New employment related laws were recently enacted by the state of California effective January 1, 2027.  Employers should take note of these new laws and how they impact their workplace, as well as update their policies and employee handbooks accordingly Wage and Hour Legislation Effective January 1,2027, California minimum wage will increase to $17.40.  Other cities and unincorporated areas have additional higher minimum wage requirements. Click here to review these increases which was included in our August newsletter. As a result of this increase. the minimum salary for exempt employees will increase to $72,384.00. No Robo Bosses Act This law... READ MORE

Artificial intelligence is changing how small businesses market their products and services. From social media videos to virtual spokespersons, AI-powered tools make professional-looking advertising more accessible and affordable. However, a new California law introduces important disclosure requirements. What Does SB 1050 Require? Effective January 1, 2027, Senate Bill 1050 requires businesses to clearly disclose when advertisements prominently feature AI-generated "synthetic performers," including audio-only advertisements. For example, a business using an AI-generated spokesperson to promote its services in a Facebook or Instagram video may need to disclose that the performer is artificial. The law does not generally require disclosures simply because... READ MORE

“They volunteered to help. Do I have to pay them?” Volunteers are the backbone of many nonprofit organizations. But simply calling someone a “volunteer” doesn’t automatically mean the relationship qualifies as unpaid volunteer service under employment law. Recent U.S. Department of Labor guidance offers a timely reminder that the details matter, particularly when an existing employee also wants to volunteer for the same organization. Questions can arise around whether the individual truly offered their services voluntarily, whether there is any expectation of compensation, and, for employees who also volunteer, whether the volunteer activities are the same or similar to their... READ MORE

When an employee informs their employer of their own decision to leave a company, employers often focus on completing the administrative aspects of the separation, including payment of final wages, benefits, and the return of company property. In addition, employers can use the departure as an opportunity to meet with the departing employee to gather helpful information to assist the employer to understand more about possible issues to be addressed in the workplace. This exit interview, conducted shorty before the employee’s final day of work, can provide an important opportunity to learn more specifically why the employee is leaving and... READ MORE

Don’t let the tax form make the decision. It’s something we hear from business owners more often than you might think: “I 1099 my staff.” But issuing someone a Form 1099 doesn’t make that person an independent contractor. The question isn’t simply, “Do I give this person a W-2 or a 1099?” The real question is whether the person is legally an employee or an independent contractor based on the actual working relationship. Why Classification Matters For business owners, getting that distinction right is important. Employees are generally entitled to protections that don’t apply in the same way to independent... READ MORE

Beginning January 1, 2027, minimum wage in California will increase from $16.90 to $17.40 per hour. As a result, for exempt employees (meaning exempt from meal breaks, rest breaks and overtime law requirements) the minimum threshold for their annual salary must increase from the current requirement of $70,304 to $72,384. If employers fail to ensure that employees treated as exempt meet this salary basis test, employers will face exposure to a multitude of wage and hour violations and penalties. Employers should also review the actual duties of the positions held by these employees to confirm they meet the applicable exempt... READ MORE

After more than a year of changing deadlines, court decisions, and reporting requirements, U.S. business owners finally have some certainty regarding Beneficial Ownership Information (BOI) reporting. Effective August 14, 2026, the Financial Crimes Enforcement Network (FinCEN) issued a final rule permanently eliminating BOI reporting requirements for U.S. companies and U.S. persons under the Corporate Transparency Act. What Does This Mean for U.S. Businesses? If your company was formed in the United States, you are no longer required to file a BOI report with FinCEN. The final rule makes permanent the exemptions FinCEN initially announced in March 2025. It also provides... READ MORE

California employers must reimburse employees for all necessary work-related expenses, including the use of an employee's personal vehicle for business purposes. One of the simplest ways to comply with California's reimbursement requirements is to use the IRS standard mileage reimbursement rate. Effective July 1, 2026, the IRS announced a rare mid-year increase to the standard business mileage reimbursement rate. Employers should ensure they are reimbursing employees using the updated rate for business travel occurring on or after July 1. Doing so helps reduce the risk of claims that employees were not fully reimbursed for work-related vehicle expenses. For the period... READ MORE

Whether you own commercial property or lease space for your business, California's Senate Bill 1103 (SB 1103) introduced new rules that may affect commercial lease negotiations, rent increases, operating expenses, and lease administration. While the law only applies to certain small businesses, both landlords and tenants should understand these new requirements before signing or renewing a lease. Who Does the Law Apply To? SB 1103 protects "qualified commercial tenants," which generally include: Microenterprises with five or fewer employees;Restaurants with fewer than 10 employees; andNonprofit organizations with fewer than 20 employees. To receive these protections, tenants must provide their landlord with... READ MORE

The California Court of Appeal recently issued a decision in Guild Mortgage Company LLC v. CrossCountry Mortgage LLC. In this case, Guild alleged that CrossCountry conspired with Guild employees while they were still employed by Guild to recruit coworkers, divert customers, convert active loan applications, and access/copy confidential information. The decision held that California employees owe a duty of loyalty to their employers and while they may prepare to compete with their employer before ending their employment, they may not transfer their loyalty to a competitor before leaving. Additionally, the court in this decision found that a manager may owe... READ MORE