Our Insights

Medical Marijuana and Employment Practices

Posted on under Articles, Employment.

Last September, Illinois became the 21st state to adopt a medical marijuana law. The law is a four-year pilot program that will assess the value of legalizing the use of marijuana for medical purposes.

Under the new law, users may register with the Illinois Department of Public Health as a patient with a legal prescription to use marijuana for medicinal purposes. The registered user may purchase up to 2.5 ounces of marijuana every 14 days from a state licensed dispensary. Continue reading “Medical Marijuana and Employment Practices” →

New Law Prohibits Illinois Employers from Asking Job Applicants about Criminal Background until After Job Offer is Made

Posted on under Articles, Employment.

A new employment law signed by Governor Pat Quinn last week and effective in 2015 will prohibit employers of over 15 employees from inquiring into a job applicant’s criminal background until after an offer of employment has been made.

This legislation is intended to help ex-offenders secure employment upon their release from prison and become productive members of society. It means that any question in an employment application that asks about criminal matters must be removed from the application. A person may be judged solely on his or her qualifications for the position offered, and questions about criminal matters must be treated for hiring purposes as if they were questions about a disability. That is, they are valid only after the offer and not before. Continue reading “New Law Prohibits Illinois Employers from Asking Job Applicants about Criminal Background until After Job Offer is Made” →

Social Enterprise Part II: Business Entities and Hybrids

Posted on Thursday, July 24th, 2014 under Nonprofits.

This is the second installment of a two-part series for nonprofit organizations looking to generate earned income from social enterprises. Here, I will offer advice for deciding what kind of entity is best suited for a particular organization’s needs.

The first part in the series covered unrelated business income tax. I recommend organizations begin here because the tax consequences are the best way for organizations to choose between starting: Continue reading “Social Enterprise Part II: Business Entities and Hybrids” →

Estate Loses Exclusive Rights to Sherlock Holmes Series

Posted on Thursday, July 24th, 2014 under Copyright and Trademark, Intellectual Property.

Young and old have been captivated by Sir Arthur Conan Doyle’s books and stories detailing the adventures of Sherlock Holmes and his companion, Dr. Watson.[1]After Sir Arthur Conan Doyle’s death in 1930, dozens of authors added to his work, elaborating on previously established stories, creating entirely new ones, or refashioning them into television shows and movies—but not without entering into a licensing agreement with Sir Arthur Conan Doyle’s estate (“Conan Doyle”).[2] Conan Doyle held exclusive rights to Sir Arthur Conan Doyle’s works (collectively called “the Canon”), and any party hoping to use his characters or story elements had to enter into an agreement or risk litigation. Sherlock Holmes enthusiasts eagerly awaited the day when they could use Sir Arthur Conan Doyle’s characters and story elements without involving Conan Doyle. However, Conan Doyle continued to guard its copyrights even after many believed they had entered the public domain.[3] One author believed Conan Doyle was overstepping its bounds and sought a declaratory judgment to resolve the uncertainty. Continue reading “Estate Loses Exclusive Rights to Sherlock Holmes Series” →

How Much FMLA Leave is Reasonable?

Posted on under Articles, Employment, Nonprofits.

A federal court of appeals has given clear direction for employers who are faced with an employee whose illness or disability makes it impossible to return to work when Family Medical Leave expires.  The case exemplifies the conundrum when a number of well-meaning but sometimes contradictory federal laws apply to the fact situation. Continue reading “How Much FMLA Leave is Reasonable?” →

Avoid Risky Executive Compensation Schemes

Posted on under Articles, Employment, Nonprofits.

Two Illinois nonprofits that were in the news in recent years provide good examples of ill-considered schemes to hide the compensation of their chief executives.

Executive Club of Chicago. In 2007, The Executive Club of Chicago’s long-time CEO raised eyebrows and brought on an inquiry by Crain’s Chicago Business when she formed a solely owned company and hired it as the employee base for the Club.  She was the manager.  Because the cost of management was not revealed in the Club’s 990s, it was impossible for anyone to tell how much she was paid. Continue reading “Avoid Risky Executive Compensation Schemes” →

IRS Highlights Concerns with Tax on Unrelated Business Income and Compensation

Posted on under Articles, Nonprofits.

The IRS concluded a multi-year study of colleges and universities last year, issuing a report that is now being carefully reviewed by advisors to the nonprofit sector[1].  The IRS is using the study to send a message to the entire exempt sector, so the information we can glean from it must be considered a strong indication of IRS concerns about all 501(c) entities.

The report focuses on three aspects of IRS concern: (1) the underreporting of unrelated business income (UBI) generated by for-profit activities, (2) compensation of officers, directors, trustees and key employees, and (3) employment taxes. Continue reading “IRS Highlights Concerns with Tax on Unrelated Business Income and Compensation” →

Job Applicants with Criminal Records Present Challenges to Employers

Posted on under Articles, Employment, Newsletters.

The Employer’s Dilemma

Employers wishing to hire an applicant with a criminal record are faced with a dilemma. The Department of Labor estimated in 2012 that one in three American adults has a criminal history record.  Many of these individuals apply to jobs unaware that they have a record, believing their record has expired, or thinking their convictions are irrelevant to the position. This makes it increasingly important for employers to draft hiring policies that comply with applicable state and federal requirements.1 Continue reading “Job Applicants with Criminal Records Present Challenges to Employers” →

Appraisal of Donated Property

Posted on under Articles, Newsletters, Nonprofits.

The United States Tax Court issued a decision in late January of 2014 that fleshes out IRS regulations regarding appraisals of donated property. In Alli v. Commissioner (T.C. Memo. 2014-15, Jan. 27, 2014), the Tax Court upheld the IRS’ decision to disallow a charitable deduction for property donated by a Michigan taxpayer to Volunteers of America (VOA), a 501(c)(3) exempt organization. The decision provides guidance for exempt organizations that are receiving donated property and wish to give their donors some direction about how to properly document the gift. Continue reading “Appraisal of Donated Property” →

Eavesdropping Law

Posted on under Articles.

In two opinions issued by the Illinois Supreme Court on March 20, 20141, the Court held that Illinois’ eavesdropping law, which criminalized the recording of conversations without all parties’ consent, was overly broad and therefore unconstitutional.

The eavesdropping law2 states that a person commits eavesdropping when he “[k]nowingly and intentionally uses an eavesdropping device for the purpose of hearing or recording all or any part of any conversation or intercepts, retains, or transcribes electronic communications unless he does so (A) with the consent of all the parties to such conversation or electronic communication….” Continue reading “Eavesdropping Law” →