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Business owners may face unforeseen personal liability risks related to unpaid wages and payroll taxes. In this article, we'll explore the potential dangers and consequences associated with these issues, shedding light on the importance of vigilance and compliance. Unpaid Wages Pennsylvania wage and hour laws mandate timely payment of wages and fringe benefits. When employers fail to pay wages when due, it’s not always due to some intentional scam like the owners of the popular South Philadelphia cheesesteak joint, Tony Luke’s, were perpetrating. Even unintentional errors can expose business owners to personal liability, such as: Wage Miscalculations Someone to whom payroll has been delegated is making mistakes, intentional or unintentional, in your workers’ wages and the owner is entirely unaware. Misclassification of Workers A worker is misclassified as either an independent contractor or an employee exempt from overtime rules. Violation of Work Rules Workers are not paid for all of the hours they worked because they failed to document the hours they worked. (It’s the employer’s legal obligation to pay for all hours worked, regardless of whether a worker violates a company rule.) Unlawful Deductions Deductions not authorized by law are taken from a worker’s wages. Many business owners are surprised to learn that even if their business is a corporation or a limited liability company (LLC), they may be personally liable for wage claims filed by their employees. The liability protection they assume is built into these entities does not protect their personal assets when it comes to unpaid wages. If the worker files suit against their employer and is successful, the worker is entitled to an award of attorney’s fees in addition to back pay and liquidated damages.  What this means for the business owner is that if they’re sued over wages, it could be a very expensive lawsuit because they’ll be paying not just their lawyer but also the employee’s lawyer. It is crucial for owners to stay informed and address any wage-related issues promptly. Payroll Taxes Employers are required to withhold from an employee’s wages income taxes (Federal and State) and the employee’s share of FICA (Federal Insurance Contributions Act) taxes. The Internal Revenue Code makes the employer a “fiduciary” of the United States with respect to these payroll taxes. When an employee’s income taxes and share of FICA taxes are withheld from the employee’s wages by the employer, the employee is treated as having paid those amounts to the IRS, whether the employer actually pays over such amounts to the IRS. This protects employees if the employer never pays over such amounts.  The failure of other personnel in a company to pay over to the IRS withheld employment taxes, even if you are unaware of such failure, can result in personal liability for you. Employers experiencing cash flow problems sometimes fail to pay the payroll taxes, choosing instead to use the cash attributable to those taxes to fund operations or pay themselves. This is always a bad idea. If an employer’s business ultimately fails and cannot pay the IRS the payroll taxes, the IRS, under the authority of IRC §6672, will seek to collect the withheld taxes from any “responsible person” of the employer (e.g., an officer, director, shareholder or bookkeeper with signature authority over a bank account.) This personal liability for “responsible persons” can be substantial. Moreover, in some cases, the IRS and the Department of Justice may seek criminal prosecution (as the owners of Tony Luke’s found out the hard way). For personal liability to be imposed against an individual, three conditions must be met. The individual qualifies as a “responsible person;” The individual fails to collect or account and pay over the payroll taxes; and The individual acts willfully in doing so. It is much easier to meet these conditions than one might think. To be a responsible person, the question is whether the individual had authority required to exercise significant control over the business’ financial affairs, regardless of whether they exercised such control in fact. If this standard is met, it is irrelevant that an individual’s day-to-day function is unconnected to financial decision-making or tax matters.  It does not matter that payroll was not your job in the business.  If you have apparent authority over financial matters, whether exercised or not, then you can be deemed a responsible person. For nonpayment to be willful, there must be either knowledge of nonpayment or reckless disregard of whether the payments were being made. A reckless disregard of whether the payments were being made can be established even if the responsible person has no knowledge that the payroll taxes were not being paid.  You cannot assume the payroll taxes are being paid. You cannot plead ignorance. How Should Business Owners Protect Themselves? If you are a business owner, or even a partial owner, you should assume that you could be deemed a responsible person for purposes of personal liability for unpaid wages and payroll taxes. Understand Company Policies: Familiarize yourself with the company's wage payment policies. Employee Classifications: Ensure all employees are correctly classified, avoiding potential issues with independent contractor arrangements. Accurate Wage Calculations: Verify the accuracy of wage calculations and maintain precise records of employee work hours. Timely Wage Payments: Ensure wages are paid promptly, complying with pay period schedules. Regular Tax Remittances: Confirm the regular remittance of payroll taxes to federal, state, and local authorities. We Can Answer Wage and Payroll Questions Vigilance is key for business owners to prevent personal liability risks related to unpaid wages and payroll taxes. The experienced team of small business attorneys at Fiffik Law Group have over 40 years of experience helping business owners with wage and payroll issues. We can review your wage payment policies and employee classifications and advise you whether you are compliant with federal and state law.  If you need any assistance with a wage claim or payroll tax issue, contact us at (412) 391-1014 for a fee initial consultation.

