Social Networking: The Fastest Way to Ruin Your Personal Injury Claim

Posted on January 26, 2012 by Guest Contributor


While many of us post pictures from our vacations on Facebook or brag about our best 10K time on Twitter, few of us realize that those seemingly fleeting posts can submarine a personal injury claim. Guest contributor Richard Console, a personal injury attorney from New Jersey, explains why.

 

Pictures like this one are exactly what you want to avoid

Since their creation, social networking sites have become a prevalent part of life. Whether used for business or pleasure, it is hard to find someone who is not on at least one social networking site. These sites may seem like nothing but a positive thing, but they can, in all actuality, cause a lot of harm when it comes to your personal injury suit.

Social networking sites can be very telling. In addition to the info page that tells you the person’s likes and interests there are photos and status updates that paint a portrait of who someone is. When this information falls into the wrong hands, however, it can be twisted into something else. When pursuing a personal injury claim the defense attorney or opposing insurance company want to prove that your claim is invalid in order to reduce or eliminate the amount of money you receive.

The very first thing someone should do after filing a claim is suspend all of their social networking sites until the case is closed or settled. Many fail to realize just how much information they post on sites like Facebook and Twitter that can be used against them in a lawsuit.

Why social networking is so bad for your claim:

  • Status updates: We have all done it: posted a status about our day or something that’s bothering us. When involved in a personal injury case, something as innocent as posting a status about a sore back three years ago becomes ammo to dispute your claim that you suffered a back injury from a car accident.
  • Photos: If you are involved in a case involving an injury, let’s say you broke your arm, then you post a picture or are tagged in a picture doing something that you shouldn’t be able to do with a broken arm—or a picture that could be conceived that way—you just gave the defense a powerful piece of evidence to help disprove your claim.
  • Any other personal information you’ve shared can be used against you: It is best to remove the site completely because after having been on a social networking site like Facebook or Twitter for years you may not even remember the personal information you put out there that could work to your disadvantage.

This is meant to be a warning rather than a scare tactic. The reality of a personal injury case is that insurance companies will go to great lengths to find dirt on you. Most people have used social networking sites to learn more about someone. For example, say you met someone while at a party. You think you are interested in getting to know them more, but you’re not sure. What are you going to do? You will look them up online and dissect all the information you find.

The same strategy is used by the insurance companies and opposing attorneys. They know what a useful source social networking sites are. This is only getting worse as people become more and more comfortable sharing personal information online. It has gotten to the point where some people have no qualms posting everything they do in a day, digitally recording their every move.

If you are involved in a personal injury claim you should speak with a local accident attorney immediately about how your social networking profiles can affect your case. It is better to protect yourself from the prying eyes of the insurance companies than to have something you posted online, that was unrelated, used against you.

About the Author

Richard P. Console Jr. is a New Jersey personal injury attorney who has been protecting the rights of injury victims for 17 years.

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So You’ve Incorporated. Now What? Three Important Legal Documents Your Business Needs

Posted on January 18, 2012 by Clark Louie

Keeping your small business compliant can be difficult if you don't have the right road map.

Starting your own small business is an exciting yet daunting experience, and — as any small business owner knows — there’s never enough time to get everything done. If you’re spending your time juggling employees, clients, and family, it’s understandable that sometimes the legal stuff ends up at the bottom of your to-do list.

Nonetheless, you know that it’s good for you and your business to incorporate. You’ve taken that first big step and formed a C-Corp, S-Corp, or an LLC. That’s great!  But many people just stop there. They shouldn’t. After all, if you neglect other key documents you should create soon after incorporating your business, you could face expensive legal issues as your company grows.

Here are three such documents that should be created for recently incorporated companies. Being diligent about these can save you tons of hassle (and money) in the long run.

Bylaws

What are Bylaws?

Put simply, Bylaws are the operational blueprint for your company.  If your business is a C-Corp or S-Corp, you’ll need them and if your business is an LLC, you’ll need an LLC Operating Agreement, which is similar. They state the internal purpose or mission of the business.  The Bylaws may also contain information concerning the rights of shareholders, directors, and officers, identifying information, and corporate name protection.

