Articles Tagged with employment law

Fotolia_170700284_Subscription_Monthly_M-300x200
How Can a Founder be Removed as an Employee?

You may expect the founder of a company to remain in charge of the enterprise until it the founder either retires or the company closes up shop. After all, the company would not exist without the founder, so they should retain control over their own business, right? However, there are situations where founders and CEOs are removed from their positions in an organization.

It may not seem fair that a founder starts a business from scratch, work long hours every day to build the business, find investors, and then have the investors decide that someone else should lead the company in further growth. When money is on the line, however, investors will make sure to do what is best for the company. Ousting founders seems particularly common in the tech industry, and the following are only some examples of removed founders:

Fotolia_72715793_Subscription_Monthly_M-300x200
For decades, the traditional 40-hour per week work schedule has involved working five eight-hour days per week, often Monday through Friday. However, in recent years, many companies have realized the benefits of offering alternative work schedules for employees. Such benefits include improved job satisfaction, employee morale, additional opportunities for public service, reduced time off work for medical appointments and child-related obligations, and more.

Employees have many reasons for preferring an alternative schedule to the traditional nine-to-five. A popular schedule is working four 10-hour days in a week and having a consistent three-day weekend. However, California overtime laws traditionally required employers to pay overtime rates – time-and-a-half regular hourly pay – for any hours worked over eight in a day. In recent years, the legislature adapted California law to address new employment trends to allow and even encourage employers to offer alternative workweek schedules (AWWS) to employees without paying overtime rates.

Employers should be careful to comply with all relevant laws when offering an AWWS to employees in order to prevent liability. If you are considering offering an AWWS, it is always wise to first consult with an experienced employment and business attorney.

Fotolia_69411638_Subscription_Monthly_M-300x200Contracts are essential to any business deal. No matter how close the parties and no matter how clearly the terms are spelled out, there is always a possibility of the other party breaching the contract. Whether a contract is with a vendor, another business, an employee, or any other party, a breach can cause financial harm to your company.

Fortunately, a contract should also dictate your rights and options to seek legal remedies in the event of a breach. Our experienced business and contract attorneys can help you through each step of this process to ensure the matter is resolved as efficiently and favorably as possible.

  1. Talk to the other party. Sometimes, a party to a contract may not even realize they are in breach of the agreement. If the breach involves non-payment, there may be ways to agree on a payment plan or another arrangement to fulfill the contract without taking legal action. It is always a good idea to speak with a party – or have your lawyer do so – to explore options to resolve the issue.

Fotolia_117756919_Subscription_Monthly_M-300x200
It is always advisable for employers to have an employee handbook, which will contain important information that protects you legally. Even if a company only has a few employee, without a handbook, it might expose itself to the greater risk of a lawsuit regarding sexual harassment, wrongful termination, and other wrongful treatment of employees.

What to Include in Your Handbook

A handbook is a great reference for employees, who can return to the handbook if they have questions. A handbook also forces employers to carefully consider their philosophy and the rules of the business. An adequate handbook should contain:

Fotolia_75565417_Subscription_Monthly_M-300x200If your business employs workers in California, you need to be aware of California laws that govern employer obligations and employee rights regarding overtime. Employer compliance is strictly enforced, and a failure to comply can result in a class action lawsuit against your business. California courts are known for being very employee-friendly, which can mean extensive liability for employers in overtime claims. At Structure Law Group, we can help your business understand the obligations regarding overtime and assist it with a plan to help manage those obligations.

Exempt vs. Non-Exempt Employees

California law requires overtime to be paid to all non-exempt employees. An employee is only exempt if they fit into a specific category codified by the State of California Department of Industrial Relations. The list includes many professions and occupations, but some of the more common business classifications for an exempt employee includes:

Fotolia_180008799_Subscription_Monthly_M-300x200Startup companies often use stock options to attract new quality talent. If you have decided to do so, there are some special considerations when deciding the best approach to compensate your employees. Two common approaches include restricted stock and stock options.

What is Restricted Stock?

