An injunction is an order granted by the court that requires the parties to not do a particular thing. Business contracts often refer to “injunctive relief” (or obtaining an injunction from a court to stop someone from doing something) or the related “specific performance” (requiring someone to do the specific things they agreed to do in a contract) as an option when economic damages are not sufficient to cover a problem. Examples of such situations include prohibiting contractors from sharing information they were given under a non-disclosure agreement and forcing a seller of a unique good to actually deliver the... READ MORE

Many business owners choose to protect their business by forming a separate entity, such as a limited liability company (also known as an “LLC”). Often, forming an LLC for your business can hit the “sweet spot” of compliance concerns. This is because an LLC gives your business benefits like a formal structure, its own tax number, and some limited separation from yourself, while also avoiding many of the corporate formalities that are required with traditional corporations. Many business owners take this lack of corporate formality to mean that their LLC has no recordkeeping requirements whatsoever. Unfortunately, this is simply not... READ MORE

Businesses and charities love to raise funds and awareness by holding games of chance, especially raffles and sweepstakes. These can be fun ways to get people involved in a marketing campaign for a new product, or in participating in a community event. However, there are very strict laws about how to legally hold a raffle or sweepstakes. It’s important to know the requirements here, to make sure your business doesn’t end up accidentally running an illegal lottery. Raffles Charities are allowed to hold opportunity drawings such as raffles, so long as they meet the requirements laid out in the California... READ MORE

Business owners looking to grow and expand their businesses often do so by acquiring new assets, buying real estate, venturing into a new industry, or by acquiring an existing business. In many of these situations, it makes sense for business owners to establish a new entity to operate the new business or to hold the new assets. There are a number of reasons you may want to consider forming a new entity in this New Year. Different Business Owners or Investment Structure In some cases, business owners may want to form a separate entity for their new venture to allow... READ MORE

In California, employees are regularly hired “at-will,” meaning that companies can, and do, let them go at any time and for (just about) any reason. However, there is more to letting someone go than just saying “you’re fired” and escorting them from the building. Because of the likelihood of an employee-employer relationship turning sour upon termination, it’s a particularly good idea for a company to have a formal, objective termination policy in place. A termination policy can also help to protect your business in instances of accusations that an employee was let go for a reason that is not legally... READ MORE

As your business grows and you employ a number of people in different positions, you’ll want to consider putting together (and then periodically updating) an employee handbook. This document should be clear, well written, easy to search, and cover a number of different aspects about how your company’s policies will be applied. A handbook not only helps employees understand what is expected of them, but it also protects you in any potential future disagreement with your employees. Having clearly-written policies, which are then properly enforced, can be an integral defense in a labor dispute, and can even help prevent such... READ MORE

The new year will bring with it several new laws that will impact businesses of all industries and sizes. To help highlight some of these changes for our clients, we’ve put together a list of the laws covering some of the most important changes, and some of the steps you can take to remain in compliance. Minimum Wage: As the minimum wage continues to inch towards $15, it’s important for employers to keep track of the incremental increases required each year. On January 1, 2019, the minimum wage will increase to $11 for employers with 25 or fewer employees and $12 for employers... READ MORE

Product liability for brick and mortar stores is generally well understood by the owners and their insurers. On the other hand, online retailers, are often less familiar with their legal responsibilities related to the products they sell. However, understanding and insuring against product liability risks is equally important for both physical and online-only businesses, as without this safety net, an unexpected defect can easily bankrupt your company. Whether you’re selling bath bombs from your home or growing your business of organic dog treats into a thriving national company, you should take the time to understand and guard against the unexpected... READ MORE

Contracts are a core part of running a company. From formalizing a partnership to hiring employees to selling your product, even down to hiring a plumber to fix your office bathroom, contracts determine the details of how your business does business. Because contracts are so integral to running a company, having experienced corporate counsel who you can reach out to for help with your basic contracts (and who can answer questions about new contracts when they arise) is incredibly important. Though the contracts you’ll run into over the years will be remarkably diverse, they all tend to include a few... READ MORE

2018 has been an incredibly eventful year! This year, there were a number of developments in a number of sectors, including important changes in employment law, data security and privacy regulations, and tax rules and regulation. In this newsletter, we’ll “look back” on these developments and highlight for you some of the key changes from 2018 that may affect your business. Employment Independent contractors: California presumes that all workers are employees unless a business is able to demonstrate that they meet every element of the ABC Test: The worker is free from the control and direction of the hirer in... READ MORE