Martin, Author at JLG Lawyers

The Real Reason Terrible Employers Fire People On Friday…

November 29, 2020November 29, 2020 Martin

November 22, 2019

Does your employer practice terminating employees on Friday? This age old process is not just outdated, it’s downright devious. According to employment surveys conducted by LinkedIn, Indeed.com, and Glassdoor.com, the consensus is that a Tuesday or Wednesday firing is the most humane for the employee as it allows them to immediately search for new employment. It also provides the opportunity for them to discuss important items like health insurance with Human Resources.

Firings on Friday are largely seen in the workforce as simply punitive for employees. It leaves them a weekend to be upset with little or no assistance and no possibility to search for a new job. Additionally it is harder on the employer as most of the post termination requirements cannot be performed on a weekend.

That stated, if your employer is terminating employees on a Friday their mean streak probably doesn’t stop there. Chances are several workplace employment law infractions are happening without anyone noticing. Simply put: Firing on Friday’s = Bad Boss.

If you think you or someone you know is the victim of wrongful termination do your research and know your rights. Most employers simply get away with it because employees don’t think they have a leg to stand on. If you need assistance contact us for a free case review and strategy session with an employment law expert.

JLG Lawyers is a Glendale, California based employment law firm.

workplace injury experts JLG Lawyers, Glendale California

Top three retail workplace injuries with highest payouts before employer liability.

November 21, 2020August 26, 2021 Martin

November 19, 2019

Injuries in the workplace are a costly problem for retailers. The costliest worker’s compensation claims highlight a growing trend that isn’t improving year over year.

Injuries to retail workers cause employees to miss an average of 24 days from work, according to claims data analyzed by AmTrust Financial Services, which analyzed more than 20,000 workers’ compensation insurance claims from the company’s retail clients with loss payments from 2016 to 2018. The AmTrust Retail Risk Report found that the top three injuries with highest average payout are:

•   Fall or slip from ladder or scaffolding: $21,000;
•   Strain or injury by repetitive motion: $14,000; and
•   Motor vehicle collision with another vehicle: $13,900.

The report also found that among the top 10 injuries, 23% of claims payments were associated with lifting, and that the average loss paid is greater for men ($11,641) than women ($7,030). The most hazardous retail classes sectors are meat, fish, or poultry retail; hardware; automobile parts; and barbershop or hair salon.

“Analyzing three-years of data gave us new insights into why people in retail miss work, what kind of injuries are the worst or most expensive for employers, and how long it takes for an employee to return to work,” said a top AmTrust executive. “It reinforced our belief that training – in both operations and safety — is essential in the retail sector, especially for younger workers where we tend to see more workers’ compensation claims. Lost time is detrimental to both the injured employee and the employer. This report provides visibility into retail risk and insight into how to decrease the occurrence and severity of these costly situations.”

In addition to the painful expense from missed days and workers comp claims, employers open themselves to a multitude of different potential claims. The majority of injuries would have been prevented with better employer oversight, training, and policies. The lurking hidden cost of lawsuits is waiting to surprise employers at any time.

If you have been injured on the job and think you may have a claim, contact us today at 818-630-7280 or email info@jlglawyers.com.

JLG Lawyers is a Glendale, California based law firm specializing in wrongful termination.

California Court Clarifies the Monetary Amount for Meal Period, Rest Break, and Recovery Periods, and Affirms an Employer’s Neutral Rounding Policy

November 9, 2020April 26, 2022 Martin

November 13, 2019

On October 9, 2019, the Second Appellate District of the California Court of Appeal issued a decision clarifying the rate of pay at which an employer must pay meal period, rest break, and recovery period premiums. More specifically, the appellate court answered the question: what does the “regular rate of compensation” in Labor Code Section 226.7(c) actually mean? In Ferra v. Loews Hollywood Hotel, LLC, a 2-1 majority of the Court of Appeal affirmed the trial court’s holding that in paying meal period and rest break premiums, the regular rate of compensation is equal to one hour of the employee’s base hourly wage and is not synonymous with the “regular rate of pay” used to calculate overtime payments. This clarification is important to every employer in California.

Pursuant to Labor Code Section 226.7(c), if an employer fails to provide an employee a meal period, rest break, or recovery period in accordance with state law, the employer shall pay the employee one additional hour of pay at the employee’s regular rate of compensation for each workday that the meal or rest or recovery period is not provided. For years, plaintiff attorneys have been arguing that the regular rate of compensation in Labor Code Section 226.7 really means the regular rate of pay used to calculate an employee’s overtime rate – presumably, because the regular rate of pay will be higher in certain circumstances. Indeed, the regular rate of pay in Labor Code Section 510(a) is an employee’s base rate of compensation plus any adjustments to that rate arising from additional compensation the employee receives, which would include such items as shift differentials, bonuses, and commissions. Thus, unlike an employee’s base hourly rate of compensation, the regular rate of pay may change each pay period. If an employer were required to pay meal period, rest break, and recovery period premiums at the regular rate of pay, it would likely cause an administrative nightmare for payroll departments each pay period. An adjustment would have to be issued with any payment of a monthly, quarterly, or annual bonus because each of those payments would need to be included in the regular rate, and thus would increase the value of the meal or rest period premium. But, thanks to the Ferra court’s thorough analysis of the statutes and the legislative history, employers can rest assured that premium payments are paid at the employee’s base regular rate of compensation.

