Sacramento Employment Attorneys & Lawyers

Updated October 28, 2020:

Non-qualified stock options give you an alternative way of compensating employees. They also give employees a sense of ownership that builds loyalty and encourages them to work harder.

Non-Qualified Stock Options: What Are They?

A non-qualified stock option gives employees the right to purchase company stock at a predetermined price. There are several key elements to a stock option.

• Grant date: The date when the employee r

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What Is a Stock Warrant?

A stock warrant gives holders the option to buy company stock at a fixed price, the exercise price, until the expiration date and receive newly issued stock from the company. A stock warrant is similar to its better-known cousin, the stock option. For starters, recall that a stock option is a contract between two parties and gives the stockholder the right to buy or sell stocks at a certain price and on a certain date. When you buy a warrant, you are not locked in. You still have the right to freely decide to go forward with the purchase in the future.

Similarly, a stock warrant holder also has the right, to buy a specific number of shares of stock that will be created in the future, upon exercising the warrant, called “underlying” stock. That transaction is called “exercising” the option, and it must take place before a specific

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If you've come to the point where your business needs employees to get things done, there are a few steps you have to take. You'll obviously want to do things like create an employee handbook, make your own employee personnel files, and create safety measures to protect your workers. These basic tasks, however, do not correctly represent the long process of hiring an employee. In fact, there are many legal issues you'll have to deal with to make sure you’re compliant with state and federal regulations.

1. Get an Employer Identification Number

The first thing you should do is set up an Employer Identification Number (EIN). You'll need to apply for this through the Internal Revenue Service (IRS). This number will be used when you and your employees are filing

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Updated July 10, 2020:

Non-Compete Clause: What Is It?

A non-compete clause prohibits any employee from using the skills and knowledge used or gained at your workplace for a set period of time after their employment, either by working for a competitor or by recruiting business from current clients. It is written into an employee's contract when they sign on with your company or when they leave your company.

Many employers add non-compete clauses to employee contracts. These clauses protect businesses but are controversial. Also, they may not be enforceable in all places.

Non-compete clauses are tradition

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What are Incentive Stock Options?

Incentive stock options (ISOs) are a type of stock option typically given to key employees or management to purchase stock in the company and can result in a better tax treatment.

Incentive Stock Options vs. Nonqualified Stock Options

Other options that may be available to employees who are not considered key employees or upper management may be eligible for nonqualified stock options or NSOs.

Unlike NSOs, an ISO would be treated favorably for tax purposes. When an ISO is exercised, the employee need not claim the income. When they sell the stock, the gains are taxed as ordinary income rates rather than at capital gains rates. It is important to be aware that the tax benefits are

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