many forms, such as merit bonuses or grants of equity through restricted stock or stock options. Each strategy should have the effect of aligning the employee’s interests with the long-term success of the company, and hopefully creating an economic incentive for the employee to increase their […]
The old adage “Failing to plan is planning to fail” can easily be applied to owning a business. Business owners need to be prepared for the many contingencies that come up during the lifecycle of their business. Much like a person’s estate plan, proper planning should be taken to ensure as little disruption as possible […]
The Federal Arbitration Act (“FAA”), long a thorn in the side of employees who desire litigation, has now been limited by the expansion of its prominent exception. Before considering the expansion of the FAA’s exception, it is important to understand the FAA. Scope of the Federal Arbitration Act The FAA requires enforcement of arbitration agreements […]
To protect their business interests, many employers include noncompetition clauses in their employment agreements, which place prohibitions on employees working for competitors or within the same industry after parting with their current employer. However, in October 2018 Massachusetts passed G.L. c. 149, § 24L, which governs noncompetition agreements. The failure to meet the requirements of […]
Rudolph Friedmann is pleased to announce the addition of associate Brian Lynch. Brian helps entrepreneurs and business owners grow their vision from the ground up. He provides legal guidance on entity formation, corporate governance, contract drafting and negotiations, business sales and acquisitions, and general commercial transactions. Brian has advised corporations, limited liability companies and non-profit […]
The Computer Fraud and Abuse Act (CFAA) was enacted by Congress in 1986 as a response to the emergence of computer crimes. Oftentimes in the employment situation when an employee leaves there is a claim that the employee took computerized materials with them and violated the CFAA. The United States Supreme Court recently narrowed the […]
The departure of key employees can be quite damaging to a business’ bottom line. It is not surprising that businesses go to great lengths and spend significant sums of money to keep those employees. Sometimes, those lengths take the form of additional pay and benefits to the key employee. In other instances, the measures take […]