A revocable living trust is a powerful estate planning tool that allows individuals to manage their assets during their lifetime and seamlessly transfer them to beneficiaries upon their passing. However, the effectiveness of this legal instrument hinges on one critical factor – failing to fund the Trust. “Funding” is a term that refers to the process of retitling and transferring assets to the trust. Unfortunately, underfunding a revocable living trust can lead to a host of problems that may compromise the very purpose for which it was created. In this blog post, we will explore the potential pitfalls and consequences of failing to adequately fund a revocable living trust. 1. Incomplete Asset Transfer One of the primary purposes of a revocable living trust is to avoid probate, a time-consuming and costly legal process. When a trust is not properly funded, assets may not be fully transferred into the trust's ownership. The terms of the trust control only assets titled to the trust.  Without proper funding, the revocable living trust is simply a piece of paper.  This omission can result in some or all of your assets having to go through the probate process, leaving some assets subject to it. As a consequence, the intended efficiency and privacy of the trust may be compromised. 2. Probate Costs and Delays Underfunding a revocable living trust often leads to a situation where the remaining assets must pass through probate. Probate comes with its own set of costs, including court fees, legal expenses, and executor fees. Additionally, the probate process can be lengthy, causing delays in the distribution of assets to beneficiaries. This defeats the purpose of creating a trust to streamline the transfer of assets outside of probate. 3. Ineffectiveness of Incapacity Planning A revocable living trust not only facilitates the transfer of assets after death but also allows for the seamless management of assets in the event of the trust creator’s incapacity. If the trust is underfunded, there may not be sufficient assets within the trust to cover the grantor's living expenses and medical care. This defeats the purpose of using a revocable living trust as a comprehensive estate planning tool. 4. Potential for Will Contest and Disputes When a revocable living trust is not adequately funded, it may leave room for disgruntled heirs to contest your estate, particularly if there are discrepancies between the trust document and the remaining assets. Family disputes over inheritance can result in prolonged legal battles, causing emotional distress and financial strain on all parties involved. 5. Tax Consequences Underfunding a revocable living trust may have unintended tax implications. Properly funded trusts can be designed to minimize estate taxes and maximize the benefits for beneficiaries. Without adequate funding, the tax planning aspects of the trust may be compromised, resulting in higher tax liabilities for the estate and its heirs. Conclusion In conclusion, underfunding a revocable living trust can lead to a range of problems, from incomplete asset transfer and increased probate costs to the potential for legal disputes among heirs. To ensure the effectiveness of your estate plan and the seamless transfer of assets, it is crucial to work closely with a qualified estate planning attorney and diligently fund your revocable living trust. By doing so, you can safeguard your assets, streamline the distribution process, and provide for your loved ones in a manner consistent with your wishes.

In today's digital world, businesses often use text messaging to communicate with their customers. Business owners often allow employees to use their personal cell phones to communicate with customers. While this practice may seem convenient and cost-effective on the surface, it comes with many serious risks that business owners should carefully consider. 1. Data Security Concerns Allowing employees to use their personal cell phones for customer communication raises significant data security concerns. Personal devices may lack the robust security measures necessary to safeguard sensitive customer information, leaving businesses vulnerable to data breaches and compliance violations. Without proper controls in place, employees could inadvertently expose confidential data, putting both the business and its customers at risk. 2. Lack of Control When employees use their personal cell phones for customer communication, business owners relinquish control over the messaging process. There is no way to monitor or regulate the content of these conversations, which can lead to inconsistencies in messaging, breaches of company policy, and potential damage to the brand's reputation. Moreover, employees may use informal language or engage in unprofessional behavior, undermining the business's professional image. 3. Loss of Intellectual Property Customer communication often involves sharing proprietary information, such as product details, pricing strategies, or upcoming promotions. Allowing employees to conduct these conversations on personal devices increases the risk of intellectual property theft. If an employee leaves the company or their device is compromised, sensitive information could fall into the wrong hands, compromising the business's competitive advantage. 4. Compliance Challenges Various industries are subject to stringent regulatory requirements governing customer communication, such as HIPAA in healthcare businesses. Using personal cell phones for such interactions can complicate compliance efforts, as it becomes more challenging to track and audit communication channels. Non-compliance with these regulations can result in severe penalties and legal repercussions for the business. 5. Difficulty in Tracking and Accountability Unlike business-provided communication tools, personal cell phones lack the necessary tracking mechanisms to monitor communication activities effectively. This makes it difficult for business owners to track employee performance, measure customer satisfaction, or address any issues that arise during interactions. Without proper accountability measures in place, employees may not prioritize customer communication or adhere to established protocols. Case Study:  A construction company regularly allowed its employees to use their own personal mobile phones and email accounts to communicate with customers, including a manager in the company.  That manager was the point person for a multi-million dollar renovation project.  He was responsible for conveying drafts of contracts, specifications, product approvals, change orders and many other details of the project.  At some point a dispute arose over payment.  By that time, the manager had been terminated.  