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Buyers Beware: AB5 May Add More Costs to Purchasing a Business

It is commonplace for the seller of a business to provide consulting services to the buyer after the sale. Typically, an owner will enter into a consulting agreement whereby the seller will provide transition services after the closing. These transition services include things such as introducing the buyer to vendors, answering questions about the business...

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Terminating a Lease or Raising the Rent? New Laws Landlords Must Know

As a residential landlord, there are already a plethora of laws you must know and abide by. On October 8, 2019, California added two more to be aware of. Assembly Bill 1482 (“AB 1482”) provides two new protections for residential tenants: first, landlords may no longer freely enforce “no fault” terminations of residential leases,...

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Insurance May Cover Negligent Hiring Lawsuits

California businesses face enormous obstacles to profitability. One significant obstacle is the never ending threat of lawsuits by customers, employees, and others. A 2018 decision from the California Supreme Court has provided a ray of hope regarding certain types of lawsuits. In August 2018, the California Supreme Court ruled in Liberty Surplus Insurance...

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Exempt Employees May Need Raises to Remain Exempt in 2020

Many businesses elect to pay certain employees a salary which meets or exceeds the United States Department of Labor’s (DOL) minimum salary, allowing such employees to be exempt from overtime compensation under the Fair Labor Standards Act (FLSA) (assuming other applicable criteria are also met).  Effective January 1, 2020, that minimum salary will...

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Sexual harassment training deadline extended to January 1, 2021

A few months back, we reminded our employer clients that, for most employers, January 1, 2020 was a hard deadline to conduct sexual harassment training for all of their employees. (See article here). At the close of this legislative season, Governor Newsom signed into law a bill delaying that deadline to January 1, 2021, for employers who have between 5...

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AB5 Broadens and Creates Carve Outs to Dynamex

For companies that rely on independent contractors to make up or supplement their workforce, January 1, 2020, will no doubt present a challenge. In previous newsletters, we have discussed California Assembly Bill 5 (“AB5”) and the California Supreme Court decision in Dynamex Operations West v. Superior Court, No. S222732 (“Dynamex”) which AB5 sought to...

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