Key Legal Updates Every California Employer Should Revisit Now As Q3 begins, it’s a smart time for California employers to check in on recent legal changes and workplace practices. With several new developments in wage law, arbitration, and summer hiring, here’s what you should be reviewing to stay compliant—and protect your business from costly missteps. 1. Arbitration Agreements: Presentation Matters More Than Ever A recent California Court of Appeal case (Velarde v. Monroe Operations, LLC) reinforced that how you present arbitration agreements can determine whether they’re enforceable. Even if an employee signs the agreement, it may be thrown out if... READ MORE

Why California LLCs Shouldn’t Set It and Forget It Your Operating Agreement is more than just a startup document—it’s the legal blueprint for how your LLC operates. Yet many business owners create one when they form their company and rarely look at it again. The problem? Your business changes. Ownership, management, finances, responsibilities, and long-term plans may look very different today than they did when your LLC was formed. Your Operating Agreement should keep up. What Is an Operating Agreement? For California LLCs, an Operating Agreement outlines how the business is owned, managed, and operated. It can address member responsibilities,... READ MORE

A recent decision by the California court of appeal in Velarde v. Monroe Operations, LLC set forth the importance for employers to present arbitration agreements to employees in a fair and non-coercive manner.  Although employers can require that employees sign an arbitration agreement as a condition of employment or condition of continuing employment, the manner in which the arbitration agreement is presented to employees is critical to being able to enforce the arbitration agreement once it’s been signed.  Specifically, the Velarde court found on a motion to compel arbitration filed by the employer that the arbitration agreement was procedurally unconscionable,... READ MORE

Effective July 1, 2025, minimum wage will increase as follows: Los Angeles minimum wage will be $17.87 per hour for any employee who works at least two hours per week within Los Angeles including part time and full time and temporary employees. This includes any employees who work remotely from home in Los Angeles. Additionally, employees working in unincorporated Los Angeles County or Santa Monica are entitled to at least $17.81 per hour.  California’s minimum wage remains at $16.50 per hour. If you have any questions regarding the application of these increases in minimum wage, contact our employment attorney Scott Liner... READ MORE

California and the Federal Trade Commission (FTC) have updated their auto-renewal rules to better protect consumers from so-called “negative option” programs—subscriptions or services that continue until the customer cancels. If your business charges customers on a recurring basis, you need to review your business contracts for these changes. Failure to comply can result in enforcement actions, fines, and reputational damage. Starting July 1, 2025, California’s updated Automatic Renewal Law requires businesses that offer recurring subscriptions online to make cancellation as easy as enrollment—literally a “click-to-cancel” mechanism. This is what you need to know. California Requirements (Effective July 1, 2025) Clear... READ MORE

As summer approaches, many businesses look to hire seasonal workers or interns. Whether you're bringing teens on board to support operations or welcoming student interns for short-term projects, it's critical to understand your legal obligations—especially in California, where labor laws are strict. Hiring Minors? Start with Work Permits and Safety Employers must obtain a valid work permit before hiring anyone under 18—even during the summer. Permits must be signed by the minor, their parent or guardian, and submitted to the school district for approval. Once issued, the permit outlines legal work hours and restrictions based on the minor’s age. Key... READ MORE

As AI tools become more accessible and sophisticated, many business owners are asking: Should I use AI to draft my contracts? While AI can be a helpful starting point, it’s not a substitute for legal expertise—especially when your business, liability, and reputation are on the line. What AI Can Do AI can quickly generate contract templates, summarize terms, and flag common issues. This is useful for early-stage planning or identifying basic terms in routine agreements. It’s especially tempting for small businesses looking to cut costs or move quickly. The Risks of AI-Drafted Contracts But here’s the catch: AI doesn’t know... READ MORE

In a recent decision issued by the California court of appeal, La Kimba Bradsbery et al. v. Vicar Operating, Inc. (2025) the court confirmed that an employer does not need to obtain a meal break waiver each time an employee chooses to skip a meal break. Rather, a single advance meal break waiver is sufficient. Specifically, in California, employees who work less than 6 hours may agree to waive their meal break, so long as the waiver is entered into voluntarily by the employee and is not coerced by the employer and includes language that the employee can revoke this... READ MORE

With tariffs and trade tensions dominating headlines, many U.S. businesses—especially those in manufacturing and distribution—are bracing for the financial ripple effects. Sudden shifts in international trade policy or government regulation can upend even the best-laid business plans, increasing costs overnight and throwing contracts into chaos. A recent issue with one of our clients brought this into sharp focus. We’re now advising businesses to proactively update their force majeure clauses to include specific language addressing tariffs, embargoes, and regulatory changes that could render performance commercially impractical or unsustainable. Traditionally, force majeure clauses were designed to excuse performance during unforeseeable events like... READ MORE

April was a busy month in Sacramento following legislators’ Spring recess. As the 2025 legislative session progresses, California lawmakers introduced several bills that could have a significant impact on employment law in the state. While it's still early to determine which bills will move forward, these proposed changes could greatly influence how California employers operate. Key Proposed Employment Laws AB 1018: Regulating Automated Decision Systems Assembly Bill 1018 seeks to regulate the use of automated decision-making systems, including artificial intelligence (AI) and machine learning, that influence hiring, promotions, performance reviews, and pay. Under this bill, employees would have the right... READ MORE