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AdobeStock_1070496539-300x200Benefit Corporation and Social Purpose Corporation—alternatives to forming a purely “for profit” Business

What do you do when you want your business to incorporate positive social or environmental impact goals into its core objectives along with maximizing profits? In California, entrepreneurs who do not want to form a nonprofit but, nevertheless, want to structure their business to take into account a social purpose or a public benefit (and not focus only on maximizing profits for its shareholders) have the options of forming a public benefit corporation or a social purpose corporation. In a traditional corporation, directors and officers must prioritize shareholders’ interests above all else or risk being in breach of their fiduciary duties to them. In these alternative forms, the business must consider the interests of other stakeholders and not just its shareholders in making corporate decisions. Note, however, that, unlike nonprofits, neither benefit corporations nor social purpose corporations get special tax treatment. In many respects they are identical to a traditional corporation. Some of the main feature of these alternatives to a traditional corporation are briefly discussed below.

Benefit Corporation: One alternative to a traditional purely for-profit corporation in California is a benefit corporation. Under this structure, the corporation may pursue public benefit goals along with the traditional goal of maximizing profits for its owners. Benefit corporations are creatures of statute in California and are organized under the General Corporation Law of California. The articles of a benefit corporation must state “this corporation is a benefit corporation”. The articles may also identify one or more specific public benefit purpose(s) which may include:

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2025 brought several new employment laws in Oregon that significantly impact workplace policies and operations. These changes address a range of topics, from wage requirements to worker classification and family leave. Below is a summary of the most important updates that Oregon employers should be aware of, ranked from most to least significant.

1. Paid Family and Medical Leave Expansion

Effective January 1, 2025, Oregon’s Paid Family and Medical Leave Insurance (PFMLI) Program has gone significant updates. These include increases in the maximum weekly benefit for employees and broader eligibility for part-time and seasonal workers. Strengthened anti-retaliation protections were introduced, ensuring that employees returning from leave are protected, and that job reinstatement rights are clearer.

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AdobeStock_1099092318-300x132California’s 2024 legislative session concluded with Governor Gavin Newsom approving several critical bills that will impact workplace policies starting January 1, 2025. These new laws cover a broad spectrum of areas, including anti-discrimination protections, paid family leave, freelance worker rights, and more. Employers need to review and update their policies, handbooks, and training programs to ensure compliance. Below are some of the most notable updates for 2025.

1. Minimum Wage Increase for 2025

Starting January 1, 2025, California’s statewide minimum wage will increase to $16.50 per hour for all employers, regardless of size. This increase is part of the state’s ongoing effort to keep up with the cost of living and ensure fair wages for workers.

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AdobeStock_164449269-300x2001. Some corporations undertake extreme Corporate Social Responsibility (“CSR”) initiatives, such as pledging to donate a significant portion of their profits to social causes or implementing radical environmental sustainability measures. While these practices can enhance a business’s  reputation, they are not always without legal and financial risks.

Legal Implications:

  • Fiduciary Duty: Companies must balance their CSR goals with their fiduciary duties to shareholders. Excessive spending on CSR initiatives could lead to legal challenges if shareholders believe it adversely affects their returns.
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AdobeStock_883988613-300x200In the construction and property improvement industry, payment disputes frequently arise, creating significant financial stress for contractors, subcontractors, and suppliers. Understanding your rights and the available remedies is essential for navigating these disputes effectively. This blog will explore one of the most powerful tools available to those in the construction industry: mechanic’s liens, along with other remedies to resolve payment disputes.

What is a Mechanic’s Lien?

A mechanic’s lien is a legal claim against a property that has been improved or repaired. It gives contractors, subcontractors, and suppliers the right to seek payment for the work they have performed or materials they have provided. By filing a mechanic’s lien, the lienholder can secure their interest in the property, which can ultimately lead to payment through the sale of the property if necessary.

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AdobeStock_857536293-300x168Corporations, those big players in today’s global economy, have come a long way since their early days in ancient Rome. Let’s take a look at how these entities evolved over time and what that means for the future of business.

Ancient Beginnings

It all started in ancient Rome, where early forms of business entities began to take shape. The Roman legal system laid the groundwork for what would eventually become modern corporations. Back then, these entities were more like collaborative partnerships, with limited liability for the partners—a far cry from the multinational giants we see today.

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AdobeStock_502835611-300x200The gig economy provides flexibility and autonomy, but it also comes with important legal responsibilities. With the rise of gig work, the legal landscape has grown increasingly complex, particularly around worker classification and the application of labor laws. In a tech-forward city like San Jose, these evolving legal challenges have a significant impact.

1. Worker Classification: Employee or Independent Contractor?

One of the primary legal concerns in the gig economy is determining whether a worker is classified as an employee or an independent contractor. This distinction is crucial because it dictates the rights, obligations, and benefits—such as minimum wage, overtime pay, and health insurance—that both the worker and the business must follow. In California, the “ABC test,” introduced under Assembly Bill 5 (AB 5) in 2020, remains a key standard for determining worker status.

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AdobeStock_777848814-300x168The world of corporate law might seem dry to some, but television shows and movies have a way of bringing it to life with drama, intrigue, and high stakes. While these portrayals are meant to entertain, they also offer valuable insights into the complexities of corporate governance, mergers and acquisitions, intellectual property, and employment law. Let’s take a look at some of the lessons we can learn from how corporate law is depicted in pop culture.

Mergers and Acquisitions: More Than Just Business

If you’ve ever watched Succession, you’ve seen how the show dramatizes the intricacies of mergers and acquisitions (M&A). Hostile takeovers, shareholder activism, and the challenges of merging different corporate cultures are all part of the storyline. While these elements are heightened for dramatic effect, they mirror the real-world challenges of M&A. Businesses involved in these deals must navigate complex legal frameworks, manage stakeholder interests, and integrate operations—all while striving to remain profitable. The show highlights the critical importance of strategic planning and legal due diligence, reminding us that any misstep can lead to catastrophic consequences.

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AdobeStock_439037030-300x215Businesses of any size can benefit from the services of an experienced San Jose employment attorney. The employment lawyers at Structure Law Group represent companies ranging from one-member LLCs to Fortune 500 firms employing thousands of workers. Here are just a few examples of what our employment attorneys can do for you and your business.

Making Sure You Have Effective Employment Practices

The moment that your company employs its first worker, whether it is a W-2 employee or a 1099 contractor, you incur a number of legal obligations and responsibilities. These relationships require effective management both from a personal and a legal perspective. A qualified employment attorney can help you with the latter in a number of ways, including but not limited to:

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AdobeStock_277580884-300x200No matter what size Texas business you run, social media has become critical for brand visibility, customer engagement, and market insight. Compared to traditional advertising channels, social media is a cost-effective marketing tool that builds brand loyalty, targets specific audiences, and provides a platform for direct customer interaction, which drives sales and growth.

Social media is essential for staying competitive in today’s digital landscape, and companies need a social strategy. This includes figuring out how your business should use social media to promote its goods and services. It also means establishing the right social media policy for your employees.

Many Texas employers are uncertain of their rights when regulating employees’ social media use. Indeed, there are a number of potential traps that an uninformed employer may fall into when attempting to come up with a consistent set of rules. A qualified Structure Law Group Texas employment attorney can assist you in drafting, reviewing, and revising a social media policy that can work for both management and your employees.

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