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Top 5 Reasons You Need a Business Lawyer

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Not sure if a business lawyer is the right move?  Running a business is hard enough. Don’t make things even more difficult.  Here are 5 reasons why hiring a business lawyer could pay off.

1) Not having a lawyer might cost you.  You are a young business, cutting costs and pinching pennies to make things work.  Your business is running smoothly until you get a notice from the state ordering you to comply with a regulation you’ve did not know existed.  Now you have a problem that could get expensive quickly.  Hiring a business lawyer BEFORE that notice arrives could prevent that notice from ever appearing in your mailbox.  This leads to the second reason…

2) Avoiding problems is far less expensive than fixing them.  A good business lawyer can spot potential pitfalls for a business before that problem even arises.  The cost to avoid a problem is minimal compared to the alternative.

3) The law is complicated.  What is a pleading? Why am I being sued?  Why are there so many rules and regulations?  The law can be very complicated – and time consuming.  Having a business lawyer on your “team” and familiar with both you, your tolerance for risk and your industry can keep your business out of litigation in the first place.  In the unfortunate instance a lawsuit does arrive, having a business lawyer on your “team” may allow you to quickly right the ship rather than be shopping for a lawyer, with a lawsuit in hand.  You are good at running your business, let your business lawyer handle your legal issues.

4) Chances are, your competition has a business lawyer.  Business lawyers don’t just cost you money – a good business lawyer will give you an edge in running your business as efficiently as possible.  If your competition has a business lawyer, it is likely they are many steps ahead of you.

5)  What Will a Consultation Cost Me?  Good business lawyers do not charge for an initial consultation.  After all, it should be a relationship you are developing.  You would not work with service providers you do not like or respect.  Your business lawyer is no different than the others.  An initial consultation allows you both to meet each other and explore the possibility of a long-term relationship. Find someone willing to sit down and discuss you, your business and your goals and you may just learn that your business cannot afford to be without a business lawyer.

 

New Jersey Home Improvement Act

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My company did the work, can’t get paid and is responsible for attorney’s fees if I try to collect?

What the heck?

Owning a contracting business in the state of New Jersey can be a profitable way to make a living, but only if you play by the rules. The New Jersey Contractor’s Statute and Consumer Fraud rules that is.  New Jersey boasts of having arguably the most consumer friendly protections in the nation.  This is great news for the consumer, but if you do business in New Jersey you need to become familiar with and, more importantly follow, the rules.

Here are three of the most common ways we see contractors violate the consumer fraud rules:

  1. I’m not a construction contractor, so the rules don’t apply to me, right?

Think again.  It is not just general contractors who need to follow these stringent rules. Any form of independent contractor in New Jersey who deals with home improvement needs to follow the contractor’s statute and the consumer fraud rules.  Examples of other types of contractors include landscapers, painters and restoration services companies.

  1. Don’t forget to sign on the dotted line…

Any proposals presented to a New Jersey homeowner for more than $500 dollars MUST be made AND ACCEPTED in writing. Without a written and signed proposal you are in direct violation of the Home Improvement Contractors Statute in the State of New Jersey. The written proposal must also include all information required by the law including your name and registration number, start and end dates for the work, details about the work and details about labor, material and products. Overall the compliance list is not exhaustive, but the implications of non-compliance can most certainly be devastating.  If you do not have a signed proposal, do the work and try to get paid from a savvy homeowner you may have to not only walk away from your work without payment, but pay any attorneys’ fees the homeowner incurs if you try to collect.

  1. The importance of insurance

General Liability Insurance is a vital part of owning a business, but simply being covered is not enough. You are required by law to present anyone you do work for with a copy of your general liability insurance so that they have proof of coverage. Non-compliance is a technical violation of the statute and exposes you to liability as well as risking that you will not be paid.

These rules may seems basic, and they are, but you would be surprised how often they are not followed.  Many contractors have had to walk away from both their work and payment when violations of the act occur.  If you violate the Act you can be liable for treble (triple) damages under the New Jersey Consumer Fraud Act as well as attorney’s fees.

Don’t put your company at risk.  Contact Bergmann & Good with any questions or to schedule a review of your proposals, contracts and procedures for compliance with the New Jersey Consumer Fraud Statute.

Undressing the Dress Code Dilemma

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Because small businesses offer a more intimate and flexible type of office environment, dress codes can vary greatly depending on both the office culture and your industry. While some may prefer a more traditional or formal style, depending on your business, office space, and relationships with clients many offices observe a more casual dress code. Either is workable and it really depends on preference, but there are a few things to keep in mind as a small business owner.

 

Make the policy clear- and official 

If you are comfortable having your employees dressed more casually at the office you still need to have a written, official policy to avoid misunderstandings. Your policy should dictate that while the office is not strictly formal, there is still clothing that is inappropriate in any professional setting and there may be events where the dress code requires more formality.

If your office requires a more hybrid policy, clear requirements are even more important. For instance, some small law firms do not require either staff or attorneys to wear formal business attire every day, but in the event of an important client meeting or, of course, court appearances it should be made clear that formal office attire is both expected and required. All new employees, regardless of rank or industry should be made to read, understand and agree to the dress policy, including any updates or changes to an existing policy.

Have a system in place for infractions

Your office dress code policy should be easily understood and have a clear outline of what will happen if an employee fails to uphold the office standards. There is nothing more uncomfortable for management in a small business than needing to address an employee’s dress code infractions, however, in the event an employee does break the dress code or continuously fails to follow it, having a clear dress code policy will make the conversation go much more smoothly and hopefully avoid future problems.

 

As a small business owner, you have a great deal of influence over the kind of office culture you create, but in order to protect yourself from office disputes and just as importantly, to protect the image you want your business to present, make sure you give every employee and written and unambiguous dress code.

Bergmann & Good can help you craft an appropriate and enforceable dress code policy for your office.  Give us a call if you would like to discuss your small business needs.