Ep 52: Minimum Wage at a Maximum

June 9, 2014

Nasir and Matt talk about the effects of Seattle raising the minimum wage to $15 an hour and discuss whether cities like San Diego will follow suit. They then answer, “In late November 2013 I bought some things for a local business and was given a check for the exact amount a few days later. I had forgotten about the check for 2 months and when I went to the bank to cash the check, it bounced due to a closed account. I called the business owner and they said someone had stolen their checkbook awhile back and they had to close the account, and not to worry as they would write another. It’s been 4 months now of me texting them each week asking about the check she was supposed to leave at the business and they always just come up with some excuse.”

Full Podcast Transcript

NASIR: This is Legally Sound Smart Business.
My name is Nasir Pasha.

MATT: And I’m Matt Staub.

NASIR: Welcome to our business podcast where we cover business in the news and answer some of your business legal questions that you, the listener, submits to ask@legallysoundsmartbusiness.com.

MATT: For our loyal listeners, they heard a slightly different intro. This is our alternative intro. As you said, “this is” instead of “welcome” and that’s all right.

NASIR: I thought I usually say “this is” but do I say “welcome” first? I don’t remember.

MATT: Well, I think it’s still fine. It doesn’t have to be the same every time.

NASIR: Well, big news in the northwest, huh?

MATT: Yes, we talked about this at the beginning of the year. I didn’t really want to talk about it again – a repeat – but this is just too big of a story to pass up.
For those of you that don’t know, Seattle just approved what’s going to be the highest minimum wage in the country. It’s eventually going to crawl up to $15.00 an hour. I think the state minimum wage is the highest right now at $9.32 so this is a pretty significant increase. Also, San Francisco had the highest minimum wage and that was $10.74 an hour. This is just a huge jump up from what it’s been.
Obviously, we can look at the numbers and see, if you have minimum wage employees, you’re going to be paying them X amount of dollars more. It gets into non-exempt employee issues as well but this is just huge. I think this is going to have a rippling effect – not just for Seattle but for other cities in the country as a whole.

NASIR: Yeah, it’s definitely huge news. I think that $15.00 mark, even though that’s going to be years from now, it’s still just so apparent that that’s going to be a big deal for businesses for all.
I read an article of Forbes, I thought it was great. They basically say it’s not difficult to outline the effect of the new $15.00 an hour minimum wage. They claim that basically, if the minimum wage is of a certain percentage away from the median average income, then it has little to no effect. But, once it goes beyond a certain percentage, then that’s when you get some significant employment effects. I think we get around 45 to 50 percent of the median wage, that’s when you really start to see those effects. That’s from a kind of financial economic point of view. I’m sure there are going to be people that disagree with that but it’s definitely interesting to note.

MATT: Yeah, and I think it’s going to stick, too. There’s obviously going to be and there already are groups – and I think franchise owners are the ones the ones that are kind of leading it – planning to sue and stop this. I mean, this still is a significant jump. It is gradual; it’s not like it’s going to go up to $15.00 tomorrow. It is slowly going to climb.
I’m in San Diego and there’s been talks about it jumping up in San Diego as well. I think there’s kind of a push to get it up to roughly $13.00 an hour, slowly throughout time. But I can see other cities doing this as well, especially some of those bigger cities where the cost of living is kind of high.

NASIR: Yeah, we already have San Francisco is classically already at $10.74 and, of course, Seattle’s $15.00 will surpass that. But I wouldn’t be surprised that San Francisco, later on in the year, starts to also increase that.
It does make an interesting note that, when you have local ordinances or minimum wage, it supersedes the state, right? And the state ordinance supersedes the federal minimum wage even though there are some states that actually don’t have any minimum wage and just fall back on the national standard.

MATT: One thing that Seattle did well was make it an even $15.00 an hour. The proposed one in San Diego is supposed to eventually get up to $13.09 so, I mean, I hate numbers that aren’t round. I’m fine with it not being $13.00 flat but at least make it $13.10. It should always end in a zero, right? $13.09? I would protest just solely based on that.

NASIR: Well, I tend to agree with that. You know it’s just a matter of somehow to justify the actual minimum wage hike, they did some kind of calculation – maybe based upon inflation or what-have-you. But, you’re right, I understand how you came up with a number but there is something called rounding. It’s okay.

MATT: The worst thing is you go to a convenience store or a restaurant and they have a weird number, something is priced with a weird number like it must be for tax purposes and then you go up and pay and with tax and it’s still $7.04 and it’s like, ‘What?” I don’t understand this at all. That’s just my little thing. I guess I wouldn’t knock down my price just to get an even number for tax purposes but there’s things you can do.