In rejecting Ferra’s argument that Labor Code Section 226.7’s regular rate of compensation is synonymous with Labor Code Section 510’s regular rate of pay, the Ferra court reasoned that the Legislature made a conscious decision to use two different, specific terms in two different statutory provisions enacted in the same year (and also in two different portions of the wage orders that were revised at the same time). Indeed, had the Legislature intended the terms “compensation” and “pay” to have the same meaning, the Legislature could have simply used the same term. Furthermore, the court looked to legislative history to conclude that equating “regular rate of pay” and “regular rate of compensation” would “elide the difference between requiring an employer to pay overtime, which pays the employee for extra work, and requiring an employer to pay a premium for missed meal and rest hour periods, which compensates an employee for the loss of a benefit. Requiring employers to compensate employees with a full extra hour at their base hourly rate for working through a 30-minute meal period, or for working through a 10-minute rest break, provides a premium that favors the protection of employees.” While the Ferra court agreed with the dissent that the Labor Code should be “construed in favor of protecting employees,” it held that paying employees a full extra hour at their base hourly rate for missing a meal or rest period is sufficient protection.

The Ferra court also unanimously upheld the trial court’s summary judgment order in favor of the employer and its neutral rounding system. This decision is another example of favorable case law holding that even where the net effect of a seemingly evenhanded rounding policy is slightly to reduce the overall compensation of the group of employees subject to the rounding, small statistical differences do not qualify as systematically under compensating employees as necessary to cause a rounding system to become unlawful. Thus, even though Ferra does not establish a bright-line rounding rule, it is a step toward a de facto standard that rounding to the nearest increment (e.g., the nearest tenth or quarter hour) is lawful. In sum, the Ferra court reasoned that neutral rounding contemplates the possibility that in any given time period, some employees will be overcompensated and some will be under compensated, averaging out in the long run. A rounding policy does not have to overcompensate employees to be fair and neutral, and a system can be fair and neutral even where a small majority is under compensated.

Going forward, California employers can breathe a small sigh of relief, and pay meal period, rest period, and recovery period premiums at the employee’s base hourly rate, rather than at the more administratively-complex regular rate of pay. Employers should therefore review their premium payment practices to ensure compliance and should consult with legal counsel concerning best practices for premium payments and time rounding policies.

For more information on California Employment Law or if you have been a victim of lack of compliance by an employer contact us at info@jlglawyers.com or 818-630-9422.

Interview Questions Employers Cannot Ask

November 1, 2020November 1, 2020 Martin

Due to legislative updates over the last year, California employers are becoming increasingly limited in the types of questions they can ask candidates during the application and interview process. Here are a few examples of questions that California employers cannot ask in 2019.

Although asking the question “have you ever been convicted of a crime?” was previously common practice during interviews and online applications, it is now illegal for employers with more than five employees to ask about or consider conviction history until after the candidate has received a conditional offer.

Additionally, while employers are free to inquire about salary expectations, asking a candidate how much they previously made is prohibited. The employer may only take salary history information into consideration along with other factors if it is voluntarily provided by the applicant

The question “where are you from?”, while seemingly innocent, can be interpreted as a question about the applicant’s national origin. And although the employer may ask if the applicant has the legal right to work in the US, California’s Labor and Workforce Development Agency prohibits employers from taking immigration status into consideration.

Other personal questions such as “when did you graduate high school?” or “are you married?” are off limits since they could lead to discrimination. Any questions related to parenthood, marital status, or age (unless the job has a legally enforced minimum age requirement) are prohibited until after the applicant has been hired.

If you or someone you know has been discriminated against during the hiring process, call (818) 630-7280 today for a free consultation with our employment attorney.

Wrongful Termination in California

September 23, 2020April 2, 2023 Martin

In general, employment in California is “at-will,” which means that employers can fire an employee for any reason as long as it isn’t illegal. However, in California, an employer can be found guilty of wrongful termination if they fire an employee for violating state or federal law.

What Qualifies as Wrongful Termination in California?

Wrongful termination in California could be a result of a variety of reasons, including:

Discrimination: A business can’t terminate a worker as a result of their Physical or mental disability, Use of protected time off, Pregnancy status, Race or national origin, Religion or religious practices, Gender, Age, Sexual orientation, Gender identity, Political affiliation
Retaliation: Employees who report discrimination, harassment, or other illegal practices cannot be fired by their employers. A worker cannot be fired for participating in a legal activity, such as voting or serving on a jury, either.
Whistleblowing: Employees who report unethical or illegal behavior within the company cannot be fired by their employers.
Harassment: Employees in California are required to become familiar with the laws governing sexual harassment at work. The California Fair Employment and Housing Act, or FEHA, is the primary sexual assault law in California that forbids sexual harassment. Improper end in California can likewise result from work environment provocation, including lewd behavior. It is against the law to fire an employee for complaining of harassment because employers are required to provide a safe and respectful work environment.

Contract Breach: If an employer violates a written or implied employment contract, such as terminating an employee before the end date that was agreed upon.

What are Wrongful Termination Examples?