He took with him many of the communications and documents pertaining to the project because they were all sent on his personal devices.  The company was at a significant disadvantage in resolving its dispute and getting paid because it was unable to produce crucial communications and documents relating to the nature of the dispute.  The company lost hundreds of thousands of dollars due to its failure to control its own customer communications and manage its own documents. 6. Dependency on Individual Employees Relying on employees' personal cell phones for customer communication creates a dependency on individual staff members. If an employee leaves the company or is unavailable, there is a risk of disruption to customer service operations. Moreover, the business may lose valuable customer data associated with that employee's device, further complicating continuity efforts. 7.  Potential Reimbursement Obligation Pennsylvania law does not currently specifically require employers to reimburse employees for using their own mobile phones for business matters. If you have employees who live and work in other states, the laws of those states may require reimbursement or have other laws applicable to the situation.  Business owners may be unfamiliar with those state laws and expose themselves to unpaid wage claims, which often include penalties and attorneys fees for the employee.  Even if state law does not apply, the issue may be subject to employment contracts or collective bargaining agreements. Additionally, there could be federal laws or regulations that apply to specific industries or situations. Conclusion While allowing employees to use their personal cell phones for customer communication may seem like a convenient, inexpensive solution, it poses significant risks to businesses in terms of data security, control, compliance, and accountability. To mitigate these risks, business owners should consider investing in secure communication tools specifically designed for professional use. By implementing robust policies, providing adequate training, and enforcing compliance measures, businesses can ensure efficient and secure customer communication while protecting their reputation and intellectual property.

Selling a small business is a complex dance that requires careful choreography. From finding the right buyer to navigating the negotiation process, numerous factors can influence how long it takes to successfully sell your business. In this blog post, we will explore five key factors that dictate the timeline of selling a small business. 1. Market Conditions The state of the market can significantly impact the speed at which a small business sells. High interest rates can reduce access to capital needed by buyers to purchase your business.  Lenders may have tighter lending criteria or the cost of the loan may make it difficult for a buyer to turn a profit after purchasing your business.  In a booming economy, buyers may be more abundant, leading to quicker transactions. Conversely, during economic downturns, potential buyers may be more cautious, causing the process to take longer. Keeping an eye on market trends and timing your sale strategically can help maximize your chances of a swift transaction. 2. Business Valuation Determining the fair value of your small business is a critical factor in attracting potential buyers. If the asking price is too high, it may deter prospective buyers, resulting in a prolonged selling process. On the other hand, undervaluing your business may raise suspicions and lead to a slower negotiation. Conducting a thorough business valuation, considering financial performance, assets, and market comparables, ensures that your asking price is realistic and aligns with market expectations.  Consider whether a buyer could be profitable after paying your price, taking into consideration all of the costs the buyer will likely incur to purchase your business, including loan repayments.  If the price will not allow a buyer to operate profitably post-closing, the price may be too high. 3. Preparation and Presentation The way you present your business to potential buyers can significantly impact the speed of the selling process. A well-prepared business with organized financial records, documented processes, and a clear growth strategy is more attractive to buyers. Taking the time to prepare a comprehensive informational memorandum and address potential concerns upfront can streamline the due diligence process and instill confidence in potential buyers, expediting the sale. 4. Marketing Strategy The effectiveness of your marketing strategy plays a crucial role in attracting qualified buyers. Utilizing various channels such as online business-for-sale platforms, industry networks, and working with business brokers can broaden your reach. Your banker, accountant or attorney may know people who they work with who might be interested in purchasing your business.  A targeted and well-executed marketing campaign can generate interest quickly, reducing the time your business spends on the market. Engaging with professional intermediaries who specialize in selling small businesses can also enhance the visibility of your business among potential buyers. 5. Negotiation and Financing The negotiation phase and the buyer's ability to secure financing are significant determinants of the selling timeline. A smooth negotiation process, facilitated by transparent communication and a willingness to compromise, can accelerate the deal. Be wary of buyers who are not working with experienced advisors, such as attorneys and accountants.  Buyers with an experienced team will have a better idea of what to expect during negotiations and have the skills to get the deal to closing.  The inexperienced buyer is often a difficult negotiating partner.  Additionally, the buyer's access to financing or available capital influences the speed of closing. Ensuring that potential buyers are financially qualified and ready to proceed can help avoid delays in the final stages of the sale. Conclusion Selling a small business is a nuanced process influenced by many factors. Understanding and strategically addressing these factors can significantly impact the timeline of the sale. By staying informed about market conditions, accurately valuing your business, preparing for the sale, implementing an effective marketing strategy, and navigating negotiations skillfully, you can increase the likelihood of a timely and successful business exit.  The experienced team of business attorneys at Fiffik Law Group have helped many business owners buy and sell businesses.  They have the skill and experience to give you the best chance of success with your deal.

