“

Track: Law

This Fall: Here’s Everything to Know About Employment Law

Posted on by Compass Advocacy
Employment law governs the relationship between employers and employees, shaping everything from hiring practices to workplace safety and the terms of termination. It also ensures fairness, prevents discrimination, and protects the rights of supervisors and workers under federal and state statutes. Anyone participating in the workforce must understand the scope and structure of employment law, as it enables them to recognize when to seek representation for employees.

Business owners and employees throughout the Maryland area rely on Compass Law Partners for trustworthy, strategic legal guidance. Our experienced attorneys provide tailored solutions that protect your interests and position your organization for long-term success. To learn how Compass Law can support organizational legal needs, please call (443) 343-7143.

Below, we share essential information regarding employment law:

Key Areas of Employment Law

Hiring and Employment Contracts

Hiring practices must comply with anti-discrimination laws and provide transparency regarding employment terms. While many workers are classified as “at-will” employees, meaning management can terminate them at any time for any lawful reason, others work under employment contracts that specify conditions for employment and dismissal.

Wages and Hours

Wage and hour laws set standards for fair compensation. The FLSA requires employers to pay at least the federal minimum wage and overtime pay for eligible employees who work more than 40 hours per week. However, states can, and often do, mandate higher minimum wages.

Workplace Discrimination and Harassment

Federal laws prohibit discrimination based on race, color, religion, sex (including sexual orientation and gender identity), national origin, age (40 or older), disability, and genetic information. Laws such as Title VII, the Americans with Disabilities Act (ADA), and the Age Discrimination in Employment Act (ADEA) establish these protected classes.

Workplace harassment falls under the umbrella of discrimination and can create a hostile work environment. Employees who believe they have been discriminated against or harassed can file a complaint with the Equal Employment Opportunity Commission (EEOC) and, in some cases, pursue civil litigation.

Family and Medical Leave

The Family and Medical Leave Act (FMLA) grants eligible employees up to 12 weeks of unpaid, job-protected leave annually for specific family and medical reasons. This includes childbirth, adoption, serious health conditions, and supervision for a close family member with a health issue. Some states offer comprehensive leave benefits, including paid family leave and expanded coverage for employees not eligible under the FMLA.

Health and Safety (OSHA)

The Occupational Safety and Health Administration (OSHA) sets and enforces standards to ensure safe working conditions. Employers must provide a workplace free from known health and safety hazards and comply with all reporting and training requirements. Employees have the right to report safety violations and to request OSHA inspections without fear of retaliation.

Termination and Wrongful Dismissal

Although at-will employment allows for flexible termination, employers cannot dismiss employees for reasons such as discrimination, retaliation, or whistleblowing. Employees often file wrongful termination claims when they allege that their dismissal violated a legal right or public policy.

Settle Employment Law Disputes With Compass Law Partners

At Compass Law Partners, our attorneys guide clients through complex employment matters with clarity and confidence. We help employers develop sound policies, resolve disputes, and adapt to new legal requirements, so you can focus on growing your business. For trusted legal counsel throughout Maryland, contact Compass Law Partners at (443) 343-7143 to learn how we can support your organization’s success.

Posted in Law

Back to School: Maryland 529 Plans & Their Capabilities

Posted on by Jen Kidwell
As backpacks are packed and yellow buses return to Maryland roads, many parents and grandparents are thinking about how to best plan for rising education costs. You may already know that Maryland 529 plans are powerful, tax-advantaged tools for saving for college, private K–12 tuition, and other qualified educational expenses—but did you know they can also help with broader family planning goals?

Here’s what’s new and what you might not realize:

Bigger Gifts, Bigger Impact:
Special rules allow you to front-load up to five times the annual gift tax exclusion into a 529 plan. For 2025, that means you could contribute up to $19,000 × 5 = $95,000 per beneficiary (or $190,000 for a married couple) without using up your lifetime gift tax exemption. It’s a meaningful way to jumpstart a child’s or grandchild’s educational fund.

Flexibility for the Whole Family:
Owners of 529 accounts can change beneficiaries among certain family members, including siblings, cousins, or even themselves. This means you can build a family pool of funds that stays useful across generations of students—whether for college, trade school, or other educational programs.

New Roth IRA Rollover Option:
529 plan owners can roll over up to $35,000 into a beneficiary’s Roth IRA, provided the account has been open for at least 15 years. This change adds a new layer of flexibility and helps beneficiaries kick-start their retirement savings.
Back-to-school is the perfect time to review whether your 529 plan is working as hard for your family as it could be. Have questions about making the most of your 529 or how it fits into your larger estate and financial planning? Reach out to Compass Law — we’re here to help you plan smarter for your family’s future.

