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(323) 652-9451 - LAOn March 23rd, a jury in the Los Angeles Superior Court returned a verdict in favor of our client, Skilled Wound Care, against its former employee. The successful claims included misappropriation of trade secrets, intentional interference with contractual relations and prospective advantage and breach of contract.
Learn MoreMany nonprofits must rely on individuals volunteering their time in lieu of a paid staff. Last month, a California appellate court, in Spilman v. The Salvation Army, adopted the following two-part test to relieve nonprofits of potential wage and hour liability:
Did the worker freely agree to serve for personal or charitable purposes, not compensation, and is the nonprofit’s use of unpaid labor a subterfuge to evade wage laws.
Learn MoreI previously boasted how much our firm is leveraging AI to provide our clients greater efficiency and most savings.
This is only half the story. Although we were early adopters of AI technology for improving our practice, and we believe it will transform the practice of law (and everything else), we have serious trust issues with AI bots–and you should too!
To say that AI occasionally gives us wildly incorrect information is a major understatement. If employers rely too heavily on AI without having a working, up-to-date knowledge of federal, state and local employment laws, or without fully confirming accuracy of the advice, the risks are huge.
So, we caution employers against using AI alone to make important employment law-related decisions, at least as the technology currently exists. Pick up the phone and confirm or clarify with us that the advice you are getting from your AI bot will help, not hurt you.
Learn MoreLike everyone, we are awestruck by this thing called Artificial Intelligence (AI). It’s crazy, right? Civilization is turning a page.
We first want to share with our clients that we leverage AI responsibly, ethically and judiciously to enhance efficiency and reduce attorney fees wherever possible. We use AI to assist in conducting preliminary legal research, early document drafting, revision, and strategy development.
We aim to save our clients as much as 20% of attorney fees over the year by our incorporation of AI into our practice. As AI evolves, we will evolve with it and continue to pass savings on to our clients.
Learn MoreStarting January 1, 2026, Senate Bill (SB) 642 tightens California’s pay-equity and transparency rules. Employers must include a genuine, good-faith salary range in every job posting, not a placeholder or open-ended figure.
The law also expands the Equal Pay Act by adding “another sex” as a protected category and broadening “wages” to include bonuses, benefits, stock options, and allowances. It lengthens the statute of limitations for pay-equity claims, increasing long-term exposure for employers and the need for careful compensation audits.
Learn MoreThe compliance deadline for compliance with new California mandatory workplace “Know Your Rights” notice requirement is February 1, 2026.
More specifically, the new law requires giving a standalone written notice to all employees and new hires at hire. The notice addresses wage-hour, discrimination, retaliation and other issues. Penalties can reach $10,000 per violation, making advance planning critical.
Good news: compliance is not difficult! The Department of Industrial Relations (DIR) has issued a template you can download and distribute to employees. A Spanish translation is also available. Both are available at the DIR website, https://www.dir.ca.gov/dlse/Know-Your-Rights-Notice/Know-Your-Rights-Notice-English.pdf
Learn MoreEmployers sometimes ask how to provide a comprehensive Employee Handbook to employees across multiple states, where the laws differ dramatically from California.
This is an easy fix and we do it all the time: provide an addendum to the California Handbook identifying the “exceptions” to the California Handbook for every state in which an employee performs work. Since California has a very comprehensive body of employment law, the exceptions for other states tend to be minimal.
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Starting January 1, 2026, California’s statewide minimum wage will rise from $16.50 to $16.90/hour for all employers. That increase also bumps the minimum exempt-employee salary to $70,304/year. Recall certain exempt-employee categories, such as the Executive, Administrative and Professional exemptions require the exempt employee earn a monthly salary that is no less than twice the state minimum wage for full-time employment (defined as 40 hours/week). Importantly, many cities (e.g., Los Angeles, San Francisco, Emeryville) maintain higher local minimum wages, sometimes well above the statewide minimum. Be sure to confirm you are meeting the new wage requirement for your specific location. |
Starting February 1, 2026, California’s SB 294, the Workplace Know Your Rights Act, will require employers to give every new and current employee a standalone notice explaining their key workplace rights.
The notice must cover workers’ compensation, immigration protections, union activity, and constitutional rights when law enforcement visits the workplace. It must also include a summary of new legal developments under laws enforced by the California Labor & Workforce Development Agency, as identified by the Department of Industrial Relations as “material and necessary.”
The state will provide a model notice that must be shared in the employee’s language and sent to any union representative. Employers must also notify an employee’s emergency contact if the employee is arrested at work. Penalties are steep, up to $10,000.
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Effective January 1, 2026, Assembly Bill 692 bans most “stay-or-pay” agreements. These agreements require employees to repay training, relocation, or similar advanced costs after leaving a job before a designated time. The California legislature sees these clauses as unfair limits on job mobility. Only true loans or legitimate retention bonuses are exempt. Employers should review offer letters, training and relocation agreements, and any repayment terms now. If repayment depends on staying employed, it’s probably unlawful. Replace claw-backs with retention bonuses or tiered incentives that reward commitment instead of penalizing departures. |
Pay equity refers to the idea that people doing essentially the same work should be paid the same, regardless of their sex, race, or ethnicity.
Governor Newsom has signed SB 642, the “Pay Equity Enforcement Act,” expanding California’s Equal Pay Act and related disclosure rules. Labor Code § 1197.5 already bars pay differences based on sex, race, or ethnicity for substantially similar work unless justified by seniority, merit, productivity, or another bona fide factor.
California continues tightening its focus on transparency and pay equity. This new law strengthens enforcement and ties those duties to California’s pay-scale disclosure law (Labor Code § 432.3), requiring employers with 15 or more employees to list pay ranges in all job postings and provide pay information on request.
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In Iloff v. LaPaille (Aug. 2025), the California Supreme Court clarified two key issues. First, liquidated (double) damages for minimum wage violations are not automatic: employers may avoid them only by showing a documented, reasonable effort to comply with wage laws. Mere ignorance is insufficient. Second, employees cannot sue directly under the Healthy Workplaces, Healthy Families Act, but may pursue claims through the Labor Commissioner, the Unfair Competition Law, or PAGA. For employers, the message is clear—classify carefully, document compliance efforts, and preserve records to demonstrate good faith if wage or paid leave disputes arise. |
