What to do if you get a notice of a data breach. Preventing Identity Theft.

Apr 4, 2022 | KLF Blog

Have you received a data breach notification letter? Did you recently get a notice that says your personal information was exposed or compromised in a data breach? 

Victims of a data breach or other cybersecurity incident should be aware that depending on what information was exposed to unauthorized access during a data breach or hacking incident, there are steps you can take to help protect yourself from identity theft.

What information was identified in the data breach notification letter as lost, exposed or potentially subject to unauthorized access? 

Social Security number

If a company responsible for exposing your information offers you free credit monitoring, take advantage of it.

Get your free credit reports from annualcreditreport.com. Check for any accounts or charges you don’t recognize.

Consider placing a free credit freeze. A credit freeze makes it harder for someone to open a new account in your name.

  • If you place a freeze, be ready to take a few extra steps the next time you apply for a new credit card or cell phone – or any service that requires a credit check.
  • If you decide not to place a credit freeze, at least consider placing a fraud alert.

Online login or password

Log in to that account and change your password. If possible, also change your username.

  • If you can’t log in, contact the company and ask them how you can recover or shut down the account.

If you use the same password anywhere else, change it.

Is it a financial site, or is your credit card number stored? Check your account for any charges that you don’t recognize.

Debit or credit card number

Contact your bank or credit card company to cancel your card and request a new one.

Review your transactions regularly, and make sure no one misused your card.

  • If you find fraudulent charges, call the fraud department and get them removed.

If you have automatic payments set up, update them with your new card number.

Check your credit report at annualcreditreport.com.

Bank account information

Contact your bank to close the account and open a new one.

Review your transactions regularly to make sure no one misused your account.

  • If you find fraudulent charges or withdrawals, call the fraud department and get them removed.

If you have automatic payments set up, update them with your new bank account information.

Check your credit report at annualcreditreport.com. 

Driver’s license information

Contact your nearest motor vehicles branch to report a lost or stolen driver’s license. The state might flag your license number in case someone else tries to use it, or they might suggest that you apply for a duplicate.

Check your credit report at annualcreditreport.com.

Your child’s personal information

Request a free credit freeze for your child. A credit freeze will make it difficult for someone to use your child’s information to open accounts. To place a freeze, follow the specific instructions for each credit bureau:

Generally, children won’t have credit reports, unless someone is using their information for fraud. To find out if your child has a credit report, ask each credit bureau to check its records. Each bureau has specific instructions for these requests:

If a credit bureau has a credit report for your child, the credit bureau will send you a copy of the report. Use the instructions provided with the credit report to remove fraudulent accounts.

Review the FTC’s information on Child Identity Theft.

What can you do if someone is using your information to open new accounts or make unauthorized purchases?

You can report Identity Theft to the FTC by CLICKING HERE. With the information you provide, the FTC can create an FTC Identity Theft Report and a Recovery Plan.

Source: Identitytheft.gov. (Last accessed 04.04.2022).

Have You Been Harmed As A Result Of A Data Breach Which Has Exposed Your Private Personal, Protected Health Or Personally Identifiable Information?

If you have experienced actual or attempted harm or been the victim of fraud due to the illegal or unauthorized exposure of your private personal, protected health or personally identifiable information, please contact Kehoe Law Firm, P.C., [email protected], for a free, confidential consultation and no-obligation evaluation of potential legal claims.

Do wages include overtime in California? Is overtime pay required?

Apr 3, 2022 | Blog, Overtime & Wages

Wages Include Overtime Pay in California

In California, wages are considered compensation for an employee’s personal services, whether paid by check or cash, or the fair cash value of noncash payments such as meals and lodging.

Payments are considered wages even if the employee is a casual worker, a day or contract laborer, part-time or temporary worker, or paid by the day, hour, or any other method or measurement.

In California, wages include, but are not limited to:

  • Salaries, hourly pay, piece rate, or payments by the job.
  • Commissions and bonuses.
  • Overtime and vacation pay.
  • The reasonable cash value of compensation other than cash.
Required Pay for Overtime for Nonexempt Employees in California

In California, the general overtime provisions are that a nonexempt employee 18 years of age or older, or any minor employee 16 or 17 years of age who is not required by law to attend school and is not otherwise prohibited by law from engaging in the subject work, shall not be employed more than eight hours in any workday or more than 40 hours in any workweek unless he or she receives one and one-half times his or her regular rate of pay for all hours worked over eight hours in any workday and over 40 hours in the workweek (or double time as specified below).