Small businesses are producing and acquiring more digital assets than ever before. A company’s digital assets can be just as valuable as its physical property. In addition, companies now face new challenges and liabilities with the rise of everything digital, from data security to changing privacy regulations to employees posting information on social media. It’s crucial that you start focusing on protecting your company’s digital assets, not just physical assets or cash. Useful Digital Assets for Small Businesses Digital assets are pieces of content that are stored digitally and are valuable to a business. These are the most common types: Website and blog content Client and customer lists and contact information Logos and other graphics Photos Videos – for customers or internal for training Slide decks, such as PowerPoint presentations PDFs Excel spreadsheets Word documents Audio files Ideas, procedures, checklists Some digital assets are more valuable than others. For example, customer lists are a crucial asset for a sales company. Businesses spend many years acquiring customers and building relationships. If a key employee were to go to a competitor with all of the information in your customer list, it could potentially be devastating your company’s competitive edge and profitability. Another example are videos and photos from a one-time event can’t be replaced. Small businesses often pay a licensing fee for the right to use a photo or video. If the company can’t find the asset, the only options are to pay for another licensing fee, which is a waste of money. Another example is a digital user manual or e-book that contains a variety of assets, such as images, diagrams, and charts. When you are creating a project like this, having an effective digital asset management solution in place will save you a lot of time and money. What is Digital Asset Management? Digital asset management encompasses guidelines and best practices for storing, protecting and sharing digital files among members of a business’ team. DAM includes not just what you see when you open your files but also the information underlying them, including metadata. DAM governs the cloud systems to which your team uploads and stores its work, enables the sending of digital assets to other parties, and builds the backbone of most modern companies. How does digital asset management help businesses? Internal Digital asset ownership is sometimes unclear. As a result, disputes can arise if a business owner dies or an employee wants to reuse content that they created. It’s important to create internal documentation for digital asset ownership and take steps to protect your intellectual property rights. Content rights should be specified in employee and business contracts, as part of email signatures, and on websites and blogs. Business owners should also clearly document all rights, accounts, usernames/ passwords, and passing of ownership with an estate planning attorney. Small businesses need to organize, store and share the digital resources of a company. That’s because different teams, channels, and departments need to store and share creative assets – such as documents, videos, images, podcasts, and media in other formats – to accomplish the organization’s goals. In an era defined by digital communication and remote work, effectively managing digital assets is the only real way to adequately streamline your team’s workflow. Without managing your digital assets, you can’t easily find, share and collaborate with documents among your team. External To reach potential and existing customers, small businesses use digital assets – such as images, videos, blogs, and other forms of media – in marketing campaigns. As such, small businesses need DAM systems to find these assets quickly and, in turn, create, track, organize, and distribute them. Steps to Protect Digital Assets How to protect your company’s digital assets: Create a digital inventory. The first step of proper digital asset protection is recognizing everything that has value for your business. Then create a detailed inventory of it all, including what’s stored where – in the cloud, on an employee’s smart phone or electronic device, or on a computer desktop. Prioritize the most important information. You’ll also need to create a list of whether these assets have any type of password protection in place or similar restrictions. Compile a list of this information and you’ll be able to better assess which areas need improvement or added security. Finally, make sure you have legal protections in place, often in employment contracts and email signatures, that further protect them. Backup everything regularly. Backing up your files – meaning saving everything in multiple locations – is now even easier with cloud storage. You can even double up by backing up on a cloud platform that can be accessed anywhere there is an Internet connection, like Dropbox, plus saving it again on an external hard drive. Include digital considerations in NDAs. Non-disclosure agreements (NDAs) are fairly standard for companies, but changes in the digital realm bring new must-haves in these agreements. Make sure you address digital assets head-on by making it clear in NDAs that if proprietary digital products or information is shared or claimed by an employee, there could be legal ramifications. Copyright and trademark protection. Just because online content is subject to copyright law doesn’t always mean that ownership will be black and white in a courtroom. Take protections a step further by trademarking your company’s logo or registering online content for copyright protection. Any processes your company uniquely creates can also be