U.S. Virgin Islands residents affected by recent back-to-back Category 5 Hurricanes Irma and Maria have already absorbed a crippling blow in the form of damaged homes, lost roofs and possessions, and significant interruptions in business and employment. As if this isn’t enough, Virgin Islanders now face another growing concern: repair scams.

Insurance and repair scams are common and inevitably follow disasters. Those perpetuating the fraud, also known as “storm chasers”, seek to exploit the victims of disasters and their need to rebuild and recover. Storm victims need to protect themselves and be vigilant, and certain preventative measures should be employed to avoid becoming further victimized by disaster repair fraud.

The following are some precautions to consider:

  • File a claim with your insurance company as soon as possible. Many insurers have a time certain to file claims, such as 60 days after the loss.
  • Document the destruction. Take detailed, interior and exterior photos of your property and damaged areas.
  • If someone approaches you and claims to be an insurance adjuster, do not invite them into your home or place of business. Ask for company ID. If they don’t have ID, ask them to leave immediately. If they do have ID, call your insurance company to verify.

When hiring a contractor:

  • Hire only licensed, reputable companies or individuals and beware of strangers who call or knock on your door for personal information.
  • Get their full name, address and phone number(s).
  • Check the name of the contractor or the company with the DLCA.
  • Ask for evidence of a business license or other qualifications.
  • Ask for references and contact these past customers to determine their experience with the contractor.
  • Check with the Virgin Islands Department of Licensing & Consumer Affairs and courthouse for any complaints, criminal history and civil cases against the contractor.
  • Get several estimates (at least 3) before making a selection.
  • Get a written contract and don’t sign anything you don’t understand.
  • Specify the work to be done, the time line for completion and the price.
  • Do not pay for the entire job, or a substantial portion thereof, upfront. Pay as little as possible upfront, insist on paying when the job is complete, and try not to pay in cash; instead, pay by credit card or check to create a paper trail. Do not make any final payments until you have inspected and are satisfied with the repairs.
  • Continue paying your mortgage unless you have worked out a deferment or forbearance with your lender first.
  • Keep all receipts for any materials or repairs personally incurred.
  • Be wary of “robocalls” asking for insurance premium payments. These robocalls tell victims that if they don’t immediately pay, usually over the phone by credit card, their insurance premiums will be canceled. Always contact your insurance agent directly.

It is important to remember that government assistance is available. The National Center for Disaster Fraud, formed in response to Hurricane Katrina, has a hotline you can call if you suspect fraud at 866.720.5721, or email at disaster@leo.gov The Center serves as a national clearinghouse and refers cases to the proper law enforcement agency anywhere in the country. Victims of fraud are also encouraged to report incidents.

J. Nash Davis is an associate Attorney with BoltNagi, an established and respected law firm assisting a wide range o

Title insurance is an important type of insurance policy for anyone who owns property. But before one can understand why title insurance is so important, it is necessary to understand what a title is.

Whenever you buy a piece of land, you receive title to that land. This signifies your right, as the owner, to own and use that property as you wish.

The way a home or a business is titled varies depending on the circumstances of the purchase. You might, for example, hold a title as a tenant in common or as a joint tenant. There might be a right of survivorship at play, as well.

Rights may also be given or sold for specific uses of land. Someone other than the person considered to be the owner of the property might have the right to utility, air or mineral rights for that property. In addition, any bank that has a mortgage on the property owns an interest in that property, as does anyone who has done work on the property and then filed a lien against it.

In some cases, the government could have liens against the property if you fail to pay your taxes, and a local governmental agency could have the right to string utility lines over your property.

Title insurance and its benefits

After you determine if there are any limitations on how the property may be used or liens against the title, you may then purchase title insurance. This can be confusing, as title insurance covers certain events related to the title that have already happened, but not anything that happens to the title after it is issued. For example, if you stop paying your property taxes, your title insurance policy will not cover you.

