Massachusetts Employment Lawyer Blog

An online textbook service is entangled in Boston business litigation, after three of the textbook industry's top manufacturers alleged copyright infringement.

Our Boston business litigation attorneys understand that there are going to be challenges with any business model, no matter how brilliant the plan. However, one of the ways you can head off costly legal issues is to hire a small business attorney before you open your doors or go live online. A Boston business attorney can help to review your business model, your marketing and even the details of your product to help make sure you're not going to run into trouble.

In this case, a company called Boundless Learning aimed to market free, online college textbooks. It had raised about $8 million from investors and, just as the fundraising closed, it was hit with this Boston business lawsuit.

Specifically, the older textbook publishers say that Boundless Learning copied material straight from their books on psychology, economics and biology. The suit claims that Boundless Learning is trying to rip them off, by employing people to essentially paraphrase the information in their textbooks, which can be sold at upwards of $200 per book in college bookstores.

The lawsuit, deviating somewhat from the somewhat bland language of many Boston business litigation suits, claims that Boundless Learning "gets an 'F' in originality."

The CEO for the new start-up said he and his Boston business litigation attorneys plan to fight the allegations, saying they don't copy anything. While the site is not yet live, he said the site has beta tested with several thousand college students over the last several months, and expects to begin marketing efforts before the end of the summer - just in time for the fall semester. The CEO went on to say that the lawsuit is not about copyright infringement, but rather a dying industry that feels threatened by innovation. And, in fact, the textbook manufacturers are embroiled in another suit with a similar digital textbook service.

The traditional publishers say that the start-up is very specific in the textbook titles its service can be used to replace. What's more, the plaintiffs allege that the online books even put the content in the same order, in some cases on the same pages, and have allegedly ripped off photos, illustrations, captions and other original content. The CEO, when pressed by reporters about where exactly the content originates, was vague, saying freelancers and "open information" are to be credited. A lot of the content, he said, is based on standard information you would find on a college syllabus in any of those courses.

And the web-based product is different in that it offers unique digital study guides and highlighting. And what's more, it's free - something that no doubt appeals to cash-strapped college students. The goal, the CEO said, is to lay out most of the information you would find in any college textbook, but to do so in a manner that better engages students.

Our Boston business litigation attorneys will be closely following this case to see what grade the judge hands down.

Continue reading "Boston Business Litigation Filed Against Free Online Textbook Company" »

Boston business lawsuit has ensnared an embattled lobster distributor that is alleged to owe some $3.5 million in two separate cases. Live Lobster, based in Chelsea, is also on the hook for a $400,000 investment in the form of a government-funded Community Development Block Program grant for a processing plant in Gouldsboro.

Boston business litigation attorneys know that the Maine lobster industry in general has been in trouble over the last five years. While there had been record catches and strong demand throughout the 1990s, peaking in 2003, in 2007, harvest dropped by nearly 25 percent. Bait and fuel costs increased, and that has led to problems for lobstermen and distributors.

This is at the heart of some of Live Lobster's problems, although some of these issues could have been circumvented or at least mitigated with the help of an experienced Boston litigation attorney with experience in contract disputes.

The details of this case are somewhat complex, but here's what we know about it from The Bangor Daily News:

The company is in the business of shipping live lobster straight from the boats of Atlantic fishers to the tables of restaurant patrons on the West Coast.

There have thus far been two lawsuits filed against the distributor. One involves a former employee, and the other, TD Bank. Suing for a collective $3.5 million, the newspaper report questions whether the company's plants in Phippsburg, Spruce Head, Rockland and Stonington will be able to resume operations - which essentially stopped March 23 as company officials work to regain solid financial footing. Last year, the company also purchased the Bumble Bee sardine cannery, which it has yet to re-open.

The first lawsuit involves a former general manager, who says he was a minority owner of the company from 2003 to 2009. He says he was "frozen out" of the company's operations by administrators and subsidiaries. He agreed to a settlement from the firm's partners in late 2010 for more than $460,000. He says that he received $225,000 of that, which was supposed to be an initial payment. Now, he says TD Bank is blocking the second half of that payment, which is for more than $235,000. He is asking for that amount, plus legal fees, interest and other costs.

The second suit was filed by TD Bank. In that case, the bank says that it loaned some $4 million to the lobster company back in 2008. To collateralizwe the loan, the company agreed that TD Bank would have a first-priority security interest in all of its business assets. Now, the bank says not only is the company not making its payments on that loan, it's depositing a large amount of its proceeds into an account with another bank. TD Bank says this is a direct breach of contract, and is demanding the full remaining principal of the loan - about $3.4 million - plus another $4,500 in interest.

Further complicating matters is that a number of the lobstermen who work with the company have complained that the company has been bouncing checks. The company has responded that those issues can be attributed to a new payment schedule.