NASIR: I like everything rounded to the next hundred dollars, too. Bag of chips? I’d rather just pay $100 just because that’s all I have in my pocket. It’s just easier, you know? I don’t want change. I don’t want to hold anything else. Make it nice and simple.

MATT: That’s a good thing. You can give good tips that way as well.

NASIR: Yeah, exactly, they get to keep the money.
[MUSIC]

MATT: Question of the day. This is probably our longest one we’ve ever had. Let me prepare for this.

NASIR: Take a deep breath.

MATT: I hope I can get this in one take.
“In late November 2013, I bought some things for a local business and was given a check for the exact amount a few days later. I’d forgotten about the check for two months. When I went to the bank to cash the check, it bounced due to a closed account. I called the business owner and they said someone had stolen their check book a while back and they had to close the account and, not to worry, they would write another. It’s been four months now of me texting them each week, asking about the check they were supposed to leave at the business, and they always just come up with some excuse.”
I guess there’s no actual question. I guess they’re probably asking, “What can I do about this?”
This comes from someone in Pennsylvania. There is actually no question so this is the longest statement we’ve ever had submitted.

NASIR: No question. They’re just complaining about this person. It’ll be like, “Yeah, that sucks.” Okay, let’s go on. Hmm. What should they do? Pennsylvania.

MATT: In my opinion, the first thing is always to try to, if there is an issue, talk it out. I don’t know if texting them is really the way to go because they still owe you the money – whatever it is – we don’t know what the amount is. They still owe you the money so maybe just open up a more – I don’t know if we can even answer this from a legal perspective – legally, they still owe the money, right? Maybe we can open it off from another angle.

NASIR: Yeah, well, I was thinking I’d like to know how much it was for. It’s hard to put in exact ranges here but let’s just say it’s a relatively small amount, then I would say – both from a legal perspective and practical perspective – you have two choices. One, you just forget about it. Two, you just file a small claims action – assuming you’ve gone through the process of asking in writing and so forth and they haven’t denied you. It’s been months now. Most likely, any of your requests aren’t going to do anything. But, I assume, because they’re not wanting to pay and maybe it’s a little bit bigger, if it’s a small amount, they’re just too lazy to write you a check or what-have-you, then that’s a different story than if they don’t want to pay it or they can’t afford it or what-have-you. If it’s a large amount of money, then you need to hire an attorney, have them send a demand letter. See how far that goes and then evaluate whether or not you want to go on to the next step of litigation which is just a cost benefit analysis and, without knowing how much that is, it’s hard to tell where to go from there.

MATT: Yeah. Last week, we talked about how we don’t like demand letters and have attorneys send them but that might be the way you need to go here. I’m taking from how it’s written, if someone’s just texting me and telling them I owe them money, I wouldn’t take that as serious as if I got a demand letter from the person written by an attorney. That will probably change things. I think that would be enough to get them to pay. If not, yeah, you can take them to small claims court. I would assume we’re talking about a small amount of money because, if you hadn’t encashed the check for two months, then it must not have been that important.
My advice is to get mobile banking where you can just take a picture of the check and it deposits into the account.

NASIR: Yeah, 100 percent. They do have limits in those things because perhaps maybe it was so big of a check that they couldn’t do that but then why would they not just drive to the bank and do it? Unless they live in the middle of Pennsylvania – in the middle of nowhere – that could be a possibility.

MATT: Pennsylvania is a pretty long state.

NASIR: Dead state.

MATT: Maybe they were in a location where it was hard to get to a bank. I don’t know. It’s probably not an excuse.

NASIR: We’re giving all the excuses possible to this person. You know what, the real advice is, first, you’ve got to deposit your checks right away. Every business that is in business needs to be able to do that. You have to be able to go through that banking process and you should have a process in place.
Second, every business needs to have a collection procedure – how often they contact the person for money that’s owed and what the next step is and how you elevate it. Everyone should be aware of what these other big companies do and those are all designed very specifically to influence the person to pay their debt as soon as possible. A demand letter may be a part of that but you need to make sure you go through that process before you start spending money on an attorney to do so.

MATT: Yeah, we were all over with this question. We first were nice and just told them to do something simple. Now you’re criticizing their operations.

NASIR: I’m like, “You’re an idiot. You just need to quit business. I don’t know what you’re doing here. Don’t ask me another question or send me another statement without a question.”

MATT: This has been the weirdest one over the board. This longest question wasn’t even a question. I think that might be it for this one.

NASIR: Let’s end it on that confusing note.
Thank you for joining us for today. I hope you enjoyed it.

MATT: Yeah, keep it sound, keep it smart.