However, imagine someone owned a property for many years before you and stopped paying their property taxes. You would be covered for any liens on the title under your title policy, as the action that lead to the lien was not your fault or responsibility.

Before a title company offers to issue a policy, it will perform a search to find if there are such limitations or problems with the title in existence. This helps to minimize the risk of potential claims, which allows the company to offer its policies for a low, one-time fee.

There are some problems commonly found in title searches that are relatively easy to rectify. These include improper vesting, incorrect names, outstanding judgments and judgments, easements, tax liens and incorrect notary acknowledgements. 

Title insurance can be beneficial to business and homeowners alike. For more information about obtaining a title insurance policy and why it could be beneficial for you, consult a skilled real estate attorney in the U.S. Virgin Islands.

Alliance Title & Trust Company, LLC is an agent for Stewart Title Guaranty Company, and First American Title Insurance Company, and a subsidiary of BoltNagi PC.

The Equal Employment Opportunity Commission (EEOC) is a federal regulatory agency that exists to protect employees or job candidates from discrimination based on certain protected characteristics, including age, gender and race. There are many laws the EEOC considers when analyzing cases. Of paramount importance is Title VII of the Civil Rights Act of 1964, which deals with employers of 15 or more workers.

For most the last two decades, the number of complaints under the EEOC guidelines has remained steady at about 90,000 per year, despite the increased awareness of EEOC requirements on the part of employers.  In some cases, employers can make matters even worse by responding to the complaints in an inappropriate way.

Below are a few of the most common errors employers make when responding to these complaints:

  • Ignoring the complaint: In some cases, employers ignore the EEOC complaint because they do not believe the law applied to them. However, in cases of racial discrimination, the Title VII rules previously mentioned do not apply-the law instead covers employers of all sizes. Some locations also offer greater protection to employees that the EEOC, so in those cases, the law dictates that the business follow local rules.
  • You do not have an investigation plan: Before you ever address an EEOC complaint, you should have an investigation plan prepared to guide you in your response. This plan should include all the evidence you need to compile, including data, employee statements and various documents. Some of this information you will have accumulated over time, so being able to quickly access it and use it in your investigation and response is crucial.
  • Not providing enough information: When you submit your position statement, you must be thorough with the information you provide so that you can be consistent with your claims throughout the entire investigation. If you keep adding information during the process, it can reflect poorly on you.
  • Retaliating against the complaining employee: Retaliating against an employee who filed an EEOC complaint against your business can land you in legal hot water. Even small instances of treating an employee differently can be violations of federal law. There are many rules in place that protect workers against retaliation.
  • Not taking the process as a learning opportunity: Whether you win or lose in a lawsuit, you should use the process a learning opportunity to improve your practices moving forward. Even if you are cleared of wrongdoing, conduct a review of your company’s policies and implement preventive measures that will provide for consistent EEOC compliance.

For more information and guidance on how to conduct yourself during an EEOC complaint investigation, meet with a skilled employment law attorney in the U.S. Virgin Islands.

Ravinder S. Nagi is Assistant Managing Attorney and Chair of the Labor & Employment Practice Group at BoltNagi, an employment and labor law firm serving businesses and organizations throughout the U.S. Virgin Islands.

Even before you begin writing a business plan for your new venture, there are two things you should do: conduct a feasibility study and undergo a Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis. These processes will help you determine if your business will be viable and if it is worth the time, effort and money it will take to launch and build it.

What is a feasibility study?

A feasibility study has several parts, starting with a description of your business. This is the easy part—you simply need to provide as much detail as you can about what your business will do, such as the products and services you will offer. You should also provide detailed descriptions of how the business will be organized and who will run it.

The second part is a market description. Who is your target audience for your business? How big is this market, and is there growth potential in this market moving forward? Will you be able to improve your product or service or add new products or services to increase your target market size? What competition will you have? These are all examples of questions you need to be able to answer as part of your feasibility study.

