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Department of Labor Issues New Final Rule (2024) to Clarify Employee vs. Independent Contractor Status under FLSA

We previously wrote on the U.S. Department of Labor (DOL)’s 2021 rule publication regarding classification of employees and independent contractors in the context of gig workers. The DOL has again published a new final rule clarifying the test for determining the status of a worker as an employee or an independent contractor. For any business …

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Updated Section 1042 Tax Benefits

There is a section of the Internal Revenue Code (IRC) that provides some tax benefits for people who sell their companies to either an ESOP or to a worker cooperative. This blog will explain how 1042 provides tax advantages when selling to a cooperative.  If you are thinking of becoming employee-owned or selling your business to …

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Mandatory Business Owner Reporting

The federal government has passed some new legislation that will require small businesses to report personal information about the business’s owners to a database controlled by the Securities Exchange Commission.  The legislation is called the Corporate Transparency Act (the “Act”), adopted as Title LXIV (64) of the 2021 National Defense Authorization Act.  The purpose of …

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Updates to PPP under the Economic Aid Act

The Economic Aid Act, passed on December 27th, 2020, expanded the Paycheck Protection Program created by the CARES Act. The Economic Aid Act authorized $284 billion in new funds for first draw and second draw funds of PPP. The Small Business Administration (SBA) and U.S. Treasury have issued new guidance on how the changes will …

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California Codifies Lessons Learned from #MeToo

On October 10th California Governor, Gavin Newsome signed bills AB9 and AB51 – both to increase protections for workers. Both bills were inspired by and are direct responses to the #MeToo movement.  AB51  Bill AB51 prohibits employers from conditioning employment on acceptance of a mandatory arbitration agreement and retaliating against employees who choose not to …

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New Models for #platformcoop Design, Part 5: Reciprocal Ownership

In this series so far, we have analyzed the potential for a sistered for-profit entity and cooperative entity to separately optimize for financing and member-orientation.  Since publishing this series, I’ve received some good feedback from readers.  Some have asked about additional terms and benefits that could be designed into the TechCo – Cooperative “pre-nuptial” agreement. …

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