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5 Steps Businesses Should Take to Reduce the Threat of a Lawsuit

It’s an unpleasant part of doing business, but it’s an increasingly common one: If you’re a business owner, you may very well find yourself facing a lawsuit. In fact, a recent poll found that 43 percent of small-business owners in the U.S. have been threatened with or involved with a civil lawsuit. And as luck would have it, the U.S. legal system is the world’s most costly. A report by the Small Business Association Office of Advocacy found that the cost of litigation for small firms can range up to $130,000. That’s a big bill for a small business trying to make ends meet. As a business owner, you might be sued by one of your customers, accusing you of providing faulty goods or services or claiming to have been injured on your property. You might also be sued by employees claiming, for example, discrimination or other breaches of HR policy. Prepare Now to…

How Small-Business Owners Can Reduce Slip & Fall Liability

How Small-Business Owners Can Reduce Slip & Fall LiabilityAs a small-business owner, you likely don’t have the deep pockets of a large corporation. If sued, you can’t pay out a hefty settlement and then just move on. One costly lawsuit may have the power to break you and your company. The good news is that Maryland is one of the few states that applies a principle called “contributory negligence” to personal injury claims. As opposed to the “comparative negligence” rule that most states follow, contributory negligence is more favorable to defendants. Basically, it means that in order to win compensation, a plaintiff must prove that the defendant is entirely responsible for the incident that led to injury. In comparative negligence states, the party being sued may be on the hook for some damages even if the plaintiff is found to be partly responsible for the accident. That said, it’s in your and your customers’ best interests to make…

MHIC Complaints: What Homeowners Need to Know

Contractor Measuring For LevelWhen you hire someone for a home improvement project, you want some assurance that the work will be of good quality and conducted in a timely manner. Your contract should state the scope of the project, along with specific details about costs, payment, and timelines; but, occasionally, homeowners find that the promises included in a contract don’t come to fruition. If you suffer actual monetary losses due to a contractor’s sub-standard or incomplete work, you may file a claim with the Maryland Home Improvement Commission (“MHIC”). The MHIC oversees a Guaranty Fund, which is funded by contractors’ licensing fees. Should the MHIC find your claim to be valid, you may be reimbursed up to $20,000. Finding Reputable Contractors When considering contractors to handle your home improvement project, you can contact the MHIC by email or phone to check for any previous complaints for a Contractor in their records. Any complaints…

New Overtime Regulations: What Small Businesses Need to Know

Maryland Overtimme RegulationOn December 1, 2016 new federal overtime regulations take effect, making about 4.2 million more U.S. workers eligible for overtime pay. Currently, only salaried workers earning less than $23,660 per year are eligible under federal regulations for time-and-a-half pay when they exceed 40 work hours in a week. Under the new rules, non-exempt workers earning less than $47,476 per year are eligible for overtime pay, when they work more than 40 hours. The rule change is intended to have several effects, including: More take-home pay for middle-class families A greater work-life balance Job creation (because employers that previously counted on salaried workers to exceed 40 hours per week may decide to hire additional staff, rather than pay time-and-a-half to existing workers). The new overtime regulations will create some logistical headaches for business owners. Options for Salaried Employees Businesses may have to make adjustments to accommodate the new overtime regulations. If,…

Legal options for dealing with an uncooperative business partner

Columbia business owners may be interested in some options available to deal with a partner that is not cooperating. Avoiding a deadlock can be accomplished in a few ways, depending on the circumstances. Many small businesses are owned by a small number of people. This can spell trouble when one of those business partners is uncooperative or not performing. Resolving the situation can depend on two main factors. In business entities that are set up as partnerships or meant to act like a partnership, like LLCs, each partner is meant to have equal control of the business. This means that a majority vote of other partners may not be enough to solve the problem. In corporations, however, having a majority of owners may be enough to get around the lack of consent. When a majority is unavailable, dispute resolution provisions in the business formation documents may be helpful. There may…

Effective human resources policies for businesses in Maryland

If you own or manage a business in Maryland, you likely believe that a proactive approach may anticipate potential areas of conflict and could avoid protracted and costly litigation. Disputes cause by the actions of employees or disagreements with former employees are often particularly challenging, but they can often be prevented with clear policy and procedure guidelines and effective employment contracts. You may be able to prevent many workplace disputes by providing employees with well defined boundaries. Access to the Internet is often necessary for employees to perform their duties, but malicious software can infect networks and impact entire organizations if this privilege is abused. The use of company email accounts may also lead to problems when employees voice controversial opinions or make disparaging comments about customers or suppliers. A well written employee handbook should also clearly state your organization's stance regarding workplace harassment and discrimination. These accusations can both…

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