Third, you will need to outline the technical details of your products or services, including the equipment or technology required for delivering them. Other things to consider are the kinds of materials you will need, transportation necessary for product delivery, the availability of resources and utilities and the size of the facilities you might need.

Finally, you must consider the financial factors at play in developing your business. How much money will it take to get the business started, and then to keep it going? For example, you might have to either purchase or lease expensive equipment, furniture or office space. How will you get the capital you need at various stages of your company’s growth?

SWOT analysis

A SWOT analysis likely involves many of the same elements as a feasibility study. The goal is the same—to determine the viability of your potential business.

Strengths

When looking at your strengths, you should primarily consider what makes your business special. This could include any unique characteristics of your company that set you apart from the competition, access to the materials you need, the distinctiveness of a product or service, the experience of your staff and/or access to solid investments and financing.

Weaknesses

What aspects of your business could potentially hold you back? Immediate concerns could be a lack of financing or experienced staff, but other issues could be high costs of production or products that are not exactly innovative or unique.

Opportunities

Factors outside your business could put you in a better position to succeed. Examples could include a lack of competition in your general area or target market, a growing demand for your product or service or new advances in technology that will make it easier to sell or improve your offering.

Threats

Threats are the inverse of opportunities. To that end, examples could include stiff competition, a bad business location, regulations that make it more costly or difficult to do business or changes in your target consumers that could inhibit your ability to succeed.

For the guidance you need when starting a business in the U.S. Virgin Islands, work with an experienced business and corporate planning attorney.

 

Tom Bolt is Managing Attorney at BoltNagi, a respected and well-established corporate law firm, proudly serving entrepreneurs and business owners throughout the U.S. Virgin Islands.

While the clear majority of wills pass through the probate process without much problem, there are some circumstances in which a person (usually an unhappy beneficiary) decides to challenge a will’s validity. There are many reasons why people may decide to challenge a will—and not just because they are bitter about not inheriting what they had expected.

The following are four of the most common reasons why this may happen:

1. You have reason to believe a loved one was under duress at the time he or she made the will

As people get older, they may become susceptible to emotional and mental manipulation. The most common type of “duress” is when others put so much pressure on the testator that he or she feels obligated to put them in the will or give them certain property. If, for example, a mother lives with her daughter and that daughter continually pressures the mother to write her other siblings out of the will, it could constitute duress and undue influence.

However, it is not enough for there to simply be nagging, threats or even verbal abuse. There is a heavy burden of proof on the accuser in these situations. The accuser must be able to show the alleged influencer exerted such extreme pressure that it essentially caused the testator to lose his or her free will. Typically, the accuser must prove some degree of mental incompetence on the part of the testator.

2. You believe your parent has become mentally incapable of creating a will

The most common example of mental incompetence is the onset of late stages of Alzheimer’s disease or dementia. If a physician diagnosed the testator as being in these stages of an illness, that person may have lacked what is called the “testamentary capacity” needed to create a valid will. The “being of sound mind and body” provision often included in the language of last wills and testaments acts as a sort of disclaimer that the testator is, indeed, capable of creating a valid will in his or her current state of health.

3. You believe the testator was a victim of fraud

In some cases, testator might not even realize they were signing or creating a will—they were just told by someone they trusted to sign a document. In other cases, they are aware they are signing a will, but not of its contents, and were likely misled as to what those contents were.

As with accusations of duress, there’s a heavy burden of proof on the accuser in fraud accusations. And again, the accuser must be able to prove some degree of mental incapacity existed.

 4. The formalities of creating a will were not followed per the law

The will must be signed by the testator and two witnesses who are not beneficiaries of the will. Additionally, the will must be written. Only in rare cases is an oral will considered valid.

For more information and guidance on how to create a will that reflects your wishes, or to challenge a will you believe is invalid, speak with a skilled U.S. Virgin Islands estate planning attorney today.

