Blog

All Employment Law Business Litigation Intellectual Property & Trade Secrets Construction Defects Business Formation Transportation & Logistics Firm News Blog

TRUCKING COMPANIES, TRUCKERS PLAGUED BY PARKING PROBLEMS

Parking may not seem like a serious issue to most motorists. At most, it can be an infrequent, sometimes expensive, headache. However, for those in the trucking and transportation industry, parking is among the most stressful parts of a driver’s job. It is also creating considerable challenges with regard to complying with federal regulations and avoiding financial waste, according to a recent report. Why is parking such a problem? Commercial truckers must stop driving after a certain number of hours on the road to sleep and rest. These limits are established in the Hours of Service regulations. When they stop, drivers typically look for safe, authorized parking spots. However, there are not enough of these spots available. As such, drivers can spend at least an hour per trip looking for a place to park safely, which is stressful and results in wasted fuel and lost productivity. Drivers who cannot find a space may continue driving in excess of HOS regulations, or park in an unsafe location like an exit ramp. These decisions can result in hefty fines and possible accidents that lead to catastrophic damages. Unfortunately, there are no easy solutions. Consequently, truckers and trucking companies can struggle to comply with regulations and may be faced with fines and liability issues that could jeopardize jobs and their business. Should these matters arise, resolving them quickly, typically with the assistance of competent counsel, can help minimize the damage. An attorney may be able to help minimize penalties associated with fines or offenses.

WHEN YOU COULD BE LIABLE FOR YOUR EMPLOYEES’ DRIVING HABITS

Transportation plays a critical role in today’s workforce, whether people work in the transportation industry or travelling is just a part of their job. As an employer, you probably have in place specific policies related to traveling, from approving expenses to tracking work hours away from the office. These policies can prevent disputes with employees and lawsuits, so it is critical to have them. And it is important that they address the full range of travel-related behaviors, including driving habits of your employees who drive either their own vehicle or a company vehicle as part of their job-duties in the course and scope of their employment. For instance, did you know that your company could be responsible for an accident caused by an employee who was distracted by a phone? The big problem with distracted driving Driving while distracted is something that countless drivers do every day, despite laws in place to deter such behavior. In the interest of either efficiency or boredom, workers while driving check emails, texts, and speak on the phone (as well as other types of distracted driving such as petting their dog, looking for an address, applying make-up). If an accident result due to the worker’s conduct, the victim may pursue compensation from the driver, the owner of the vehicle and the worker’s employer. Employers: protect yourself and others To prevent distracted driving accidents and to shield your business from an unfortunate legal battle, employers should have in place clear, consistently-enforced policies on safe driving. Employers might have a policy that they do not expect an immediate response to work-related correspondence while a person is on the road, and that there is no requirement for drivers to answer their phones or call anyone back unless they can do so safely. As this article notes, it can also be wise to limit employment opportunities that involve driving to workers with a good driving record. Requiring drivers to complete driving classes can also be an option worth considering. Having solid policies in place and helping employees practice safe driving habits can be wise decisions for employers to avoid both serious car accidents and costly litigation.

