–Emil R. Infante and Carlos J. Abarca, partners at Infante Zumpano in Coral Gables, recently assisted Guatemala’s mobile telecommunication market leader in raising $300 million through a syndicated loan arranged by Citigroup Global Markets, Inc., in New York.

“This is an important step forward for Comcel, Guatemala’s largest mobile telecom operator and subsidiary of Millicom International Cellular, S.A. (Millicom) because it provides for a secure funding base at a time of increased market volatility,” said Abarca, who is co-chair of the Coral Gables law firm’s Corporate Department. “Obtaining the loan, at favorable terms to the borrowers, is a testimony to Comcel and Millicom’s financial strength and stability,” said Infante, co-managing partner and Chair of the Securities and Financial Regulations Group.

The administrative agent for the lenders was Citibank N.A. The seven-year syndicated loan, whose maximum commitment amount is $300 million, will support the ongoing operations for the Guatemalan operator.

Salvador Escalón, Acisclo Valladares and Manuel Cáceres assisted Comcel as in-house counsel for the Millicom subsidiary.  Infante Zumpano served as the New York lead external counsel for the borrower. Abarca has extensive experience representing banks and borrowers in complex cross-border financial transactions. He has represented Fortune 500 companies in acquisitions and divestitures, private companies raising capital, and Florida entities in general corporate matters. Infante has extensive experience in securities and financial regulation, and complex commercial and transactional matters.

Infante Zumpano is one of the largest minority-owned law firms in Florida providing a broad range of legal services from simple contracts to complex litigation and corporate transactions. The firm prides itself in the education and background experience of all its attorneys and staff and is committed to providing the highest level of legal expertise, resources and representation to clients.  For more information, call 305.503.2990 or visit www.infantezumpano.com

“On January 1, 2012, Floridians will be entitled to a higher minimum wage from $7.31 to $7.67. The 36 cent increase represents the second time in less than a year in which Florida’s minimum wage has increased. Both increases resulted from a Florida constitutional amendment which requires Florida’s minimum wage to keep pace with inflation. It should be noted that tipped employees will also receive an increase in wages to $4.65 an hour.”

The current economic and financial crisis  has affected every industry in the United States.  During these times employers, seeking to limit or decrease operational costs, may innocently follow advice which leads to violations of tax and labor laws.  For example, many workers are hired as “independent contractors.”  To paraphrase, independent contractors are statutorily defined by the IRS and DOL as workers that are not considered full employees, but project-based workers.  As such, the employer is not responsible for providing benefits (including health, social security or wage benefits) to the worker.

One example of a true independent contractor is your gardener.  You pay the gardener to come to your home on various days of the month to cut the grass.  You and the gardener agree to the cost of providing you this service.  The gardener also uses his own tools and equipment to complete the assigned task.

If, however, the employer dictates all the terms and conditions of employment or if the employer treats the independent contractor in the same manner as the employer treats full-time employees (including assigning dates, location and manner in which the worker must accomplish a task), then that worker is not classified as an independent contractor for IRS and DOL purposes.  In this scenario,  the worker would be classified as an employee.  As such, the employee would be entitled to workers compensation benefits, social security benefits and overtime wages.

So, the employer made a mistake.  No harm, no foul, right??  Wrong!

If an employer is found to have misclassified its employees as independent contractors, the employer would be liable for back taxes, back pay and several fines.  Moreover, misclassified workers can bring independent and private law suits for back taxes and back pay.  In those instances, the law allows for the worker to recover the back taxes, back pay and his or her own attorneys’ fees and costs.  Thus, misclassifying a worker can potentially be tantamount to a very expensive mistake.

The IRS recently created the Voluntary Classification Settlement Program (VCSP) that provides the employer an opportunity to reclassify its workers as employees for employment tax purposes.  It also significantly reduces the fine that the IRS assesses employers when they have misclassified their employers.

To qualify, the employer must:

Not currently be audited by IRS, DOL or a state agency re misclassification

If you are concerned that you might have misclassified workers as independent contractors instead of employees, seek legal advice.  For more information on the VCSP, log onto the IRS website at www.irs.gov and search for VCSP in the search box on the top right hand of the screen.

This document is issued for informational purposes only and is not intended to be construed or used as legal advice. Infante Zumpano is not responsible for any loss or damage occasioned to any person or entity in connection with acting on or refraining from action as a result of any material in this publication. The hiring of a lawyer is an important and crucial decision that should not be made lightly or solely on advertisement.

South Florida is particularly enticing to Latin American businesses looking to expand because of its superior transportation linkages, he said, allowing entry to European and American markets. “By coming to South Florida,” Mr. Espinosa said, “they’ve now broadened the scope of what [markets] they can service from a single location.” Miami has long been an enticing gateway for Latin American businesses, he said, but a new development in the past year-and-a-half has been a growing number of Mexican businesses branching into the US through Miami. “We’ve never seen anything significant from Mexico,” he said, adding that Mexico had typically sent US business to Houston and Los Angeles. However, he said, in the past year-and-a-half he has seen a significant upsurge in Mexican business.

Mr. Espinosa said he has helped Mexico-based Cool-de-sac, a children’s recreation center and restaurant chain, and telecommunications company Multiphone expand to the US. By establishing trademarks and branding in the US, he said, these companies can both reach a new market in the US and appeal to foreign nationals that recognize their products. Latin American business use of Miami as a gateway is “almost a cliché,” but its scope is broadening, said Daniel Diaz Leyva, a partner with law firm Infante Zumpano. “We’ve just seen so much more traffic in South Florida when it comes to transactions that are internationally based and involve Latin America,” Mr. Diaz Leyva said. “Whereas a few years ago investors had a condo or two, a home or a few loans in South Florida, today it’s actual operations,” he said. “They’re looking to establish an office, start or acquire a bank, distribute goods, import or export chemicals.”