 

Steven K. Hardy is Chair of the Corporate, Tax and Estate Planning Practice Group at BoltNagi, a trusted and established estate and tax planning law firm, serving individuals and families throughout the U.S. Virgin Islands.

As tourism competition increases throughout the Caribbean, officials in the U.S. Virgin Islands are focused on improving the cruise ship experience for passengers visiting the territory to help keep tourists coming back for more.

 

The Ports of the Virgin Islands Charlotte Amalie Task Force recently met to discuss plans to improve this experience, according to a press release from the Department of Tourism. According to Governor Kenneth Mapp, there is a need to re-engineer and re-imagine the product offered by the U.S. Virgin Islands and elevate the overall guest experience. Mapp also said the territory needs to “develop not only what people want today, but also anticipate their future needs.”

 

The following is a brief overview of some of the topics of discussion at the task force meeting, covering many different aspects of improving tourism experiences:

 

  • The Commissioner of the Department of Property and Procurement, Lloyd Bough, Jr., reported an extension of the deadline for submitting proposals to establish a harbor transportation service in Charlotte Amalie Harbor due to strong interest in the contract for the project, along with a significant number of questions submitted to the department.
  • Department of Public Works Commissioner Gustav James provided an update on the $40 million Veterans Drive project, which is expected to have a contract awarded in September.
  • The Department of Tourism Commissioner, Beverly Nicholson-Doty, provided an update about recent meetings with MSC Cruises and Carnival Corporation on general cruise and tourism-related topics.
  • The task force proposed establishing a new berthing committee to make better use of all five berths on St. Thomas. It also proposed improved communication methods with U.S. Customs and Border Protection and various congressional officials to get additional officers at seaports and airports in the territory for a smoother, more streamlined passenger experience.
  • Members of the task force discussed potentially dredging the Charlotte Amalie Harbor and the importance of doing so. Dredging the harbor would allow for the accommodation of larger-class vessels. However, $12 million would need to be raised to make the project happen.
  • The task force discussed a new “Ports of the Virgin Islands” advertising campaign, promoting the advantage of duty-free products purchased in the territory.
  • The task force confirmed plans to have a town hall meeting with the Florida-Caribbean Cruise Association, the USVI community and various cruise line executives.

Similar task forces are being explored elsewhere in the territory, with one scheduled to launch in the island of St. Croix in the fall. These task forces are made up of representatives from various U.S. Virgin Islands businesses and agencies, such as retailers, ground transportation operators, restaurants, spirits distributors, the West Indian Company, the Department of Tourism, the Virgin Islands Port Authority, the Department of Public Works and the Office of the Governor.

To learn more about the various efforts underway in the territory to boost the tourism industry and the effect they could have on employment, work with an experienced business and corporate law attorney in the U.S. Virgin Islands.

Ravinder S. Nagi is a shareholder and the Assistant Managing Attorney for BoltNagi. He is the chair of BoltNagi’s Litigation Department and the Labor and Employment Practice Group. He has represented numerous private and public companies in complex labor and employment cases of all types.

Under federal law, employers must pay all employees a minimum hourly wage. The federal minimum wage is currently $7.25 per hour, but individual states and territories can implement their own minimum wages that are higher than the federal threshold. In the U.S. Virgin Islands, the minimum wage is $9.50 per hour as of June 1, 2017 although it is anticipated that it will increase it to $10.50 by the end of 2018.

Some jurisdictions have also passed living wage laws, which have higher minimums than even the state levels. Employers must pay the highest minimum wage affecting them, whether it’s federal, territorial or local.

While the minimum wage is an hourly rate, this does not mean employers must pay employees hourly wages. So long as the total amount paid divided by the number of hours worked at least equals the minimum wage, employers can also pay via salary, commission or wages plus tips.

Which employers are required to pay the federal minimum wage?

The Fair Labor Standards Act (FLSA) is the law that outlines minimum wage requirements on a federal level. While it covers most employers, there are a few that are exempt.