Eight hours of labor constitutes a day’s work, and employment beyond eight hours in any workday or more than six days in any workweek requires the employee to be compensated for the overtime at not less than:

One and one-half times the employee’s regular rate of pay for all hours worked in excess of eight hours up to and including 12 hours in any workday, and for the first eight hours worked on the seventh consecutive day of work in a workweek; and

Double the employee’s regular rate of pay for all hours worked in excess of 12 hours in any workday and for all hours worked in excess of eight on the seventh consecutive day of work in a workweek.

In California, there are, however, a number of exemptions from the overtime law. An “exemption” means that the overtime law does not apply to a particular classification of employees. There are also a number of exceptions to the general overtime law stated above. An “exception” means that overtime is paid to a certain classification of employees on a basis that differs from that stated above.  In other words, an exception is a special rule.

What is the “regular rate of pay,” and how does it relate to overtime?

Overtime is based on the regular rate of pay, which is the compensation you normally earn for the work you perform. The regular rate of pay includes a number of different kinds of remuneration, such as hourly earnings, salary, piecework earnings, and commissions. In no case may the regular rate of pay be less than the applicable minimum wage.

CLICK HERE for more information about computing the regular rate and for examples of how to calculate the regular rate of pay.

If an employee works unauthorized overtime is the employer obligated to pay for it?

Yes! California law requires that employers pay overtime, whether authorized or not, at the rate of one and one-half times the employee’s regular rate of pay for all hours worked in excess of eight up to and including 12 hours in any workday, and for the first eight hours of work on the seventh consecutive day of work in a workweek, and double the employee’s regular rate of pay for all hours worked in excess of 12 in any workday and for all hours worked in excess of eight on the seventh consecutive day of work in a workweek.

An employer can discipline an employee if he or she violates the employer’s policy of working overtime without the required authorization. California’s wage and hour laws, however, require that the employee be compensated for any hours he or she is “suffered or permitted to work, whether or not required to do so.” California case law holds that “suffer or permit” means work the employer knew or should have known about.

Is a bonus included in the regular rate of pay for purposes of calculating overtime?

Yes, if it is a non-discretionary bonus. A non-discretionary bonus is included in determining the regular rate of pay for computing overtime when the bonus is compensation for hours worked, production or proficiency, or as an incentive to remain employed by the same employer. Incentive bonuses include flat sum bonuses.

Are any amounts excluded from the regular rate of pay?

Yes, there are certain types of payments that are excluded from the regular rate of pay. Examples of some of the more common exclusions are sums paid as gifts for special occasions, expense reimbursements, payments made for occasional periods when no work is performed due to vacation, holiday, illness, failure of the employer to provide sufficient work, premium pay for Saturday, Sunday, or holiday work (where such premium rate is not less than one and one-half times the rate established in good faith for like work performed in non-overtime hours on other days), and discretionary bonuses.

Are salaried employees entitled to overtime?

A salaried employee must be paid overtime unless they meet the test for exempt status as defined by federal and state laws, or unless they are specifically exempted from overtime by the provisions of the California Labor Code or one of the Industrial Welfare Commission Wage Orders regulating wages, hours and working conditions.

Can an employer require an employee to work overtime?

Yes. Generally, an employer may dictate the employee’s work schedule and hours. Additionally, under most circumstances the employer may discipline an employee, up to and including termination, if the employee refuses to work scheduled overtime. However, an employer cannot discipline an employee for refusing to work on the 7th day in a workweek and is subject to a penalty for causing or inducing an employee not to take a day of rest. An employee who is fully apprised of the entitlement to rest may independently chooses not to take a day of rest.

When must I be paid for the overtime hours I work?

Overtime wages must be paid no later than the payday for the next regular payroll period after which the overtime wages were earned. (Labor Code Section 204) Only the payment of overtime wages may be delayed to the payday of the next following payroll period as the straight time wages must still be paid within the time set forth in the applicable Labor Code section in the pay period in which they were earned; or, in the case of employees who are paid on a weekly, biweekly, or semimonthly basis, not more than seven calendar days following the close of the payroll period.

Can an employee waive his or her right to overtime compensation?

No! California law requires that an employee be paid all overtime compensation notwithstanding any agreement to work for a lesser wage. Consequently, such an agreement or “waiver” will not prevent an employee from recovering the difference between the wages paid the employee and the overtime compensation he or she is entitled to receive. (Labor Code Section 1194).

Source: California Department of Industrial Relations (accessed 04.03.2022); Employment Development Department, State of California (accessed 04.03.2022).

Employees in California Who Believe They Have Been Victims of Employer Wage and Hour Violations

EMPLOYEES IN CALIFORNIA WHO BELIEVE THEY HAVE BEEN HARMED BY EMPLOYER WAGE AND HOUR VIOLATIONS ARE ENCOURAGED TO CONTACT KEHOE LAW FIRM, P.C. BY COMPLETING THE FORM ABOVE ON THE RIGHT OR SENDING AN EMAIL TO [email protected] TO REQUEST A FREE, NO-OBLIGATION EVALUATION OF POTENTIAL LEGAL CLAIMS.