patented. Discussing options with a legal professional is always a good first step when considering registrations of this nature. Hire and consult with experts. Jobs in the realm of digital asset protection exist to address these issues. In addition to educating employees about the risks that online interactions bring – and if your company has a great deal of unique digital assets – it may be a good idea to invest in a new position. DAM experts will be able to implement security measures more easily and manage accessibility. These professionals will also be able to ensure that any regulations and industry best practices are being followed. Integrate DAM software. Consider purchasing DAM software. Files can be easily searched and stored in these platforms. This software can be used to manage all media content, such as photos and videos, and can assist companies in managing necessary outgoing permission requests or incoming inquiries. By using digital asset management systems, processes and tools, small businesses can boost productivity, improve collaboration, save time, and reduce costs. Here are some of the ways small businesses benefit from a digital asset management system: Clarify who owns digital assets crucial to your business Stop losing digital assets created by your team Saving time by integrating DAM processes or software into existing workflows Adding a layer of protection from theft and privacy with cloud-based DAM systems Improving efficiency by having a system or software in place for managing your digital assets Increasing productivity with faster deployment of marketing materials and campaigns Easily accessing assets for team members and co-workers from one centralized location Fine-tuning how assets are uploaded and distributed, such as by setting expiration dates and file permissions Ensuring brand consistency by reducing the chances of someone using an older version of branded materials across campaigns and channels Saving time and money by reusing assets As data security and storage technologies evolve, the ways you approach managing and protecting digital assets need to be updated regularly. And businesses must consider digital assets in accounting, cybersecurity, and legal ways. It’s your property. Protect it. At Fiffik Law Group, P.C., our business attorneys assist business owners with a variety of legal needs. Get in touch today to learn more.

Bankruptcy stops collection calls, mortgage foreclosures, lawsuits and wage garnishments. It erases debt. And despite what you’ve heard, bankruptcy may help your credit scores. If the thought of filing for bankruptcy conjures up images of fear, shame and guilt, it may help you to know that some famous people have filed for bankruptcy.  Dave Ramsey, the personal finance guru, filed while in his 20s.  So did Cyndi Lauper, Larry King, MC Hammer and Walt Disney.  They went on to have very happy lives. If your debt is piling up and you’re feeling increasing pressure because of it, you should consider filing bankruptcy. The amount that you owe doesn’t matter so much as your ability to pay it back is becoming increasingly unlikely.  You know that ignoring the problem won’t make it go away. When to File Bankruptcy There is no minimum debt to file bankruptcy, but the amount of debt is certainly an important thing to consider when filing. There are other indicators that suggest that filing for bankruptcy might be a good option for you to consider: You received a foreclosure notice and your efforts to work it out with the lender have failed You’ve had a sudden loss of income, and your bills are piling up A separation or divorce has left you with a lifestyle and bills that you can’t pay on your own A health crisis left you with medical bills you can’t pay You can no longer repay your debts Bill collectors are unwilling to work with you You’ve received one or more debt collection lawsuits You found out the hard way that the so-called debt consolidation company was useless What Will Filing for Bankruptcy do for You? Stop Creditor Harassment and Collection Activities.  Once you file, the court issues an order called the “automatic stay”. The stay stops most creditor calls and efforts to collect debt. Stop Mortgage Foreclosure and other Lawsuits.  The automatic stay will also stop foreclosure cases and most lawsuits, but not all.  For instance, creditors can still collect support payments, and criminal cases will continue. Help you Keep Your Home.  If you’re in a foreclosure, filing may help you keep your home. Sometimes you can force a modification of the loan repayment terms.  However, if you can't afford monthly payments or bring the account current, you'll likely lose the house or car once the case is over. Wipe Out Many Debts.  Bankruptcy is very good at erasing most unsecured debts such as credit card debt, medical bills, overdue utility payments, personal loans, gym contracts, timeshare contracts and more.  It won’t erase school loans, most taxes and debts arising from divorce or child support. Calling Us is the First Step We have attorneys with years of bankruptcy experience ready to talk to you.  You’ll feel better if you call.  It’s the first step on your road to financial recovery.  Our bankruptcy attorneys will help you decide if filing is the right solution for you.  Schedule a call with us today.  https://www.fiffiklaw.com/contact

