When employers interview job candidates, they appropriately focus on questions that will obtain information they need to hire the right person. However, they must also be sure that they do not ask questions that are prohibited under California law and that can potentially lead to lawsuits including those for discrimination. California employers with five or more employees are covered by the California Fair Employment & Housing Act (FEHA) which prohibits discrimination based upon age, ancestry, color marital status, medical condition, national origin, physical disability, religion, sex or sexual orientation, and military status. (Employers with fewer than five employees should also... READ MORE

Starting a small business in 2024 involves navigating various legal requirements and we've put together a short list of factors to consider when starting your business. This list is not exhaustive but these quick tips and resources below are important to understand and get in place when you launch. Business structure selection is paramount, ranging from the simplicity of a sole proprietorship to the liability protection of a corporation or the flexibility of a limited liability company (LLC). Each structure carries distinct tax implications and operational considerations. Business name registration is essential, whether through entity names, trademarks, "doing business as" (DBA)... READ MORE

As we step into 2024, small businesses may face evolving regulations. From the Corporate Transparency Act to the nuanced IRS reporting rules and the watchful eye of the Consumer Financial Protection Bureau (CFPB), business owners must be aware of these areas. In this article, we share a few key regulatory changes to keep an eye on for 2024. Stay informed, stay compliant, and stay ahead with these insights. Corporate Transparency Act & Registering with FinCEN Starting on January 1 2024, your company may be required to report information about the people who own or control it to the US Treasury... READ MORE

Time to Revisit Your Arbitration Agreement: Courts Issue Significant Decisions Regarding Arbitration Agreements In a significant decision for employers, in January 2024 a federal court in the case of Chamber of Commerce of the USA et al. v. Becerra, et. al. issued a permanent injunction barring California from enforcing Assembly Bill 51 which forbid employers from requiring arbitration agreements as a condition of employment.  The recent decision ends a recent period of time of uncertainty as the case went through the appeals courts, and only voluntary arbitration agreements could be entered into with employees. Based upon the decision, California employers... READ MORE

It's easy to overlook updating corporate minutes amidst the hustle and bustle of running a small business. However, neglecting this essential responsibility can have significant consequences for the health and success of your company or organization. Corporate minutes serve as a crucial record of key decisions and actions taken during company meetings, and maintaining accurate and up-to-date records can be a game-changer for small businesses. Even for single-owner companies, keeping your corporate minutes updated still remains pivotal. While the process may be less complex, not having multiple stakeholders, it is just as important for maintaining legal clarity and safeguarding the... READ MORE

There are many steps that should be taken before buying a franchise. The most-important is to read the entire Franchise Disclosure Document or “FDD” (that lengthy document that the franchisor provided to you, probably by emailing a .pdf copy to you). If you’re serious about this franchise, you should also have a lawyer who is experienced in franchising review the FDD; there are lots of issues an experienced franchise lawyer can spot that you might miss.  After you have read the FDD, it is very important that you call franchisees (in a small system, you may be able to call... READ MORE

This year the California legislature and Governor Newsom enacted several new employment laws taking effect January 1, 2024.  Here are the key changes you must be aware of for the new year. Increase in Paid Sick Leave Effective January 1, 2024, California employers of all sizes must provide 5 days (40 hours) of paid sick leave each year to employees.  This is an increase from 3 days that is the current requirement.  The new law continues to allow employers to either provide the paid sick leave on an accrual basis or via frontloading the leave at the beginning of each... READ MORE

In recently passing two separate bills, Assembly Bill 1076 and Senate Bill 699, California has further strengthened its prohibition on non-compete agreements between employers and employees. California’s existing law, Business & Professions Code section 16600 already established that such agreements are void with very limited exceptions. However, the legislature remained concerned that some employers were still using non-compete agreements with employees as a deterrent. Therefore, California enacted Business & Professions Code section 16600.5 which effective January 1, 2024 will make it unlawful for an employer to even enter into a non-compete agreement with their employees. Employers who violate the new... READ MORE

Effective January 1, 2024, California will require all employers to increase the amount of paid sick leave to their employees from the current requirement of 3 days to the new requirement of 5 days per year. The new law, SB616, signed by Governor Newsome on October 4, applies to all employers regardless of size. Note that certain municipalities provide greater paid sick leave, such as the City of Los Angeles. Employers that fall under those municipalities’ laws must provide the greater amount of paid sick leave and also comply with the requirements set forth below. The new law increases the... READ MORE

Online interactions are the norm for anyone doing business today. As businesses use websites and mobile apps to connect with their audience, there are certain responsibilities that businesses have to follow not only as required by law but to ensure a positive relationship with customers. Two key areas: Privacy Policies and Terms & Conditions - often get confused, but both serve distinct roles with different focuses. Let's explore the differences and why both are essential, especially in the context of laws that may apply. What is the Purpose of a Privacy Policy?A Privacy Policy functions as a detailed disclosure of... READ MORE