Can you get scammed by forex? Is forex trading risky?

Mar 29, 2022 | Blog

Warning Signs To Identify Potential Fraud in the Volatile, Risky Forex Market

The foreign currency (“forex”) market is volatile and carries substantial risks. It is not the place to put any money that you cannot afford to lose, such as retirement funds, as you can lose most or all of it very quickly.

The Commodity Futures Trading Commission (“CFTC”) has witnessed a sharp rise in forex trading scams in recent years and has issued the following guidance on how to identify potential fraud:

Signs of a Possible Fraudulent Sales Pitch
  • Leading you to believe you can profit from current news already known to the public.
  • Made through word-of-mouth referrals or emails from friends and relatives, members of community organizations, churches, or social groups.
  • Contacting you for personal information such as your name, phone number, and email and home address.
  • Promising that with forex, there is no “down-turning market.”
Possible Persuasion Tactics You May Experience
  • Dangling the prospect of wealth and enticing you with something you want, but can’t have.
    “This Euro/dollar deal is guaranteed to rise double what your current investments are doing.”
  • Trying to build credibility by claiming to be with a reputable firm or to have a special credential or experience.
    “Believe me, as a 10-year senior vice president at this firm, I would never sell something that doesn’t produce.”
  • Leading you to believe that other savvy people have already invested.
    “This is how Bob down the street from you got his start. I know it’s a lot of money, but I’m in—and so is half our club. It’s worth every dime.”
  • Offering to do a small favor for you in return for a big favor.
    “I’ll give you a break on my normal forex commission if you buy now—half off.”
  • Creating a false sense of urgency by claiming limited supply.
    “There are only two units left and the Asian market is about to open, so I’d sign up today.”
 “Red Flags” to Help Identify Foreign Currency Trading Scams
  • Promises that with forex, there is no “bear” market –
  • Firms that claim you can, or should, trade in the interbank market –
  • Requests to send or transfer cash quickly via the Internet, by mail, or otherwise –
  • Difficulty getting background information about the person and/or company.
Before Engaging in Forex Trading
  • Contact the CFTC to check the company’s registration status, business background, and disciplinary history.
  • Ask about the details of the forex trading market and your obligations if you participate.
  • Ask about the firm and the individual’s performance record on behalf of other clients.
  • Ask anyone not willing to comply about why they are being hesitant to do so.
  • Ask for all information in writing. Do not rely on oral promises or statements.
  • Check all information you receive to ensure that the company is, and does, what it says it does.
  • Ask for a written risk disclosure statement.
  • Ask for the advice of an independent and licensed financial advisor or consultant whom you trust.
Questions For Financial Professionals
  • How are you qualified to provide me this service?
  • How does this product meet my financial needs?
  • How are you paid for your service?
If You Engage In Forex Trading
  • Do not deposit more funds than you can afford to lose.
  • Do not mortgage your home or cash in your savings.
  • Margin trading can make you responsible for losses that greatly exceed the dollar amount you deposited. Do not trade forex if you cannot withstand the additional loss. 
CLICK HERE for more CFTC guidance on the signs of fraud. CLICK HERE for CFTC guidance for investors before trading. 

Source: CFTC.gov

Kehoe Law Firm, P.C. 

Report Discloses Billions Charged in Credit Card Late Fees

Mar 29, 2022 | Blog

CFPB Finds Credit Card Companies Charged $12 Billion in Late Fee Penalties in 2020

The Consumer Financial Protection Bureau (CFPB) has issued a report showing that credit card issuers charged $12 billion in late fees in 2020. Late fee penalties are charged in addition to interest when a cardholder does not make the minimum payment by the due date.

Some Findings of the CFPB’s Report Included:

Many major issuers charge the maximum late fee allowed under the immunity provisions set by the Federal Reserve Board of Governors in 2010. Eighteen of the top 20 issuers set late fees at or near the established maximum level.

Subprime cards and private label cards are particularly susceptible to late fee charges. For example, the average deep subprime account gets charged $138 in late fees per year, and deep subprime accounts are more likely than super-prime accounts to carry smaller balances. As a result, deep subprime cardholders pay late fees that represent a higher percentage of their balances (11% compared to 0.8% for super-prime accounts). These late fees are in addition to accrued interest charges. For private label cards, late fees comprised the overwhelming majority—91%—of all consumer fees and 25% of total interest and fees (compared to 45% and 7%, respectively, for general purpose credit cards).

CLICK HERE to read the CFPB’s full report. 

Source: Consumerfinance.gov

Kehoe Law Firm, P.C. 

