About ten percent, or 1.9 million, of California's 19 million person workforce consists of independent contractors. Non-union workers reportedly earn 20% less than their union counterparts in the current gig economy. Classifying workers as independent contractors has severe consequences for such workers, as non-employees generally have no statutory right to minimum wage, overtime pay, compensation for on-the-job injuries, unemployment insurance for involuntarily leaving employment, or protection against other illegal employer activities like discrimination. In the winter of 2016, a California Assemblywoman, Lorena Gonzalez, introduced AB 1727 aka The California 1099 Self-Organizing Act, an amendment to California's Labor Code. Gonzalez' intention... READ MORE

California employers must be prepared to implement . Effective December 1, 2016, businesses that employ any employee earning an annual salary under $47,476 must re-assess and evaluate these new federal wage requirements affecting employee compensation. The FLSA's two-part compensation and duties test for exemption has not been changed by the new regulations. Instead, the minimum amount of salary required to qualify for the exemption has been revised. The final rule issued by the DOL increases the income threshold for employers to $913 a week, which is $47,476 annually. This new threshold is more than twice the current minimum salary. Under... READ MORE

Although Coca-Cola was granted its requested relief in May of 2016 by a three-judge panel of the U.S. Patent and Trademark Office, winning the right to trademark the term "zero" for its beverage products, other soft drink companies, including Dr Pepper Snapple Group, were allowed by the panel to trademark the term "zero" as well. Because the Coca-Cola "zero" brands had "acquired distinctiveness" and fit as "substantially exclusive," the trademark was allowed. According to the panel, Dr Pepper, who challenged the trademark almost ten years ago, wasn't able to prove that "zero" is a generic term that could not be legally trademarked. The panel... READ MORE

The Computer Fraud and Abuse Act (CFAA), 18 U.S.C. § 1030, was enacted by Congress in 1986 as an amendment to the Counterfeit Access Device and Abuse Act. While the CFAA is primarily a criminal law, an amendment in 1994 allows civil actions to be brought under the statute. While the CFAA has been amended many times in attempts to make it successfully evolve with the needs of computer users, rulings in two recent Ninth Circuit cases leave many other questions unanswered about the proper interpretation of the law, opening the door for more uncertain litigation, and perhaps the prosecution of individuals that... READ MORE

Chase Law Group provides legal services to entrepreneurs, business owners and professionals across Southern California, tailoring legal counsel to protect personal and proprietary assets through all stages of business ownership. DeAnn Flores Chase started Chase Law Group in 2007 and has practiced law for two decades. Read the full article here READ MORE

The California Family Rights Act (CFRA) regulations, issued by the California Fair Employment and Housing Council, were amended as of July 1, 2015, and contain several noteworthy revisions. As a whole, the resulting provisions are in greater conformity with the federal Family and Medical Leave Act (FMLA). Both the CFRA regulations and FMLA apply to employers with 50 or more employees. The CFRA provides a new definition of “joint employer” which is substantially similar to that issued by the FMLA. The FMLA identifies a joint employer as two or more businesses asserting joint control over the employment of an employee... READ MORE

The California Supreme Court’s recent decision in Sanchez v. Valencia Holding Company, LLC clarified the definition of unconscionability with respect to arbitration provisions. Moreover, the ruling signaled the Court’s willingness to enforce arbitration agreements in consumer and employment contracts. This finding is particularly significant in light of California’s historical hesitation to enforce arbitration agreements notwithstanding the applicability of the Federal Arbitration Act (FAA), which mandates enforcement of arbitration provisions. The Sanchez decision conforms to the ruling in the United States Supreme court in the pivotal case ofAT&T Mobility LLC v. Concepcion on the issue of the enforceability of arbitration provisions.... READ MORE

Commercial leases seldom follow a standard form and do not provide the same kind of protections as residential leases. While commercial leases are generally drafted in favor of the landlord, tenants may have the flexibility to negotiate more advantageous terms. Below is a summary of items that are often amenable to modification. These clauses should be reviewed carefully to ensure that the terms are understood and acceptable to the lessee. Duration of Lease. As a commercial tenant, the flexibility to terminate or extend a lease, or to renegotiate the lease term is critical. The term of a commercial lease can... READ MORE

On July 1, 2015, California implemented new insurance laws for drivers who are employed by ride-sharing services, Uber and Lyft. The stringent regulations are an attempt by the legislature to clearly distinguish when and whose insurance coverage takes effect during the time that workers are driving but not actively engaged in seeking rides or transporting passengers. The legislation followed a deadly car accident involving an Uber driver and centered upon a debate as to whether the driver was actually covered by the company’s insurance at the time of the accident. The parameters of the driver’s coverage raises the broader issue... READ MORE

When a purchaser acquires a business, assuming the contracts of that business is a major component of the transaction. A wide variety of contracts are utilized in a business to govern relationships and business transactions, including employment, contractor, service provider, customer, licensing and real estate contracts. Below is a review of key legal and practical considerations in assigning contracts in an acquisition. In general, the rights in any contract are freely transferable from one entity to another. However, there are a few notable exceptions to this rule. Where the assignment substantially alters the performance due or risks to the party... READ MORE