In today’s Harvard Business Review, I came across a good article that discusses practical tips for how to professionally and respectfully terminate a struggling employee. The employee is a good person, and was at one time a productive and positive team member, but things have changed and you now need to part ways. In this… Read More
401k Options for Small Businesses are Improving
Only 14% of employers with fewer than 100 employees offer a 401k plan. That’s because 401k plans generally are expensive and require considerable paperwork and other maintenance. That’s especially true for smaller 401k plans — because they hold fewer assets, they generate less trading fees and have less negotiating power, which results in higher set-up,… Read More
California Legislature Approves AB 465 — Future of Employment Arbitration Agreements in Doubt in California
Recently, the California Legislature passed AB 465 which prevents employers from requiring employees to sign mandatory pre-employment arbitration agreements as a condition of employment. This bill, which is now sitting on Governor Brown’s desk awaiting his signature, adds a new provision of the California Labor Code making it illegal to: “Require another person to waive… Read More
CA Legislature Passes AB 465 Abolishing Arbitration Agreements
The California Senate and Assembly recently passed AB 465 which prevents employers from asking employees to sign a mandatory arbitration agreement as a condition of employment. This new bill, which is now on Governor Brown’s desk, would add a new provision to the California Labor Code that would make it illegal to: “Require another person… Read More
Startups Prefer Employees Over Independent Contractors?
We’ve all heard the stories about how startups tend to prefer to classify their workers as “independent contractors” rather than “employees.” Uber is a current and classic example of this legally risky phenomenon. But, according to today’s Business Insider, startups are apparently now second-guessing this strategy. There’s a budding new trend among startups now to classify… Read More
Governor Brown Signs AB 987, Making it Illegal to Retaliate Against an Employee Who Requests a Reasonable Acccomodation
On July 16, 2015, Governor Jerry Brown signed AB 987 into law. This new law makes it an unlawful employment practice for an employer to retaliate or otherwise discriminate against an employee for requesting an accommodation for a disability or religious belief, regardless of whether or not the request was granted. This new law was intended… Read More
Governor Brown Signs AB 202 Making Cheerleaders Employees
On July 15, 2015, California Governor Jerry Brown signed AB 202. This new law requires California-based minor or major league baseball, basketball, football, ice hockey, or soccer to treat cheerleaders as employees, not independent contractors, when they perform during exhibitions or games. This means that California cheerleaders are now afforded the full protection of all… Read More
Governor Brown Signs AB 304 Clarifying New Paid Sick Leave Law
As many of you already know, California has a new paid sick leave that took effect on July 1st of this year. I previously blogged about this new law, and its requirements for California employers, here. But the state’s new sick leave law left many questions unanswered. So, yesterday California Governor Jerry Brown signed a… Read More
Employers Must Withhold Payroll Taxes on Settlements or Judgments Awarding Lost Wages
California employment lawyers have long argued about whether (or not) an employer can pay a settlement to an employee and issue a 1099 to the employee for the settlement amount. Most employers insist on issuing the settlement check subject to usual payroll tax withholdings, reported on a W-2. However, in many cases, to maximize the… Read More
California Court Refuses to Enforce Texas Choice of Law and Forum Selection Clause
California employers sometimes try to avoid the employee-friendly rules embedded in California law by inserting choice of law clauses into employment contracts. These clauses stipulate that, in the event of a dispute between the employer and employee, the laws of the State of Texas (or some other employer-friendly state) shall govern the dispute. In addition,… Read More
