Independent Contractors and You: How California’s Changes to Employment Law Impacts Your Business
February 2020 On September 18, 2019 Governor Newsom signed AB-5, codifying the now-infamous Dynamex decision as law. This new law radically changes the legal test for who is an employee (rather than an independent contractor) under California law. While the law has gotten a lot of press in the context of the so-called “gig” economy; AB-5 affects the way all California businesses may legally use independent contractors, including yours. How Has the Law on Independent Contractors Changed? As a result of AB-5, California law assumes that anyone working for you is an employee unless he or she is engaged [...]
Legislation Alert: AB 1482 – Tenant Protection Act Brings Statewide Rent Control to California Beginning 2020
December 2019 Two months ago Governor Newsom signed AB 1482, bringing statewide rent control to California. The new law goes into effect January 1 and includes both a cap on rent increases for existing tenants as well as a “just cause” standard that must be met before a tenant can be evicted. Are any properties exempt? Even though the new legislation applies to all types of housing from single family homes to the largest apartment complexes, there are some broad exceptions. It is important to determine whether a property is subject to the law or exempt because different tenant notices [...]
Starting January 2020, You May Need New Documents for Your Business
November 2019 Nondisclosure and confidentiality agreements can be an essential part of your business. These agreements protect the confidentiality of the trade secrets and important data for your company. They are not just for inventors or companies with secret recipes, though. They are necessary for any business that might be disclosing information that is commercially valuable or that may be required to be protected under state and/or federal law. Starting January 1, 2020, the California Consumer Privacy Act (the “CCPA”) begins. This new law will require consumer information to be kept private and confidential, among other things. As part of this law, [...]
Purchasing a California Business? Watch out for California’s Bulk Sales Law..
October 2019 If you plan on purchasing a California business, you should be aware of California’s Bulk Sales Law. The law is designed to protect a business’ creditors and prevent a situation where a seller walks away with the sale proceeds, leaving creditors unpaid. Generally, a buyer would not be liable for a seller’s debts unless otherwise agreed, but some statutes impose successor liability on the buyer. The bulk sales law is one of them and failure to follow the law’s requirements can leave a buyer stuck with the seller’s debts. Sales Subject to California’s Bulk Sales Law. The bulk [...]
PAGA Is Now a Four Letter Word to Employers
September 2019 “PAGA” is the acronym for California’s fifteen-year-old Private Attorneys General Act. This Act allows an individual, on behalf of himself and other employees, to recover civil penalties for alleged Labor Code violations. It added new civil penalties for all such violations, even if certain Labor Code provisions did not previously authorize civil penalties. PAGA began as a little used remedy in litigation, often just added as a throw-away claim among other more lucrative theories of recovery pursued by plaintiff lawyers. Unfortunately, recent appellate case law has converted it to the latest tool for extortion by lawyers representing employees. [...]
FIVE COMMON LEGAL MISTAKES MADE BY STARTUPS
June, 2019 When starting a business, it’s easy for owners to make legal mistakes that can prove costly down the road. Avoiding these missteps will keep your new venture on the path to prosperity. Over-complicating the Formation. Don’t try to structure your business to accommodate every future contingency. Instead, design the business to address what you expect will work best for you at startup and in the near future. Too often, entrepreneurs waste precious resources assuming they need to be ready to “go public” before they’ve even begun operations. Others overcomplicate things based on what they think some theoretical [...]