EMPLOYERS: HOW TO RESPOND TO REPORTS OF SEXUAL HARASSMENT

California employers are struggling to create and maintain a safe, healthy and productive workplace. It involves hiring the right people, establishing an appropriate culture and balancing legal compliance with the cost of instituting the necessary safeguards. Indeed, despite all the work that employers might put into creating a positive workplace for employees, it can all be overshadowed by alleged sexual harassment or sexual abuse. In situations where an employee or employees are reporting harassment, there are some crucial steps employers should take to respond to a harassment claim. 1. Take the Complaint Seriously. Every employer, supervisor and manager should know to take complaints seriously. Dismissing or minimizing them out of hand can ultimately lead to a lawsuit. You should speak with the alleged victim and assure them that they will not face retaliation and that you will investigate to make sure all your employees are in a safe environment. 2. Investigate the Claim. Make an earnest effort to immediately investigate the complaint. This typically involves interviews with the alleged harasser and witnesses. The investigation should be thorough and unbiased. If you don’t feel you can conduct such an investigation yourself, or if it involves you or someone close to you, there are law firms, investigation companies and human resource companies who perform this type of investigation. 3. Take Appropriate Action. Depending on the results of the investigation, take appropriate action. The action you take should be lawful and reasonable to avoid additional complaints and possible legal claims. Options could include adjusting work assignments or settings, disciplining and possibly terminating the harasser. NOTE: This, too, must be done in a legally permissible manner to avoid a wrongful termination claim by the alleged wrongdoer. 4. Fully Document the Investigation & Remedial Action Taken. Keep track of all emails, notes and other documentation you generated and collected throughout the course of the investigation. This can provide critical protection to the company should future claims arise, and it can serve as evidence of your efforts if anyone challenges the actions you took or did not take.

BAD FAITH NEGOTIATION TACTICS TO KNOW AND AVOID

Negotiating a partnership, commercial lease, settlement or other type of agreement in California can be a tedious process. However, as difficult as these negotiations are, they can become even more challenging when the parties attempt to memorialize the agreement in writing – particularly if one party attempts to employ bad faith tactics. A recent article from the New York Law Journal describes how such efforts can sabotage good faith negotiations, so it is helpful to understand what these tactics are. Below are some examples of what these might look like. Negotiating without an interest in reaching an agreement In these situations, false negotiators are typically only interested in collecting information about the other party. There is no real intention of entering into an agreement. In these cases, be wary of excessive delays, refusal to answer questions directly and dealing with individuals who are not authorized to make decisions. Last-minute demands If parties have reached an agreement on material terms, they should not change those terms or try to leverage those terms for additional concessions without good reason or fair compensation. Hiding significant material facts This is not only in bad faith, but possibly fraudulent, depending on what facts are concealed. To protect against this possibility, your attorney will typically include a provision in the written agreement in which the parties warranty their representations and sets forth a remedy to the aggrieved party in the event any such material representations are false. How to deal with bad faith negotiations Heading into any business negotiation warrants support and careful preparations. Whether you trust the other party or not, you will want to be cautious and protect yourself. Make sure you have a competent attorney represent you and be wary of bad faith tactics. If you’re negotiating a deal that you have no obligation to complete – such as a partnership agreement – and you are confronted with these types of tactics, you may wish to take it as an omen to come and withdraw from the deal before it’s too late.

REPORT: CONSTRUCTION DISPUTES TAKING LONGER TO RESOLVE

Construction disputes are not uncommon across California, whether parties clash over construction defects, enforcing the terms of a contract or liability issues. Often, there are several parties involved in a single project, which means there are plenty of opportunities for arguments, oversights and errors, which can and do lead to legal disputes. Unfortunately, as a recent report from Arcadis shows, these disputes are not getting any easier to resolve. More time, less at stake The report notes that in North America, the average time it takes to resolve a construction dispute stretched out to 17.7 months in 2017. This is two months longer than the average time it took in 2016. And it is nearly three months longer than the global average. Not only are the disputes taking longer to resolve in North America, but the value of the disputes is decreasing. In 2016, the average value of a construction dispute was $21 million; in 2017, it dropped to an average of $19 million. Globally, the 2017 average value of construction disputes were up to $43.4 million. Reasons behind the disputes The report goes on to say that contract disputes are the most common triggers of legal disputes. Globally, failure to administer a contract properly was the most common cause of disputes. In North America, omissions or errors in the contract were the leading cause of construction disputes. What we can learn from these numbers What we can take away from this report is a powerful reminder that properly creating and reviewing a contract is vital, particularly when it comes to complex or large projects. Readers can also be reminded of the fact that resolving contract disputes can be a lengthy, complicated process. And with so much at stake, having qualified legal counsel throughout the process, from creating a contract to finalizing a project, will be critical in preventing and resolving costly disputes.

