Hiring
Beware of Independent Contractor Status
So You Would Rather Use Independent Contractors? Yes, we understand it’s much less headache: no workers’ compensation, no withholding, no payroll, no employment law liability, right? Wrong if you are negotiating with the EDD, DOL, Labor Commissioner or other friendly neighborhood bureaucrats. The Crackdown The EDD and the federal Department of Labor in particular, seem [...] read more
At-Will Employment – The Cornerstone of Employer Rights
Wrongful termination, breach of contract, discrimination and harassment: that’s all we business owners and management hear and read about in the media. We don’t hear that the employment relationship under California law is presumed to be “at-will.” At-will means either the employer or the employee may terminate the employment relationship at any time, for any [...] read more
Department of Labor Increases Budget For Shake Down
Your tax dollars at work – the federal Department of Labor (DOL) has increased its budget request 16% in 2010 and 25% in 2011 over the 2009 budget (all you smaller business owners out there can groan out loud!). Part of the reason for the requested increase in budget? So they can bust your company [...] read more
Employment Contracts
Employment contracts are an exception to the assumption that all employment is “at-will” employment. “At-will employment means the employer or employee may terminate the employment relationship at any time with or without notice and with or without “cause.” Generally speaking the employment relationship under California law is not “contractual,” it is governed by the general [...] read more
Breach of Contract
California courts have stated the employment relationship in California is “primarily contractual.” This a misnomer because the employer and employee relationship is a special legal relationship that is framed by a mixture of statutory, contract, tort and criminal law. Even the foregoing phrase “primarily contractual” hedges its bets. What does it mean to be “primarily” [...] read more
Preventing Employment Law Problems
Avoid Emergence of Employee Legal Problems Many business owners and entrepreneurs tell us that dealing with employment law matters ranks among their least favorite management activities, while also being one of their greatest concerns. Understandably, they wish to focus their efforts on activities which generate revenue and which keep their customers happy and their employees [...] read more
Top 10 Preventable Employee Lawsuits
Wage and Hour Claims Discrimination Claims Wrongful Termination Claims and Whistle Blowing Claims Leaves of Absence Related Claims Harassment Claims Breach of Contract Trade Secret Misappropriation and Unfair Competition Defamation Claims Invasion of Privacy and Drug Testing Class Actions, and Business and Professions Code 17200 Actions (Download Full Report (PDF)) Avoiding Employee Lawsuits The California [...] read more
Management Discriminates Daily, But Is It Unlawful Discrimination?
Jack Welch, in his book, Winning (chapter 3 “Differentiation” page 37), underscores one of his core values by stating: “Companies win when their managers make a clear and meaningful distinction between top- and bottom-performing businesses and people, when they cultivate the strong and cull the weak. Companies suffer when every business and person is treated [...] read more
FAQ: Employment & Labor Law for Small Businesses
Should my small business be concerned with employment and labor law? Yes. Many laws apply even if your small business only has one employee. Once your business hits five employees most major employment and labor laws apply. Even micro businesses in California are subject to employee claims. “What kinds of employment and labor laws apply [...] read more
Independent Contractors
A Distinction With a Difference
We are in the information age where the “knowledge worker” is king. More and more workers wish to operate as “free agents”—independent contractors. The problem is the federal and state government haven’t quite figured that out yet. The hot topic for them is “reclassifying” free agent independent contractors to employees whenever possible, with devastating results from the business’ perspective. After all, they want their taxes. Read More »