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05.02.18
The New ABC Test for Independent Contractors Spells Serious Trouble for California Businesses
By Procopio Partner Marie Burke Kenny and Associate Annie Macaleer In a much-anticipated decision, the California Supreme Court on April 30, 2018, held that there is a presumption that all workers are employees, and that a business classifying a worker as an independent contractor bears the burden of establishing that such a classification is proper under a new test called the “ABC test.” Given the increasing prevalence of so-called “gig economy” workers in the state, this decisio...
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04.26.18
Some Key Considerations for the Prudent Prospective Yacht Purchaser
By Procopio Partner Edward C. Walton Most of us only dream of purchasing that ultimate symbol of freedom and luxury—the ocean-going yacht. If that floating fantasy is now within your reach and desire for fulfillment, you have much to consider and decide, especially if you are new to boating. Careful consideration of your purchasing options, resources, and legal issues using appropriate professional assistance will go a long way to ensuring a truly happy yachting experience. This bri...
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04.16.18
A New Defense for Employers in Quit-and-Sue Suits
By Procopio Partner Tyler M. Paetkau Earlier this year, a California Court of Appeal published a decision that provides employers a defense against former employees who claim they were forced to quit due to intolerable working conditions, Simers v. L.A. Times. Importantly, the court found that an employer may be entitled to a summary judgment (i.e., a dismissal without trial) of “quit-and-sue” claims known as “constructive” termination – even when the cases involves allege...
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04.12.18
California Charter Schools Required to Address Attorney General Guidance on Immigration Enforcement at Schools
By Procopio Partner Greta A Proctor and Senior Associate Rahul E. Reddy Every California K-12 public school—including charter schools—now finds itself under new immigration-related guidelines from the Attorney General that will require many to update their policies and procedures. These guidelines include model policies addressing immigration enforcement and charter schools are required to adopt these model policies or equivalent policies. Time is of the essence, as each charter...
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04.04.18
Is That Payment Taxable? 5 Key Tax Facts All Employers Should Know
By Procopio Partner Eric D. Swenson There is no end to the creativity employers bring to the task of providing benefits and rewards to current and former employees, and that creative thinking is often applied with the intent of reducing or avoiding tax liability to the employee. Whether it is a carefully crafted severance agreement (great idea!!), a convoluted deferred compensation plan, or a purported gift program, new tricks are tried every day. After twenty years in private...
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03.26.18
Mandatory Deemed Repatriation: Do You Owe Taxes for 2017 re: International Operations?
How to Timely File an Election for Payment of Tax in Installments By Procopio Partners Pedro Corona de la Fuente, Patrick W. Martin and Jon P. Schimmer and Foreign Exchange Lawyer Anuar Estefan If you are a U.S. person* who owns stock of a foreign corporation, we encourage you to continue reading this alert. Here we explain how your income tax liability for 2017 may be severely affected by a new provision introduced by the Tax Cuts and Jobs Act (the “TCJA”).** On December 2...
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03.20.18
How Will Federal Solar Panel Tariffs Impact California's Energy Policy?
By Procopio Attorney and Energy Industry Practice Group Member Luisa F. Elkins President Donald J. Trump’s decision to implement tariffs on imported solar panel components in early 2018 is expected to have a reverberating impact on the renewable energy industry in California, impacting both businesses and regulators. Among the many ramifications from the decision will be the need for the California Public Utilities Commission (CPUC) to revisit some of its policy decisions aimed at achie...
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03.08.18
Post U.S. Tax Reform, What Corporate Structure is Right for You?
By Procopio Of Counsel David C. Boatwright, Partner Pedro E. Corona de la Fuente, Partner Eric D. Swenson, and Associate L. Reza Wrathall Given a range of changes made to the Internal Revenue Code by the Tax Cuts and Jobs Act of 2017—which we’ll call the “Tax Act” for short—many privately held businesses are reconsidering their current corporate structure. The new law enacted a number of substantial changes, leading CEOs and in-house counsel to wonder whether it is more advantag...
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03.08.18
Nueva Obligación de Presentar la Forma 5472 para LLCs que Tengan un Sólo Socio Extranjero
Por. Pedro E. Corona & Luis A. Zendejas El 13 de diciembre de 2016, fueron emitidos nuevos reglamentos para las Secciones 6038A y 7701 del IRC. Estos nuevos reglamentos son aplicables a partir del ejercicio 2017, y dan el tratamiento de corporación de los EUA aquellas LLCs que tienen un sólo socio que no es residente fiscal de los EUA, por lo que dichas LLCs deben presentar la Forma 5472. 1. ¿En qué consiste la nueva obligación para LLCs? Una LLC que sea ignorada ...
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03.07.18
Overtime is Now More Expensive for Some California Employers
By Procopio Partner and Labor and Employment Practice Group Leader Marie Burke Kenny The California Supreme Court has issued a ruling that changes the way overtime is calculated for employees who earn certain flat sum bonuses. Under California law, employers must pay overtime to non-exempt employees at a rate of no less than one and one half times the employee’s “regular rate of pay” for all hours worked in excess of 40 per workweek and in excess of 8 hours but fewer than 12 hours p...
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