Updates to Severance Agreements Under California Law
California's "Silenced No More Act" (SB 331) changed the Code of Civil Procedure and the Fair Employment and Housing Act (FEHA) to place additional limits on severance and settlement agreements. In light of the passing of SB 331, employers with California workers or remote workers in California have been directed to examine and update severance and settlement agreements. SB 331 FAQs When did SB 331 go into effect? Agreements signed after January 1, 2022, are subject to SB 331. What are some key excerpts from SB 331? In the context of a settlement, SB 331 broadens prohibitions on nondisclosure. [...]
What Are the Main Mistakes That Are Made in the Formation of an Entity?
Starting a new business venture may be both thrilling and terrifying. Mistakes might cost you a lot of money. While starting an entity, you'll want to avoid these six typical blunders. 1st Mistake: Selecting the Wrong Business Structure When starting a business in California, the first step is determining which sort of entity would work best for your needs. For instance, would you prefer a sole proprietorship, a general partnership, a limited partnership, a limited liability company, a C corporation, or an S corporation? Do you have any future plans to raise money from outside sources in order to [...]
Venture Capital – Best Practices
The majority of start-up and early-stage businesses require capital in order to flourish. A significant difficulty is that many of these enterprises are unable to secure regular bank loans or do not wish to make the personal guarantees often required to gain those loans. As a result, they must resort to alternative sources of funding, such as venture capital. Such money can be difficult to get and is sometimes subject to federal and state legal limitations.What Is Venture Capital and How Does It Work?Venture capital is a type of finance provided by investors to enterprises, the great majority of which [...]
CHANGES IN ESTATE TAX RULES AND THE NEED TO REVIEW YOUR TRUST DOCUMENTS: An issue arising under married couples’ trusts signed prior to 2015
January 2022 Many people create revocable probate avoidance type trusts and then mistakenly believe that they do not need to again look their estate planning documents until a crisis arises. Unfortunately, it may then be too late to avoid expensive steps to correct the issues that may have developed in the meantime. A very common issue has come up in my practice that underscores the need for married couples to revisit their estate planning documents and ensure that they are drafted with the current estate tax rules in mind: Prior to 2015, the vast majority married couples’ living trusts in [...]
Litigation Insight: Attorney-Client Privilege: What it is and Why You Should Care
December 2021 Every fan of TV legal dramas has heard the phrase “attorney-client privilege.” Tune in to almost any episode of Law & Order and odds are good that you will hear someone asserting “attorney client privilege” or discussing the implications of “the privilege” for their investigation or case. It is easy to dismiss attorney-client privilege as a TV plot point but maintaining attorney-client privilege should be an important consideration for any business acting through its employees and agents. What is Attorney-Client Privilege and Why is it Important? The attorney-client privilege is a legal rule that protects (1) confidential communications [...]
Three Things to Consider Before Hiring a Remote Workforce
November 2021 In the wake of the global pandemic, many employers have concluded that an on-site workforce may be both unnecessary and undesirable. A remote workforce can cause a dramatic reduction in overhead (via lessened or nonexistent rental costs on office space, energy usage, etc.), can promote employee goodwill, and can potentially enable tapping into a global market for the best available talent. Whether these positive factors outweigh the potential negatives (e.g., reduced human interaction, workflow efficiency concerns) is a matter best left to sound business judgment. However, there are also many legal concerns you should consider before beginning [...]