For many divorcing couples, a big question is who gets the house.  This question gets really sticky when there’s a mortgage on the home.  What happens with the mortgage that is still in both spouses’ names?  If you’re the one who does not get the house, how does that mortgage affect you in the future?  What if your ex defaults on the mortgage that’s still in your name? No Longer Married by Still Financially Hitched Pennsylvania allows divorcing couples to request an equitable distribution of their marital assets.  The marital home is often the largest asset to be divided.  When there’s a mortgage on the home in both spouse’s names, the practicalities of dividing the house can be a problem.  Why is this an issue you should be concerned about? Until the mortgage is paid in full, if your name is on the mortgage, you are financially responsible for the loan.  That’s true whether you live in the home or not.  We see many separated or divorced couples with this unresolved problem.  When you want out  of a bad relationship or marriage, you may not be thinking about the many ways staying financially “hitched” to your Ex can be a problem for you. Consider the Following Nightmare Situations: Your Ex Defaults on the Mortgage Can your ex afford the payments on the house?  Do they have stable income?  They may want the house but wanting and affording are two different things.  Maybe they can afford it while receiving child support or alimony payments from you.  What happens when those payments go away?  What if they lose their job or have an addiction problem?  What if they just hate you and want to ruin your credit?  If they fall behind on (or simply refuse to pay) the mortgage, you may have no idea because default notices are sent to the home and not to you. Perhaps you’ll notice your credit score going down.  You may not find out until you’re served with a mortgage foreclosure complaint and by then it may be too late to undo the damage.  You could be left holding the bag for your Ex’s bad life choices or financial problems. You Apply for a Mortgage for a New Home for Yourself So long as your name is on the mortgage for your former house, the debt will be part of your credit history.  Your payment obligation for that mortgage will be taken into consideration if you apply for a loan in the future, including the purchase of a new home.  The old mortgage could prevent you from being approved for loans in the future.  It may also make you a credit risk and increase the amount you have to pay for future loans. You Want to Sell the House and Your Ex Won’t Cooperate If you end up with the house and want to sell it in the future, it may be necessary for your Ex to sign off on the sale in order to convey clear title to a buyer.  If your Ex refuses to cooperate (or you simply can’t find them), you may not be able to sell your house. Dealing with a Mortgage Post Divorce or Separation There are a variety of ways to deal with the problem, all of which have pros and cons.  The one method that is always the wrong answer is doing nothing and hoping for the best.  Here are a few common ways we see the issued addressed: Taking Your Name off the Mortgage The lender won’t do this just because you’re divorced/separated and no longer living in the home.  It doesn’t happen unless the mortgage is refinanced and paid off. Refinance the Mortgage The best solution would be for the spouse remaining in the home to refinance the mortgage to take the other spouse’s name off the mortgage and pay that spouse their fair share of the home’s value.  That’s often not a realistic option because the spouse retaining the house might not qualify for a new mortgage on their income only.  The result is that although the relationship is over, the couple continues to be bound by their mutual financial obligation for the mortgage. Sell the House This is another option that could solve the financial problem but is often not chosen.  It could be that the house won’t sell for enough to pay the mortgage and closing costs.  Maybe the house is where your kids live, and you don’t want them to be forced to leave the home.  One of you may not be able to afford to buy another home or even put a deposit down for a lease.  Maybe one of you simply refuses to cooperate with the sale. Leave Both Names on the Deed It may be tempting to keep your name on the deed if you’re going to remain responsible for the mortgage.  For the person who takes over the house, know that so long as your ex’s name is on the deed, you will not be able to sell or transfer the house without your ex’s consent and participation.  If you get remarried, you won’t be able to put your new spouse’s name on the deed.  You can’t even convey it to your children.  Your ex will continue to own a one-half interest in the property. Include Terms in Your Divorce Agreement This is the best option but too often we see wishy-washy provisions that are useless in the event a problem arises.  If your Divorce Agreement, often called a Marital Settlement Agreement, simply says that your ex has the obligation to continue paying the mortgage with nothing else, that’s simply not good enough. The Agreement might require the spouse remaining in the house to have a life insurance policy sufficient to satisfy the mortgage in the event they die.  It may require the remaining spouse to make specific efforts to refinance the mortgage.  It should certainly include specific remedies in the event they default on the mortgage, including provision that would force them to sell the house, dictate sale prices that must be accepted and giving the non-resident spouse power of attorney to sign sale documents.  The provisions need to be detailed and anticipate problems that are likely to occur. Contact Our Divorce and Separation Lawyers for Assistance If you are thinking about divorce or you’re unmarried and own a home and are considering an end to your relationship, we can explain your rights and the next steps. Contact Fiffik Law Group to schedule a consultation to discuss your rights.

