...Labor and Employment Law The Family and Medical Leave Act was created in 1993 and was meant to offer employees up to twelve weeks of unexcused absence from their jobs per year. The FMLA was meant to provide an opportunity to employees to be able to avoid having to choose between work obligations and personal emergencies which called them away from work. If an employee or a family member is suffering from a serious health condition, they qualify for leave under FMLA laws. The health condition must interfere with the employee’s ability to perform their job or it must require the employee to provide care to a family member with a serious health condition. Employees can use FMLA for several situations which include, but is not limited to: pregnancy, prenatal complications, diabetes, epilepsy, hospitalization, and long term conditions such as cancer and Alzheimer’s disease. In order to qualify, the employee must have worked for a company with 50 or more employees for over twelve months and they must have worked at least 1250 hours in the previous year. When the employee returns to work, they should be allowed to return to the same position at the same salary, as long as they are able to perform essential job duties as they were prior to taking leave. If an employee is disabled upon returning, the employee should be offered a position they are able to perform at the same salary as when leave was taken. FMLA regulations cannot guarantee that the leave be paid leave; that...
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...| Sole Proprietorship | Description | A sole proprietorship business is the type of business where there is only one owner. It doesn’t require complicated filings like other corporations, and it allows for the owner to report both business income and expenses on their individual tax returns. | Two Advantages | Some of the advantages of starting a sole proprietor type business are: the ease of start-up and the cost effectiveness. There are also savings from tax filing, as it can all be done in one simple form. The proprietor can hire employees and get the tax breaks associated with said job creations and the owner not only has, but can transfer full control of the business whenever he/she sees fit to do so. | Two Disadvantages | Some of the more prominent disadvantages are the lack of continuity should the owner die, the risk of liability for any losses or law suits which can be obtained from the owners personal funds, the owner must pay self-employment taxes in addition to business taxes and benefits such as employee healthcare is NOT tax deductible. Raising capital can also be difficult as it is considered personal. | Liability | The owner is liable for business and self-employment taxes. He/she is also liable for any and all losses and or possible lawsuits as well as to collect any outstanding debts. Upon sudden death, any and all assets are carried over to any and all beneficiaries, including liabilities. | Income taxes | The owner is liable for business and self-employment...
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...Sole Proprietorship is a form of business that is owned and ran by one certain individual. That individual is responsible for all the losses and liabilities and is entitled to all the profits from the business. Advantages: Easy and inexpensive to form. Costs are minimal, most of the costs are due to obtaining the proper permits. Complete control of the business. The owner makes all of the decisions. That person is not expected to consult with anyone when making decisions or changes to the business. Easy tax preparation is also an advantage. This form of business is not taxed separately. The tax rates are also the lowest of the business structures. Disadvantages: Unlimited personal liability. Legally there is no separation between you and your business, so you are personally responsible for all the debts and obligations of the business. Many challenges are faced when it comes to raising money for this type of business. Since you can’t sell stock in the business, investors won’t often invest. Also, banks are terribly hesistant to loan money to this type of business for lack of credibility if the business ends up failing. General Partnership is a form of business where two or more people share the ownership of one business. Each partner contributes to all aspects of the business including money, property, labor and skill. In return, each partner shares in the losses and gains of the business. Partnerships entail more than one person when it comes to decision making. It is very...
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...LIT1 Task1 A1. The family medical leave act of 1993 guarantees an employee: - 12 weeks of leave in a 12 month period to care for a newborn or child within the first year of life. -12 weeks of leave in a 12 month period to care for their spouse, child or parent who has a serious medical condition. -12 weeks of leave in a 12 month period if the employee suffers from a serious medical condition and they are unable to perform the essential duties of their job. FMLA entitles eligible employees to take un paid yet job protected leave. A2. The employee is not entitled to pay for the 11 weeks that the employee was on leave. FMLA only guarantees the eligible employee 12 weeks off and protection of his job. The employee was allowed to take the 11 weeks off that he requested without loss of his job, position or salary rate. The employee was allowed up to 12 weeks of job protected leave within the first year of his childs life. His employer granted him the leave and his job was never at risk. A3. No violation has occurred in this scenario. The employee’s position and pay rate were held and kept the same. The employee was within the allowed time limit using only 11 of the 12 allowed weeks. B1. The age discrimination in Employment act of 1967 protects against: -Pre-employment inquires- The ADEA does not stop an employer from asking an applicant’s age or date of birth, but because this information may lead to denial of ...
