Category Archives: Articles
A Wait at the Gate
For all those employers (all none of you) ready to race ahead and give notices to employees about health insurance exchanges, you are going to have to hold off for awhile. Despite the Affordable Care Act (aka “Obamacare”) requirement that employers provide written notice (1) informing the employee of the existence of an Exchange, including a […]
Taxing Taxes
A former co-worker of mine, David Spence of the Royce Law Firm, was quoted in a Forbes blog today about Cutler v. Franchise Tax Board, where the California Second District Court of Appeal ruled as unconstitutional Cal. Rev. & Tax. Code § 18152.5 which allows sellers of small business stock (called “qualified small business stock” or “QSBS”) […]
Entrepreneurial Trap
Entrepreneurs in California sometimes want to organize their companies in other states, like Delaware or Nevada. They learn that companies can pay less in franchise fees in Nevada, or that Delaware is seen as the state for great corporations. There are good reasons to organize in those states, but for many companies operating in California, […]
Sins of Wages
Both employers and employees need to review their wage statements for the new year, because California has amended Labor Code 226 to identify nine types of information that has to be on each wage statement: (1) gross wages earned, (2) total hours worked by the employee, except for any employee whose compensation is solely based on […]
How Much for an Attorney-to-Be?
Lawyers love Latin — it makes the sordid sound sophisticated. After reading the below, ask yourself cui bono? Who benefits? Judge William Pauley recently knocked down an attorneys’ fee request: “”Astonishingly, Kramer Levin attorneys, paralegals, and staff amassed 5536.4 billable hours on this matter, employing four partners, three special counsel, ten associates, eight paralegals and a […]
Time to Get Commission Agreements in Writing
We’ve said it before, about the need to get things in writing, but now getting commission schedules in writing will be the law here in California starting next year: “By January 1, 2013, whenever an employer enters into a contract of employment with an employee for services to be rendered within this state and the contemplated […]
Unemployment Benefits: The Greased Pig
Sometimes being an employer is like being in a greased pig contest: you just can’t get your arms around it. An employee does something that amply justifies firing him. He admits what he did, but seeks and (eventually) is awarded unemployment, thereby costing the employer’s account. What gives? A recent court decision, Robles v. EDD […]
Business Owners: Keep Your Networks Secure
Just in case the business owner didn’t have anything to worry about, here is a new headache to avoid. EPN Inc., also known as Checknet, Inc. is a collection agency that also provides electronic payment and e-commerce services. Unfortunately, Checknet has recently settled charges brought by the Federal Trade Commission that Checknet failed to maintain […]
Tips for Employers About Tips in California
California has a long tradition of being employee-friendly: covenants not to compete by employees are unenforceable, and the minimum wage is usually higher in California than that nationally. The same is true for professions with tips, which may be the next “hot” area of labor law in California. Employers whose employees earn tips had best get […]
California Supreme Court: Employers Do Not Have to Ensure Employees Take Breaks
The state Supreme Court has finally clarified California employer obligations regarding employee meal periods and rest breaks. As we predicted after the oral arguments in Brinker Restaurant Corp. v. Superior Court (“Brinker”), the Court determined employers have no duty to ensure that employees perform no work during meal breaks. The Court also ruled on the number […]