LANDLORD-TENANT DISPUTES CAN ADVERSELY AFFECT OTHERS

Leasing commercial space is vital for business owners across California. They want to find the right space for the right price in the right neighborhood. Once they find such a location, holding on to it can be a top priority. However, that might be easier said than done when a commercial tenant and landlord get into a dispute. In these situations, not only could landlords and tenants be facing financial losses, but customers could also suffer consequences. A battle between landlord and tenant For instance, recently a California landlord and a beer garden tenant clashed over the landlord’s decision to evict the beer garden once their lease ends next month. The two parties have had a strained relationship, which was evidently caused by the beer garden owner’s decision to pay the rent late every month. The owner said he did so purposefully because their agreement stated no penalties for late payments. While the beer garden owner says he would be willing to pay the landlords more money if they let him stay, the landlords maintain they have no plans to renew the lease. Loyal customers caught in the middle If the lease is not renewed, the space could sit vacant for at least two years, which is when the landlords hope a new project for retail and restaurant spaces will open. Or, the landlord might continue operating a beer garden in the space, considering the loyal customer base in the area. Ultimately, though, the disputes between the landlord and the beer garden owner puts customers in an unfortunate position. Lessons to learn If you are leasing commercial space, either as a tenant or a landlord, know that you can prevent similar disputes from hurting your business or contractual agreements. One option is to ensure your contract is comprehensive and specific. It should include details about financial expectations and penalties, grounds for terminating the agreement and terms for renewal. It can also be important to work through a landlord-tenant dispute with the help of an attorney, rather than try to navigate a complicated situation alone. This can help people avoid making decisions based solely on emotion, which can work against them in a professional – and tenuous – relationship.

NEW CA LAW REQUIRES FEMALE REPRESENTATION ON BOARD OF DIRECTORS

California business owners should be aware of a recent announcement by Gov. Jerry Brown. According to a law he signed last week, California will be the first state in the U.S. to require certain types of companies to have female representation on their boards of directors. Currently, the measure applies only to publicly traded companies headquartered in California. However, it sends a message to every current and prospective entrepreneur that the business environment in this state is changing. The reason behind the legislation Currently, gender equality in the workplace is a highly visible and divisive topic. Debates regarding equal pay and sexual harassment have dominated news cycles; female representation in traditionally male-dominated industries like politics and S.T.E.M. continue to lag, though there has been progress. These shifts and obstacles prompted legislators to propose and support the bill to require large companies in this state to have at least one female director on their boards. Supporters say that doing so is in the best interests of businesses and their customers. What does this mean for business owners? The actual impact of the legislation remains to be seen. However, it is possible that we will see appeals challenging the laws, as well as pushback from the one-quarter of California companies that will have to add at least one female to their boards. We could also see companies embracing the measure. Instead of fighting it, there could very well be corporations that see it as an opportunity to expand leadership opportunities to deserving – but discriminated against – candidates. Whether you agree with the legislation or not, it could very well affect your business. Even if your business is a small- or medium-sized entity, you may want to consider your own leadership structure and representation. Are you promoting diversity in your business? Are you giving every person equal opportunities for advancement? Are you considering all options for reducing harassment and discrimination in the workplace? This legislation could present legal challenges to business owners in terms of complying with state regulations and avoiding the appearance of discrimination. Should any issues or disputes regarding these matters arise, legal guidance could become necessary.

DO I NEED AN INDEPENDENT CONTRACTOR AGREEMENT?