Why do You Need Bylaws?

Banks and other businesses are much more likely to lend or partner with you if you can provide them copies of your Bylaws.  Bylaws are also necessary to address problems that may arise within the company (like a director voting on an issue he has direct financial interest in).  They act as a kind of legal backbone, in other words. Plus, your corporation does not technically exist until your Bylaws are adopted, and without them, you may not have the shield of limited liability protection if your company is sued.

Rocket Lawyer makes it easy to start writing your Corporate Bylaws today.

Buy-Sell Agreement

What is a Buy-Sell Agreement?

The Buy-Sell Agreement is a akin to a prenuptial agreement, except for your business. Basically, it ensures continuity of ownership if you or a co-owner dies or has to leave the business voluntarily or involuntarily.

Why do You Need a Buy-Sell Agreement?

Getting a Buy-Sell Agreement is important to a business’s long-term plans.  Business can be interrupted or even halted when a co-owner leaves, either due to death or another reason, and the remaining owners are left to figure out who will fill the void. These situations can lead to lengthy internal legal disputes.  Examples include an owner leaving his or her share of a company to someone the other owners consider to be a disreputable family member, or even a divorce can cause havoc when an ex-spouse suddenly becomes a company owner against the wishes of the other owners.

Rocket Lawyer provides a free, easy-to-complete Buy-Sell Agreement. Protect your business tomorrow by getting started today.

Corporate Minutes

What are Corporate Minutes?

Corporate Minutes are your business’s records of decision making at board or shareholder meetings.  Corporate Minutes are private records that provide a concise, clear method of organizing information from prior meetings.

Why do You Need Corporate Minutes?

Corporate Minutes are a government requirement.  Keeping accurate minutes can save your company a lot of professional fees later when trying to piece together your business history.  They contain crucial information — such as the appointment of directors — as well as stock records and are admissible in court as proof your company acted in the best interests of its shareholders.

Rocket Lawyer makes it easy to record your Corporate Minutes for all your important meetings.

In addition to the above documents, you may also need to keep other records when starting your business, including those pertaining to business insurance and employee agreements.  You can visit our Corporate Compliance Center to get corporate compliance documents and maintain your legal protection or check out our Business Help section for more information to keep your company safe and legally secure.

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Social Media: Why You Need New Legal Documents for the Way You Do Business Today

Posted on January 12, 2012 by Justin Tenuto

As a business owner, you’ve got a million things to keep you busy. Hiring, overhead, inventory, scheduling, taxes; the list goes on and on. And with all the important, real world details you’re responsible for, you could be forgiven for overlooking a little thing like Twitter. After all, what are a few Twitter followers worth anyway?

Well, according to recently spurned Phonedog.com, about $340,000.

Lately, we’ve been fascinated by the case of Noah Kravitz, an ex-employee of the aforementioned mobile phone site, and his erstwhile employer. During his four years at the company, Noah, under the Twitter handle @Phonedog_Noah, amassed some 17,000 followers. When he finally quit in 2010, he took his handle and those followers with him, and though he eventually changed his twitter address to @NoahKravitz, he kept his audience.

And Phonedog isn’t happy about it. Valuing each follower at $2.50, they’re asking for damages, alleging that the 17,000 people are essentially a digital rolodex. While writing and podcasting about this last week, we predicted that the sides will essentially settle out of court, sparing us — at least for the time being — a precedent on the value of a Twitter follower.

But even if the case does go to court, there’s no reason you or your company needs to worry about it if you take the right precautions. By claiming ownership over the followers your employees gain on company accounts, you can avoid ending up in the sort of sticky (and time-consuming) legal matter in which Phonedog and Mr. Kravitz now find themselves.

The solution is simple.  Ask your employees to sign a Social Media Policy, where you can spell out exactly who owns your social fan base, as well as solidify the rules about what your employees can and cannot say on social media. Believe it or not, there are already well-established laws on the books. For example, according to the Federal Trade Commission, your employees must always disclose any “material connection” between themselves and your company, even in their off hours. (So I could write something like “Rocket Lawyer is the best company ever,” so long as I made sure to mention, “of course, I should know: I work there.”)