Some examples of unlawful termination in California:

Discrimination: An employee is fired when their race, gender, age, religion, national origin, sexual orientation, or any other protected characteristic is taken into consideration. An employer might, for instance, fire a female worker due to her gender or a Muslim, Hindu, or Jewish worker due to his religion.
Retaliation: An employee can be fired by their employer for participating in a protected activity, such as reporting safety violations, discrimination, or harassment, or for joining a union. For instance, a business might terminate a representative who reports lewd behavior by a boss or records a specialist’s remuneration guarantee.
Whistleblowing: Employees who report or refuse to participate in unethical or illegal behavior are fired by their employers. An employee may be fired if, for instance, they report financial fraud or refuse to take part in a plan to break environmental regulations.
Contract Breach: A business ends a representative infringing upon a work contract or a suggested agreement, which could incorporate an infringement of the agreements of the company. In violation of an employment contract that requires a cause for termination, an employer may, for instance, fire an employee without cause.
Public Policy Violation: A business ends a worker for participating in a movement that is safeguarded by open strategies, like serving on a jury, revealing criminal behavior to policing, or getting some much-needed rest for a family or clinical reasons. An employee may be fired if, for instance, they take time off to care for a sick family member or report illegal employer behavior.
Worker’s Compensation Claim Retaliation: When an employee files a workers’ compensation claim or reports an injury at work, their employment is terminated. An employee might be fired if they file a workers’ compensation claim and report an illness or injury at work.
Defying the WARN Act: Under the WARN Act, which requires employers to provide advance notice of mass layoffs or plant closures, an employer terminates employees without providing proper notice. Under the WARN Act, for instance, an employer may fire a group of workers without giving them 60 days’ notice.
Harassment: Under California law, the employer is strictly accountable when a manager or supervisor sexually harasses a subordinate. This means that if a manager or supervisor sexually harasses a subordinate, the company is responsible. However, an employer can only be held accountable for workplace harassment if they knew about the harassment (or learned about it) and did nothing to stop it. Employers may also be held accountable for harassment committed by customers or clients if they knew about the harassment (or should have known about it) and did not act appropriately to prevent an employee from continued harassment. Wrongful termination based on sexual harassment may occur if an employer sexually harasses an employee and then fires them after the employee rejects their advances.

What is Considered Cause for Wrongful Termination in California?

Wrongful termination means when an employer terminates an employee for an illegal reason. Employers in California are prohibited from terminating employees in violation of the law. Discrimination, retaliation for participating in a protected activity, whistleblowing, breach of contract, violation of public policy, retaliation for filing a workers’ compensation claim, and violation of the WARN Act are all potential causes of wrongful termination.

What is Considered Wrongful Termination in California?

Many people use the term “wrongful termination” without really knowing what it means. When is an end unfair, legally speaking? The response is easy. When an employee is fired for a reason that is not legal or allowed, the termination is wrong.

It is against the law for employers to discriminate in employment decisions based on a variety of factors under the California Fair Employment and Housing Act, which is one of the strongest protections against wrongful termination in the nation. These factors include:

Race
Gender
Age
Harassment
Pregnancy
Mental or Physical disability
Religion
Sexual orientation
National Origin
Political affiliation
Retaliation for complaints and reports of violations

It is against the law to fire an employee if any, if not all, of these factors, played a role in the decision to do so. The wronged employee may have a wrongful termination claim in these situations.

What to Do If You Have Experienced Wrongful Termination in California?

We recommend that you immediately take the following two steps if you lose your job and believe you may have a wrongful termination claim against your former employer:

Set up a client relationship by contacting a seasoned California wrongful termination lawyer.
Collect and safeguard all relevant evidence for your case.

Naturally, gathering evidence involves obtaining and preserving all written documents regarding your termination and prior job performance from your employer (such as copies of all past performance reviews and your termination letter).

If you have not already saved some of these documents, you may need to ask your employer for them. An attorney can assist you in making these requests more forcefully if your employer does not respond.

A California employment lawyer can help you identify the evidence that will be crucial as the case progresses and play a crucial role in the collection of evidence for a lawsuit.

Is wrongful termination hard to prove?

It is the employee’s responsibility to demonstrate her case by a preponderance of the evidence in a wrongful termination case. The majority of the time, there is no hard evidence. To prevail in her wrongful termination claim, an employee does not require “smoking gun” evidence. By pointing to an employer’s shifting reasons for the termination, inconsistencies in the employer’s story, or proximity in time between an employee’s protected conduct and the employee’s discharge, an employee may be able to win a wrongful termination case.

Wrongful Termination Settlement in California:

If you were fired without cause in California, you may be eligible for compensation. The severity of the violation, the length of time you were employed, and any damages you sustained due to the termination will all influence the settlement amount. The damages that an employee who was fired can get for filing a California wrongful discharge lawsuit can vary from case to case. However, in most cases, they will include at least one of the following:

Benefits and wages lost
Wages and back pay
Monetary compensation for emotional distress and pain and suffering caused by job loss;
Fees for an attorney
Punitive damages, which are intended to punish the employer’s willful misconduct

Conclusion

Wrongful termination cases in California are a severe problem that can have significant repercussions for both employers and employees. It is critical to consult an experienced employment lawyer if you have been wrongfully terminated so that they can explain your legal options and rights. You can safeguard yourself and hold your employer accountable for their actions by taking the necessary precautions.

Contact us for assistance if you’ve been fired or let go for illegal reasons

If you think you were fired because of your disability or medical condition, you might want to talk to a lawyer or a legal aid organization.

