Navigating Employment-Based Visas for Startups

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Startups often seek to hire highly educated employees with degrees in STEM (science, technology, engineering and science) fields in order to compete with their established competitors. Post-graduate international students have emerged as the leading source of talent for startups as nearly 1/3 of all international students (or over 330,000 such students) are enrolled in STEM degree programs at U.S. Universities. However, the lack of a true “startup visa” makes hiring post-graduate international students and other foreign nationals alike difficult. Generally speaking, the three most common employment-based visas used to staff emerging companies are the H-1B, E-2, L-1 visa categories. This article briefly describes the three most common pitfalls related to the above-mentioned employment-based visa categories as they relate to startups. Continue reading this entry

FOLEYTech Summit Celebrates its 10th Anniversary

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Our FOLEYTech Summit will celebrate its 10th anniversary on October 14, 2014 when technology leaders convene in Boston for “Technology in Motion: Content, Delivery, and Security in a Connected World.”

This year’s event will focus on the issues and challenges facing technology companies today within the mHealth, digital media, and security sectors. Our three industry tracks feature highly interactive panel discussions to engage and enlighten entrepreneurs, C-level executives, managers responsible for growing technology businesses, and investors in and advisers to technology companies. Discussions will include the current state of the mHealth, digital media, and security industries, as well as financing alternatives from both the investor and company perspectives.

The FOLEYTech Summit continues to offer the top-notch industry insight and compelling speakers, while embracing the broader horizons of technology. Click here to learn more about the 2014 FOLEYTech Summit and for registration information.

The Creeping Union Part II: Why You Should Start Planning Now

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In our last post, we summarized the 2011 Specialty Healthcare decision and the potential for the NLRB to recognize an unduly burdensome number of smaller collective bargaining units. So far, cases interpreting Specialty Healthcare indicate that the NLRB’s expanded view has not resulted in a proliferation of arbitrary bargaining units.

Two recent cases decided within a week of each other this July – Macy’s, Inc. and The Neiman Marcus Group, Inc. – demonstrate the current boundaries set by the NLRB. Continue reading this entry

The Creeping Union Part I: Could a “Micro-Union” Happen to You?

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Is it ever too early for a startup business to consider the potential impact of unionized labor on future operations? According to a line of cases stemming from a groundbreaking 2011 National Labor Relations Board (NLRB) decision, the answer is “no.” In fact, as explained below, the early stages of a company’s life may be the perfect time to consider whether the company has or may have a “micro union” constituency that could impact future business decisions.  Continue reading this entry

Is Your Baby Your Buyer’s Collateral?

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Even before dealing with the intricacies of nondisclosure agreements, employment offer letters, stock restriction agreements, and incentive plans, it is not unusual for founders to have already dreamt of an IPO or sale event. In fact, it is crucial for founders to consider when and how to make that ultimate decision to sell their companies (see Thinking IPO? Timing is Everything and Prepare Your Company for a Sale by Almost “Going Public”). Of course, exit events can take on innumerable forms, each of which has its own benefits and drawbacks. One type of exit event that gained traction in the 1980s and continues to be favored by many financial sponsors is the leveraged buyout (LBO). An LBO occurs when a purchaser acquires a control stake in a company using borrowed funds. These borrowed funds often come from banks or private equity funds or a combination of the two. Although, in theory, any type of company could be the target of an LBO, one key factor in structuring an LBO is that the target’s assets are generally used to collateralize the loan. In other words, if the company stops servicing the debt, the bank may seize the company’s assets. As a result, companies that have stable cash flows or tangible assets are often prime candidates for an LBO.

Continue reading this entry