On top of all that, the company received some $400,000 in federal money in the form of the Community Development Block Grant, which it is supposed to be using to revamp the Gouldsboro plant in preparation to alter it from a sardine canning operation to a lobster distribution center. The plant, which had previously employed about 130 employees, has yet to re-open. The company had said it hoped to hire about 120 people by the summer, but its legal troubles have many doubting whether that will happen.

Another $750,000 loan had been approved for the company by the Finance Authority of Maine. However, company officials never completed the paperwork to actually receive the loan proceeds. The government agency says that even if the paperwork is completed, it will have to reconsider granting the loan, given all of the company's current struggles.

This is an example of how legal issues can quickly snowball in the corporate sphere. Of course, it's critical for larger companies to have a business litigation attorney to help avoid some of these pitfalls in the first place. But hiring a skilled attorney at the first sign of trouble can also help to mitigate your losses and/or improve your legal standing.

Continue reading "Boston Business Litigation Troubles Lobster Distributor " »

Boston business contracts are very detailed for a reason. It is important to safeguard yourself from potential loss and liability.

Having an experienced Boston business attorney can give you the peace of mind to grow your company upon a solid foundation.

Amicas v. GMG is a recent First Circuit case that addresses contract disputes between companies. Amicas is a publicly-traded information technology (IT) company that produces medical software. Gonzaba Medical Group (GMG) is a large company that provides medical services. GMG needed a computer program to manage GMG's radiology services so it contracted with Amicas to develop and license two computer programs.

Amicas drafted a contract and, after negotiations, the contract was executed by the parties. The contract stated that Amicas would grant a software license to GMG in return for a payment of $1,009,548 over five years. Additionally, Amicas was to provide continuing support service to GMG with regard to the software. The contract was signed by both parties on the same date with the inclusion of an integration clause.

In order for a bilateral contract to be binding, there certain requirements must be met. There must be an offer, acceptance of the offer, and consideration. Consideration is used in contract law to describe anything of value that is being exchanged in the contract. In this case, the computer software programs and money are identified as consideration.

An integration clause is inserted into a contract to assure that the contract is the complete and final agreement as to the terms of the agreement. By inserting this clause, all previous and contemporaneous contracts, negotiations and agreements as to the terms stated in the contract are considered to be superseded by this final writing.

Additionally, the contract stated that Amicas provided a warranty that the software would conform to the product manuals. Although this warranty was included in the contract, Amicas did not warrant that the software would necessarily meet GMG's requirements.

After several months of working together to create the necessary software, GMG began negotiations with an Amicas competitor to have substitution software developed. Amicas argued that the reason why there were problems with the software was because GMG had failed to maintain constant sets of data. GMG then sent a termination notice claiming that Amicas had failed to conform to the original guidelines and failed to deliver a functional product. Amicas met with GMG representatives to try to contain the problem but GMG had already entered into a contract with the Amicas competitor.

Amicas sued GMG for breach of contract, and GMG counter-sued. The court looked to state law to determine the legal result of this case. The contract was governed by the law of Massachusetts which states that in order for a court to find that a party breached a contract, the moving party must prove three things. The plaintiff must establish that a contract existed, the plaintiff was willing to perform the terms of the contract, and that the defendant breached the contract. Plaintiff must show that the amount of damages it is seeking are seeking is causally related to the defendant's breach.

The court in this case noted that Amicas provided sufficient evidence to show that they worked on the product and that any inadequacies in the system were not their fault. It was also undisputed that GMG did not fulfill its obligations under the terms of the contract because GMG cancelled it.

Because GMG did not provide any factual evidence that Amicas breached the contract by failing to fulfill its obligations, the court found in favor of Amicas. Amicas was awarded damages, attorney's fees, costs of litigation and interest. GMG'c counterclaims were rejected.

Continue reading "Massachusetts Breach of Contract Issues Discussed in Amicas v. GMG" »

A Boston business litigation lawsuit has been filed against the maker of a new shoe that promises a host of health benefits that some say are overinflated.

Our Boston business attorneys understand that the class action civil suit is asking for $5 million in damages.

This case illustrates how crucial it is for a company to work with an experienced attorney on any marketing campaigns, or when dealing with protecting trade secrets, to help ensure that these type of issues aren't going to crop up later.

Of course, business owners believe in the products they are selling and are excited about sharing them with consumers. However, businesses need to be careful not to make over-arching claims. Most businesses see the sole purpose of advertising as to sell products. But a carefully-worded marketing campaign can help to ensure that you will avoid costly business litigation in the future.

According to The Boston Globe, Vibram USA Inc. and Vibram FiveFingers LLC, which is based in Concord, is accused of claiming health benefits that weren't really true.

The shoes have become a nationwide phenomenon. They feature a snug covering for each of the five toes, as opposed to the full closed-toe of most running shoes. They are marketed as "natural," "minimalist" or "barefoot" shoes, designed for a running experience that is supposed to feel more as if you are running with no shoes at all. As a result, the company says, not only will your running performance improve, the claim is that it is better for your body - your joints and feet - as well.