When you (or your employer) decide that your time with the company is over, you probably walk out without a final paycheck in hand. Many workers do not receive a final paycheck; others see weird deductions from their final checks.  Is that lawful?  Probably not.  Can you do something about it?  Absolutely. When Should You Receive Your Final Paycheck? No federal or state law requires your employer to hand you a final paycheck at the same time as your termination or resignation. Nor does any law impose a duty on your employer to make special accommodations to get your pay any earlier than you would have gotten it had you remained employed. Still, an employer does not have the right to keep your paycheck indefinitely.  No matter whether you were fired or resigned, Pennsylvania law requires that you receive your final paycheck on the next regularly scheduled payday. Is it Ever Lawful for Your Employer to Withhold your Final Paycheck? In almost every instance, the answer is no, it’s not lawful.  An employer cannot withhold your final paycheck, especially not as an act of discrimination or retaliation. For example, if the employer fired you shortly after you announced you were pregnant, not only would your termination be unlawful, but it would also be unlawful for the employer to withhold your paycheck for this reason. You are also entitled to your final paycheck even if you violated a company policy. An employer cannot keep your final paycheck as a form of punishment or discipline. It is also unlawful for an employer to withhold your final paycheck because you damaged property, stole from the company, or failed to return equipment or uniforms. What if Your Final Paycheck is a Lot Less Than You Expected? Sometimes departed workers notice unusual amounts withheld or deducted from their final paycheck.  The law is very specific about what employers can withhold from paychecks of any kind: Deductions that are legally authorized; and Deductions that are authorized by the worker in writing and that are for the employee’s benefit. The law permits your employer to withhold payroll taxes and costs for benefits (such as health insurance premiums).  Other common deductions are for uniforms, meals/lodging or tools.  These must be authorized by the employee in writing, in advance and cannot reduce your pay to below minimum wage in any pay period. Deductions Not Permitted by Law: Deductions as a Disciplinary Measure Your employer is not allowed to deduct money from your paycheck as a type of punishment or retaliation. Deductions for Shortages in Register Receipts Your employer cannot balance the register by withholding a portion of your wages. Deductions for Damaged Property Perhaps you were terminated because you were involved in an accident that damaged your employer’s property.  Your paycheck cannot be reduced to pay for the damaged property. Deductions for Pay Advances If your employer advanced your pay, they cannot collect the full amount of the advance back in your final paycheck if it reduces your pay below minimum wage. Unlawful deductions in paychecks and withhold final paychecks are not uncommon.  It is not unusual for employers to misunderstand wage laws and take unauthorized deductions from workers’ wages. Take Action When Your Final Paycheck is Withheld You may have a legal cause of action against an employer if they refuse to deliver your final paycheck in a timely manner. This could include the right to recover any unpaid compensation, penalties and attorney’s fees.  The experienced employment attorneys at Fiffik Law Group are waiting to talk with you about your situation and help you get the wages you worked hard for and deserve. Read More: Never Sign an Employment Contract Without Checking These 5 Things

An all-too-common legal challenge we come across is one party refusing to pay another party for work or services rendered. Without legal representation, it can feel nearly impossible to compel non-paying customers to even respond to invoice requests, let alone actually pay them. In one of our recent cases, Fiffik Law Group Partner Matthew Bole helped his corporate client recover the money they were rightfully owed. Attorney Bole represented a plumbing company involved in a collection dispute with a hotel. Despite completing the work that they were hired to do, the hotel refused to pay, citing alleged issues with the services without providing specific reasons for their stance. When the hotel stopped so much as responding to the plumbing company’s inquiries, the plumbing company sought out the legal services of Fiffik Law Group. As soon as Attorney Bole got involved and filed a lawsuit to recover the unpaid debt, the hotel immediately changed their tune. Involving our legal counsel led to a swift and favorable settlement of the $15,000 owed. By reaching the settlement quickly through negotiations and avoiding going to court, Attorney Bole saved his client considerable attorney fees, time, and hassle. The attorneys at Fiffik Law Group are experienced in handling the complex challenges that come along with owning and running a business. We assist business owners at every stage of the business journey. If you are facing challenges with your business or have questions about LLC formation or succession planning, contact us today for a free initial consultation.