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...LIT1 Task 1 Part A (the report) SOLE PROPRIETORSHIP: A sole proprietorship is the simplest, quickest and cheapest form of business to start making it the most popular types for first time business owners. A business owner and a sole proprietor may operate under different names, but legally, they are the same entity. Which leads to one of the biggest disadvantages of becoming a sole proprietor; the owner is responsible for all debts and fault created by the business. One of the major advantages to starting a sole proprietorship is the simplicity behind the formation. There is very little paperwork that needs to be filed at the inception and it takes very little work to keep the business compliant with state and federal laws. Another advantage to a sole proprietorship is taxes. Any money made by a sole proprietor is considered income to the owner. The profit is claimed as income on the owner’s annual tax filings. * Liability: Because there is no legal separation between an owner and the business in a sole proprietorship, the business owner is unlimitedly liable for any debt or fault of the business. Even if the sole proprietorship dissolves, the owner will be liable for the debt. If the debt is not taken care of in a timely manner it will could affect the owner’s credit rating and lead to future earnings being garnished. * Income Taxes: Taxation of a sole proprietorship happens once, at the income level of the owner. Any profit made by the company is considered an...
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...Western Governers University LIT1: Task 310.1.5 - 02 11 13 Situation A: The Family Medical Leave act of 1993 states that any employee who has been with the company for 12 months qualifies for job and salary protection as long as the company has at least 50 employees in a 200 mile radius. Since Company X employs 75 people it must meet the follow FMLA policy. Employee A qualifies for FMLA job protection since he has been with the company for 2 years prior to his qualifying family event. Birth and medical complications leading up to it are qualified reasons to request FMLA however, the act states employees may take up to 12 weeks of unpaid leave. There is no requirement under FMLA that leave be paid, any compensation to the employee during their leave is a voluntary act by the employer. Therefore, the denial for his 11 weeks pay is not a violation of FMLA. The managers actions were appropriate and with in the law. Situation B: The Age Discrimination in Employment Act of 1967 prohibits discrimination against employees 40 years of age or older. Given the glowing performance review of the 67 year old employee that was turned down for the promotion it is apparent that age discrimination was probably in effect. The violation possibility is amplified by the fact that the 38 year old promoted person was much younger and had a lower performance review. This employee could report or sue the company for ADEA violation. Situation C: The company has violated Title I of the Americans...
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...| Sole Proprietorship | Description | In a sole proprietorship, the business and single owner are one in the same. A single owner makes all decisions with regard to the business and the single owner retains all profits earned by the business. The single owner is also responsible/liable for all debts and obligations of the business on a personal level. | Two Advantages | A sole proprietorship is easy to create; there is minimal creation cost and time.The single owner has autonomy in decision making; sole owner makes all decisions related to the business and has complete ownership of business’s finances. | Two Disadvantages | It is impossible to add additional owners and to pass on business, business dies with owner. A single owner faces challenges with raising working capital and all loans made for the business are the personal responsibility of the owner. In addition, the single owner may be sued personally for the business’s liabilities. | Liability | Liability is unlimited; obligations of the business are personal obligations of the owner. The single owner is 100% personally responsible for business liabilities and debts. All of the owner’s personal assets are subject to lawsuit(s) made against the business. | Income taxes | The business itself does not file a tax return. There is no legal distinction between the owner and the business. All income earned by the business is considered personal oncome by the owner. Owner faces a higher rate of taxation because all business...
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...MEMORANDUM TO: Owner From: RE: Business Options Date: September 27, 2015 _______________________________________________ Changing the way you structure your business can be a frightening endeavor. You have been operating as a Sole Proprietorship for quite some time now, but it appears you have outgrown that business type. You have expressed a need to scale the business as well as a concern for your own personal liability. With those concerns in mind as well as the current state of your business, I recommend restructuring the business into a Limited Liability Company. I will try and address each of your concerns individually and explain how I came to this conclusion. As your business grows you will be opened up to substantial risk, should you decide to remain a Sole Proprietorship. You have expressed concern over debt and liabilities of the business. As an LLC you can protect your personal assets from future risk. Heaven forbid your business sustains a serious debt or claim that it isn’t capable of paying, but if does, your house, car, and personal possessions are safe from any business creditors. As an LLC you will continue to be taxed as a Sole Proprietorship with the ability to adapt to the future status of the business. You will not pay taxes on the income of the business; however profits and losses will pass through to you and be taxed on your own personal income tax returns. Should you take on another owner in the future, you will transition to be taxed...
