California’s strict independent contractor law known as AB 5 – which prohibits businesses from classifying a worker as an independent contractor unless they can pass all three prongs of the stringent “ABC Test” – may soon be a thing of the past. On March 17, 2023, the Ninth…
On Thursday, January 5, the Federal Trade Commission (FTC) announced a new proposed rule that would ban employers nationwide from using non-compete clauses. These clauses, which are often inserted into employment agreements, typically prohibit the employee from leaving the employer’s business and, for a 1- or 2-year period,…
A recent study conducted by LinkedIn asked participants—over 2,000 working professionals—what skills they desired most in their bosses. The results yielded a clear “top 5” list of qualities that people most want to see their bosses exhibit. Problem solving: what your employees most want to see is a…
On September 18, 2019, Governor Newsom signed AB 5 into law and, in the process, fundamentally changed the California economy by making it even harder for a business to qualify a worker as an independent contractor. The Dynamex Decision As readers of this blog know, in May 2018…
Last year was a busy legislative year in California. The #MeToo and #TimesUp movements in particular spawned a host of new employment laws that took effect on January 1st. If you haven’t done so already, you should review your employee handbook and personnel policies to make sure that you are…
In the current job market, especially in the San Francisco Bay Area, good employees are more valuable now than perhaps ever. Almost every one of my clients is looking to hire, and almost every one looking is complaining that that they “can’t find anyone good.” It’s a seller’s market, and…
Inc.com published an article today entitled, “The Dumbest Legal Mistakes Early Startups Make.” The article, written by Alumnify CEO A.J. Agrawal, asserts that the “dumbest” legal mistakes made by startups include: 1. Not having written LLC operating agreements 2. Choosing the wrong corporate entity 3. Failing to keep proper…
The Angel Resource Institute and PitchBook just released their Q3 2015 Halo Report. The report shows that angel investment for the quarter has increased dramatically, with the median round size ($725K) up 45% from Q2 2015 levels ($500K). Other notable findings include: 1. Software, commercial services, and healthcare…
Last Friday, the SEC adopted final rules to allow companies to offer and sell securities through crowdfunding. These new rules are designed to give smaller companies access to additional investment options and, in addition, to provide investors with additional protections. As I discussed in a prior blog post…
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…