Doctors, lawyers, accountants and other professionals face particular challenges in their succession planning. Unplanned exits are at high risk for losing clients, revenue, and good will. Client replacement costs and other continuity challenges abound for the remaining partners and staff. On the other hand, an action plan to maximize profit in the sale of a practice typically takes 18-24 months. In our multidisciplinary practice, we know from experience that the most effective succession planning integrates legal planning techniques, personal financial and retirement planning, and in some instances, finding a business broker.
As the pandemic wears on and effective vaccines roll out to many adults, employers and employees are hoping to stop wearing masks in the workplace. To reduce labor risks, we advise employers to keep a workplace mask policy in place, remind all employees that the policy remains in effect, and directly address employees who do not cooperate.
As we begin 2021, we are still faced with Covid-19 affecting every part of our lives. While hope is on the horizon as vaccines are being produced and distributed, we must continue to proceed thoughtfully as we face these challenges. Besides the changes that the vaccine will bring, there are several important updates from the recent Stimulus Bill which was signed into law at the end of 2020:
As the United States (and many parts of the world) experiences a new rise in Covid-19 cases, Maryland Governor Hogan, by Executive Order, and Montgomery County have implemented new restrictive orders, effective November 10th, to strive to flatten the curve. These orders will affect many businesses throughout the state and will likely impact your actions as a business owner and employer, until these restrictions can be relaxed again.
Effective November 10, Governor Hogan, by Executive Order, has imposed or restored certain Covid restrictions against the ability of Maryland businesses to fully operate. The Governor’s Order also allows counties to impose more restrictive regulations: Montgomery County did just that by imposing a more restrictive regulation (also effective November 10).
As online shopping continues to grow, consumers are relying more than ever on issuing payment for those transactions remotely. Despite the appeal and convenience, especially during a global pandemic, many transactions continue to be paid for with traditional checks, including cashier checks. The appeal of checks is due to the sense of security that the financial institution has cleared the funds for disbursement. However, with advanced technology in digital copying and document manipulation, checks are particularly prone to counterfeits and scams. The U.S. Federal Trade Commission (“FTC”) Consumer Sentinel Network database alone reported more than 27,000 counterfeit check scams with losses topping $28 million dollars in 2019. The FTC also provides that the median loss reported on a counterfeit check scam is about $1,988.
In a recent case, the Court of Appeals of Maryland dismissed the appeal of a Maryland limited liability company (“Company”) in a breach of contract action because the Company failed to file a personal property tax return.
By now, most business owners have read the emerging scientific news that the COVID-19 pandemic may linger for one to three years. Alongside this “lengthening” of the curve, the media is filled with coverage of the political, social and economic pressure to re-open and significant concerns from employees that their workplaces will not be safe enough. In any event, businesses should prepare for re-closing and for one or more partial contractions before complete stabilization.
Re-opening your business is the hot topic as local and state governments relax COVID-19 shelter in place orders. Regardless of industry, most small businesses need to address core labor issues and evaluate what additional industry-specific concerns should be addressed. Both valid and specious employment claims are already on the rise due to a combination of new laws, economic pressures, and a tight job market.
Now that Maryland is beginning to relax its shelter in place order and other local jurisdictions will likely follow suit, business owners need to begin planning for re-opening so that it can be done in a safe and effective way. Over the next few weeks, we will be publishing a series of articles that are designed to help you target the relevant issues as you contemplate re-opening, managing labor risks, and possibly shutting down again.
