For years, California businesses have used “stay-or-pay” agreements as a safety net. The logic was simple: if we invest thousands in your signing bonus, relocation, or training, you should stay long enough for us to see a return. If you leave early, you pay us back. But under AB 692, that safety net is largely gone. Effective January 1, 2026, California heavily restricts or outright bans contracts requiring employees to repay certain “debts” upon leaving a job. Regulators increasingly view these provisions as unlawful restraints that discourage employees from leaving their jobs. What Agreements Could Create Problems? If your employment... READ MORE

California employers are already familiar with pay transparency laws, but SB 642 adds new requirements businesses should not overlook. Effective January 1, 2026, the law expands pay transparency rules and increases the importance of accurate, consistent compensation practices. One major change impacts job postings. If your business has 15 or more employees, job listings must now include a realistic “good faith” salary or hourly wage range you actually expect to offer upon hire. In other words, broad or overly flexible ranges that do not reflect a real starting point may create problems. SB 642 also expands what may be considered... READ MORE

AI tools like ChatGPT and Claude are now part of everyday business life. Forward-thinking business owners are using them to draft emails, answer baseline HR questions, and even analyze complex legal situations. And honestly? AI can be a fantastic starting point. But here’s the bigger question: What actually happens when you use an AI-generated contract or template and hand it to someone to sign? The Danger Isn’t What’s There. It’s What’s Missing. The biggest risk with AI contracts isn’t usually a glaring error. It’s what is completely left out or clauses that appear "legal" but are incomplete or incorrect. There... READ MORE

If you’ve been meaning to circle back on the new 2026 employment laws, this is your reminder. One of the most overlooked updates under California’s Workplace Know Your Rights Act (SB 294) came with a key deadline: March 30, 2026. By that date, employers were required to give all current employees the opportunity to designate an emergency contact to be notified if they are detained or arrested during work or while performing job duties. If you didn’t implement this—or aren’t sure if you did—you’re not alone. But this is one area worth addressing now rather than later. Why it matters... READ MORE

Many businesses start the same way: a conversation, a shared vision, and a handshake. When family is involved, trust often replaces formal agreements. Things often run smoothly in the beginning, until a lack of clarity starts to surface, and the effects reach your team, your clients, and the business overall. As the business grows, informal arrangements can create confusion around ownership, roles, and decision-making. And when something changes such as a disagreement, a new partner, or an unexpected life event, those gaps can quickly turn into conflict. Where things can break down Ownership interests become unclearContributions (time, money, ideas) are... READ MORE

As the first quarter comes to a close, now is the time for employers to step back and evaluate whether key compliance areas are on track. Many businesses implement updates at the start of the year—but Q2 is often when gaps begin to surface. A proactive review now can help reduce risk, avoid disruptions, and keep your operations running smoothly. Key Areas to Revisit Wage and Hour Practices Confirm employee classifications, overtime calculations, and payroll processes are consistent with current requirements. Required Notices and Workplace Policies Ensure required postings, handbook updates, and employee acknowledgments are current and properly documented. Retirement... READ MORE

Strategic partnerships can be a powerful way to grow your business. Whether you’re collaborating on a product, co-hosting events, or combining services, the upside is clear. What’s often less clear is who owns what—and how the money is shared. From a legal standpoint, that’s where problems tend to begin. Who Owns The Intellectual Property? If your partnership creates something new, a brand, content, program, or product, you need to define ownership upfront. Without an agreement, both parties may claim rights, which can stall growth or lead to disputes. Ask early: Who owns what is created together?Can either party use it... READ MORE

If you’re starting or growing a business in 2026, trademarks tend to come up at one of two moments: either right before you launch… or right after something goes wrong. The better question isn’t just “Do I need a trademark?” It’s “When is the right time to protect my brand?” Do You Need a Trademark? Not every business needs one on day one. But if you are building a brand you plan to market, grow, or scale, a trademark quickly becomes less optional and more essential. Your business name, logo, and tagline are not just creative choices. They are legal... READ MORE

If you recently received a notice stating that payroll contributions were expected, you are not alone. Many California employers are still working through their obligations under the CalSavers Retirement Savings Program. What Is CalSavers? CalSavers is California’s state-sponsored retirement savings program. It requires employers with five or more employees to either offer a qualified retirement plan or register with CalSavers and facilitate employee participation. The program does not require employers to make contributions. However, employers must enroll eligible employees, process payroll deductions, and remit those contributions each payroll cycle. Why Are You Receiving Payroll Notices? California law requires employers registered... READ MORE

Since we first wrote about California’s regulation of artificial intelligence in employment decisions, the rules are now officially in effect. As of October 1, 2025, California employers must comply with regulations clarifying how the Fair Employment and Housing Act (FEHA) applies to automated decision systems used in hiring, promotions, training selection, and other employment decisions. What Is an “Automated Decision System”? The regulations broadly define automated decision systems to include tools that use algorithms, artificial intelligence, machine learning, or similar data-driven processes to assist or replace human decision-making. This may include: Candidate ranking toolsResume screening softwareVideo interview scoring platformsPredictive analytics... READ MORE