Legally Sound | Smart Business

By

The Podcast Where Nasir Pasha and Matt Staub cover business in the news with their legal twist and answer business legal questions that you the listener can send it to info@legallysoundsmartbusiness.com.

Get Business Legal Updates

Please provide your full name.
Please provide a valid email address.
We respect your privacy, and we will never share your information. Unsubscribe at any time.
Legally Sound Smart Business cover art

Legally Sound Smart Business

A business podcast with a legal twist

Legally Sound Smart Business is a podcast by Pasha Law PC covering different topics in business advice and news with a legal twist with attorneys Nasir Pasha and Matt Staub.
Apple Podcast badge
Google Podcast badge
Spotify Podcast badge

Latest Episodes

July 14, 2021

Through a five-round championship bout, Matt travels to Texas from California to determine which state is better for business. Will it be a knockout with a clear winner or will it go to the scorecards?

June 16, 2021

Covered in this episode of Legally Sound Smart Business are some typical business mistakes blunders small businesses often make and how to avoid them. Blunder #1: Copying and pasting agreements It may sound like a good idea at the time, but this blunder comes with hidden pitfalls. Having an attorney draft terms that are specific…

February 4, 2021

How you terminate an employee can make the difference between a graceful transition to avoidable negative outcomes like a dramatic exit or even a lawsuit. We gathered a panel of experts and asked them – is there a “right way” to fire an employee? We would like to thank our guests for this episode: Amr…

December 2, 2020

The COVID-19 pandemic has turned nearly every aspect of life on its head, and that certainly holds true for the business world. In this episode, Matt and Nasir explain how the early days of the pandemic felt like the Wild West and how the shifting legal playing field left a lot open to interpretation and…

November 16, 2020

After plenty of ups and downs, our buyer has finally closed on the purchase of their business. While we’re marking this down in the ‘wins’ column, it never hurts to review the game tape. In this final episode, our hosts, Matt Staub and Nasir Pasha, return to the deal almost a year later to reflect…

September 15, 2020

The ink is drying on the signature line and things are looking great for our buyer. After so much hard work, the finish line is in sight and the cheering within ear shot.   Though the landlord is still serving friction, things seem safe to move forward and for now, our buyer will be keeping…

July 31, 2020

Though things are coming along well, the journey would not be interesting if it was purely smooth sailing. After our buyer opens escrow, they are forced to push the closing date back when suddenly a letter from an attorney was received claiming the business, we are buying has a trade mark on the name!  Now…

June 12, 2020

With frustration at an all-time high and professionalism at an all-time low, our friend the Buyer has “had it” with the Seller and quite frankly their lack of knowledge. At present our Buyer is rightfully concerned that the latest misstep from our loose-lipped Seller will threaten not only the entire operation of the businesses but…

May 11, 2020

As we go deeper into the buying process, we start to uncover more challenges from our seller and encounter some of the wrenches they are tossing our way. When we last left off in episode three our team was knee deep in due diligence for our buyer, had already penned and signed the Letter of…

April 4, 2020

One word–interloper! When a new mysterious broker enters the transaction and starts to kick up dust, Nasir and Matt take the reins. The seller signed off on the letter of intent (see episode 2), yet this “business broker” serves only friction and challenges by refusing to send financials, whilst demanding more of a firm commitment…

April 4, 2020

Just as most stories and deals start out, everyone is optimistic, idealistic and full of hope for clear skies. It’s a perfect outlook with a perfect setup for the ups and downs yet to come. Peek further behind the curtain and into the first steps of buying a business: the letter of intent. After the…

April 4, 2020

When a savvy buyer hears opportunity knocking to purchase a prime positioned business, she decides not to go it alone and taps in the professionals to help navigate what could potentially be a fruitful acquisition. “Behind the Buy” is a truly rare and exclusive peak into the actual process, dangers, pitfalls and achievements, that can…

August 7, 2019

GrubHub is subject to two “matters of controversy” that have likely become common knowledge to business owners: “fake” orders and unfriendly microsites.

May 28, 2019

In this podcast episode, Matt and Nasir breakdown the legal issues of the subscription industry’s business on the internet. Resources A good 50-state survey for data breach notifications as of July 2018. California Auto-Renewal Law (July 2018) Privacy Policies Law by State Why Users of Ashley Madison May Not Sue for Data Breach [e210] Ultimate…

March 12, 2019

In recording this episode’s topic on the business buying process, Matt’s metaphor, in comparing the process to getting married probably went too far, but they do resemble one another. Listen to the episode for legal advice on buying a business.