The short answer to the question in the headline is: yes. If you hire or are an independent contractor, you should have this type of agreement in place. An independent contractor agreement can be a critical tool in defining expectations and rules for a professional relationship. Below, we examine what you should include in these agreements as well as what you can do if a dispute arises. What is in an independent contracting agreement? An independent contractor agreement is a legal contract that, along with other documents, is crucial to verifying the relationship and clarifying the expected work to be completed. As such, a traditional contract should include: The names of the company and the contractor Acknowledgement that the contractor is not an employee Specifics on the project a contractor will work on Expectations for deadlines and hours required to complete the work Payment information, including rates as well as timing and methods of payments Instructions for maintaining communication between the two parties Confidentiality or non-disclosure clauses Guidelines for termination Not only can this document serve as way to ensure everyone is on the same page from day one, the information will be crucial should a dispute arise. What happens if a dispute arises? Just as contract disputes can arise between employers and employees, they can also arise between companies and contractors. In the event of a dispute, parties should first refer to their agreement for clarification. Often, there is information in there that can clear up any confusion and guides parties toward a resolution. This is why it is so important to be sure an agreement is informative and enforceable when signing it. However, if this doesn’t happen, or if parties cannot identify a solution on their own, then they may need to consult an attorney to examine the legal remedies that may be available.

WHY IT’S IMPORTANT TO PROACTIVELY DEFEND YOUR IP

A business’s intellectual property is one of its most important aspects. Intellectual property (“IP”) is an original idea or product created by your business. In today’s information age, it can be easier than ever to find yourself entrenched in a legal battle over IP. That’s why it’s more important than ever to defend a new business idea as soon as it is created. It may seem like an unnecessary step, after all you don’t expect a new idea to be poached before you can act on it. Unfortunately, that’s exactly what can happen. Companies need to be aggressive in defending their intellectual property. This can include creating a comprehensive plan for copyrights, trademarks and licensing agreements. It’s easy now for someone to steal an idea or business plan. Information is readily accessible and careless internet habits or unprotected email passwords can expose company secrets. Risk can also come from an internal threat. Consequently, it’s important to be proactive with new intellectual property. These steps can help your business defend a new IP: Create a plan Understand what aspects of the new idea need to be protected. Is there a state or federal license you need to procure? Should you protect it as a trade secret? Does it have copyright protections? All of these require different approaches and different protections. You need to either research what protections are available for your specific circumstances, or retain a law firm with expertise in IP law. Anticipate duplicates It’s much easier to defend a protected piece of intellectual property than to take steps to defend after the fact. Even though IP laws can be confusing, it’s much better to take steps to defend a new idea before facing any issues. Create and enforce strong non-disclosure agreements A strong non-disclosure agreement doesn’t mean you don’t trust your employees. Instead, it’s a proactive step taken to protect a new idea. Employees change positions and jobs all the time, and they can take confidential information with them. Don’t let another company benefit from your hard work. These are just a few steps a company can take to protect new intellectual property. A forward-thinking approach is always better than having to react to attacks on business ideas. If you’re considering taking steps to protect your intellectual property, an aggressive business attorney can help determine the best course of action.

MUST AN AGREEMENT BE IN WRITING TO BE ENFORCEABLE?

Contracts are necessary to the stability and success of just about any business, whether they are with certain employees, partners, vendors, customers or clients. In order to make sure they function as anticipated, it is important that they be valid, well-crafted and enforceable. Otherwise, it may not be binding or, even worse, operate to the detriment of your company contrary to how it was intended. Obviously, it’s best to retain an experienced lawyer to create a customized contract tailored specifically to your business and its needs. Should you decide to take on this responsibility yourself, you should be familiar with the types of contracts that are not enforceable. For instance, did you know that a contract may not need to be in writing to be enforceable? Handshake and verbal agreements Non-written agreements can be enforceable in California, as long as there are no statutes that say otherwise. For instance, home improvement contracts between contractors and property owners must be in writing and are required to contain certain provisions (in certain locations of the contract in specified font type and size)! Other types of contracts that must be in writing, according to the Statute of Frauds, generally include: Real estate contracts; Contracts for goods costing more than a certain amount ($500 in California); Contracts that will last for more than a year; Agreements to pay off someone else’s debt. In other cases, a handshake or verbal agreement may be valid, though they will likely come under more scrutiny that written contracts and be much more difficult to enforce should you believe the other party is in violation of any of its material terms. Getting it in writing — properly Even if you shake hands or verbally agree to a deal, at the very least you should follow up in writing to summarize the agreement confirming the most elementary terms such as the effective date, the price, date of performance, and expectations to avoid contract disputes and contests. Whether your contract is oral, oral and supported by a written confirmation, or written, a few basic elements must always exist, such as (1) that both parties have the legal and mental capacity to enter into a contract, (2) protecting against duress or undue influence in entering into the contract, and (3) avoiding mistakes in the agreement. Considering how much can be at stake, it would be prudent to have an experienced attorney familiar with contract and business laws when you sign, contest or seek to enforce your contract.

