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Category: Business Law

The New 80/20 Rule for Tipped Employees

On December 28, 2021, a new rule affecting tipped employees goes into effect. Tipped employees under the Fair Labor Standards Act (Fl.SA) are defined as (1) non-exempt, (2) customarily and regularly receive more than $30.00 a month in tips, and (3) the employer is allowed to credit a portion of their minimum wage obligation against the employee-earned tips.  Employers utilizing the tip-credit must pay the employee a minimum direct cash wage of $2.13 per hour; the remainder balance of the minimum wage is available for a credit against tips earned by employee. The new rule restricts employers from drawing a tip-credit when employees are not performing work that is part […]

Choosing the Right Business Structure: 4 Factors to Consider

Starting a business can be an intimidating process especially, navigating the legal process of making your business official. When starting a business, several factors must be considered. One of the most important choices is deciding what structure best suits your business. When taking the leap and starting a business, contact an experienced attorney to help. What Are Some of the Most Common Business Structures? New businesses typically fall under one of the following structures: Sole Proprietorship Limited Liability Company (LLC) Corporation Partnership Cooperative While this list is not exhaustive, new business will most likely be structured as one of the entities listed above. Still, choosing the right structure is perhaps […]

RESTAURANT REVITALIZATION FUND ADDRESSED IN ARPA

Under Section 5003 of the ARPA, certain food service businesses are eligible to apply and receive a tax-free federal Restaurant Revitalization Fund grant (“RRF Grant”). While the amount of the grant provided to the eligible entity depends on the “pandemic-related revenue loss of eligible entity,” the amount cannot exceed $10 million and is limited to $5 million per physical location of the eligible entity. Generally, the revenue loss is calculated based on gross receipts during 2020 subtracted from gross receipts in 2019.  The following food services businesses are eligible to apply for an RRF Grant: a restaurant, food stand, food truck, food cart, caterer, saloon, inn, tavern, bar, lounge, brewpub, tasting […]

UPDATED EIDL ADVANCE

The Targeted EIDL Advance was created under the December 2020 Consolidated Appropriations Act to provide support businesses most heavily impacted by the COVID-19 pandemic.  The Advance is limited to: small businesses in low-income communities that suffered a substantial economic loss; defined as 30% or more, due to the pandemic; may not have received advance funds previously; if previously received an EIDL Advance, but did not receive the full $10,000, eligble to request up to the full $10,000. The American Rescue Plan, signed into law on March 11, 2021, includes $10 billion in funding for Targeted EIDL Advances and an additional $5 billion to fund $5,000 supplemental grants for businesses with ten […]

THE AMERICAN RESCUE PLAN ACT AND THE SSBCI

The American Rescue Plan Act (“ARPA”) reauthorized State Small Business Credit Initiative (“SSBCI”) and allocated $10 billion toward funding the program for state and tribal governments.  The original SSBCI was a $1.5 billion program authorized through the Small Business Jobs Act of 2010 and aimed at strengthening state programs supporting financing small businesses and entrepreneurs. Administered by the Department of Treasury, the SSBCI allowed states to use the funds for a wide variety of debt and investment programs and provided the states many options to use financial entities to provide the financing to the small businesses. About one-third of the program’s funds were used for equity investments. Over the course of three […]

SMALL BUSINESS ADMIN PREPARES FOR SHUTTERED VENUE OPERATORS GRANTS

The newly passed American Rescue Plan (“ARP”) revised and expanded the Shuttered Venue Operators Grants program initially passed under the Consolidated Appropriations Act, 2021.  The available amount of grants increased to over $16 billion.  Additionally, grant applicants no longer need to choose between a PPP loan and the Shuttered Venue Operator Grants.  If a venue received a PPP loan after December 27, 2020, the amount of the PPP loan will be deducted from the Shuttered Venue Operators Grant.  However, venues will become ineligible for a PPP loan AFTER they receive a Shuttered Venue. The American Rescue Plan did not amend the entities qualifying for the grants or the priority of […]

CORPORATE TRANSPARENCY ACT

To prevent the illicit use of “shell companies” concealing illegal activity or facilitating money laundering and tax evasion, Congress enacted the Corporate Transparency Act (“CTA”) on January 1, 2021.  Although the law garnered little fanfare, it creates a registry of “beneficial owners” and imposes strict reporting to the Financial Crimes and Enforcement Center’s (“FinCEN”) anti-money laundering regulations.  “Beneficial Owners” include individuals who (i) exercise “substantial control” over the entity, or (ii) own or control twenty-five percent of the reporting company’s ownership interests.  “Substantial control” and “ownership interests” measurements are not defined, but the forthcoming CTA Regulations will hopefully provide some clarity.  Individuals acting solely as an employee of an entity, […]

EMPLOYER OPTIONS DURING BAD WEATHER

Not one RLF attorney or staff member can remember a time when the entire 268,820 square miles of Texas was covered in a winter storm warning, much less covered to some degree in ice and snow, and dealing with the aftermath of power and water outages. That just doesn’t happen here. But in 2021 fashion, it did! And now, San Antonians have a lot of questions to work through. While there are legal conditions regarding pay and employment, there are also the “human factors” that will influence payroll decisions during the week of forced closure. What is required by Texas employment law if your business closed due to bad weather, […]

UPDATES TO PPP and COVID-19 RELIEF BILL

The first round of Paycheck Protection Program (“PPP”) loans provided much needed capital to businesses struggling through the pandemic. President Biden and the Consolidated Appropriations Act, 2021 (the “Act”) have provided further assistance to employers. The Act allows employers with fewer than 300 employees a “second draw” of PPP loan funds, subject to certain criteria.  The Act also expands several areas such as eligibility, allowable expenses, and forgiveness. For the two-week period from February 24, 2021-March 10, 2021, only businesses with less than twenty employees may apply for PPP loans.  An additional $1 Billion in PPP funds was set aside for businesses in low-income areas and independent contractors, sole proprietors, […]