Learn More Here
Posted in Law

2025 Bills Impacting Maryland’s Small Businesses

Posted on by Compass Advocacy

Governor Wes Moore recently testified within the House Appropriations and Ways and Means Committee in support of the Budget Reconciliation and Financing Act of 2025. The Moore-Miller Administration claims this bill will grow Maryland’s economy, reform the tax code, as well as work to address the state’s fiscal struggles.

To what extent will this bill impact local businesses, and what are some additional bills that may support or hinder these local businesses? In his testimony, Moore states that this budget proposal cuts taxes for two-thirds of Marylanders and ensures that 82% of Marylanders either see a tax cut or no change. This appeal speculates on behalf of Marylanders’ small business as well.

Here are some additional bills introduced in the 2025 legislative session that are associated with small business growth, and specifically in areas such as cybersecurity, employee benefits, and procurement.

SB0760– The Better Small Business Employee Benefit Act of 2025

  • A bill that works to exempt certain requirements relating to health benefit plans for small employers.

HB1321- Income Tax-Credit for Cybersecurity Measures Undertaken by Small Businesses

  • A bill that would provide an income tax credit for various cybersecurity measures taken by small businesses.

SB0302– Maryland Small Business Innovation Research and Technology Transfer Incentive-Altercations

  • A bill that would provide incentives for small businesses through the Maryland Small Business Innovation, Research and Technology Transfer program.
Need help navigating the Maryland General Assembly? Our government relations and law team are here to help!
Posted in Law

3 Reasons Your Organization Definitely Needs a Business Lawyer

Posted on by Compass Advocacy

Starting a business is like walking a tightrope while juggling flaming swords—everything can go wrong, especially when legal stuff comes into play. Your business plan can’t do it all, but our savvy business lawyer can. Here’s how Compass Law can help you dodge legal disasters:

1. Contracts
Contracts are your business’s safety net. A lawyer makes sure they’re airtight and protect your interests. We can draft, review, and even negotiate contracts to keep your clients, vendors, and employees in check, including:

  • Client contracts
  • Vendor contracts
  • Employment contracts
  • Leases
  • Mergers & acquisitions

2. Employment Law
Hiring isn’t as simple as posting a job on Craigslist. Employment laws are complex, but Compass Law can keep you compliant. We can help with wage laws, employee handbooks, and fair hiring practices.

3. Business Formation
Choosing the right business structure is like picking your superhero alter ego. Whether it’s an LLC, corporation, or partnership, a lawyer helps you choose what suits your needs (and protects your personal assets).

Even if you’re a small startup, working with a business lawyer is an investment that’ll save you headaches. Call us at (240) 560-3030, and let’s get you on the path to success without any legal nightmares.

Read More Here

Posted in Law

Reminder: New Reporting Requirements for Businesses

Posted on by Rob Garagiola

Attention business owners!

Under the Federal Corporate Transparency Act of 2021, many businesses need to take action before January 1, 2025, and file Beneficial Ownership Information (BOI) to the U.S. Treasury Financial Crimes Enforcement Network (FinCEN). This new mandate is part of an initiative to combat financial crime.

Don’t risk non-compliance! If your business does not qualify for one of 23 exemptions, then you must file a report with the federal government. In addition, any changes to beneficial ownership of your business will necessitate filing updates no later than 30 days after such change.

Identifying who is a beneficial owner is critical for this filing. To do this, you need to determine who exercises “substantial control” and who owns at least 25 percent of your company’s interest. If your business was formed after January 1, 2024, additional reporting requirements may apply.

To help you navigate this process, Compass Law Partners is here for you. For the remainder of 2024, we are offering a discounted flat fee of $500 to analyze whether you need to file such a report and to handle the filing on your behalf.

Time is of the essence! Don’t delay—ensure your business is compliant with these new regulations and avoid potential penalties. Contact Compass Law Partners today!

 

Read More Here!

Posted in Law

Many Businesses Now Have to File A New Report with the U.S. Treasury

Posted on by Rob Garagiola

As a result of the Federal Corporate Transparency Act of 2021, certain companies must report Beneficial Ownership Information (BOI) to the U.S. Treasury Financial Crimes Enforcement Network (FinCEN) no later than January 1, 2025 [1]. In addition, any changes to BOI filings must be filed with FinCEN within 30 days of such change. This new requirement is part of the U.S. Government’s effort to go after bad actors seeking to hide gains through shell companies and other less than transparent ownership structures.

There are 23 exemptions to such filings, but if your business doesn’t qualify for one of them, then you must file a report. Compass Law Partners has assisted businesses in determining whether such a report must be filed and has experience filing such reports. Unfortunately, even with the exemptions, most small businesses will need to file a report and periodically update it.

Once a business determines whether or not it must file BOI reports, it must also determine who the beneficial owners of the company are for such filing. There are two qualifiers: (1) someone who exercises “substantial control”; and (2) someone who owns at least 25 percent of the ownership interest of the company. In addition, for businesses formed after January 1, 2024, there are additional reporting requirements.

