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AdobeStock_250195228-300x192In September 2020, California Gov. Gavin Newsom signed into law Assembly Bill 979, also known as AB 979, in an effort to increase the diversity of the board of directors of publicly traded corporations headquartered in California. Corporations that meet the criteria must have at least one director from an underrepresented community by the end of this year.

In addition, the new law imposes strict reporting requirements to ensure that publicly traded companies comply with AB 979 and other diversity laws.

What is Assembly Bill 979?

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Employers’ non-compliance with meal and rest break requirements accounts for a large percentage of civil litigation and Labor Commissioner disputes between employees and employers in California.

It is critical for employers to understand California’s meal and rest break requirements to ensure compliance with these laws and avoid potential litigation. If you are not sure whether or not you comply with the requirements for mandatory breaks, consider speaking with a lawyer.

What Are the Meal Break Requirements in California?

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AdobeStock_333504091-300x200One of the many changes brought by the COVID-19 pandemic was the work-from-home shift. As millions of workers across the nation had to switch to remote work during the pandemic, many employers wonder, “How does working from home affect the productivity of employees?”

The impact that remote work has on workers’ productivity levels is a controversial topic. While some employees believe that they are more productive when working from home, others believe that their productivity decreased because they switched to remote work.

Since an increasing number of employees are working from home nowadays, more employers want to keep an eye on their work-from-home employees through the use of remote monitoring technologies.

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AdobeStock_429521227-300x212After California has fully reopened its economy on June 15, 2021, many California employers and employees alike have been wondering, “Can an employer compel its workforce to get vaccinated prior to returning to work?”

The short answer is, “Yes.” An increasing number of companies in California have mandated vaccination policies for their employees. Under federal and California state law, employers can require all or some of their employees to be vaccinated in order to return to work.

Under the Fair Employment and Housing Act (FEHA), employers are allowed to mandate vaccinations against COVID-19 as long as the decision to require an employee to be vaccinated harasses or discriminates against the employee. Employers should also keep in mind that they are required to provide reasonable accommodations related to employees’ disabilities and religious beliefs.

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IPO-e1640887497504-300x202An ever-increasing number of startups and companies in California are opting for direct listings as an alternative to going public through an initial public offering (IPO). If you ask any business owner in California, “What is the hardest part of launching and running a company?” you will probably hear, “Raising capital.”

Once, IPOs were the only real option to grow a company and raise money for your business. However, in recent years, new trends have emerged, making direct listings a more viable option.

If you are not sure whether you should pass on initial public offerings and go the route of direct listings, consult with a legal and business expert. At Structure Law Group, our LA and Silicon Valley business lawyers give practical business advice to clients whether they are running a one-person business or a company that employs hundreds of employees.

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AdobeStock_310940613-300x199Whether your company is headquartered or has a presence in California, you need to be aware of the California Consumer Privacy Act (CCPA), which went into effect in 2020. The consumer-friendly law applies to startups, companies, and other businesses that collect personal information from Californians.

The CCPA, which is intended to protect the privacy rights of consumers within the State of California, may require your business to make significant changes to your data privacy and collection practices.

Read on to find out whether or not the California Consumer Privacy Act may impact your startup and learn what you can do to ensure that your business is in compliance with the CCPA.

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AdobeStock_243450386-300x214After the Securities and Exchange Commission (SEC) amended its “accredited investor” definition in August 2020, it amended its rules once again in November of the same year. In its latest rule amendments, the SEC increased the annual caps on equity crowdfunding and raised the maximum offering amounts for Reg A+ offerings and Rule 504 of Reg D offerings.

In November 2020, the SEC amended its rules to expand investment opportunities and promote capital formation while also strengthening protections for investors in the United States. Some of the most significant rule amendments included:

  • Amend the rules governing the integration of private and public offerings to permit concurrent private and public offerings;
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AdobeStock_252112056-300x200Changes to the California Family Rights Act (CFRA) took effect on January 1, 2021, after the passage of Senate Bill 1383. The expansion of the CFRA has brought significant changes to employers and employees in California.

Below, we will summarize everything California employers should be aware of to ensure compliance with the CFRA expansion.

SB 1383: Sweeping Changes to the California Family Rights Act

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AdobeStock_446615933-300x200In December 2020, the Delaware Supreme Court broadened the scope of stockholders’ pre-litigation inspection rights. In a unanimous decision, the Supreme Court reaffirmed the Delaware Court of Chancery’s ruling in Lebanon County Employees’ Retirement Fund vs. AmerisourceBergen Corp.

When reaffirming the court’s decision, the Delaware Supreme Court addressed the circumstances in which stockholders have a right to demand books and records under Section 220 of the Delaware General Corporation Law (DGCL).

How Will the Supreme Court’s Decision Affect Section 220 Demands?

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LLC-300x297As a business owner, one of the first decisions you will make is to choose a business entity type. California recognizes many different types of business entities. Each comes with both benefits and limitations, so it is important to work with an experienced California business lawyer to be sure that you select the business entity type that is right for your unique business. The right business entity type can give you flexibility in running your business, confer tax benefits, and ensure that your new business is run as effectively as possible. Learn more about the flexibility – and limitations – of LLCs and corporations in California.

Flexibility Of LLCs Versus Corporations

Many business owners are familiar with the benefits of an LLC. Because the company is created with limited liability, owners can not generally be held personally liable for debts of the business so long as they continue to meet LLC legal requirements. This means that the business owner’s liability is usually limited to whatever funds are invested in the business. Entrepreneurs are usually familiar with these benefits and instinctively want to form an LLC to avail themselves of these benefits. But an LLC is not the only business entity you can form. In some cases, a corporation might give your business greater flexibility to raise funds and conduct business.

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