In 1989, the California legislature added Section 14200 to the California Corporations Code...more
On May 30, 2024, the Department of Defense (“DoD”) published a Proposed Rule to establish a Pilot Program to Incentivize Contracting with Employee-Owned Businesses. The Proposed Rule would benefit contractors that are...more
On April 16, 2024 (Budget Day) the Honourable Chrystia Freeland, Deputy Prime Minister of Canada and Minister of Finance, delivered the Liberal Party’s federal budget (Budget 2024). Budget 2024 included a number of proposed...more
The Canadian Department of Finance introduced draft legislation in the 2023 Canadian Federal Budget (Budget 2023) to create employee ownership trusts (EOTs) to facilitate the transfer of a business to the employees of the...more
October is Employee Ownership Month. Employee ownership can take many forms, from 100% employee ownership through an ESOP or a cooperative to synthetic equity plans where no actual equity is sold, but employees participate...more
On August 9, the IRS issued a news release, IR-2023-144, warning taxpayers and advisors of “numerous compliance issues” with ESOPs, such as “valuation issues with employee stock,” “prohibited allocation of shares to...more
The Department of Finance (Finance) released draft tax legislation for public consultation on August 4, 2023, with a stated focus on promoting tax fairness and a clean economy. The most significant item released is the...more
There is a growing international movement to increase employee ownership of businesses. Some jurisdictions such as the United Kingdom and the United States have developed tax rules and incentives to facilitate business...more
On March 28, 2023 (Budget Day), the Honourable Chrystia Freeland, Deputy Prime Minister of Canada and Minister of Finance, delivered the Liberal Party’s federal budget (Budget 2023). Budget 2023 does not change the...more
Employee ownership trusts (EOTs) may soon become one additional avenue for Canadian business owners looking to sell their enterprises. The goal of EOTs is to enable owners to effectively sell their businesses to their...more
Recently, the Department of Defense (“DoD”) issued a memorandum to launch a pilot program that will enable certain contractors owned under an employee stock ownership plan (“ESOP”) to receive sole source follow-on awards....more
“Recognize that Human Capital is a deal within the deal and plan accordingly. Deal teams sometimes overlook that they need to project out and calendar the key inflection points for successfully closing on the Human Capital...more
Working with Employee-Owned S Corporations of America (ESCA), the National Center for Employee Ownership (NCEO) recently took a closer look at the impact the pandemic had on ESOPs. ...more
Mitarbeiterbeteiligungsprogramme spielen für junge Unternehmen eine entscheidende Rolle bei der Gewinnung und Bindung von Top-Talenten. Eine Beteiligung am Unternehmen belohnt Mitarbeiterinnen und Mitarbeiter dafür, dass sie...more
Employee-ownership programs (or in short "ESOPs") play a critical role in attracting and retaining top talent to fledgling young companies. Stock options reward employees for taking the risk of joining a young, unproven...more
On August 4, 2020, the Small Business Administration (SBA) and the U.S. Department of the Treasury released new FAQs to provide further guidance on Paycheck Protection Program (PPP) loan questions and supplement previously...more
A supermarket cooperative is not considered the employer of individuals who work for its member stores and cannot be found liable for the age discrimination claims of an employee of one of its members, the Appellate Division...more
New York State healthcare policymakers have always had a lukewarm relationship with for-profit providers. While in some sectors the for-profit provision of care is common (e.g., nursing homes and home care), in others, there...more
Last week, the Senate passed three bipartisan bills that promote access to capital for small businesses and startups. The Senate bills, the House corollaries of which originally passed on March 9, 2017, include the...more
One way for business owners to transition their ownership to their employees and to receive liquidity for their shares is through the creation of an employee stock ownership plan (ESOP). According to the National Center for...more
On March 9, 2017, a number of bipartisan bills designed to promote capital raising for companies were approved by the House Financial Services Committee and the Senate Committee on Banking, Housing and Urban Affairs. ...more
Mistake No. 1 - Not Obtaining an Obligation to Assign Inventions From Employees and Contractor - Example: Employee/contractor agreements do not: (a) assign rights to you in inventions made for you; (b) require the...more
PFOA Contamination Likely to Spur Legislative Action - The discovery of Perfluorooctanoic Acid contamination in southern Vermont drinking water has prompted legislators to examine whether more action is necessary to...more
On February 3, 2016, the House passed H.R. 1675, the Encouraging Employee Ownership Act of 2015. The bill directs the SEC to revise regulations to require an issuer to furnish investors with additional specified disclosures...more
In Hatai v. Dept. of Transportation, a California court of appeal upheld a trial court's decision to exclude "me too" evidence of discrimination from individuals outside of the plaintiff's protected class, but in doing so...more