If you have any inquiries regarding your circumstance, make an appointment for a case review with one of the best employment law firms in California.

Contact our wrongful termination California lawyers to learn more about your legal options. Consultations and legal counsel are available from our law firm.

Three Common Wage and Hour Issues Workers Face

May 30, 2020May 30, 2020 Martin

One of the basic tenants of the worker and employer relationship is that employees receive payment for the time they work. While this arrangement is supposed to be straightforward, some employers try to bend the rules or withhold payment to their employees. Because wage theft is one of the most common employment problems that workers face, every employee should be aware of some common ways that businesses withhold wages from workers and the steps you can take to get compensation.

Some unscrupulous employers may attempt to withhold your overtime pay, or they may inaccurately calculate your wages. Workers should keep track of the time they work and compare that to their paycheck. Some businesses may also classify their employees as independent contractors so they can deny overtime payment and pay workers under the minimum wage. Misclassified employees may be able to get compensation from their employer for unpaid overtime, employment taxes and other forms of lost income. Additionally, keep in mind that nonexempt workers in California have a right to meal and rest breaks depending on the length of their shift.

The California Labor Code section 250 requires employers to give workers a 30-minute meal break if they work for more than five hours in a day. Employees who work at least three and a half hours in a day must receive a 10-minute rest break for every four hours worked or major fraction thereof.

If you believe that your employer failed to pay your full wages, please call us at (818) 630-7280 to schedule a free consultation with an attorney.

Pandemic Relief Fails Small Businesses

April 28, 2020August 26, 2021 Martin

The Coronavirus Aid, Relief, and Economic Security (CARES) Act is the largest aid package in U.S. history. The bipartisan deal allocates $2 trillion in relief efforts to mitigate the crisis resulting from the COVID-19 pandemic. This includes $500 billion in loans – $454 billion of which was allocated to the Federal Reserve for additional lending. The CARES Act, and its disaster relief programs, has caused great upset among lawmakers and small business owners. They’ve been inundated with complaints about breakdowns in the small-business lending program and loopholes that have allowed large companies to receive funds meant for smaller operations. Lawmakers are now looking for solutions to the mounting legislative shortcomings.

The day after lawmakers spoke with the head of the Small Business Administration about the issues with the small business program, Congress passed another huge relief bill with little done to address the early problems that have emerged. Many have speculated that decisions are influenced by lawmakers’ desire to be favored in November elections. They will be perceived negatively if their solutions to the pandemic are unsuccessful or driven by powerful interests. These factors are increasing the urgency to fix what isn’t working. Here’s a look at the growing breakdowns of rescue efforts and the consequences for small businesses thus far.

The $350 billion fund for small businesses was quickly depleted and it became apparent that large, publicly traded companies had received much of the funds. Lawmakers and the public were outraged by this injustice. Similarly, many have been frustrated over the cost of provisions in the stimulus plan, allowing wealthy business owners to take advantage of the program by qualifying for tax refunds.

Additionally, many small business owners have had difficulty obtaining the approved loan funds or getting approved through major banks. “Promises were made in the CARES Act that made small businesses believe they would receive their loans in a timely fashion,” Rep. Pete Stauber (R-Minn.) says, “Instead, some received a fraction of what they were promised and many others received nothing at all.”

And there might be even more delays coming, though Congress sent another $320 billion into the so-called Paycheck Protection Program last week. Banks warn the money could run out in a matter of days with hundreds of thousands of applications still pending.

To delve deeper into the specifics, about 70% of U.S. small business owners have already applied for emergency loans, according to an industry survey released Thursday. A report by the trade group says the program, largely operated by banks, and a second operated by the SBA to provide immediate cash while struggling businesses wait on loan approvals, “have yet to deliver the loans, frustrating small business owners who are in immediate need of financial support.” The survey found that just over half of small businesses have applied for the SBA’s smaller disaster loan program but that just 4% had been approved. The survey reinforces the concerns of banks and small-business owners that the $349 billion Congress set aside for the Paycheck Protection Program will quickly be exhausted. The path forward for additional federal intervention is uncertain as the virus continues to wreak havoc on the economy.

Sen. Marco Rubio (R-Fla) said on Twitter “…#PPP will stop & no more #PPPloans will be made, leaving millions of #smallbusiness locked out.”

Rep. Mary Gay Scanlon (D-Pa.) echoes this sentiment saying, “Our constituents have a lot of questions about where the hell this $3 trillion is going and why it isn’t coming into their pockets,”

The federal government restarted the emergency loan program on Monday with $321 billion in funds. But the Paycheck Protection Program, first opened on April 3 with $349 billion, was a pot of money that ran out in 13 days.

Still, small businesses can’t seem to catch a break. On the first day of the reopened Paycheck Protection Program, banks reported that the Small Business Administration’s portal was not functioning and would not allow them to enter loan application information required for small businesses to access the program.

“We have been attempting to access E-Tran since 10:30 and have had no luck,” said Maria Amoruso, chief marketing officer at Pennsylvania’s NexTier Bank, in a midday message to NPR.

Amoruso said her bank had 13 small business loan applications ready on Monday morning. As of midday, her team had only been able to get one loan entered into the system.

This is yet another reason why the small business loan program has fallen short of providing desperately needed aid in a timely manner.

