Articles Posted in Contracts

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BIG WOES FOR ZILLO

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Zillo, the gigantic online real-estate database company, has a gigantic headache, legally speaking. It is currently the target of a class action lawsuit in Illinois. Zillow is the website that allows a person to search for properties for sale–properties located just about anywhere. And Zillow’s cornerstone feature–Zestimate–allows one to look up the estimated value of a property–most any property, most anywhere, whether it is for sale or not.  (Your own home may well be listed there right now; just go to the site and put in your address.)

Lots of people love Zillo; it is free, comprehensive and convenient.   Its legal problems stem from its Zestimate feature.

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DRIVERLESS CARS: THE FUTURE OF PRODUCT LIABILITY LITIGATION?201606_TE_CAR_090-header-300x225

 Any business that will contribute to the production of driverless vehicles must give serious thought to the risk of products-liability lawsuits. And that includes suppliers, even of minor parts. We may think of driverless cars as a phenomenon of the future, but that future is closer than you think.

“Driverless car” is generally defined as a vehicle which, for most of a journey, will take charge of steering, accelerating, indicating, and braking. For the near future, the technology is intended only to assist the driver, not to replace him. It is expected that the driver will be able to take control of the “driverless” vehicle at any time.

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Are Employee Non-Compete Agreements Still Valid for Low-Level Employees? Non-Compete-Clause-e1417451038467-300x171

Non-compete arguments are staple in every Chicago Business Lawyer’s legal arsenal and a necessary to protect a business under certain circumstances.  A non-compete agreement, also known as a non-competition covenant or clause, is an agreement between an employer and an employee that places restrictions on the employee after the employment relationship ends.  Non-compete agreements can be useful tools for businesses that want to protect their investment in the training and development of their staff.  Typically, these agreements restrict former employees from working for certain competitors for a specified period of time.  Although Illinois courts tend to dislike non-competes, courts will enforce a non-compete agreement if drafted property.

When considering the enforceability of non-compete agreements, Illinois courts look to see if the agreement is reasonable and supported by adequate consideration.  In particular, when determining the reasonableness of a non-compete, the court considers whether the terms of the agreement are no more than what is required to protect the legitimate business interest of the employer, and narrowly tailored in terms of time, activity and place.

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equitycrowdfundingEquity Crowdfunding – The Future of Investing?

While nearly everyone has heard of crowdfunding, the concept of equity crowdfunding is not as well known.  For those Chicago business owners that are new to this developing area, prior to May 2016, crowdfunding was available only to accredited investors or those with an annual income of at least $200,000 or a net worth of more than 1 million, not including the value of a primary residence. Although the 2012 federal Jumpstart Our Business Startups Act[1] (JOBS) provided for non-accredited investors, the Securities and Exchange Commission (SEC) did not authorize equity crowdfunding to begin until May 2016.

Since that time, Article III of the JOBS Act has seen 49 successful offerings with 11.5 million dollars committed according to a November 17, 2016, Forbes report[2] on the state of equity crowdfunding. While the report suggests that the large majority of startups are not yet using non-accredited crowdfunding under Title III, it is anticipated that equity investment platforms will see tremendous growth moving forward.

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dental officeDentists face new problems with overtime for their employees.  The Fair Labor Standards Act[1] (FLSA) sets forth standards for both minimum wages and overtime pay as well as record keeping for businesses.  Whether your dental practice consists of two employees or a hundred employees spread across three office locations, federal law requires that all dental offices comply with FLSA overtime regulations by December 1, 2016.

Exempt Versus Non-Exempt Employees

In order to determine if you are in compliance with FLSA regulations, the first step is to review which employees are designated as exempt, and not owed overtime wages, versus non-exempt. FLSA rules establish three types of exempt employees[2] which are defined by an individual’s employment description rather than their job title including:

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