Employee Classification and M&A 12/02/2013Posted by Morse, Barnes-Brown Pendleton in Corporate, New Resources, Public Companies.
Tags: boston globe, DOL, new england media group, red sox, worcester telegram
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By: Mark Tarallo
A Massachusetts Superior Court judge recently held up the sale of The Boston Globe (and related entities) to Red Sox owner John Henry, as a result of a restraining order filed against the Worcester Telegram & Gazette, part of the New England Media Group along with The Boston Globe. While the injunction was eventually dissolved and the sale completed, it did create some tense moments in the process. The suit was filed by a class of newspapers carriers, claiming that they were misclassified as independent contractors when they should have been treated as employees. While the actions that gave rise to the suit happened several years ago, employee classification issues are back in the spotlight. The United States Department of Labor budget for 2014 includes a line item of $10 million for grants to the states to investigate worker misclassification and recover additional taxes. States that are looking to generate additional tax revenue will be quick to take advantage of these grants.
While most M&A transactions include representations from the seller regarding employee classification issues, parties considering an M&A transaction must place a renewed emphasis on spotting and dealing with any issues prior to the closing. Liabilities for misclassified workers can travel with the target, leaving the buyer to pay taxes and penalties that it did not anticipate, and indemnity claims may not completely resolve the problem. Sellers that cannot properly document their classification of employees run the risk of seeing their purchase price reduced, or deals fall apart completely, if buyers cannot get comfortable with the classification of the seller’s workers. Both sellers and buyers must work to identify and fix these issues prior to closing, to avoid having an unwanted third party (the DOL or a corresponding state agency) in their transaction.
For more information on this topic, please feel free to contact Mark.
Tags: boston globe, shareaholic, work visas
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On November 4th Jay Meattle, Tufts University alumnus and founder of MBBP client Shareaholic, Inc., was featured in a Boston Globe article titled “Grind of getting US visa hobbles building business”. The article discusses the current struggle entrepreneurial immigrants encounter when vying for a U.S. work visa and the lack of congressional action to make the process easier. In Jay Meattle’s case, in 2010 he raised hundreds of thousands of dollars from investors in Boston for Shareaholic, but his request for a visa was denied. He was forced to return to his native India to start building Shareaholic’s team. The article encourages US government to enact proper legislation that will aid in providing visas to immigrants looking to launch businesses and create jobs.
To read the full article, please visit The Boston Globe.
Visit Shareaholic to learn what Jay is working on now.
Tags: Becker College, boston globe, MassDiGI, summer innovation program, video game development
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On July 30th the Boston Globe published an article highlighting a state-sponsored Summer Innovation Program produced by MBBP clients Mass Digital Games Institute and Becker College. The program brings college students together with the hope of grooming the next generation of video game designers. The students were broken into three teams, each with a different assignment, and must develop a complete game or a playable prototype. The program holds these teams to strict production schedules, ensuring students not only receive experience creating a game, but also meeting important deadlines and making necessary re-evaluation of their product.
To read the full article, please visit the Boston Globe.
For more information on the Summer Innovation Program, please visit MassDiGI.
Robert Finkel Quoted in Boston Globe Article 02/27/2012Posted by Morse, Barnes-Brown Pendleton in Attorney News, Legal Developments, Taxation.
Tags: boston globe, mitt romney, tax return
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On Saturday, February 25th, the Boston Globe published an article discussing tips and tricks that all tax filers can use by following the example set by Mitt Romney’s 2010 tax returns he released to the public last month. The author explains that it is the right of the taxpayer to take advantage of the legal tax breaks even though some may seem unfair or unwise. MBBP Tax Attorney Robert Finkel was quoted in response to skeptics:
If there are any grounds for complaints, they should probably be directed at Congress. Congress is the one that writes the tax laws.
Please visit Boston.com for the full article.
Feel free to contact Robert with any tax questions.
Promoboxx Featured in Boston Globe 02/16/2012Posted by Morse, Barnes-Brown Pendleton in Client News.
Tags: boston globe, chevrolet, promoboxx, superbowl
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On January 27th MBBP client Promoboxx, Inc. was highlighted in a Boston Globe article for using their connections to land the biggest project the start-up had ever seen. The columnist discussed how the small Boston-based company was selected to help design and implement a Super Bowl ad campaign for Chevy. Promoboxx was tasked with creating co-branded pages for 3,000 Chevrolet dealerships who helped in sharing Super Bowl related content through their social media channels. Dealers were also given a scorecard to see how they rank among other dealers in generating “Bowl-related buzz for Chevy.”
Please read full Boston.com article here.
Tags: boston globe, liverpool delegation, uk enterprise zones
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In a recent article on Boston.com, Boston, Liverpool build ties, the author discussed that this past Monday, a Liverpool delegation arrived in Boston to engage with leaders in business, academia, and city government and learn about opportunities for collaboration and investment in the US. This past spring, MBBP Attorney Mike Cavaretta joined a group of Boston-based business leaders as they traveled to Liverpool, one of 21 new UK Enterprise Zones, to do the same.
To read the full article, please visit Boston.com.
Tags: boston globe, three wishes
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MBBP clients, Pam Ferdinand, Beth Jones and Carey Goldberg, received acclaim on Boston.com for their upcoming book, “Three Wishes: A True Story of Good Friends, Crushing Heartbreak, and Astonishing Luck on Our Way to Love and Motherhood”. “Three Wishes” tells the story of three single women, each hoping to become a mother, who find happiness they didn’t dare hope for after a seemingly lucky sperm donor crosses their paths.
To read an excerpt from their book, please visit Boston.com.
For more information on the authors, please watch this video.