Back in June 2012, I wrote a blog post about the Court of Appeal’s decision in Paratransit, Inc. v. Unemployment Insurance Appeals Board, 206 Cal. App. 4th 1312 (2012). In Paratransit, the California Court of Appeal held that an employee’s refusal to sign a performance review or disciplinary action form constituted “misconduct” justifying the denial… Read More
HR & Employment Law Blog
The Executive Compensation Debate: New Study Debunks Old Assumptions
The financial meltdown that began in 2008 caused a lot of finger-pointing: who was to blame and why? Although the list of potential culprits is long and varied — from bank deregulation, to the increased use of credit default swaps and other hyper-complex financing structures, to a “play today, pay tomorrow” mentality that allowed average… Read More
California Courts Remain Hostile to Non-Compete Agreements
A California Court of Appeal recently ruled that a non-compete given in connection with the sale of a business was unenforceable. Fillpoint, LLC v. Maas, 2012 Cal. App. LEXIS 904. Specifically, the Court held that because the non-compete period began on the date of the employee’s termination from the successor company — rather than on… Read More
Partnership, Corporation, or LLC — Which is Best?
One of the most common questions I get asked by entrepreneurs is, “How should we structure our new venture?” Although it sounds like a simple question, there is no one-size-fits-all simple answer. The three most common business structures — partnership, LLC, and corporation — all come with different costs/benefits and risks/rewards. What is the… Read More
Selling a Business — Issues to Consider and Things to Do
Inc. magazine recently ran a series of articles discussing some of the major issues involved in the sale of a business. The series gave a basic overview and also provided some practical strategies and checklists that can be used throughout the sale and closing process. You might find this series interesting if you are thinking about… Read More
Everyone’s Talking About “Crowdfunding”
Ever since the passage of the federal JOBS Act earlier this year, entrepreneurs and startups everywhere are talking about “crowdfunding.” But what is crowdfunding, and why is everyone so excited about it now? Basically, crowdfunding describes the collective effort of individual investors who pool their resources, usually via social media and other Internet websites, to support… Read More
Arbitration Clause in Employee Handbook Does Not Create an Enforceable Contract
In Sparks v. Vista Del Mar Child Services, the California Court of Appeal held that the mere existence of an arbitration clause in a lengthy employee handbook — without more — does not create a binding, enforceable arbitration agreement between employer and employee. In Sparks, the employer utilized a lengthy employee handbook that contained a… Read More
SF Mayor Lee’s Business Tax Plan Gets Key Business Backing
Today, SF Mayor Ed Lee joined with his political rival to announce a grand compromise for overhauling San Francisco’s business tax that will result in a single measure going before voters in November. If approved, the ballot measure will change how the city levies its often-criticized business tax, which brought in $410 million last year and… Read More
If You Fire an Employee for Wrongdoing, Can You Successfully Challenge His Claim for Unemployment Benefits?
Whether a fired employee is eligible for unemployment in California depends on whether the employee’s conduct constituted “misconduct” within the meaning of Section 1256 of the California Unemployment Insurance Code. If the wrongful conduct rose to the level of “misconduct,” then the employer may be successful in challenging the employee’s right to unemployment benefits. But… Read More
Court Allows Chargebacks Against Advanced Commissions
In Deleon v. Verizon Wireless, LLC, the California Court of Appeal clarified when a commission advance may be “clawed back” by an employer. The answer depends on whether the advance payment was fully earned when advanced (which made the payment a wage which could not be clawed back) or if the advance payment had conditions… Read More