For the months of September and October 2024, Compass Law Partners is offering clients a discounted flat fee of $500 to conduct the analysis of whether you need to file such report to the U.S. Treasury’s FinCEN; such fee also includes filing the report on your behalf.

 

[1] Companies created in 2024 must file within 90 days of formation. Companies created after January 1, 2025, must file within 30 days of formation.
Posted in Law

Achieving Legal Gold: Structuring Your Business with Precision

Posted on by Rob Garagiola

In honor of the Paris 2024 Olympic Games, we are here to help you go for the gold!

At Compass Law Partners, we believe in helping businesses reach new heights through expert legal guidance tailored to your unique needs. Our firm excels in providing comprehensive support in advising and drafting essential business formation documents. Whether you’re starting a new venture or refining an existing entity, we’re here to ensure your business is primed for success from the starting block.

Expertise in Business Formation

Forming a business requires the precision of an Olympic athlete. We specialize in drafting critical formation documents, including Articles of Incorporation, Articles of Organization, Organizing Resolutions, and By-Laws. These foundational documents create the blueprint for your business, establishing governance structures, defining shareholder or member rights and responsibilities, and setting operational guidelines.

Tailored Legal Solutions

Just as every athlete has a unique training regimen, every business requires personalized legal strategies. At Compass Law Partners, we take a personalized approach to each client, offering strategic advice that aligns with your specific goals and vision. Whether you’re a nimble startup or a seasoned contender in the corporate arena, our aim is to equip you with the legal tools and insights needed to navigate business formation effectively.

Comprehensive Support

Our commitment to your success extends beyond the initial formation phase. We provide a full spectrum of services to support your business throughout its lifecycle:

  • Drafting Operating/Partnership/Shareholder Buy-Sell Agreements: Structuring agreements that define ownership transitions and ensure continuity during buyouts, departures, or changes in partnership.
  • Transactional Guidance: Advising on mergers, acquisitions, partnerships, and joint ventures to propel your business forward.

Partnering for Long-Term Success

At Compass Law Partners, we’re dedicated to forging lasting partnerships built on trust, integrity, and a shared commitment to excellence. We’re here to serve as your trusted legal advisor, providing steadfast support and guidance as your business evolves and reaches new milestones.

Reach Out Today

Join us on this journey to legal victory. Contact Compass Law Partners today to discover how we can assist with your business formation needs.

 

Read More Here

Posted in Law

5 Reasons Your Organization May Need to Work With A Business Lawyer

Posted on by Compass Advocacy

The gulf between deciding to start a business and doing so is broad and twisted. Among such responsibilities as building a website and hiring employees, legal hurdles can derail your efforts. Even the most detailed business plans can’t replace your leadership while you juggle legal obligations. Nevertheless, an experienced business law attorney can help you construct an inviolable business structure, draft iron-clad contracts, and navigate complex regulations.

Businesses of all sizes seeking reliable legal counsel can turn to Compass Law. Our team is licensed to practice in both Maryland and Washington, DC. Our attorneys (well-versed in business law) have a thorough knowledge of helping clients’ companies get off the ground and navigate the legal landscape. Call (240) 560-3030 to learn more about hiring our lawyers for your business.

Below, we outline 5 ways a business attorney can help your young organization:

1. Contract Drafting and Review 

As the backbone of your business dealings, contracts must be straightforward, comprehensive, and airtight to protect your interests. Business lawyers possess the expertise to translate your agreements into detailed legal language. They can anticipate potential issues and include clauses to mitigate risk against you and your assets.

Furthermore, lawyers can identify unfavorable terms presented by other parties, negotiate on your behalf, and ensure outside contracts align with your business goals. Examples of the contracts business lawyers specialize in include:

  • Client contracts
  • Vendor contracts
  • Employment contracts
  • Leases
  • Mergers and acquisitions

2. Employment Law  

Employee and labor laws are a maze of federal, state, and local regulations. Staying compliant with the labyrinth of expectations (in addition to all their other tasks) can feel overwhelming for new business owners. Yet an experienced business attorney can be your guide through these hoops.

They can ensure your hiring practices are fair and non-discriminatory, that your employee handbook is clear, and that you adhere to minimum wage and overtime rules. Proactively ensuring compliance through your lawyer’s expertise can prevent disgruntled employees and costly lawsuits.

3. Business Formation 

Choosing the right business entity for your company is crucial because it comes with tax and liability implications. Based on your specific needs and goals, a lawyer can educate you on the options and guide you toward the best structure. Examples of common business entities include:

  • Sole Proprietorship
  • Partnerships
  • Limited Liability Company (LLC)
  • Corporation

You can lay the proper groundwork for your organization by involving a business legal professional from the start.