Rob Nichols, CEO and president of the American Bankers Association (a trade group that represents banks) tweeted out, “Our member banks across the country are deeply frustrated at their inability to access @SBAgov’s E-Tran system,” he tweeted. “We have raised these issues at the highest levels. Until they are resolved, #AmericasBanks will not be able [to] help more struggling small businesses.”

Until the multitude of issues with the roll-out of the second disaster relief package have been resolved, unfortunately, several small businesses will not receive the financial assistance they need in time to survive this economic crisis. In light of the failing system, businesses are having to look at alternative options to weather the storm.

The expert attorneys at JLG Lawyers will explain the various options available, and help to create a customized plan that can relieve or reorganize debt. To get more information about debt settlement or filing for a business bankruptcy, contact Michael Jaurigue at 818-630-7280 or info@jlglawyers.com for a free consultation today.

The PPP program is poised to get an additional $300 billion, but many small businesses will never see it.

April 22, 2020August 26, 2021 Martin

For many small businesses struggling to survive the fallout of the coronavirus pandemic, the only hope of staying afloat until a potential reopening was a Paycheck Protection Program (PPP) loan.

But the PPP exhausted nearly $350 billion set aside under the CARES Act for low-interest loans to small businesses. On Tuesday, the Senate passed a measure that would inject an additional $300 billion into PPP. As part of the $2.2 trillion coronavirus stimulus package, known as the CARES Act, $349 billion was allocated to small businesses, initially as loans. PPP, administered through the Small Business Administration, was authorized to provide small businesses with loans to pay eight weeks of salary, benefits and other eligible costs. Those loans will be forgiven if a business restores its full-time employment and salary levels by June 30.

Many small businesses jumped at that opportunity, and within 13 days the funds were gone. On Tuesday, the Senate approved a $484 billion relief package that includes an additional $310 billion for PPP. President Donald Trump is likely to approve the package, which also includes more funding for hospitals and coronavirus testing. The Senate’s package is in line with what Treasury Secretary Steven Mnuchin said he was discussing with Democratic leaders over the weekend.

Here are some other possible options:

1. Venture-capital funding

Unlike with a loan, businesses that receive venture-capital financing aren’t typically responsible for paying it back. The downside is that they often have to forfeit a portion of their control. But for “smaller and mid-sized business that had existing relations with venture capitalists and never dipped toe in water, I could see venture capitalists being interested,” Prosen said. “They could even get a good discount without giving away a ton of control.”

It may be more difficult to get a loan from traditional sources now that banks and other financial intermediaries have begun to tighten their lending standards, said Eric Pendleton, the principal at Pendleton Financing, a commercial lending business based in Boston. Some lenders, he added, have stopped lending completely to higher-risk borrowers.

2. Employee-retention tax credit

“PPP is definitely the largest program right now, but it’s not the only option,” said Jared Hecht, the CEO and co-founder of Fundera, a marketplace for small-business loans. He cited the employee-retention tax credit recently introduced as part of the CARES Act to encourage employers to keep workers on payroll.

4. Crowd-sourced funding

IFundWomen, a startup funding platform co-founded by Kate Anderson, helps women obtain the capital they need to launch or operate their business through crowdfunding and grants. The number of members tripled in March and there are now over 108,000 members, including funders and entrepreneurs.

IFundWomen launched a COVID-19 relief campaign so that funders can easily identify businesses that are struggling to get by during this time. Crowdfunding, while not as reliable as the PPP program, can help companies keep their lights on “without giving away equity,” Anderson said.

The platform operates in a similar manner to sites like GoFundMe. However, IFundWomen is specifically a crowd-funding platform dedicated to funding female-owned businesses.

Nearly 30% of all small businesses are owned by women; however, they receive only 16% of conventional small-business loans and 17% of SBA loans, according to a 2014 report by the Senate Small Business and Entrepreneurship Committee.

5. Look to family and friends

This is an option of last resort. A loan from relatives or friends will typically come with less fine print and arrive in wallets faster, Prosen said.

Given that 22 million Americans are out of work, however, don’t bank on this option, said Holly Wade, the director of research and policy analysis for the National Federation of Independent Business, a nonprofit small-business association.

Family and friends may be hesitant to dip into their own savings at this time, especially given the heightened uncertainty regarding the U.S. economic outlook, she said. What’s more, mixing business with friendship and family can often lead to broken relationships, experts say.

Contact Us:

We understand debt settlement and bankruptcy is a challenging topic to face both financially and emotionally. The processes can become very complicated in a system that is difficult to navigate and frequently changes. Consulting with a good lawyer as soon as possible is incredibly important to the success of your debt settlement or bankruptcy strategy. At JLG Lawyers we offer solutions to help advise you and answer questions all the way to a full attorney handled case. Contact us now for a free case review and strategy session.

JLG Lawyers and Michael Jaurigue, Esq. are located in Glendale, California and specialize in debt settlement and bankruptcy matters. Michael Jaurigue is a UCLA and Berkeley Law graduate and has been practicing law for 20 years in Los Angeles and worked at Sheppard, Mullin, Richter, and Hampton representing several Fortune 100 clients prior to forming his own firm 10 years ago. JLG Lawyers is located at 300 W Glenoaks Blvd. Suite 300, Glendale, California 91202. 818-630-7280.

Famous Celebrities You May Not Have Known Filed Bankruptcy Including Wayne Newton, MC Hammer, Mark Twain, and More.

