Archives For Employees, Advisors & Consultants

This is a really important topic for startups about the risks of having unpaid interns and internships, so I have pasted below the full text of a recent Cooley LLP legal alert.

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A recent case in the U.S. District Court for the Southern District of New York, Glatt v. Fox Searchlight Pictures, Inc.,highlights how difficult it is for a for-profit business to create lawful unpaid internships. The court held that unpaid interns on the “Black Swan” movie set did not fall under the narrow “trainee” exception to the FLSA’s minimum wage and overtime requirements, despite the fact that they received academic credit for their internship. Continue Reading…

I often have a discussion that goes like this:

New employee:  “I want Founder Stock”

Me:  “I see, you want to buy Common Stock”

New employee:  “No, I want Founder Stock, just like the founders received.”

Me:  “There is no such thing as Founder Stock, you are talking about Common Stock.”

New employee: “I’m confused.”

Just to clear up the confusion, legally speaking, there is no such thing that is commonly known as “Founder Stock.”   Continue Reading…

This post is a reminder of certain year-end reporting requirements imposed under Section 6039 of the Internal Revenue Code of 1986, as amended, with respect to incentive stock option exercises and transfers of stock acquired under employee stock purchase plans occurring during 2011.

For incentive stock option exercises and transfers of stock acquired under employee stock purchase plans in 2011, the employer must furnish employee information statements no later than January 31, 2012 and must file information returns with the IRS no later than February 28, 2012 (or March 31, 2012 if filing electronically). Continue Reading…