 

Typically, any business that has $500,000 or more in annual sales or has employees that do business between states and territories must abide by FLSA rules. This “interstate commerce” could include making phone calls or sending mail to another state or receiving it from another state, and not just actually physically visiting another state or territory.

Are any workers not covered by federal minimum wage laws?

Just because a business is covered by federal minimum wage laws does not mean all its workers are covered. The following are a few examples of workers who are not entitled to the federal minimum wage:

  • Independent contractors (only employees are guaranteed a minimum wage)
  • Outside sales staff, such as salespeople who work a specific route
  • Switchboard operators for phone companies with fewer than 750 stations
  • Workers on small farms
  • Employees of local newspapers with a circulation of less than 4,000
  • Newspaper deliverers
  • Employees of recreational or seasonal amusement businesses
  • Students, apprentices and trainees as defined by federal labor laws

 

Even if a business or employee is exempt from federal minimum wage rules, they might still be covered by territorial law. Thus, it’s important to be familiar with all of the wage and labor laws that could affect your business.

What about workers who receive tips?

If you have tipped employees, you are allowed to pay them less than the minimum wage that applies to your business, as long as the amount they receive including the tips adds up to at least the minimum wage. The law requires you to explain this policy to all employees.

For more information on your responsibilities as an employer when it comes to wages, consult a skilled U.S. Virgin Islands labor and employment attorney.

Ravinder S. Nagi is a shareholder and the Assistant Managing Attorney for BoltNagi. He is the chair of BoltNagi’s Litigation Department and the Labor and Employment Practice Group. He has represented numerous private and public companies in complex labor and employment cases of all types.

The U.S. Department of Labor recently announced that it would rescind the standard implemented by the Obama Administration that determined when companies are considered “joint employers” of contract and franchise workers.

The decision marks the first major shift in labor policy during the Trump Administration. In its statement, the agency said it withdrew a 2016 interpretation of the Fair Labor Standards Act (FLSA) that expanded the set of circumstances in which a business may be liable for wage law violations by contractors, franchisees and staffing agencies.

In previous years, companies were classified as joint employers if they hired and fired workers and set wages. Under the Obama administration, Labor Department officials said a worker’s level of “economic dependence” on the company should also play a role in joint employer classification.

This broader definition sparked debate in the business community. Many employers said the guideline would threaten franchise businesses and would cause more lawsuits against companies, even if they were not responsible for establishing work conditions.

The rollbacks continue

The removal of the joint employment rules came on the same day the Department of Labor withdrew guidance from 2015 that said under the FLSA, many workers are improperly considered independent contractors when they are actual employees. This would make those workers eligible for overtime, minimum wage and various other legal protections afforded to employees.

These interpretations and guidelines set forth by federal agencies are not legally binding, but they do influence enforcement. It was widely expected that the new administration would shift some labor policies when President Trump took office, with most of the changes resulting in less regulation and enforcement.

Business groups and employer advocates have mostly praised the agency’s changes thus far, arguing that previous guidance on worker classification had too strong of an effect on all types of industries in the United States. They have opined that employers had to work extremely hard to be compliant with the FLSA and that most of the interpretations issued by the agency under the Obama administration were simply “enforcement traps,” hoping to lead to enforcement actions solely for the purpose of enforcement rather than creating a better business and employment environment.

Workers’ rights groups and unions, however, were troubled by the decision by the Labor Department. They believe the guidance made it easier for employers and workers alike to understand their rights and obligations.

Meanwhile, the National Labor Relations Board’s expansion of the definition of joint employment still exists, although it is under review by a federal appeals court. The NRLB standard has had more of an impact, as it is a legally binding definition.

For more information on the definition of joint employment and how it could affect your company, consult a knowledgeable employment law attorney in the U.S. Virgin Islands.

Ravinder S. Nagi is a shareholder of BoltNagi and Assistant Managing Attorney.  He is also Chair of the Labor and Employment Practice Group at BoltNagi, a widely respected and established labor law firm serving clients throughout the U.S. Virgin Islands.