Plaintiffs are alleging that not only do the shoes not provide the health benefits claimed, but that they may even increase the risk of injury, as compared to the more standard running shoe.

The lawsuit stems from a study that was recently published by the American Council on Exercise. Essentially, the researchers set out to look at how the five-toed running shoes compared with the more traditional running shoes, which are designed as closed from heel-to-toe. What they found was this: The five-toed shoes have resulted in a number of high-impact injuries for a large number of runners. Researchers did note that runners who changed the way they ran, or their form, were less likely to suffer from injuries.

Those who filed the lawsuit did concede that the marketing campaign for the shoemaker advises runners who are using the shoes for the first time to take it slowly, and ease into their use. The company's website offers training tips on how to do this. The website also says that it may take up to a year to become fully accustomed to this new style of running.

However, the plaintiffs allege that not only were they prone to injuries while running in the shoes, but that the company's claim that using the shoe was essentially akin to running barefoot is false.

The suit indicates it represents some 100 people, through five different law firms.

Continue reading "Boston Business Litigation Can Be Avoided With Marketing Consultation" »

In a case that's likely to have implications on future Boston business litigation, search engine giant Google is facing down the language-learning pros at Rosetta Stone.

Boston business litigation attorneys will be closely following the development of this case, as it was just recently given the go-ahead to move forward. It deals with trademark infringement on Google's AdWords feature.

The case is called Rosetta Stone v. Google, and it's big deal because not only is AdWords Google's top moneymaker, earning the search site some $28 billion in revenue in 2010, the suit gets to the core of what rights companies possess over their likeness versus what power consumers have in seeking a wide range of competitive options.

It's garnered so much attention that 33 other large companies - including Geico insurance, the National Football League, Tiffany & Co. and Ford Motor Co. - have all submitted briefs to the court showing solidarity with Rosetta. They believe that AdWords allows counterfeiters and competitors to use their trademarks without their permission in order to sell copycat products - and that Google is not only complicit, but encourages this.

In Rosetta's case, the company asserts that Google has allowed third-party businesses to purchase phrases like "language library" and "Rosetta Stone," which allows those third-party companies to show up higher on the AdWords site. In some instances, those links - called sponsored links - whisk consumers away to third-party sites that Rosetta alleges consumers may think is their brand, when it's not.

This confusion is the basis of the lawsuit.

They say that most consumers look for websites by visiting a search engine site and entering the name of the brand. If the highest results aren't the company they're looking for, it hurts their business.

Google, which is also facing a number of similar allegations, has said that consumers are smart enough to know the difference between a sponsored site and one that shows up in a normal search. Plus, they argue, the variety that AdWords offers in terms of product options only serves to benefit the consumer, who is using specifically plugging in the keywords hoping to find a greater variety of businesses.

Originally, the case was tossed out by the U.S. District Court for the Eastern District of Virginia two years ago. But now, this appeals court ruling overturns that decision and basically says the suit can move forward in federal court. Lawyers in the case say that this ruling sets an important precedent, and will likely open the search giant up to even more business litigation in Boston and beyond.

It appears this case will go ahead simultaneously with another suit that had originally been tossed out, and has now been brought back to life by another appeals court. That case revolved around Google's video site, YouTube. Television conglomerate Viacom alleged that YouTube had broken copyright laws by posting TV show clips from users without permission from Viacom. But a lower court dismissed the case, saying YouTube wasn't responsible because it did remove the posts that were unauthorized once it was notified. Now, however, the case is being sent back to trial court.

When it comes to 21st Century technology, protecting your business interests can be as complex as it is critical.

Continue reading "Boston Business Litigation Attorneys Watching Rosetta Stone v. Google" »

Robert Kraft, owner of the New England Patriots, is suing the town of Foxborough in a Massachusetts business litigation case that is starting to get ugly.

As our Belmont business litigation attorneys understand it, at the heart of the issue is a government contract involving two billboards, posted on land owned by Kraft and posted near Gillette Stadium.

For the last five years, there has been an agreement that has worked out well for all sides. This involved the split of advertising revenue acquired from these boards between the town and FXP, which is another of Kraft's business ventures.

But the timetable on that agreement is set to run out in mid-May. Kraft has said that after that, the town needs to move the billboards. The town, meanwhile, claims that the agreement stipulated Kraft had to give up rights to the billboard after that five-year deadline.

According to Business Week, the town continued on with its seeking bids for construction on the billboards and also for other advertisers. When Kraft objected, the city threatened to seize the land by order of eminent domain.

When Kraft tried to schedule a time slot to speak before the town's governing board, the board refused to hear him, prompting Kraft to file a federal civil rights claim, which resulted in a temporary restraining order that required the board to allow him to speak. Kraft's lawyer was quoted as saying the town manager knew that what Kraft would say was contrary to the town's desired action, so he was denied the right to present that opposition in a public forum.

Town officials say they have easements, or a right to use the property, even though they don't own it. Kraft doesn't argue with that, but says those rights don't mean they can hang on to the billboards - and the profits derived from them.