Senate Bill 851 marshals more law enforcement resources to catch individuals who violate the school bus stop arm law. School districts have the choice to add cameras to their school buses to capture the license plate numbers and images of cars that drive past illegally when the stop arm is out and red lights are flashing. The bill expands the automated enforcement program that has been growing in recent years. Much of Pennsylvania already uses BusPatrol's "smart buses," whose data captured nearly 8,000 vehicles illegally passing stopped school buses in the first half of the 2022-2023 school year in Pennsylvania. “This legislation will protect our children, plain and simple,” Senator Wayne Langerholic Jr., who introduced the bill, said. Read the full bill here.

Stealing a package off a front porch will become a felony in Pennsylvania in 2024. “With online shopping being a growing commerce method, package thefts have been on the rise nationwide. It’s time to hold these thieves accountable,” State Sen. Frank Farry said. Senate Bill 527 – now Act 41 of 2023 – implements and increases penalties for mail theft, including a package, bag or letter. Mail theft was charged under other theft offenses based solely on the value of the item taken. Pennsylvania now joins eight other states that have already made porch pirating a felony (Texas, New Jersey, Michigan, Oklahoma, Georgia, Tennessee, Kentucky, and Arkansas.) “This bill focuses on repeat offenders by using a grading system that would increase the penalties if the thief had prior convictions for theft of mail,” State Sen. Frank Farry said. Stealing items delivered by the United States Postal Service is already a federal crime, but this state law applies to all mail deliveries, including from private company companies like Amazon, UPS, and FedEx. It will also allow for local prosecution. Read the full bill here.

Our goal is simple: to assure you that when you entrust us with your legal needs, you're backed by a team of highly experienced lawyers and legal professionals. If you are looking for a leg up as you contemplate and navigate bankruptcy, you would be hard pressed to find a more skilled and experienced advocate than Fiffik Law Group Attorney Richard J. Bedford. Richard has been one the most prolific bankruptcy practitioners in Western Pennsylvania for the last 40 years. He spent much of his early career on the trustee side of the bankruptcy world – administering bankruptcy cases and approving (or dismissing) reorganization plans. A bankruptcy trustee is an administrator appointed by the court to oversee the consumer's case in a bankruptcy proceeding. The bankruptcy trustee thoroughly examines your bankruptcy petition and supporting documents such as tax returns, pay stubs, property deeds, mortgages, and bank statements to look for hidden assets, avoidable transactions, and other irregularities before you are granted your final discharge. If a consumer is not meeting obligations, the trustee can ask the court to dismiss the bankruptcy case. Richard was appointed to the panel of Chapter 7 bankruptcy trustees, overseeing the liquidation of such diverse entities as a UHF television station, a municipal water company, and industrial facilities. Richard joined the staff of the Standing Chapter 13 Trustee for the Western District of Pennsylvania. He represented that trustee and his successor for more than twenty years, conducting trustee hearings and appearing before the bankruptcy judges. Richard also represented the Chapter 12 Trustee, administering bankruptcy reorganizations of family farm debtors. Richard was also selected to serve on various committees formed by the court for refinement of bankruptcy court procedures and rules, and when the court formed a standing local rules committee for the Western District of Pennsylvania, Richard was among the original members of the committee. He now applies his insider knowledge and experience on behalf of consumers to make their cases more successful. “I found it refreshing to advocate for individuals seeking their fresh start through chapter 7 and chapter 13 after so many years being on the trustee’s side of the courtroom,” Richard said. “Knowing the trustee’s thought process and exactly what they are looking for in every unique case ensures I always know the right approach to take for my clients.” Richard represents clients of Fiffik Law Group handling bankruptcy matters throughout Western Pennsylvania.  In the world of bankruptcy, experience matters. With over 40 years of experience on both sides of the courtroom, Attorney Bedford is here to guide you. Call Fiffik Law Group today and our experienced attorneys will provide you with the support you need for a fresh start.