Restricted stock is a stock plan that gives particular employees a right to purchase stock shares. These restricted shares may be at a discounted value, fair market value, or even at no cost. Despite the right to buy the restricted stock, the shares are not actually owned by the employee until a particular triggering event occurs. For example, a company may restrict the transfer of the stock until a particular amount of time has elapsed (e.g., three years from the date of hire). Another example would be a condition regarding company performance (e.g., $1m in gross revenue). The employee then takes possession after the triggering event occurs, thereby lifting the “restriction” on the stock.

Fotolia_199889529_Subscription_Monthly_M-300x200
A lawsuit can be an overwhelming experience for any business owner – particularly if you have not previously had any dealings with the court system. But it’s not cause for panic. The skilled employment law attorneys at Structure Law Group can help San Jose employers resolve such disputes through litigation, arbitration, the Labor Commissioner, mediation, or simple settlement negotiations. The experience of a knowledgeable attorney can allow for fast and effective resolution of employment claims with the least expense possible.

The Many Strategies for Dispute Resolution

Sometimes, a motion to the court can be used to end the litigation before it begins. This is what Yahoo’s legal team did to effectively end a gender discrimination lawsuit that had been filed against the company. The San Francisco Chronicle reports that the tech giant had been sued by a former manager who alleged that the company’s performance evaluation system could be manipulated to produce a gender bias. In an interesting twist, the bias was alleged to favor women, and the lawsuit was filed by a male manager who claimed to have been treated unfairly by it. Yahoo maintained that the manager had been fired as a result of his poor performance. A federal judge dismissed the case before Yahoo incurred the expense of discovery, mediation, arbitration, or settlement negotiations.

Silicon Valley companies have human resource (HR) departments to manage employment issues. HR departments both limit the company’s exposure to legal liability for employment-related claims and

facilitate the timely resolution of workplace disputes. For small companies, however, it can be difficult to train, staff, and maintain HR employees. A Silicon Valley employment law attorney can help you determine whether an HR department is right for your business.

HR-1-300x126
The Cost-Benefit Analysis of Human Resources 

Changing employment can be a stressful, life-changing event. Severance benefits can, however, ease the transition period. With sound advice from a skilled employment law attorney, Californiafotolia_127084189-300x300 employees and employers can both negotiate severance packages which suit their needs.

While it may seem like a severance package is simply a final lump sum figure, the reality is that it can be a complex combination of many different components. An effective negotiation begins with identifying which of those components are most important to you. For example: many employees may be concerned with continued access to health insurance, and may therefore negotiate a lower lump sum payout in exchange for continued coverage. Employers, on the other hand, may be concerned with preventing a future lawsuit against the company. These employers may negotiate a comprehensive release of liability in exchange for the employee’s agreement not to sue the company.

Some people imagine negotiations as a poker game, in which neither party reveals his or her ultimate goals. This will not result in any resolution – let alone one which satisfies both sides. Instead, it is important for each side to be clear about what is most important so that solutions can be tailored to the needs of all involved parties.

If your business employs at least one person, you should always be aware of the ever-changing wage and hour laws in California and your particular city. In addition, if your company has locations and employees in multiple states or cities, you need to be in compliance with the laws of those jurisdictions, as well. One important aspect of employment law is that many states and cities are raising the required minimum hourly wage. Ignorance of the changes to minimum wage laws is not a valid defense to violating those laws and noncompliance can be costly. Contact the California employment attorneys at Structure Law Group, LLP to stay up-to-date on the latest employment law.  The following is a brief overview of the recent updates to minimum wage in California and increases in other parts of the United States.

Fotolia_95586013_Subscription_Monthly_M-300x188
 California Minimum Wage Adjustments

 California has a legislative plan in effect that aims to raise the minimum wage across the state to $15.00 per hour by the start of 2022 for most businesses and by 2023 for smaller businesses. There is one set of guidelines for companies that employ 26 or more individuals and another set for companies with 25 or fewer, so it is important to know which set of guidelines applies to your business.  However, depending on where you conduct your business, a higher minimum wage may apply than what has been enacted by the California legislature, as many cities across the state have increased the minimum wage on their own.  For example, San Francisco raised its minimum wage to $13.64, which will increase to $14.00 per hour on July 1, 2017.  San Jose’s minimum wage is currently $10.50 for all employers and will increase to $12.00 per hour on July 1, 2017.  It is critical to know what the local and state minimum wage is in order to ensure compliance and the employment attorneys at SLG can help.