Tag Archives: new york

“Silent” Partner of a New York Franchise Location: You ARE Responsible for Unpaid Wages

By: Sheila Raftery Wiggins

Many franchise locations are operated by a privately held corporation.  In New York, the top 10 shareholders of a privately held New York corporation (determined by value of their interest) can be held liable for unpaid wages.  Effective January 19, 2016, the top 10 shareholders of privately held corporations organized in other states can now be held similarly liable.  LESSON: A shareholder should not be “silent” regarding the operation of the business.

Sheila Raftery Wiggins, of the Newark office, handles matters involving complex commercial disputes, insurance defense, coverage disputes, financial fraud, and attorney ethics.

In Hot Water: Charging Sales Tax When Selling Water Bottles and Other Non-taxable Items

By: Sheila Raftery Wiggins

Franchisees of an international coffee chain were sued in New York and New Jersey for charging extra money—in the form of sales—for non-taxable food items such as water bottles and packaged coffee. LESSON: Check your state’s sales tax guide, which may limit taxes on certain food items and drinks. WARNING: Failure to comply could land you in hot water defending against a consumer class action lawsuit or a government investigation. HELP: If you are not in compliance, put together a strategy – include legal counsel to address all civil and criminal issues – to remedy this situation.

Sheila Raftery Wiggins, of the Newark office, handles matters involving complex commercial disputes, insurance defense, coverage disputes, financial fraud, and attorney ethics.