In this situation, Kraft is a multi-millionaire, with a lot of clout and the resources to go up against the town of Foxborough. However, smaller companies would have a more difficult time facing down the government. This is where having an experienced small business litigation lawyer on your side is going to greatly improve your odds of an outcome in your favor.

It's especially important to get out in front of an issue like this before it snowballs. Any time you sign a contract with a government, you should have your own attorney review it. This will not only ensure that the terms are clear and fair, but that there will be no surprises down the line.

Entering into an agreement with a government is much different than one you might enter with another company. Often, that starts with how you get the contract phase at all - through bidding. Whoever can effectively complete the project or service for the least amount of money, in theory, will land the contract.

However, consulting with a lawyer before signing on the dotted line can save you many headaches.

Continue reading "Massachusetts Business Litigation Case Spotlights Difficulty With Government Contracts" »

There has been a great shift in our country from small business to big business. It is more common to see employers as large companies with thousands of employees, than the semi-extinct family businesses. In this environment, it can become challenging to identify who can be held liable for sexual harassment in the workplace.

Having a knowledgeable and sympathetic Boston employment attorney helping you in your Boston sexual harassment case can be the difference between winning your case and losing it. Especially with the job market as bad as it is, you need to fully understand your rights to protect yourself and your family.

Dulaney v. Packing Corp. of America is a sexual harassment case coming out of Virginia. The trial court originally granted summary judgment to the employer in this case, and it recently came to the Circuit Court of Appeals. The original claim was of sexual harassment and gender discrimination against Dulaney by Packing Corp. of America ("PCA") and PCA's "managerial" employee.

Plaintiff sought compensatory and punitive damages and argued that her employer and her supervisor should be held jointly and severally liable. The main issue in this case is whether the employer can be held liable for sexual harassment committed by one of their managerial staff members to another employee. There are many intricacies to this determination for which the court addresses in this case.

Packing Corp. of America ("PCA") is a company with a Virginia facility that manufactures cardboard boxes. The majority of their staff is male and working as temporary hourly paid employees. The plaintiff is a woman who was originally hired to work the night shift as a temporary hourly paid employee. As is the hope of most employees, Plaintiff wanted to obtain a permanent position with PCA.

The night shift at PCA had no designated manager within their employee pool. However, they did have an employee with significant supervisory job duties. Mr. Mills was the only night shift employee who maintained a set of keys to the administrative offices within the facility. Additionally, he was charged with assigning work to the night shift employees, sending any employee home early without pay, and disciplining the employees consistent with the company disciplinary manual. Mills was also responsible for reporting any employee misconduct or complaints to the company's management staff.

In Plaintiff's pursuit of seeking permanent employment she consulted with Mills, as he had the apparent authority of a supervisor. Although PCA contends the Mills was not a manager or supervisor, Mills offered Dulaney a position as a permanent employee for PCA. Upon her acceptance, PCA treated her as a permanent employee in every way.

After some time, Mills allegedly began to make sexual passes at Plaintiff. This included threats indicating that Mills would make her life unbearable if she did not engage in sexual conduct with him. Under an extreme fear of losing her job, Dulaney began a sexual relationship with Mills which primarily took place within the locked corridors of the facility to which Mills had a key. Whenever Plaintiff did not assent to these encounters Mills would scream at her in front of staff, spread horrible sexual rumors about her, and even send her home without pay. Dulaney alleged that because of the rumors spread by Mills, she was ostracized by other PCA employees, creating a very unproductive work environment.

Plaintiff finally reported her abuser to his direct supervisor and was allegedly told to be careful as she was considered a replaceable employee and would be fired if she spoke with anyone else from management. Finally, Plaintiff reported both men and soon after, Mills was fired. Plaintiff remained in a very uncomfortable work environment where she was bullied constantly by her co-workers. This led Plaintiff to look for work elsewhere and speak with the PCA management.

The facts surrounding the plaintiff leaving PCA and the severance agreement were found by the court to be material facts in dispute, thus the trial court erred in granting summary judgment for PCA.

PCA argued that they should not be held liable for the actions of Mills because of the Faragher-Elleth doctrine. This is a doctrine that arose out of two U.S. Supreme Court cases dealing with liability for sexual harassment.

Faragher-Elleth doctrine says that an employer can be protected from liability if the employer exercised reasonable care to correct any sexual harassment and they can prove that the victim failed to utilize the corporate safeguards established to protect them from harm. The Court agreed that this relief could be granted if it could be proved that the plaintiff did not suffer a "tangible employment action." This is defined to include: being hired, fired, not being promoted when entitled, reassignment, or any significant change in employee benefits.

This court here found that the facts presented by both parties show that Plaintiff suffered a significant change in employment when she was emotionally forced to resign. Because this nexus was found between the sexual harassment plaintiff suffered and this "tangible employment action," the lower court erred in granting summary judgment for PCA. This case will therefore be heard again by the trial court to determine what damages Plaintiff is entitled to.