April 22, 2020December 4, 2024 Martin

Bankruptcy Is More Common Than You Think.

During these uncertain times it is easy to get lost in the day to day negative press and lack of clarity about the future. It’s important to take everything in stride and realize that financial difficulties happen to the best of us, and should be looked at as a starting point of a new, successful journey. People facing financial difficulties often feel like they are the only ones having money troubles. They often feel embarrassed and isolated from the rest of the community. They are reluctant of file for bankruptcy because they are afraid they will be considered failures and irresponsible by the public. They do not realize that many people, including famous celebrities, have faced similar financial difficulties and filed for bankruptcy to discharge their debts. This article will discuss some of these famous people including artists, athletes, authors, actors and businessmen who filed for bankruptcy.

Rembrandt Haremenszoon Van Rijn, 1606-1669, the famous Dutch painter, accumulated more debts than he could repay and filed for bankruptcy at the age of 50 in 1656. Jacob Peter Thomasz, a lawyer, supervised the sale of his assets in 1657 and 1658. Many of Rembrandt’s paintings and his house were sold at an auction. After the bankruptcy, he continued to paint but was not allowed to fsell his works directly to customers. He was able to circumvent this law by having his son take over his business and sell his paintings.

Phineas Taylor Barnum, 1810-1891, the greatest American showman, filed for bankruptcy in 1871 due to losses he incurred in unwise business ventures. After bankruptcy he organized his famous circus, “The Greatest Show On Earth.” In 1881 he merged his circus with his most successful competitor, James A. Bailey, under the name of Barnum and Bailey Circus.

Mark Twain, (Samuel Langhorne Clemens), 1835-1910, pre-eminent American author, lost most of his money investing in a worthless machine called the Paige Compositor, an automatic typesetting machine. He filed for bankruptcy in 1894 and discharged all his debts, but was determined to repay the debts. He knew he could earn money by giving lectures to large audiences, so he traveled to Europe and spent the next four years lecturing in every major city. He used the proceeds from these lectures to repay all his debts. He also wrote several of his more famous books after filing bankruptcy including Pudd’nhead Wilson and Following the Equator.

Mathew Brady, 1823-1896, distinguished Civil War photographer, filed for bankruptcy in 1872 in Washington, D.C. when, after the Civil War, people lost interest in his work and he became unable to pay his business fdebts. Three years after he filed for bankruptcy the United Stated War Department agreed to purchase part of his photography collection for $25,000.00. He then reopened his gallery and was successful in attracting new clients for his work.

Henry John Heinz, 1844-1919, condiment manufacturer, started his company in 1869 selling horseradish, pickles, sauerkraut and vinegar. In 1875 the company filed for bankruptcy due to an unexpected bumper harvest which the company could not keep up with and could not meet its payroll obligations. He immediately started a new company and introduced a new condiment, tomato ketchup to the market. This company was, and continues to be, very prosperous.

Oscar Wilde, 1854-1900, acclaimed poet and author, was forced into bankruptcy in 1895. He had earlier been convicted of homosexual activity, which in England was illegal at that time, and was sentenced to two years in prison at hard labor. He was declared a bankrupt on November 12, 1895 and his property was auctioned off. After being released from prison he published his poem, The Ballad of Reading Gaol. His health was affected by his prison experience and he died at the age of 46.

Milton Snavely Hershey, 1857-1945, founder of Hershey’s chocolate, started four candy companies that failed and filed bankruptcy before starting what is now Hershey’s Foods Corporation. Mr. Hershey had only a 4th grade education, but was certain he could make a good product that the public would want to purchase. His fifth attempt was clearly successful.

Henry Ford, 1863-1947, automobile manufacturer, first two automobile manufacturing companies failed. The first company filed for bankruptcy and the second ended because of a disagreement with his business partner. In June 1903, at the age of 40, he created a third company, the Ford Motor Company with a cash investment of $28,000.00. By July of 1903 the bank balance had dwindled to $223.65, but then Ford sold its first car, and as they say the rest is history.

Mickey Rooney, 1920- , movie actor, blames alcohol and gambling for the financial problems he suffered in the early 1960’s. He owed the Internal Revenue Service $1.75 million and filed for bankruptcy in 1962. After the bankruptcy he continued to act and has had many roles in movies and television. He is still performing live shows today.

Debbie Reynolds, 1932- , movie actress, purchased a hotel in Las Vegas in 1992 and called it the Debbie Reynolds Hotel and Casino. She thought she could operate the hotel successfully, however, it was plagued by a weak cash flow almost from the start. In July 1997 the hotel filed for Chapter 11 bankruptcy and Ms. Reynolds filed for personal bankruptcy. The hotel was sold at auction in 1998 to the World Wrestling Federation.

Johnny Unitas, 1933-2002 , legendary Hall of Fame football quarterback, was a great athlete but a terrible businessman. Each of his business ventures, including bowling alleys, land deals and restaurants, was unsuccessful. He filed for Chapter 11 bankruptcy in 1991. Other football players who filed for bankruptcy include Tony Martin and Lawrence Taylor.

Jerry Lee Lewis, 1935- , famous Rock n’ Roll star, filed for bankruptcy in 1988 because of huge tax debts. The IRS seized his cars, furniture, baby grand piano and even showed up at his concerts to collect ticket sales. He has since recovered from bankruptcy and still gives live concerts.