4. Intellectual Property

In today’s economy, your intellectual property (ideas, inventions, creative works, and more) is among your most valuable assets. Partnering with a business lawyer is essential for safeguarding these unique creations. With the assistance of a legal expert, you can register trademarks and copyrights, navigate the patent process, and keep trade secrets protected. Moreover, your lawyer can take legal action to stop them and recover damages if a competitor infringes on your intellectual property.

5. Regulatory Compliance 

For new business owners, navigating regulatory compliance can be daunting. However, in the same way they assist with employment laws, business lawyers can help decipher complex federal, state, and local regulations that apply to your industry. They’ll ensure your licenses and permits are up-to-date and keep you up-to-date on changing standards.

Furthermore, a lawyer can advise you on data protection, environmental regulations, and proper advertising practices to minimize the chances of fines or legal action. Again, you can confidently run your business on the right side of the law by ensuring compliance from the outset.

Even if your organization is small or just beginning operations, consulting a business law attorney is a wise investment. Their expertise can help you avoid legal pitfalls and set your business up for long-term success. Learn more about how our business lawyers can aid your organization by calling (240) 560-3030 today!

Posted in Law

Tax Legislation & How It Could Affect Businesses in Maryland

Posted on by Ellen Davis
In our April newsletter, we caught up all the latest updates on tax legislation that’s stirring debate across Maryland. This month, all eyes are on HB1515, a bill proposing some major changes to the state’s sales and use tax. Let’s dive in and unravel what’s brewing!
So what’s in the Pot? HB1515: Sales and Use Tax – Rate Reduction and Services
HB1515 isn’t just your average tax bill; it’s a hot pot of proposals aiming to shake up Maryland’s tax landscape. Here’s a quick rundown of what’s on the menu:Purposeful Alterations: The bill suggests altering the definitions of “taxable price” and “taxable service” to cover various new services. This means that services like accounting, legal, real estate, pet grooming, funerals and more could be fair game for taxation. Additionally, it aims to tweak the rate of the sales and use tax, along with adjusting the percentage of gross receipts from vending machine sales and dyed diesel fuel subject to tax. Oh, and let’s not forget about the rate of tax applied to charges linked with sales of alcoholic beverages. Phew, that’s a mouthful!Not Everyone’s Cup of Tea

☕ Proponents’ Pour: Sponsor David Moon (D-20) argues that HB1515 is more than just a tax tweak – it’s a “modernization of the economy”! The bill proposes lowering the state sales tax rate from 6% à 5% but also opens previously untaxed services to said taxation. Supporters claim that while this may result in a net loss of $1 billion in sales tax revenue, it could rake in a whopping $4 billion from taxing services, leaving us with a sweet $3 billion surplus. Some say it’s the much needed fix our tax system needs especially given current budget shortfalls.

☕ Opponents’ Brew: On the flip side, opponents are brewing up a storm. Del. Bob Long (R-06) had some fiery words in disapproval, claiming it’s just another way to empty his pockets, even in the afterlife (given the bill introduces the potential for funeral taxes)! The Maryland Republican Party didn’t hold back either, labeling it as an “everything tax” and predicting it to be the largest single tax increase in the state’s history. Indicating the bill’s controversial nature, Senate President Ferguson (D-46) also stood firm, claiming the bill won’t make it past the Senate gates.

So Sip or Spill? The Debate Continues
While proponents and opponents go head-to-head, the Maryland Chamber of Commerce is making its stance clear: they’re not raising a toast to HB1515. They argue that while lowering the state sales tax rate sounds delightful, expanding it to a wider range of services could leave a bitter taste in everyone’s mouths. From mom-and-pop shops to emerging companies, everyone could feel the pinch. They fear it could lead to an exodus of businesses and burden low-income Marylanders.

 

Compass Law is here to help your business navigate changes like this – even if this specific bill does not pass, there may be others like it, and we are here to help your business through it!
Posted in Law

Legislation Updates: Potential Impacts to Your Business Operations in 2024

Posted on by Compass Advocacy
As we dive into 2024, the legislative landscape surrounding employment and business in the Mid-Atlantic region is undergoing significant changes, with a plethora of bills introduced in both the Maryland General Assembly and the Delaware Legislature. With over 2,700 bills proposed in Maryland alone and hundreds in Delaware, the business community is poised for potential shifts that could affect operations and workforce management.
Maryland Bills:
Navigating the intricacies of these legislative changes can be daunting for businesses, but proactive measures can help mitigate risks and ensure compliance. Seeking guidance from legal experts at Compass Law, can provide invaluable support in understanding the implications of these legislative developments. We can help implement strategies to adapt to the evolving regulatory environment.Don’t wait until it’s too late—contact us now to schedule a consultation with Compass Law and safeguard your business against potential legal challenges.

Posted in Law
Ready to Begin?
Let’s Chat
Contact Us
Website by WHITE64