But what about independent contractors?  How about employment agreements? We have you covered there too.  We’ve included similar language in our Independent Contractor Agreement, Employment Agreement, and Employee Handbook. It might not seem like a big deal to you now, but remember: no less than five years back, Facebook was just a place for baby pictures; Twitter didn’t even exist. Now, you can find nearly every Fortune 500 company on both.

If you don’t have a Social Media Policy in place, take a few minutes and get it done. Remember, smart companies don’t just solve problems after they arise; they avoid them before they even start.

And we’d like to ask you a little favor.  Since the idea of a Social Media Policy is so new, please help us spread the word! If you like our new Social Media policy, please tell your friends on Twitter and Facebook.  They’ll thank you!

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What the Payroll Tax Extension Means for You [UPDATE]

Posted on December 20, 2011 by Justin Tenuto

Push the button on the right. Come on, Congress. You know you want to.

With their approval rating at a feeble 9%, you’d think that Congress would put aside their differences and vote through an extension of the payroll tax cut set to cost the average American an extra $1000 next year.

Unfortunately, you’d be wrong.

As we stand today, the payroll tax cut (which affects 160 million American workers) is set to expire on the first of January. In other words, Congress’s “Happy New Year” gift for the country will be a smaller paycheck for workers and a smaller bottom line for businesses.

So what is the payroll tax? How did we get to this impasse? And what does the impasse mean for workers and businesses? Let’s take a look.

[UPDATE]: Looks like Washington came to their senses. The payroll tax cut has been extended for two months, so your taxes next year, at least till March, should look the same. Still, what’s below remains valid, should Congress resume squabbling.

The Payroll Tax

The short answer: 4.2% of your paycheck if we keep the extension. 6.2% if we don’t.

The payroll tax, as we wrote last week, is “a tax imposed on employers and employees by the federal government; it comes in the form of  income withholding, social security and medicare, and unemployment taxes all bundled up.” Right now, 4.2% of your paycheck is withheld for this tax. If Congress does nothing and the tax cut expires, effectively, your taxes will be raised. That means 6.2% per paycheck or, as mentioned, an average of $1000 a year for every working American.

How We Got Here

The short answer: partisan brinksmanship.

Without rehashing too much of the bureaucratic maneuvering and silly he-said, she-said politics, the Democrat-controlled Senate is pushing for a two-month extension of the cuts while the Republican-led House is hoping for a year-long extension. You read that right: both houses of Congress want to extend the cuts but can’t agree on how long and how exactly to do so.

If you’re curious about the 9% approval rating, there’s your answer.

Both sides are busy calling each other names and President Obama is asking for them to get together and work things out. On Tuesday, we’re left hoping with him.

What It Means For Workers

The short answer: less discretionary income.

While Congress haggles over long-term policy and the length of the cuts, American workers are just 11 days away from seeing an ever larger portion of their income sliced out of their paycheck. Meanwhile, millions more Americans currently getting unemployment benefits could also lose their safety net if the sides refuse to settle their differences.

What It Means For Businesses

The short answer: continued uncertainty.

Many businesses feel that the extra $1000 for workers and everyday Americans means those folks will likely put that money back into the economy. Since discretionary spending — spending on things like a nice dinner out, a movie, or a luxury item like a new television — dips when people have less money, the additional taxes paid by Americans could presumable hurt business’ ability to both hire new employees and be successful in the first place.

Now, granted, people will still spend money. But if they have less, they’ll spend less.

Some business leaders are pushing for the year-long extension of the cuts. They argue that the year gives Americans a real plan and lets them budget accordingly, instead of kicking the proverbial can down the road and re-visiting the cuts again in two months.

–

In other words: business wants this. Working Americans will save money. And Congress agrees we need action and wants to extend the tax cut.

But as we stand now, we’re not getting two months or a year of the payroll tax extension. We’re getting the same old song and dance from a wildly unpopular Congress that seems less and less interested in solving problems. We’re left wondering how much we’ll be paying in taxes and if Americans will have money to spend.

We’re hoping they’ll come to their senses and work things out. The optimist is us says they will.

Either way: we’ll keep you updated.

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