 

Proposed Changes To Two SEC Whistleblower Program Rules

Feb 10, 2022 | Archive

SEC Proposes Changes To Two Whistleblower Program Rules

On February 10, 2022, the Securities and Exchange Commission (“SEC”) announced that it has proposed two amendments to the rules governing its whistleblower program.

The first proposed amendment concerns award claims for related actions that would be otherwise covered by an alternative whistleblower program.

The second proposed amendment affirms the SEC’s authority to consider the dollar amount of a potential award for the limited purpose of increasing an award, but not to lower an award.

Specifically, the SEC is proposing two amendments to Exchange Act Rules 21F-3 and 6, the rules governing its whistleblower program:

● The first proposed amendment addresses instances when a whistleblower from the SEC’s program receives an award from another, non-SEC, whistleblower program.

● The second affirms the SEC’s authority to consider the dollar amount of a potential award for the limited purpose of increasing an award, but not to lower an award.

Why This Is Important 

Section 922 of the Dodd-Frank Wall Street Reform and Consumer Protection Act added Section 21F to the Securities Exchange Act of 1934, establishing the SEC’s whistleblower program. Among other things, Section 21 authorizes the SEC to make monetary awards to eligible individuals who voluntarily provide original information that leads to successful SEC enforcement actions resulting in monetary sanctions exceeding $1 million and certain successful related actions. Awards must be made in an amount equal to 10-30 percent of the monetary sanctions collected.

Since the program’s inception, the SEC has ordered more than $1.2 billion to 245 individuals whose information and cooperation assisted the SEC in bringing successful enforcement actions.

Related Action Claims Covered By Another Whistleblower Program

● Under Exchange Act Section 21F(b) and Rule 21F-11, a whistleblower who obtains an award based on an SEC covered action also may be eligible for an award based on monetary sanctions that are collected in an action brought by other statutorily-identified authorities.

● The proposing rule would allow the SEC to make an award for a related action that might otherwise be covered by an alternative whistleblower program, even where the alternative whistleblower program has the more direct or relevant connection to the related action in certain circumstances. The proposing rule offers multiple potential approaches:

Comparability: Under this approach, if a claimant files a related-action award application, and the alternative award program is not comparable to the SEC’s program, because the statutory award range is more limited, awards are subject to an award cap, or the other award program is discretionary and not mandatory, the SEC would treat the non-SEC action as “related” for purposes of the SEC’s award program, regardless of whether the alternative award program has a more direct or relevant connection to the action. The SEC also would make an award on a potential related action without regard to which program had the more direct and relevant connection to the action if the maximum award that the SEC could pay on the action would not exceed $5 million.

Whistleblower Choice: The proposed release offers an alternative option that would allow a meritorious whistleblower to decide whether to receive a related-action award from the SEC or the authority administering the other award program. The whistleblower would not be required to select which program to receive the award from until both programs had determined the award amount they would pay.

Offset Approach: The SEC would determine the award percentage it would pay on the related action but offset from the SEC’s total award payment by the dollar amount the whistleblower received for the related action from the other award program.

Topping Off Approach: The SEC would have the discretion to increase the award on the SEC covered action (up to 30 percent) if the SEC concludes that the other whistleblower program’s award for the related action was inadequate for any reason.

● Under the Comparability or Whistleblower Choice approach, the whistleblower would be required to make an irrevocable waiver of any claim to an award from the other whistleblower award program.

Discretion To Consider The Dollar Amount Of The Award

● In 2020, amendments added language to Rule 21F-6 stating that the SEC has discretion to consider the dollar amount of a potential award when making an award determination.

● The proposed changes would affirm the SEC’s authority to consider the dollar amount of a potential award for the limited purpose of increasing the award amount, but would eliminate the SEC’s authority to consider the dollar amount of a potential award for the purpose of decreasing an award.

The public comment period will remain open for 60 days following publication of the proposing release on the SEC’s website or 30 days following publication of the proposing release in the Federal Register, whichever period is longer.

Source: SEC.gov

Questions Or Concerns About Voluntarily Providing Information To The SEC And Whistleblower Award Eligibility?

Whistleblowers may be eligible for an award when they voluntarily provide the SEC with original, timely, and credible information that leads to a successful enforcement action.  SEC whistleblower awards can range from 10 percent to 30 percent of the money collected when the monetary sanctions exceed $1 million.

If you have questions or concerns about voluntarily providing information to the SEC regarding violations of the federal securities laws, including questions about whistleblower award eligibility, or the form and manner in which the information is required to be provided to the SEC, please e-mail [email protected] or contact either Michael Yarnoff, Esq., [email protected], (215) 792-6676, Ext. 804, or John Kehoe, Esq., [email protected], (215) 792-6676, Ext. 801.