December 3, 2018

Nasir and Matt return to discuss the different options available to companies looking to raise funds through general solicitation and crowdfunding. They discuss the rules associated with the various offerings under SEC regulations and state laws, as well as more informal arrangements. The two also discuss the intriguing story about a couple who raised over…

July 24, 2018

Flight Sim Labs, a software add-on creator for flight simulators, stepped into a PR disaster and possibly some substantial legal issues when it allegedly included a Trojan horse of sorts as malware to combat pirating of its $100 Airbus A320 software. The hidden test.exe file triggered anti-virus software for good reason as it was actually…

April 17, 2018

Attorneys Matt Staub and Nasir Pasha examine Mark Zuckerberg’s congressional hearings about the state of Facebook. The two also discuss Cambridge Analytica and the series of events that led to the congressional hearings, the former and current versions of Facebook’s Terms of Service, and how businesses should be handling data privacy. Full Podcast Transcript NASIR:…

March 10, 2018

The Trump presidency has led to a major increase in ICE immigration enforcement. It’s critical for business owners to both comply with and know their rights when it comes to an ICE audit or raid. Nasir, Matt, and Pasha Law attorney Karen McConville discuss how businesses can prepare for potential ICE action and how to…

February 5, 2018

New years always bring new laws. Effective January 1, 2018, California has made general contractors jointly liable for the unpaid wages, fringe benefits, and other benefit payments of a subcontractor. Nasir and Matt discuss who the new law applies to and how this affects all tiers in the general contractor-subcontractor relationship. Click here to learn…

January 2, 2018

With a seemingly endless amount of new mattress options becoming available, it is unsurprising that the market has become increasingly aggressive. As companies invest in more innovative solutions to get in front of customers, review sites, blogs and YouTube videos have moved to the forefront of how customers are deciding on their mattresses and how…

December 7, 2017

In recent months explosive amounts of high profile allegations of sexual harassment, assault, and varying acts of inappropriate behavior have transcended every sector of our professional world. With a deluge from Hollywood and politics, and the private workforce, accusations have inundated our feeds and mass media. This harassment watershed has not only been felt within…

November 16, 2017

If you are not familiar with the EB-5 program started in 1990 to give green cards to certain qualified investors in the United States, then you may not have been alone a few years ago. Currently, the EB-5 program has since exploded since its inception and now hits its quotas consistently each year. The program…

October 10, 2017

Government requests come in multiple forms. They can come in as requests for client information or even in the form of investigating your company or your employees. Requests for Client Information General Rule to Follow Without understanding the nuances of criminal and constitutional law and having to cite Supreme Court cases, any government requests for…

August 24, 2017

Nasir and Matt suit up to talk about everything pertaining to employee dress codes. They discuss the Federal laws that govern many rules for employers, as well as state specific nuances in California and other states. The two also emphasize the difficulty in identifyingreligious expression in dress and appearance, how gender-related dress codes have evolved…

June 28, 2017

Nasir and Matt discuss the life cycle of a negative online review. They talk about how businesses should properly respond, how to determine if the review is defamatory, the options available to seek removal of the review, how to identify anonymous reviewers, whether businesses can require clients to agree not to write negative reviews, and…

June 7, 2017

On this episode of the Ultimate Legal Breakdown, Nasir and Mattbreak down social media marketing withguests Tyler Sickmeyer and Kyle Weberof Fidelitas Development. They first discuss contests and promotionsand talk about where social media promotions can go wrong,when businesses are actually running an illegal lottery, and the importance of a soundterms and conditions. Next, they…

April 3, 2017

On this episode of the Ultimate Legal Breakdown, Nasir and Matt go in depth with the subscription box business. They discuss where subscription box companies have gone wrong(4:30), the importance of a specifically tailored terms and conditions(6:30), how to structure return policies (11:45), product liability concerns (14:45),the offensive and defensive side of intellectual property (19:00),…

February 1, 2017

Nasir and Matt discuss the suit against Apple that resultedfrom a car crashed caused by the use of FaceTime while driving. They also discuss howforeseeable use of apps can increase liability for companies. Full Podcast Transcript NASIR: Hi and welcome to Legally Sound Smart Business! I’m Nasir Pasha. MATT: And I’m Matt Staub. Two attorneys…

January 5, 2017

The guys kick in the new year by first discussing Cinnabon’s portrayal of Carrie Fisher as Princess Leia soon after her death, as well as other gaffes involving Prince and David Bowie. They alsotalk about right of publicity claims companies could be held liable for based on using someone’s name or likeness for commercial gain.

December 22, 2016

Nasir and Matt discuss the recent incidentat a Victoria’s Secret store where the store manager kicked out all black women after one black woman was caught shoplifting. They then each present dueling steps businesses should take when employees are accused of harassment.