Burt Reynolds, 1936- , movie actor, filed for bankruptcy in 1996 in Florida after his much publicized divorce from Loni Anderson. He had more than $10 million in debt. His dinner theater was foreclosed on by the mortgage lender and his ranch was sold. Since his bankruptcy he has continued to act in movies and was awarded the Golden Globe for Best Supporting Actor in the film Boogie Nights.

Sherman Hemsley, 1938-2012) , TV actor who played George Jefferson in All in the Family, filed for Chapter 13 bankruptcy in June of 1999. He did not have sufficient funds to repay a $1 million loan from a Las Vegas investment corporation and pay taxes he owed to the IRS. He later dismissed the case and worked out his debt outside court.

Marjorie Margolies Mezvinsky, 1942- , former member U.S. House of Representatives from 1993 to 1995, filed for Chapter 7 bankruptcy in February 2000. She was denied a discharge however because she failed to satisfactorily explain and disclose what happened to all her assets.

Wayne Newton, 1942- , Las Vegas entertainer, filed for Chapter 11 bankruptcy in 1992 listing more than $20 million in debt. A few years later he signed a new contract with Stardust Hotel which pays him reportedly over $25 million per year for performing at the hotel 40 weeks a year for 10 years.

Kim Basinger, 1953- , actress, earned so much money from her movies that she was able to purchase the town of Braselton, Georgia. After the purchase she was sued for breach of contract for pulling out of the movie, Boxing Helena. She was not able to pay the damages resulting from the suit and filed for bankruptcy in 1993. As part of her bankruptcy she sold the town. She later married Alec Baldwin, had a child and won an Oscar for her role in the movie L.A. Confidential.

MC Hammer (Stanley Burrell) 1962- , musician and entertainer, filed for Chapter 11 bankruptcy in 1996 because he did not have the income to support his lavish lifestyle and defend all the lawsuits that were filed against him.

Walt Disney, 1901-1966, cartoon creator, filed for bankruptcy in 1920 after his main client of his new business filed bankruptcy. Disney said he could no longer pay his employees or the rent and had no choice but to file bankruptcy himself. In 1923 her formed a new company with a loan from his parents and his brother. In 1928 her created “Mickey Mouse” and the rest is history.

Larry King, 1933-, talk show host, filed for bankruptcy in 1960 and then again in 1978. He said each time that he was deep in debt.

Donald Trump, 1946-, businessman, filed a Chapter 11 bankruptcy case for his casino empire in 2004 to reorganize his business after negotiations with his creditors failed. This was the second bankruptcy case for his casino business, in 1992 he had filed Chapter 11 bankruptcy for his casino business. He is now the President of the United States.

Mike Tyson, 1965-, professional fighter, filed a Chapter 11 case in August of 2003 because he was not able to pay all his bills.

Sammy Kershaw, 1958- , country music singer, filed a Chapter 13 bankruptcy case in February 2007. He had some major hits during the early 1990’s, but nothing recently. He was facing financial difficulties with a restaurant he owned.

Stephen Andrew Baldwin, 1966-, actor, played in movies such as The Beast and Born on the Fourth of July and was Barney Rubble in the Flintstone’s Viva Rock Vegas. In 2008, he was on TV in Donald Trump’s Celebrity Apprentice. He is also a minister and appears weekly on a Christian radio show. He filed for Chapter 11 on July 21, 2009 after he defaulted on his mortgage loan. He claims to owe more than $2.3 million in debt.

Jose Conseco, 1964-, baseball player, born in Cuba and moved to the U.S. as an infant with his family. In 1988, he became the first player in major league history to hit 42 home runs and steal 40 bases in the same year. In 2005 he admitted to using anabolic steroids. In 2008 his house was sold at foreclosure and he filed for Chapter 7 bankruptcy.

Vince Neil (Wharton), 1961-, singer, He joined the band Motley Crue in 1981 and recorded such hits as Dr. Feelgood and Girls, Girls, Girls. In 1992 he left Motley and went solo recording Exposed, which debuted at number 13 on the Billboard charts. In 1995 his daughter died of childhood cancer of the kidneys ad he established the Skylar Neil Foundation in her honor. It funds cancer research. In 1998 he filed for Chapter 7 bankruptcy, but was later not satisfied with his bankruptcy lawyer and thought he was negligent in handling his case. The judge refused to reopen the case. Mr. Neil has since started several business ventures.

Anna Nicole Smith, (1967-2007), former playmate model, filed bankruptcy in 1996 as a result of an $850,000 judgment against her, as she was left without funds following the death of her wealthy elderly husband, J. Howard Marshall. The Supreme Court recently issued an important ruling in her bankruptcy case in which it held that bankruptcy court judges may not rule on non-bankruptcy law matters.

Abraham Lincoln, (1809-1865), 16th President of the United States of America, declared bankruptcy in 1833 because of a failed business. He was required to repay his creditors over a period of 17 years, much longer than the maximum requirement in a Chapter 13 today, which is 5 years.

George McGovern (1922-2012) former presidential candidate, filed a bankruptcy case for his business in 1991. He had invested in a hotel in Connecticut which failed.

Cyndi Lauper, (1953- ), singer, filed bankruptcy in 1981 after splitting up with her band, Blue Angel, and being sued by her manager for breach of contract. In 1984 she released her hit “Girls Just Want To Have Fun.”

