The IRS is calling – or are they? Calls and voicemail messages from IRS imposters are on the rise, according to the Federal Trade Commission (FTC). These scammers demand immediate payment and threaten legal action. They are smart, using deceptive caller ID numbers and often already knowing your personal details – such as the last four digits of your Social Security number. You may think you will be too smart to fall for these deceptive callers, but no one knows what can happen in the moment. In fact, since 2013, nearly 8,000 people have lost more than $44.5 million to these IRS scam calls. It is most important to be aware that the IRS will never call you to demand money. They will initially contact you by mail. Also, the IRS does not demand payment by certain methods, such as prepaid cards or wire transfer, or take credit card details over the phone. If you…Read More
Wage disparities between genders can be found in all types of industries. Certain fields, such as technology, the problem is much more widespread. In recent years, several companies in the Silicon Valley, such as Microsoft, Facebook and Oracle, have been thrust in the spotlight for wage gap issues. And recently, Google has been under investigation by the Department of Labor (DOL) for gender pay discrimination. As a federal contractor, Google is required to provide the DOL with access to its records and employee information to ensure compliance with federal equal opportunity laws. In this investigation, the DOL found evidence of extreme gender pay discrimination. They filed a lawsuit against Google this past January. “We found systemic compensation disparities against women pretty much across the entire workforce,” said Janette Wipper, a DOL regional director. Janet Herold, regional solicitor for the DOL, said: “The government’s analysis at this point indicates that discrimination against women in Google is quite extreme,…Read More
We love bonuses. For all of our hard work, it is nice to be recognized and rewarded. Further, any bump in our bank accounts helps. However, with your bonus, it is important to be aware of how to calculate your overtime pay. This is because your bonus may positively impact your overtime rate of pay. Unfortunately, some employers do not properly account for your bonus when calculating your pay, which is a violation of California law. Closeup of a pencil pushing buttons on a calculator doing math calculations Discretionary Versus Non-Discretionary Bonus It is first important to know that bonuses are put into two categories, “discretionary” and “non-discretionary”. Discretionary bonuses are defined as “sums paid as gifts at a holiday or other special occasions, such as a reward for good service, which are not measured by or dependent upon hours worked, production or efficiency, are not included for purposes of determining the regular rate of…Read More
Businesses hold significant money, power, and influence. Unchecked, they can wreak havoc on the lives of everyday people by taking their money, plunging them into debt and financial ruin, and destroying their ability to trust. California has numerous laws aimed at holding businesses accountable when they take advantage of consumers. One of these is a set of laws contained in the California Business and Professions Code Section 17500, sometimes referred to as the False Advertising Law (FAL). What Is The False Advertising Law? While the language of the statute is long and cumbersome for even a lawyer to read, it essentially states that: “It is unlawful for any person, firm, corporation or association, or any employee thereof” “to induce the public to enter into any obligation” “based on any statement” “which is untrue or misleading, and which is known, or which by the exercise of reasonable care should be known, to be untrue or misleading”. It…Read More
$10.50 per hour is the minimum wage in California. Remember that number. Because if a potential employer is trying to convince you to take less than this amount, you are being deceived. Employers in California are subject to both federal and state employee wage laws. The federal government mandates compliance with the Fair Labor Standards Act (FLSA), while California is governed by the California Labor Code. Minimum wage words showing through magnifying glass held by hand According to the FLSA and current U.S. regulations, the federal minimum wage is currently $7.25. In contrast, the California Labor Code Section 1182.12 has established an annually increasing state minimum wage for employers with more than 26 employees. Beginning January 1, 2017 through the end of this year, the state minimum wage is $10.50 per hour. $10.50 per hour is clearly more than $7.25 per hour, so how do we reconcile that difference? Fortunately, the laws in California favor…Read More
As of January 1, 29 states and the District of Columbia enacted minimum wage requirements that surpass the federal rate of $7.25 per hour. This includes California, which is the 3rd highest minimum wage rate in the country, with a minimum of $10 per hour for employers with fewer than 26 employees and $10.50 per hour for employers with 26 or more. Additionally, many larger metropolitan areas in California, including Ventura County, San Diego and San Francisco, impose minimum wage restrictions that exceed the state’s minimum rate. More areas could be added as 2017 progresses. The minimum wage increase for 2017 is just the beginning for the state. The minimum wage will increase by 50 cents per hour every year until 2023, with an ending minimum wage rate of $15. For employers with fewer than 26 employees, increases will not begin until 2018. Although there are exceptions to the California minimum wage requirements, the majority of adult…Read More
There was a time when the Palo Alto-based medical startup company Theranos was highly valued and praised. The company lobbied hard in Arizona and was able to open up a laboratory in Scottsdale, get their blood-testing service into 40 Walgreens locations and then got lawmakers to pass a bill that would allow customers to use their blood-testing service without getting approval from a doctor. However, Theranos’ methods were unproven and they soon came under heavy scrutiny. Federal regulators tried to shut down Theranos’ lab before Theranos made the decision for them. Walgreens shut down the Theranos blood test facilities at their locations and the state is looking to sue Theranos now. The company that was once worth $9 billion is a husk of its former self. This is just another classic example of consumer fraud, a practice that seems to be standard operating procedure for businesses nowadays. Dangerous products, unproven methods and skeptical production means are all…Read More
DeVry spent hundreds of millions of dollars aggressively advertising that 90% of its graduates found jobs within six months of graduation. They also advertised that DeVry graduates received higher salaries than graduates from other colleges. When investigated by the Department of Education and the FTC, DeVry could not back up its 90% claim. To make things worse, DeVry’s own statistics contradicted its claims of higher salaries. As a result of a Department of Education and FTC lawsuit, DeVry agreed to stop running these misleading advertisements and to pay $100 million to repay student loans, costs, and fees for students. Many students fell for DeVry’s claims and made enormous financial commitments to attend the college. They paid for expensive classes and fees. They also took out large student loans with the belief that they would be able to repay the loans using their higher salaries. One such student was Richard Green, who told his story to the…Read More
You might remember that the FTC sued DeVry, alleging “unfair or deceptive acts or practices in or affecting commerce.” It is hard to forget, since DeVry settled with the FTC for $100 million. Did you know that it wasn’t just the Federal government who had a problem with DeVry’s conduct? In fact, the state of New York also sued DeVry. New York’s Allegations Matched The FTC’s DeVry spent significant resources advertising that 90% of DeVry graduates found jobs in their chosen fields within six months of graduation. They also claimed that DeVry graduates made 15% more in salary than graduates from other colleges. With three DeVry colleges in New York, the state conducted its own investigation into DeVry’s claims and reached the following findings: When claiming that 90% of its graduates found jobs after graduation, DeVry improperly counted students who were already employed before attending Devry or before graduating. DeVry falsely stated that students were…Read More
During the end of President Obama’s administration, the financial outlook was bleak for the for-profit college sector. This is because of increased regulation by the Department of Education, which was attempting to curb false advertising and predatory lending by for-profit colleges and student loan companies. In fact, massive companies like ITT and Corinthian College went out of business, while University of Phoenix went private due to the increased regulatory climate and dwindling enrollment numbers.LONG BEACH, CA/USA - MARCH 19, 2016: DeVry University exterior and logo. DeVry University is a for-profit higher education organization. The future also seemed bleak for DeVry University, which had faced years of litigation regarding allegations of false advertising and a Federal lawsuit filed by the FTC. In fact, DeVry had just reached a $100 million settlement with the FTC and agreed to not engage in misleading advertising. The college, it seemed, was attempting to move forward into an unknown future. For-Profit…Read More
