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(323) 652-9451 - LA| Many California employers are unfamiliar with Bus. & Prof. Code Sec. 16600, which bans any agreement that would prohibit another from competing in the same field. However, there are three narrow statutory exceptions where noncompete terms may be enforceable:
(1) Sale of Business (§ 16601): A seller of a business may agree not to compete with the buyer within a reasonable geographic area, so long as the seller receives value and transfers goodwill. (2) Dissolution of Partnership (§ 16602): Partners leaving or dissolving a partnership may agree not to compete in a specific area. (3) Dissolution of LLC (§ 16602.5): Similar rules apply when members withdraw from or dissolve an LLC. Outside these exceptions, even narrowly tailored noncompetes are unenforceable, and employers should instead rely on trade secret and confidentiality protections |
As summer vacation approaches, California employers hiring minors must navigate specific legal requirements. Under Education Code Section 49110, et seq., a valid work permit is required. Both minors and employers complete a “Statement of Intent,” and the minor’s school issues a “Permit to Employ and Work.” Emancipated minors may apply independently but remain subject to child labor laws.
Work hours vary by age. Under California Labor Code Section 1391, 14–15-year-olds may work limited hours during school weeks; 16–17-year-olds may work more. Certain hazardous jobs—like operating heavy machinery or working with toxic substances—are off-limits.
Employers should review these rules carefully to stay compliant and provide a safe work environment for youth employees.
| Effective July 1, 2025, the Los Angeles County Fair Workweek Ordinance applies to retail businesses with over 300 global employees, including those hired through staffing firms or franchisees.
It covers employees working at least two hours per week in unincorporated county areas. Employers must give a good-faith schedule estimate, publish schedules 14 days in advance, and pay predictability pay for late changes. “Clopening” shifts (less than 10 hours apart) require written consent and premium pay. Employers also cannot require employees to find shift coverage. This mirrors a similar ordinance governing LA city employers. |
I continue to see instances in which an employee was terminated, and the employer paid some amount in severance, but did not get a signed severance agreement.
The purpose behind a severance agreement is to allow a terminated employee the option to receive some payout (money to which the employee is not already owed) in exchange for waiving employment claims. A signed severance agreement protects employers against most claims that could be brought by a former employee. These waivers are typically the purpose of a severance payment.
Without a signed severance agreement, the severance money is just a gift, nothing more.
By May 14, 2025, California employers with 100 or more employees must submit pay data reports to the Civil Rights Department (CRD) under Government Code section 12999. Reports must cover 2024 data by race, ethnicity, sex, pay band, and job category. Penalties can reach $200 per employee. Labor contractors must coordinate reporting.
Effective January 1st, Senate Bill 1137 amended Government Code section 12926, of the Fair Employment and Housing Act, to prohibit “intersectional” discrimination—bias based on a combination of protected characteristics like race and gender. The law clarifies that protection extends to any combination or perception of characteristics.
This is an ideal time to update your employee handbook and confirm your policies comply with current law.
Misclassifying a California employee as exempt can lead to significant legal and financial consequences for employers. Under California law, exempt employees must meet strict salary and duty requirements, and failure to properly classify workers can result in liability for unpaid overtime, missed meal and rest breaks, and other wage violations. If an employer mistakenly classifies a non-exempt employee as exempt, they may owe back wages, penalties, interest, and attorneys’ fees, which can add up quickly, especially in class action lawsuits.
Beyond financial risks, misclassification can also lead to audits and enforcement actions by the California Labor Commissioner or the Division of Labor Standards Enforcement (DLSE). Employees who are denied proper wages may file wage claims or lawsuits, creating reputational damage and operational disruptions for the employer. Given California’s strict labor laws and the burden placed on employers to prove proper classification, businesses should carefully assess job duties and compensation structures to ensure compliance and minimize risk.
We are always available to help employers properly classify employees.
Recognizing that many California businesses unwittingly employ non-citizens, and given the Trump Administration’s focus on Immigration Customs and Enforcement (ICE), we provide this update on anticipated ICE activities.
The administration suggests a higher chance of ICE worksite visits, usually based on civil or criminal warrants.
ICE’s Enforcement & Removal Operations (ERO) will likely prioritize non-citizens with serious criminal records or removal orders. The risk of untargeted workplace “raids” is low, but I-9 “audits” are expected to increase.
In an I-9 audit, ICE’s Homeland Security Investigations (HSI) issues a Notice of Inspection and collects I-9s. In California, employers must post the notice and notify any union.
Employers are liable for missing or erroneous I-9s but not for documents that seemed valid at hiring. ICE may now bypass the traditionally required Notice of Suspect Documents and arrive with a civil warrant for immediate arrests.
We know it is common to ask about transportation and driver’s licensure during the application process for many jobs. A new law addresses this.
Effective January 1, 2025, California Senate Bill 1100 (Gov. Code Sec. 12940), prohibits employers from requiring a driver’s license in job postings unless the prospective job meets a two-part test: (1) driving must be a job function, and (2) alternative transportation must be impractical in terms of cost or time.
This change aims to remove employment barriers for qualified candidates without licenses. Violations may result in injunctions, damages, legal fees, and costs..
To comply, employers should:
Determine if your existing or contemplated job posting (recruitment or hiring) practices require a driver’s license
Assess job roles to see if they meet the test
Update job descriptions and postings accordingly
Review handbooks and policies for necessary changes
Train hiring staff to avoid unnecessary license inquiries
Reminder: California employment laws change constantly. Your employment practices must be kept up to date and communicated to workers in an acknowledged handbook. This is an ideal time to update your employee handbook and confirm your policies comply with current law. We are pleased to assist. Contact us here.
Employers are now prohibited from requiring employees to attend meetings or participate in communications concerning the employer’s opinions on religious or political matters, including union organizing. This legislation aims to protect employees from coercion regarding personal beliefs.
