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Don’t Wait Until It’s Too Late to Correct Your Piece-Rate

When compensating employees under a piece-rate structure, employers must be aware of its nuances. Nonproductive Time One of the first compensation requirements for piece-rate, is there must be a separate payment for nonproductive time unless the employee is paid a base minimum wage for all hours worked. If you are asking yourself, “What is nonproductive Read More

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Employers Must Provide Standalone Forms to Obtain Consent of Pre-Employment Background Checks

Employers who use third party vendors to perform background checks on prospective employees must comply with the Fair Credit Reporting Act (FCRA) and California’s Investigative Consumer Reporting Agencies Act (ICRAA). The FRCA and ICRAA require employers to give specific and analogous disclosures about an applicant’s rights under the applicable laws and obtain express consent. Because Read More

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Do Not Sugarcoat Performance Reviews!

IMPORTANCE OF PERFORMANCE REVIEWS Periodic employee performance reviews can be valuable tools to help employers improve performance and employee morale at their company. Effective performance reviews can reinforce an employer’s business principles and priorities and help foster the skills the employer wants its employees to develop. They can also help employers gather information needed to Read More

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Can I force my employee to sign a non-compete agreement? Will it later be enforceable?

I am always surprised to hear about California employers forcing their employees to sign non-compete agreements as a condition of employment. This is likely because most employers are unaware that a non-compete agreement is unlawful in California unless the agreement falls within one of the narrow statutory exceptions specified in the California Business & Professions Read More

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Have you Received a Notice from the Labor Commissioner About an Employee Suing You?

Many California employers have received a notice of conference from the labor commissioner. This is because California employees or former employees can bring their wage and hour claims before the state’s Division of Labor Standards Enforcement (DLSE). The DLSE enforces California’s labor laws and wage orders. Under the California labor code, the labor commissioner (who Read More

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The Importance of an NDA in Your Business

If you are launching a new product or pitching investors, you need an NDA. Throughout the existence of your business, you have likely developed unique ideas, systems, processes, strategies, and plans that you want kept secret. Your customer and supplier relationships might also require you to keep certain information like ordering history or billing addresses Read More

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Whether Continued Employment is Acceptance of an Arbitration Agreement?

When a California employer changes its policies to include mandatory arbitration, does an employee’s continued employment after notification that an agreement to arbitration is a condition of continued employment, maintain that the employee has impliedly consented to the arbitration agreement? In Diaz v. Sohnen Enterprises, this exact question arose. There, all employees of Sohnen Enterprises Read More

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The Weinstein Clauses

Have you been contemplating a merger and/or acquisition? If so, you may want to include “Weinstein Clauses” in the purchase and sale agreements. Such clauses require the target company, and/or its equity owners, to represent that, within a specific time period, no sexual harassment or assault allegations have been made against the company’s officers or Read More

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Why Should I Care About The Dynamex Decision?

Many California business owners have used independent contractors in an effort to grow their businesses and keep cost down.  Many businesses have used independent contractor arrangements in an effort to “retire” an employee such that the former employee will provide consulting agreements. On April 30, 2018, the California Supreme Court issued its decision in Dynamex Operations Read More

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Employees Must Be Paid for Work Off the Clock

On Thursday, July 26, 2018, the Supreme Court of California issued its ruling in Troester v. Starbucks Corporation, No. S234969, 2018 WL 3582702, which held that California employees must be paid for all hours worked “off the clock,” including small time periods, which is a deviation from the federal law’s employer-friendly “de minimis” rule. What Read More

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