Anytime you go through a major life event or milestone, it is important you review your estate plan to ensure it is up to date and properly reflects your current life circumstances and goals. Whether it’s a marriage, a divorce, the birth of a new child, a new job or a big move, anything that you would classify as a significant adjustment to your life should prompt you to take another look at your estate planning documents.

The following is a quick checklist of reviews and changes you may need to make to your estate plan after a major life event:

  • Alter your will: Some events will cause you to want to make changes to your will. Examples include the death of a beneficiary, the birth of a new child, a marriage or divorce, the purchase of new (and valuable) property or the launch, purchase or sale of a business. Your will gives you the ability to leave property to chosen beneficiaries in the manner of your choosing.
  • Policy and account beneficiaries: Any insurance policies or accounts you have that require you to list a beneficiary-such as a life insurance policy or retirement account-should be up for review if you either get divorced from your chosen beneficiary or if a beneficiary passes away.
  • Guardianships: Whenever you have or adopt a child, it is important you review your will and add guardianship stipulations. This ensures your child will be protected and cared for according to your wishes in the event of your passing.
  • Business succession: Many business owners include succession plans in their estate planning arrangements. If circumstances have changed among your partners or if your chosen heir to your business is either no longer interested or available, it is time to revisit your documents and make some changes.
  • Estate executor: Your executor should be someone you trust completely to be organized and get the job done according to your wishes. If your executor passes away or if changing life circumstances make you feel someone else would be better suited to the role, then you should make those changes as soon as possible.

For more information on reviewing and making changes to your estate plan after a major life event, meet with a skilled estate planning lawyer in the U.S. Virgin Islands.

 

Steven K. Hardy concentrates his practice in estate planning at BoltNagi, a widely respected and established estate and trust planning law firm, serving clients throughout the U.S. Virgin Islands.

After you and the buyer of your business have completed negotiating your purchase, it’s time to prepare for closing. By following some simple steps, you will be well prepared to sign on the many dotted lines involved in these transactions.

The following is a checklist for selling your business in the U.S. Virgin Islands:

Before closing day

  • Schedule the closing (ideally, your closing appointment should be early enough in the day to allow parties to get to banks and government offices afterward)
  • Finalize the purchase price; it should reflect all your negotiations and agreements
  • Prepare corporate documents, tax forms and equipment sale lists; get organized with all the documents you will need to have on hand at closing
  • Prepare to transfer all contracts and agreements
  • Prepare your loan documents (these documents could include promissory notes, security agreements, financing statements and various guarantees)
  • Prepare to transfer your business lease
  • Inventory and prepare to transfer all work that is currently in progress
  • Prepare the bill of sale
  • Prepare the closing sheet (this lists the purchase prices and all the costs that will be paid by or credited to the buyer and seller)
  • Prepare the purchase and sale agreement
  • Prepare succession agreements

On closing day

  • Review and sign the purchase and sale agreement
  • Review and sign all the loan documents on hand
  • Review and sign all documents for lease transfers, vehicle ownership transfers, franchising, succession and any other documents involved in transferring your business and its assets to the new owner (s)
  • Review and sign the bill of sale
  • Review and sign all non-compete, employment and consulting agreements
  • Review and agree to the closing sheet
  • Review and sign all forms that transfer patents, copyrights, trademarks and intellectual property
  • Review and sign any IRS forms, asset acquisition statements and other such documents
  • Receive the payment for the purchase price-either in full or for a significant down payment, depending on the terms you have already negotiated with the buyer for payment

To learn more about what you can expect out of the sale of a business and closing day, contact a trusted corporate planning attorney in the U.S. Virgin Islands.

 

Tom Bolt is Managing Attorney of BoltNagi, a widely respected and established business and corporate law firm that serves clients throughout the U.S. Virgin Islands.