Businesses small and large must have qualified employment counsel in Massachusetts. And an employee who believes an employer violated state or federal law must retain a law firm experienced in handling sexual harassment claims.

Continue reading "Boston Sexual Harassment Watch: The Court in Dulaney v. Packing Corp of America Says an Employer Can Be Liable for Manager's Sexual Harassment " »

Sexual harassment in Boston can take many different forms, as illustrated in the recent case of a former college student who is suing her alma mater over allegations regarding her roommate's nighttime activities.

As our Boston sexual harassment attorneys understand it, the case is not so much about what the roommate did - although much is being made of that. It has more to do with what the school did or did not do about the allegations following several complaints.

According to New York Daily News and a number of news outlets, the student has filed a lawsuit accusing the school - Stonehill College, a Catholic university - of breaking the law through violation of the Rehabilitation Act and the Fair Housing Act. She claims the school refused to offer an alternative to her living situation, which involved a roommate who was reportedly openly sexually active.

The plaintiff in this case alleges that her roommate kept her up at night and also engaged in video chats that were sexually inappropriate. She says this caused her not only great discomfort, but also deepened her pre-existing depression into a tailspin of suicidal thoughts.

Apparently, roommate mediation did not work, and the student didn't want to be subjected to additional problems by moving in with another roommate she didn't know. The school refused to offer her a single room.

It's not clear yet how the court will rule on this issue. The school may have a point in that it did try to offer her other accommodations. At issue will be whether the court finds the former student's request of a single room reasonable or burdensome.

The bottom line, though, is that having an experienced Boston sexual harassment attorney on your side can help you determine what your options are in such a situation.

Another recent example of schools involved in litigation of a sexual nature involves a more serious and direct allegation. In this case, an exclusive private school in the western part of the state was accused of covering up an alleged sexual assault of a student by a teacher.

The lawsuit was originally filed two years ago. The student, who was 16 at the time of the alleged incident, said she was raped by her biology teacher when she was a sophomore in high school.

The teacher had reportedly groomed the girl, building a relationship with her for some time, before sexually assaulting her, the lawsuit claimed.

When the girl reported the incident to school authorities, they in turn indicated that she was probably lying and slapped her with a "mentally unstable" label.

While the teacher had denied that anything inappropriate occurred, text messages he had sent to the girl proved to the contrary.

Recent news reports indicate the school has reached a settlement in the case, though the terms of that agreement are confidential.

Schools, perhaps even more than other employers, hold a great amount of responsibility because they are charged with protecting not only their employees from sexual harassment, but vulnerable and impressionable young students as well. You may think you are doing the right thing by reporting an incident directly to school administrators. But often, school officials want to keep such situations quiet, because a stain on their reputation is going to hurt their prospects of new students and future funding. This is why if you believe you may have been subjected to sexual harassment or sexual assault on campus, your first call should be to an experienced attorney.

Continue reading "Sexual Harassment in Boston a Problem for Schools" »

The confidence of small business owners is soaring, according to a new report from Reuters, which likely means that more Boston business formation is on the horizon.

The staff at our Boston small business law firm understands the challenges of starting and maintaining a small business. A huge part of making the leap to launching your dreams is having at least some level of confidence that you're going to be successful.

The next critical step is to consult with an experienced business attorney in Massachusetts, who can help you tie up the legal loose ends and ensure that you and your financial interests are protected - whether it is a joint venture, partnership, sole proprietorship, limited liability partnership, C-corporation, S-corporation or a limited liability company. An attorney can help you sort out which one of these options makes the most sense for your start-up.

Confidence, though, is one of those things that, like money, often multiplies for those who have it. That's why this news is so good. Reuters reports that the confidence held by U.S. businesses rose to an encouraging high last month, with more owners planning to rebuild their stocks after nearly five years of liquidating their inventory.

According to the National Federation of Independent Businesses, the "optimism index" spiked by almost 95 percent in February - the highest it has been in a year. What's more, it was the sixth month in a row that it had been inching upward.

It breaks down like this: Of the more than 350,000 federation members, nearly 15 percent reported upping their inventories - which is an increase of three points since the first of the year. The number of businesses that were still slashing their stocks dropped four points, to 20 percent last month. The federation's survey showed that the inventories of small business owners increased by about 5 percent last month. Most felt that they didn't have enough in stock to meet the demands.

These aren't adjusted for seasonal variations, but a spokesman for the federation was quoted as saying that this is excellent news for the overall economic recovery and growth in the U.S. The more people buy, the more people are employed - and the cycle continues. When inventories are increased, it boosts the gross domestic product - something that is evident in fourth-quarter figures.

In fact, recent results of government research determined that job growth surpassed 200,000 last month - the third consecutive month of gains. Additionally, unemployment is remaining about the same - little more than 8 percent - for the third year in a row.

One mistake new business owners sometimes make is assuming that they can't afford to hire an attorney to help them sort through the issues that frequently crop up. The truth of the matter, though, is that you can't afford not to. Failing to do this can leave you vulnerable to potential scams, theft, lawsuits and financial hemorrhaging.