Changes in currency valuations are also playing a role, allowing for the pickup in area real estate sales, said Infante Zumpano co-founder Carlos Zumpano. The time is also right for foreign investors to launch bigger plans in the US, said Alberto Muñoz, CEO of Espacio USA. Espacio is the American arm of Spanish developer Inmobiliaria Espacio. Espacio holds two Omni-area properties: an office building at 1400 Biscayne Blvd. and an adjacent mixed-used building at 253 NE 14th St. The firm is focused on leasing, Mr. Muñoz said, raising 1400 Biscayne’s occupancy from 12% to the 75%-to-85% range and is developing a two-phase master plan to construct a mixed-use project. Work is to start in September 2012, he said. Espacio first delved into the US market in 2007, purchasing a residential-condominium property in Clearwater. Mr. Muñoz said Espacio was looking “for a more secure market” to learn how to do business in the US before giving Miami a try. “When we came to Miami, we saw a lot of skyscrapers,” Mr. Muñoz said. “We got scared seeing there are many units… [and] a lot of office buildings.” Espacio also holds a residential property in Austin, TX. Four years later, Espacio sees a bright future for international investment in Miami, particularly in the Biscayne corridor, said Maribel Goldar, Espacio’s marketing manager. “All that is happening is happening in our area,” she said, including Genting Group’s $3 billion-plus destination-casino project. Ms. Goldar added that growing international investment in Miami and business from the film industry — office space for the filming of “Step Up 4″ is being leased at Espacio’s 1500 Biscayne — make the Biscayne area all the more enticing.

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Infante Zumpano announced this past June that it will be opening the office in San Juan, Puerto Rico and relocating in Palm Beach County. In addition to announcing the new office locations, the firm shortened its name to Infante Zumpano, after the two founding members.

With 21 attorneys and growing, Infante Zumpano is one of the largest certified minority-owned law firms in the country providing a broad range of legal services. The firm’s practice areas include corporate, banking and insurance, real estate, family office services, general litigation, labor and employment, bankruptcy and reorganization, entertainment and data privacy. The firm is based in Coral Gables with satellite offices in Mexico, Panama, Guatemala, Venezuela, Bolivia and the Dominican Republic. For more information, call 305.503.2990 or log onto www.infantezumpano.com

IZHM is no exception.

Picture, if you will, Carlos Zumpano toiling away as an associate at a big firm. He’s invited to lunch to try and woo a new recruit – Emil Infante. Over lunch the two really hit it off – in fact, they ultimately realize that their families have known each other for several decades, but, because Emil had grown up in Puerto Rico, they had never met.

In the end, Emil decides not to join that big firm, but instead decided to strike out on his own. To do his own thing. And, as it turns out, that’s just what Carlos Zumpano had wanted to do.

Soon after getting to know each other, Carlos left that big law firm, teamed up with Emil, and started the law firm that has ultimately grown into IZHM.

From the start, Carlos and Emil talked about how they really wanted to practice, the kinds of clients they wanted to work with, and the kind of people they wanted on their team.

If you ask them, they both will tell you pretty much the same thing. They needed a more fluid and efficient structure without the bureaucracy and with more competitive rates. They were looking for a place that gave them room to grow, a direct relationship with clients, and the flexibility to meet client demands.

They wanted all that, and to do it with friends and family at their side.

It’s a pretty compelling picture. Plus Emil can be pretty persuasive. I remember attending a fundraiser IZHM held, where Emil came up to me and said: “Luisito. Come, come with us.” – indicating towards himself – “I promise you will LOVE it. You will LOVE it.”

And, long story short, here I am. And he was right.

Hardly.

Emil, Carlos, Rob, Ted, and Frank – my new partners here – made a great impression from the start. They were warm, personable, and undeniably energized about their growing firm.

Over time, I got to learn more about their capabilities as lawyers – a combination of ex-big firm lawyer skills and hard-earned street smarts. As a firm, IZHM has a strong litigation, real estate, corporate, entertainment, and governmental affairs practice.

And they have the clients to match – great local companies like Iberia Tiles, Miami Jai Alai, and AMI Trading, and major international companies like Goya Foods and Banco Mobiles Leon.

But just saying they have great clients really doesn’t do justice to my new firm. More than anything else, it was IZHM’s relationships with its clients that really sold me on joining them. In fact, having met some of their clients at various receptions and holiday parties, you’re more likely to call them raving fans than clients. Really, when was the last time you saw clients – bankers, corporate executives, and business owners – singing at the top of their lungs with a Mariachi band at a law firm holiday party?

Of course, as a smaller firm, IZHM offers all the benefits you’d expect – like competitive rates and flexible billing arrangements, which opens my office doors to plenty of local clients that just couldn’t bear my former big firm rates, and fewer conflicts of interest. Not to mention, IZHM is a certified Minority Owned Business.

I know my clients can take advantage of all the IZHM has to offer. And the folks at IZHM know that their clients can use my expertise with companies in crisis – corporate reorganizations, bankruptcy, and complex litigation – and in the emerging area of privacy and data security law.

We decided to start this blog so that you’d get to know the folks at IZHM, like I have. I hope you’ll check in again in the weeks to come. For sure you’ll hear about my experiences here, but I’ll be introducing you to each of my partners, about Rob Hudson’s volunteer work with the Zoological and Humane Societies, our satellite offices in Latin America, and some of our fans. But I’ll also be talking about legal trends and business opportunities that clients and lawyers alike can make use of.

In the meantime, thanks for taking a look, and I look forward to your support as we continue building the next great South Florida law firm.