December 8, 2016

Nasir and Matt return to talk about the different types of clients that may have outstanding invoices and how businesses can convert unpaid bills to getting paid.

November 10, 2016

After a long break, Nasir and Matt are back to discuss a Milwaukee frozen custard stand that is now revising it’s English only policy for employees. The guys also discuss how similar policies could be grounds for discrimination and what employers can do to revise their policies.

October 6, 2016

The guys discuss the new California law that allows actors to request the removal of their date of birth and birthdays on their IMDB page and why they think the law won’t last. They also discuss how age discrimination claims arise for business owner.

September 29, 2016

Nasir and Matt discuss the racial discrimination claims surroundingAirbnb and how it’s handled the situation. They also discuss some practical tips for businesses experiencing similar issues.

September 8, 2016

Nasir and Matt discuss whyAmazon seller accounts are getting suspended and banned without notice and how business owners can rectify this situation through a Corrective Action Plan.

August 25, 2016

Nasir and Matt talk about the accusations surroundingfashion giant Zararipping off the designs of independent artists like Tuesday Bassen and howsmaller companies can battle the industry giants.

August 18, 2016

Nasir and Matt discuss Brave Software’s ad replacing technology that has caught the eye of almost every national newspaper and has a potential copyright infringement claim looming. They also welcome digital marketing expert Matt Michaelree to speak on the specifics of what Brave is attempting to do and whether it has the answers moving forward.

July 28, 2016

Nasir and Matt discuss the sexual harassment lawsuit filed by Gretchen Carlson against Fox CEO Roger Ailes. They also talk aboutthe importance of sexual harassment training and properly handling such allegations in the office.

July 15, 2016

Nasir and Matt talk about the changes at Starbucks that have led to many disgruntled employees and customers.

June 23, 2016

Nasir and Matt discuss the criminal charges facing FedExinvolving the alleged transportation of illegal drugs. They also talk about how business owners should address working with customers that may be breaking the law.

June 15, 2016

The guys return after a long break to discuss why Yahoo is auctioning off over 3,000 patents and how this decision will affect the longevity of the company.

May 25, 2016

Nasir and Matt discuss the increase in the salary thresholdfor exempt employees and how employerscan try to avoid paying overtime as a result.

May 18, 2016

Nasir and Matt discuss the Baltimore law that makes it very difficult to operate food trucks in the city. They also discuss all the legal restrictions tohaving a food truck.

May 11, 2016

Matt listens to Nasir recap the developing battle in his hometown of Vandalia, Ohio over whether a Dunkin Donuts can move into a location in close proximity to a local favorite donut shop. They then discusswhether the issue is more legal or personal.

May 9, 2016

The guys kick off the week by discussing a Nevada employee who is claiming she was fired for not supporting the Scientology beliefs of her employer.

April 27, 2016

The guys discuss the massive floods in Houston,how employers responded, and why one meteorologist became a local hero. They also discuss the steps businesses should take in preparing for storms outside the workplace.

April 20, 2016

The guys discuss the boycott of Amazon over the products of an unnamed presidential candidate. They also talkabout how a business should handle a boycott and whether it’s possible to exit one unscathed.

April 13, 2016

Click here to read HubSpot’s response on this topic. Nasir and Matt discuss the trend in startups to compensate programmers and other early employees with stock options and how the company culture at HubSpot isn’t what it seems.

April 6, 2016

Nasir and Matt discuss various lawsuits against social media platforms in which users are accused of artificially inflating their social currency.

We represent businesses.
That’s all we do.

Oh, and we love it.

We love our work. We love reviewing that lease for your new location. We thrive on closing that acquisition that nearly fell through. We’re fulfilled when we structure a business to grow, raise capital, and be legally protected.

We focus on developing close relationships with our clients by being like business partners. A partner who provides essential, personalized, proactive legal support.

We do all of this without utilizing the traditional billable hour model. You pay for the value we bring, not the time spent on calls, emails, and meetings.

Our team is made up of attorneys and staff that share these values and we are retained by clients who want the same.

Pasha Law PC operates in the states of California, Illinois, New York, and Texas.

Meet Our Team

Fractional General Counsel Services

Pasha Law Select offers the expertise of a high-end general counsel legal team for every aspect of your business at a fixed monthly rate. Pasha Law Select is deliberately designed to allow our legal team to be proactive, to anticipate, and to be comprehensive in serving our clients. To be great lawyers, we need to know our clients. We can’t know our clients unless we represent a select number of clients in the long-term. This is Pasha Law Select.

Learn More