Continue reading "Boston Business Formation May Increase with Owner Confidence" »

A hotel in Pittsfield recently struck a settlement with 150 current and former employees -- food and beverage workers -- over an argument about tips that weren't passed along from the hotel to the workers, according to the The Berkshire Eagle.

Overtime and wage recovery in Massachusetts is a big deal for employees, especially in this tough economic climate. When money is tight all around, workers must be paid promptly and properly.

At the same time, companies are trying to be as efficient as possible in order to ensure that they can be successful long-term. Sometimes, that includes exploring ways to save money. When it comes to wages, small businesses must be careful to be 100 percent sure they can legally cut where they're trying to cut.

In either situation, an experienced Boston wage lawyer can be consulted to ensure employees are compensated fairly and employers are operating within the law. Whether that means reviewing a company's policies and books to determine if they are in compliance with state and federal wage laws or representing an employee who feels they have been ripped off, the skills and experience of a lawyer can be used to sort out the conflict.

According to The Fair Labor Standards Act, employees must adhere to paying minimum wage and overtime in certain scenarios. There are exceptions to overtime, depending on the circumstances.

According to the law, tipped employees -- who take home more than $30 per month in tips -- must be paid at least $2.13 per hour if they claim a tip credit. The federal minimum wage is $7.25 per hour for those 21 and older. Tipped employees typically include waiters and waitresses, hotel workers, valet workers and others in the hospitality industry. The Department of Labor provides information online for both employers and tip employees to rectify common problems with this setup.

In the situation in Pittsfield, hotel workers agreed on a settlement of $1.3 million -- of which they will receive $850,000 to split after attorneys fees. How much each employee receives depends on how long they worked at the hotel during the period covered in the lawsuit -- November 2006 to June 2010.

Massachusetts employment lawyers say that about one-third of the 20 percent service charges that are billed to patrons at the hotel were withheld. The hotel is saying that they have proof to defend the lawsuit and that the case was based on a "misunderstanding." But the company and its insurance provider decided to settle.

The whistleblower claimed that he started getting suspicious when the hotel's accounting department couldn't provide a straight answer about how much workers got paid for events they worked. Since these tipped workers make a low wage, their tips are important, he said.

When conflicts arise in wage issues, it's important for each side to have sound legal advice. Sometimes, these issues can be worked out internally. Other times, the conflict requires litigation. In either situation, employees and employers must trust an experienced Boston employment lawyer.

Continue reading "Pittsfield Hotel Settles On $1.3 Million For Worker Wage Issue" »

Nine black Boston police officers have filed a lawsuit against the city, alleging that they were barred from advancement inside the department because of an exam that created discrimination in the workplace.

Boston employment lawyers understand that businesses and government agencies sometimes will create policies or screening procedures for employees that can be construed as discriminatory. These individuals require legal representation in order to make sure their rights are upheld.

Employees must be treated equally, regardless of their race, religion, gender, disability, or nationality. Our nation was founded on the principle that all people are created equal, and Massachusetts and federal employment laws are designed to ensure that is the case in the workplace.

In recent years, businesses have used unemployment as a basis for discrimination, leading some lawmakers to write laws that ban companies from not hiring or not interviewing people who have been laid off because of the bad economy. Employers sometimes may treat certain employees differently than others. Sometimes, this happens not with written policies but through obvious actions. This, too, can be seen as discrimination.

According to The Boston Globe article, nine officers have sued the city, demanding that it end a multiple-choice lieutenant's test. The lawsuit alleges that Black and Latino officers historically have done worse on the exams than white and Asian candidates.

The plaintiffs allege that of the 51 lieutenants in the city police's hierarchy, there are only two black and one Asian men. Of the captain's rank, which is one higher than lieutenants, there is only one Black captain, who is retiring.

City leaders declined comment to the newspaper. The complaint was filed about a year after lawyers representing 44 minority officers statewide went to trial alleging that a sergeant's test also discriminates. A judge has yet to make a decision on that case. Whatever conclusion is reached in that case could have a drastic impact on how officers are promoted.

These civil service exams, the newspaper states, are given to most public employees who are seeking a job or trying to get a promotion. The competition among officers trying to move up the ranks is intense and under state law, authorities are required to promote those with the top scores. Experience and education are factors, but score tests end up being most important, the newspaper reports.

The plaintiffs in this case argue that people shouldn't be promoted based on exams that are based on memorization. Leadership qualities, as well as experience and other qualifications are also important.

Boston employment lawyers understand that this is a hot-button issue, and one that could make a big impact on the way the city hires in the future. But city leaders must ensure that they aren't creating a situation where the least-qualified individuals get the best jobs, promotions and training opportunities.

This situation will require litigation to ensure that not only current, but also future employees get the benefit of a fair hiring and promotion system. Sometimes companies and businesses don't set up policies that are purposely discriminatory, but they can be that way. If they aren't willing to change the policies, sometimes a court order is necessary.