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...Student I.D. E-Mail: Western Governors University LIT1: Task 310.1.5-02, 11, 13 Situation A: The employee’s FMLA right was satisfied when he was granted the leave by the company. The employee has been employed at the company for two years prior to his request, which clearly fulfills the requirement of working a total of twelve months before the leave must be granted by the company, which employees more than fifty employees. The request for leave was for birth care, which is a valid reason to request FMLA. All of the applicable provisions of the FMLA were adequately met for this particular employee. FMLA grants twelve weeks of unpaid time off and guarantees that the employee will then be able to return to the same job at the same rate of pay. FMLA provisions do not require paid time off as a mandatory action for the company; therefore, the employee cannot expect the company to pay eleven weeks of withheld salary and the company has not violated any FMLA rules by denying that specific request. Situation B: It is apparent the 68-year-old employee is performing his work duties adequately. The employee has an above average rating; therefore, it cannot be argued that his age is affecting his quality of work. Nothing to suggests that his work does not meet the standards of the company. This is an example of why the Age Discrimination Act of 1967 is so important and necessary. This given situation is an obvious violation of the Act. The employee is over...
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...Situation A The Family and Medical Leave Act (FMLA), passed by Congress in 1993, guarantees eligible employees up to “12 work weeks of unpaid leave each year for childbirth, adoption, or medical emergencies for themselves or a family member” (Beatty & Samuelson, 2010). The employee and company must meet several conditions for the law to be applicable. FMLA has a broad spectrum and applies to public and privately held companies differently. In the case of public agencies, FMLA applies to all local, state or Federal government agencies regardless of the number of employees, as well as public or private elementary or secondary schools (U.S. Department of Labor, 2012). Privately held companies, however, must have a minimum of 50 employees for the law to apply to its daily operations (Beatty & Samuelson, 2010). The employees can be at one location, or multiple locations as long as they are within 75 miles of each other (U.S. Department of Labor, 2012). FMLA dictates an eligible employee, who works for a covered employer, must have “worked for the employer at least 12 months” and have a minimum of “1,250 hours of service for the employer” in that 12 month period preceding when the leave was taken (U.S. Department of Labor, 2012). FMLA further provides for the eligible employee by requiring the employer to restore the employee to their original position and pay rate or to an equal position with “equivalent pay, benefits, and other terms and conditions of employment” (U.S. Department...
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...LIT 1 – Task 1 | SUBDOMAIN 310.1 - BUSINESS LAW | Competency 310.1.2: Organizational Forms | | | | The following report will summarize the key differences between the various forms of legal business entities. The ownership forms covered will include sole proprietorship, general partnership, limited partnership, C-corporation, S-corporation, and Limited Liability Company. Also included will be a brief recommendation of the most appropriate form of ownership for the given manufacturing business. | Section A- For each of the various forms of business ownership, a brief description outlining the basic impact on the following criteria will be given; * Liability * Income Taxes * Longevity or continuity of the organization * Control * Profit Retention * Location * Convenience or burden Sole Proprietorship Perhaps the most common form of business ownership, sole proprietorship, is generally the simplest form of business ownership due to the lack of separation between the entity and the individual. While there are positive and negative implications to any form of business ownership, these are generally more exaggerated in the instance of sole proprietorship. The ease of formation and ownership and limited regulation are strong benefits, however, the negative aspects are far greater than in any other form of ownership. The first negative ramification is the lack of ability to continue the company after the owner either becomes unable or...
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...REPORT SOLE PROPRIETORSHIP: • LIABILITY – All debits are the responsibility of the sole proprietor. There is no limit of liability for the owner. This includes the owner’s house and all personal property. • INCOME TAXES – All income earned by the business is recognized as personal income by the owner. There is no legal difference between the owner and the business. • LONGEVITY/CONTINUITY – The business fails to exist if the owner dies, or quits. • CONTROL – The owner is the business; the business and the owner are the same. There is only one owner. Sole proprietors have full autonomy of the business (Forms of Business Organization, n.d.). • PROFIT RETENTION – If the business makes a profit, that money belongs solely to the owner. The owner can do anything with the money. • LOCATION – This entity is set up under the owners name but the owner may elect to use a fictitious name known as a dba (doing business as) business. If the business moves to another state, they simply move and register to do business in the new location. • CONVENIENCE/BURDEN – Owners of sole proprietorships have the flexibility in managing their business. This form of entity allows the owner autonomy to set their own hours, grow at their own pace, expand the business, or take a vacation all at their own discretion. At the same time, they also have the entire burden of the company. GENERAL PARTNERSHIP: • LIABILITY – Every partner in the partnership is jointly liable for the partnership’s debts and obligations...
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