Most startups initially focus on incorporation, funding, and protecting their intellectual property, which is logical and practical! While these are all important and necessary, startups should also ensure that they are protecting their new startup from legal actions such as a lawsuit – the dreaded “L” word. A lawsuit is the official court process in which two or more parties seek to resolve a dispute. A legal battle can be lengthy, expensive, and create bad publicity. Startups are experiencing a rise in litigation and below we will focus on three growing risks to startups and provide practical steps to prevent these types of lawsuits.

Being threatened with a lawsuit is always frightening and unsettling but sometimes can be avoided. For example, in a sole proprietorship, both the company and owner could be liable for the damages. Structuring a startup as a corporation or a limited liability company could help reduce owner liability. Generally speaking, the creditors of a business also cannot succeed against the founders and other investors of corporations and LLCs for unpaid debts because they are sheltered by the corporate status.
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The answer is “Yes” if your start-up has progressed far enough along to have hired six (6) employees. The Missouri Human Rights Act (“MHRA”) makes it illegal to discriminate in any aspect of employment, including tangible employment actions, because of an individual’s race, color, religion, national origin, ancestry, sex, disability or age (between the ages of 40 through 69).  Under the MHRA, an employer is “a person engaged in an industry affecting commerce who has six or more employees for each working day in each of twenty or more calendar weeks in the current or preceding calendar year.”  This means as your startup succeeds in growing, you must be aware of the 6-employee rule and the impact on your business if you violate the MHRA. 
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This Spring, the Social Security Administration (SSA) began mailing Employer Correction Request Notices (known informally as “No-Match Letters”) to employers that submitted at least one Form W-2 where the name and Social Security Number (SSN) did not match SSA records. These letters contain specific instructions for employers, but employers should be cautious when responding to these letters.  Below are three reminders for employers to consider.
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Shortly after the inauguration of Illinois Governor J.B. Pritzker, legislation was introduced in both the Illinois House and Senate to essentially override the Illinois Supreme Court’s decision in Folta v. Ferro Engineering, 2015 IL 118070 (2015). In Folta, the Illinois Supreme Court held that the Worker’s Compensation Act and Occupational Diseases Act was the exclusive remedy to Illinois employees who suffered latent injuries such as mesothelioma.
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In the wake of the #MeToo Movement, New York, California and a number of other jurisdictions, both local and state, have passed new laws aimed at combatting sexual harassment in the workplace. The New York laws require written sexual harassment prevention policy, assurance that all current and new employees, and even applicants for employment, receive a copy of the policy, and mandate annual sexual harassment training for all employees. In addition, New York law now provides that employers can be liable for sexual harassment of nonemployees in the workplace, such as contractors, vendors and subcontractors. Recent legislation prohibits employers from using mandatory arbitration provisions in employment contracts or nondisclosure agreements except when this is the victim preference. Let me suggest that there are some important lessons to be learned from these laws.
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Toxic Tort Monitor

June 18, 2018 | Editor: Jen Dlugosz | Assistant Editor: Natalie Holden
New Developments
New Tool for Non-Resident Defendants Seeking to Challenge Personal Jurisdiction in Illinois
By Dominque Savinelli

If you are a non-resident corporate defendant in Cook County, Illinois, you should become familiar with Campbell v. Acme Insulations, Inc., as it will undoubtedly

Startup MilwaukeeHusch Blackwell is proud to be a sponsor of Milwaukee Startup Week 2017. This series of events showcases the entrepreneurial spirit of Southeast Wisconsin and provides opportunities for startups to showcase their ideas, network with fellow innovators, and attend workshops with business, marketing, and legal experts. Husch Blackwell is sponsoring the Startup Showcase by Startup Milwaukee event on November 7, 2017. The showcase will provide local entrepreneurs the opportunity to present their products and services at the City Lights Brewing Company. Additionally, Husch Blackwell will have attorneys present on legal issues that affect startups during the Launch Conference on November 9, 2017, and other events throughout the week.

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courthouseIf your employees are part of the 25 million who have arbitration agreements that agree to bring claims in individual arbitration alone, then you will want to watch for the U.S. Supreme Court’s decision in Epic Systems Corp. v. Lewis. The Court heard arguments in the case last Monday and several of the Justices

clocking systemA Wisconsin employer recently made headlines when it announced that it was offering its employees the option to be outfitted with a microchip to replace the cards or badges they use regularly while at work. The company, called Three Square Market, held a “chip party” on August 1 during which 41 out of its 85 employees opted to have the small chip implanted in their hand. Although the purpose of this RFID chip is limited to office functions such as making purchases in the break room market, logging into computers and printers, and accessing the building, one cannot help but think about the implications this type of technology could have on employee privacy.

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Imagine having a great product that is created and honed in your company for years potentially walk out of your office unrestricted. This same great product could end up in the headquarters of one of your competitors when there are no protections set in place. The fear of losing talent and ideas is a very real concern for all employers, including startups. Accordingly, there has been an increase in usage of non-compete agreements by employers in all sectors to combat the potential loss of valuable confidential information and trade secrets.

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