Continue reading "Boston Police Officers Sue, Alleging Discrimination in Hiring Practices" »

The Boston Herald has written recently about a lawsuit between shareholders of a bioplastics company and the company itself. Shareholders claim they were misled about a business that eventually went under.

Issues like these, whether between shareholders and the company or two different companies often come down to whether business contracts in Boston are written effectively. A well-worded and thought-out contract can save a company from embarrassing and costly litigation in the future.

Boston business attorneys recognize that companies are often doing work at lightning speed. There are a number of angles to cover and many things to consider. If a business overlooks language in a contract, it can be devastating.

A potential merger or large business deal can become more like a burden than a triumphant victory for a company if the wording of the details isn't done properly. This is why an experienced lawyer should be called in to advise the business on what steps to take in order to avoid serious legal problems.

According to the Boston Herald story, a securities fraud lawsuit has been filed as a potential class-action lawsuit against the company. At issue is why a proposed merger between Metabolix and agribusiness company Archer Daniels Midland Co. fell apart last month because of financial returns that were deemed "uncertain."

The move by ADM caused the Metabolix stock price to drop 45 percent and caused the company to restructure its business plan and incur millions of dollars in charges to do so, the newspaper is reporting.

According to the newspaper account, the lawsuit claims that the company's CEO and finance chief misled investors. At issue was whether a plastics company out of Iowa could meet production goals. The company leaders told investors the product would become commercially viable, but investors allege they knew it wouldn't be.

When companies are considering mergers or large-scale business dealings, they must ensure that all aspects are considered. This includes the wording in a contract as well as other legal documents that may make or break the sale.

As shown in this situation, not only can the company suffer economic damages or be faced with a lawsuit for breach of contract, it can take a large hit in the stock price. Investors may be less likely to spend their money with the company if something like this happens.

The company must take all the steps necessary to ensure that their company is protected from potential future litigation. This comes down to how a contract is written and how well it is executed. Mergers and business opportunities are a big step, especially for a small business. But these business owners must take into consideration all aspects of the situation. Trust this type of situation to an experienced Boston business lawyer, who can help clear up these matters.

Continue reading "Boston Contracts Can Save a Company From a Costly Lawsuit" »

An executive with Raytheon Co. was recently fined by a court when he didn't provide a reprimand letter to opponents in a lawsuit that stemmed from an affair he had with a subordinate when both worked at the Federal Aviation Administration, Bloomberg Businessweek is reporting.

This case highlights the need for an experienced Boston employment law attorney, who can provide legal advice on how to write up employment contracts in order not only to comply with the law, but also to protect the company from possible problems later on.

Massachusetts employment law compliance is a critical and complex issue for small businesses. This can be especially true when dealing with recruiters or when hiring or firing c-level administrators. A knowledgeable attorney can help you avoid the pitfalls -- which can go a long way toward avoiding employment law litigation in Massachusetts.

According to the news article, a man who led Raytheon's civil aviation unit allegedly violated a court order that said he had to turn over a document that proved he had a romantic relationship with a woman he worked with. The court ordered the document be turned over, but it wasn't.

In the midst of lawsuits, the company filing a lawsuit has argued that the relationship began at the FAA and continued after the two -- now married -- ran a contracting program to train air traffic controllers. Raytheon won the contract in 2008, though Washington Consulting Group Inc., which filed the lawsuit, had held it for more than 20 years.

The company is seeking more than $1 billion in damages from Raytheon and the man, alleging the relationship marred the bidding on the 10-year contract. The lawsuit claims the couple not only stole trade secrets, but conspired to fix who would receive the contract after bidding.

Raytheon has twice attempted to have the lawsuit tossed out of court. Since the mid-1980s, WCG and the University of Oklahoma have worked together to train air traffic controllers, providing two to four months of training in Oklahoma and then placing people in a two- to five-year program.

While this situation is specific, all of the details apply to businesses dealing with their employees. Writing up contracts is critical to ensuring the company is protected, but also to ensuring all the applicable terms of employment are properly laid out.

Employment Law: There are many aspects that deal with employment law, but contract disputes or wage issues are often some of the most common. If a contract is poorly worded or slapped together, it can lead to major problems in the future. A lawyer who has experience writing contracts is valuable in making sure the company is completely covered.

Compliance: A company not only must make sure they protect themselves from possible litigation, but also from problems with state or federal laws. Contracts must be correctly worded based on the law and applicable case law and employee handbooks, policy and procedure manuals, safety laws and other regulations must be taken into consideration.

Litigation: All of this goes to trying to avoid litigation. But there may be times when it is necessary either to be aggressive and take action to enforce a contact or set up a good defense to lawsuits. The ultimate goal is to reach not only a cost-effective resolution, but also one that is fair and just.

In all of these areas, an experienced Boston employment law attorney must be consulted. The future of a business is not only affected by its product and work, but also how well it is protected against potential litigation or compliance issues in dealing with employee contracts.