Lynne Spears, (1955- ), mother of Britney Spears, filed for bankruptcy in 1998 with her then husband James, just before Britney’s career took off.

Zsa Zsa Gabor, (1917- ), actress, filed bankruptcy in 1933 after a judgment was entered against her for libel for more than $1 million dollars.

Dione Warwick, (1940- ), Grammy award winning singer, filed Chapter 7 in 2013 due to mismanagement of her business affairs and owing more than $7 million to the IRS.

Casey Anthony(1986- ), young mother acquitted of murdering her 2 year old daughter, filed Chapter 7 listing more than $800 thousand in debt.

Janice Dickinson(1955- ), former supermodel and judge on America’s Next Top Model, filed bankruptcy in 2013 due to large medical bills and past due taxes.

Michael Vick, (1980- ), football star, filed for Chapter 11 bankruptcy in July of 2008 while he was still serving time in jail for illegal dog fighting. His plan of reorganization was approved by the court in 2009.

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Life After Bankruptcy, How Does It Affect My Credit?

April 22, 2020August 26, 2021 Martin

Consequences of Bankruptcy

In these uncertain times a large number of people will be facing financial challenges that are scary and often times insurmountable. It is important to research and carefully consider the impact debt settlement or bankruptcy will have down the road. In certain cases bankruptcy may be inevitable, in which case planning is of upmost importance to a successful strategy. JLG Lawyer’s experienced team can help answer questions and map out a strategy that is right for you and your family.

Perhaps the most well-known consequence of bankruptcy is the loss of property. As previously noted, both types of bankruptcy proceedings can require you to give up possessions for sale in order to repay creditors. Under certain circumstances, bankruptcy can mean losing real estate, vehicles, jewelry, antique furnishings and other types of possessions.

Your bankruptcy can also affect others financially. For example, if your parents co-signed an auto loan for you, they could still be held responsible for at least some of that debt if you file for bankruptcy.

Finally, bankruptcy damages your credit. Bankruptcies are considered negative information on your credit report, and can affect how future lenders view you. Seeing a bankruptcy on your credit file may prompt creditors to decline extending you credit or to offer you higher interest rates and less favorable terms if they do decide to give you credit.

Depending on the type of bankruptcy you file, the negative information can appear on your credit report for up to a decade. Discharged accounts will have their status updated to reflect that they’ve been discharged, and this information will also appear on your credit report. Negative information on a credit report is a factor that can harm your credit score.

Getting a Credit Card or Loan after Bankruptcy

Bankruptcy information on your credit report may make it very difficult to get additional credit after the bankruptcy is discharged — at least until the information cycles off your credit report. Lenders will be cautious about giving you additional credit, and they may ask you to accept a higher interest rate or less favorable terms in order to extend you credit.

It will be important to begin rebuilding your credit right away, making sure you pay all your bills on time. You’ll also want to be careful not to fall back into any negative habits that contributed to your debt problems in the first place.

Getting a Mortgage After Bankruptcy

Just as bankruptcy can hinder your ability to obtain unsecured credit, it can make it difficult to get a mortgage, as well. You may find lenders decline your mortgage application, and those that do accept it may offer you a much higher interest rate and fees. You may be asked to put up a much higher down payment or shoulder higher closing costs.

Rather than give up your home and try to get a new mortgage after bankruptcy, it may be better to reaffirm your current mortgage during bankruptcy proceedings. You would be able to keep your home, continue paying on your current mortgage — free of other debts — and stay in your current home.

Bankruptcy Alternatives

When you’re struggling with unmanageable debt, bankruptcy is just one solution; there are others to consider. Most will also affect your credit, but probably not as badly as a bankruptcy — plus, these alternatives can allow you to keep your property, rather than having to liquidate it in bankruptcy proceedings.

Some bankruptcy alternatives you might consider are:

Seek help from a government-approved credit counselor or debt management plan. A counselor can work with your creditors to help arrange a workable plan for repaying what you owe.
Take out a debt consolidation loan. These types of loans can aggregate multiple high-interest, costlier debt into a single, lower-interest loan. Research debt consolidation loans to see if consolidation can lower the total amount you pay and make your debt more manageable.
Approach your creditors and see if they’re willing to agree to a more manageable repayment plan. Defaulting on your debt is not something your creditors want to see happen to you, either, so they may be willing to work with you to arrange a more achievable repayment plan. Settling your debt will have a negative effect on your credit scores.

Be aware that whenever you fail to honor the debt-repayment terms you originally agreed to, it can affect your credit. That said, bankruptcy will still have a more significant negative impact on your credit than will credit negotiation, credit counseling and debt consolidation.

A Last Word About Debt Relief

Whenever you fail to repay a debt as you originally agreed to, it can negatively affect your credit. Some types of debt relief come with consequences that are more damaging and long-term than others. Before you make any decision about debt relief, such as declaring bankruptcy, it’s important to research your options, get reliable advice from a qualified credit counselor, and understand the impact your choices can have on your overall financial well-being.

Regardless of what type of debt relief you choose, you can begin taking better care of your credit immediately by putting simple, responsible, credit-positive actions into practice such as:

Paying all your bills on time.
Avoiding taking on additional debt.
Monitoring your credit report.
Creating and sticking to a personal budget.
Using credit in small ways (such as a secured credit card) and paying the balances in full, right away.