AM MONTHLY LAW ALERT
NEW AUSTIN REGULATIONS ON EMPLOYMENT APPLICATIONS
By Andy Harris & Tony Stergio
In an effort to curb criminal recidivism and unemployment, the City of Austin recently unveiled a new Ordinance that requires qualifying private employers to remove questions about criminal history from employment applications. It's called the Fair Chance Hiring Ordinance, and the City of Austin passed the measure on March 24, 2016, with an effect date of April 4, 2016. The Ordinance provided for a 1-year grace period before penalties were imposed, so employers may be penalized for Ordinance violations after April 4, 2017. Read more ..
NEW PTO REQUIREMENTS FOR GOVERNMENT CONTRACTORS
By Tony Stergio
Although I’ve written about the subject before, it bears repeating that Executive Order 13706, which provides that all employees of government contractors and subcontractors must be given paid time off (“PTO”), goes into effect on all government contracts issued or awarded on or after January 1, 2017.
Executive Order 13706 specifically provides that employees must accrue one hour of PTO for every 30 hours of work done on a government contract job (up to 7 days per year). Any contractor bidding on government contracts must keep this Executive Order, and the extra labor costs it will require, in mind for 2017 and beyond. Read more...
DRONE REGULATIONS IN CONSTRUCTION USAGE
By Mike Schiff
Effective August 29, 2016, the Federal Aviation Administration (FAA) implemented Part 107 of the Code of Federal Regulations governing the routine non-recreational use of small unmanned aircraft systems (“sUAS”), or put more simply, commercial drone use. When drones were first introduced, the construction community was quick to grasp ways in which sUAS could improve daily operations, but the regulations were needlessly prohibitive. sUAS use on construction sites, whether to perform real site surveys, basic soil analyses, three dimensional site modeling, tracking work-in-place and productivity, inspections, and even delivery of tools and materials, unrealistically required a licensed pilot and involved a lot of red tape. Read more...
UNDERSTANDING 1031 EXCHANGES AND TIC AGREEMENTS IN REAL ESTATE TRANSACTIONS
By Susan George
Section 1031 of the US Internal Revenue Code is a valuable tool to retain investors in the commercial real estate industry, providing for what are commonly referred to as “deferred exchanges,” “like-kind exchanges” and “1031 exchanges.” In a qualifying 1031 exchange of commercial real estate, the investor (the “exchanger”) defers payment of capital gains taxes from the sale of a commercial real estate property (the “relinquished property”) by using the funds to buy another commercial real estate property (the “replacement property”).
To get the full benefit of a 1031 exchange (“total deferral”), all of the cash from the sale of the relinquished property must be reinvested in the replacement property and the exchanger’s debt on the relinquished property must be replaced with equal or greater debt on the replacement property. If a transaction does not meet all of the requirements, the exchanger may have partially taxable cash proceeds or debt reduction— “boot”—or the transaction may not qualify for deferment at all. Read more...