Continue reading "Executive Fined For Not Disclosing Affair In Massachusetts Employment Contract Case" »

CNNMoney is reporting that for the first time ever, every company on the Fortune Best Companies list has a policy in place aimed at ending discrimination based on sexual orientation.

Cases of discrimination in Boston have no place in business. Discrimination at work can range from disability to age and gender all the way to race, sexual orientation and pregnancy.

Boston employment lawyers applaud these companies for including a sexual orientation discrimination policy, but recognize this doesn't mean employees will remain unaffected by potential sexual-orientation discrimination while they work.

Companies can have the best-worded policies and scores of training sessions, but still have employees who choose to break these rules. That puts the company at risk for liability and also puts the victim in a difficult position at work. It would be a perfect world if we could eliminate problems for all parties.

According to the news article, the improvement of all companies having a sexual orientation non-discrimination policy in place has been a gradual development. In 2008, 95 of the top 100 companies had such a policy and that number climbed to 99 last year.

Perhaps the next policy to change is that of benefits for same-sex couples. Currently, 89 of the 100 companies provide benefits, which is a large increase compared to five years ago, when 70 of the 100 companies had such a rule in place. Currently, 86 percent of Fortune 500 companies have non-discrimination policies in place that deal with sexual orientation, an increase from 61 percent in 2002.

These are important procedures to have in place. Still, such policies don't always stop these forms of discrimination from happening. If employees or supervisors fail to hire someone and make comments that he or she wasn't qualified based on their sexual orientation, the company can be opened up to legal problems. This can also happen in cases of choosing employees for promotions and training as well.

The way to stop discrimination in Boston businesses is to create an environment where it isn't tolerated. This can sometimes be accomplished by in-house procedures and firings. Sometimes, though, that's not enough.

Often, bringing a formal discrimination complaint and subsequent legal action is the only way to make sure that company leaders aren't allowing this behavior to continue. Policies are one thing, but making sure employees are aware of the rules is a whole other thing. The company must protect itself, but it also must treat workers fairly.

M.G.L.c. 151B, §4 states that it is unlawful for an employer to discriminate against a worker based on his or her sexual orientation. As LGBT rights are increased throughout the country, undoubtedly more and more conflicts will arise. Issues dealing with gender discrimination had to be dealt with. Same with race and national origin. After litigation on these matters, along with pregnancy, disability and other issues, sexual orientation may well be the next battleground.

Continue reading "Best Massachusetts Companies All Have Sexual Orientation Non-Discrimination Policies " »

Breach of contract lawsuits in Boston sometimes have the effect of punishing a party to an agreement when the party failed to perform its promises under the contract, and when it further engaged in fraud or other deceptive conduct.

This can be a land transaction, purchase of another company's product or a vast array of other types of business deals. Our Boston business attorneys recognize that business contracts are perhaps one of the most important aspects of a successful small business.

While there are obvious needs, such as a solid idea, hard workers, flowing capital and other basics, a strongly written contract that accounts for potential loopholes and other issues can make all the difference in the world during a transaction. If the contract is written poorly, it can cost a company hundreds of thousands of dollars and lead to major lawsuits. No company wants those distractions.

In a recent case decided by the Worcester Superior Court, Regional Home Care, Inc. v. IKON Office Solutions, Inc., two companies sued each other for breach of contract, bringing up the question of whether suing for breach of contract can give a company leverage in a dispute. It is a strategic decision that could be useful on a case-by-case basis, but the company also runs the risk of filing an unsuccessful lawsuit.

In this case, a medical company filed a lawsuit, alleging that the company it was working with breached its contract for not delivering an archiving system that was promised. The defendant allegedly engaged in unfair and deceptive acts by breaching or threatening to breach other contracts with the company to gain leverage.

The defendant then counterclaimed, alleging that the medical company was the one that breached the contract for not making full payment and that they used their non-payment as leverage to obtain additional services from its company.

The dispute started when the plaintiff said the defendant breached its contract to redesign forms to include bar codes. There were discussions to redesign the company's forms, but the defendant argued they were not made part of a final contract between the companies.

A court ruled that while the contract didn't specifically state that bar codes would be included, the contract had language pointing to a "design document," which included information about bar codes.

In a separate claim, the medical company said its business partner engaged in unfair and deceptive acts in violation of Massachusetts law and the judge agreed. According to a court ruling on the matter, the judge found that two company officials induced the plaintiff's employees into signing documents they knew were false.

These documents dealt with milestone dates and projection information that said were completed, but actually weren't. The judge awarded double damages and attorney's fees in this situation.

In these kinds of cases, while lawsuits can sometimes be designed to cover the true events of what transpired with fancy wording, actual facts will be revealed and determine who was ultimately at fault. The judge in this case dismissed the counterclaims as well because the initial breach of contract is what set off the events that followed.

Continue reading "Boston Breach of Contract Lawsuit Can Be Used as Leverage in Dispute" »