PROTECTING INTELLECTUAL PROPERTY FOR INDIVIDUALS

Previously in this blog, we have discussed how important it is for businesses to protect their intellectual property. However, protecting intellectual property is not something reserved for business entities; individuals can also benefit from such protections. If you work in certain capacities – like design, writing or other creative roles – it can be important for you to understand what intellectual property you might have, as well as why you should protect it. Is it intellectual property? Some of the most common examples of intellectual property that an individual might have include: Music lyrics or original songs Artwork for books or albums Inventions Literary works Photographs Drawings Logo designs Building designs Architectural plans Computer software These are just some of the examples of things individuals create that can warrant protection in the form of patents or copyrights; any creation of the mind can be intellectual property. Do I really need to protect it? As this recent article notes, many individuals fail to appreciate the value of their intellectual property and the importance of protecting it. Often, individual creators feel there is nothing to protect until someone buys their product or service, or that something must be fully created or fleshed out in order to be eligible for protection. But the fact is that these protecting these works as soon as possible can be crucial, especially if you plan to share them with others and don’t want them to take your ideas. That same article also explores a few ways creators can protect their work. For instance, creators can document discussions that refer to the creation. They could request that other parties with whom they share their ideas sign a non-disclosure agreement. They might also register trademarks. Covering your legal bases as a creator Californians who work as creators know how difficult it is to come up with novel ideas and services, so it can be a costly mistake to not protect them. If you have intellectual property you want to protect or if you want to take action against parties for unauthorized use, you can discuss more about your legal options with an attorney experienced in these cases.

SHOULD BUSINESSES TOLERATE MOONLIGHTING?

Moonlighting is a term used to describe the act of working a second job outside of normal working hours. Federal government agencies prohibit employees from this practice, while many public organizations must refer to federal laws and agency regulations. On the other hand, are employees of private companies permitted to moonlight? Generally speaking, yes. But this causes challenges to the employers when employees moonlight and their quality of work decline. The Labor Department reports that about 7.6 million workers in the U.S. hold multiple jobs. Moonlighting is beneficial to employees in a few ways. First, it helps them make extra money when wages aren’t enough. Second, it allows employees to pursue personal endeavors, which can improve their overall happiness and drive. Third, they might learn skills in the second job that can crossover to their first job. Unfortunately, moonlighting has some negative effects as well. It can lead to misuse of an employer’s resources, conflicts of interest, and distraction from job performance quality. To avoid these potential drawbacks, businesses should establish legally permissible policies — not prevent employees from working other jobs, but to set expectations. Moonlighting policies A clear moonlighting policy establishes the standard without applying unnecessary force on employees, for example: Set forth the conditions and expectations of their employment, such as overtime, shift coverage, and various demands and priorities. Require employees to notify management when seeking additional employment opportunities. Specify grounds for termination; for instance, if an employee’s second job interferes with the duties of their current job, management will respond accordingly. Proceed with caution Some businesses choose to implement “no moonlighting” policies, although it is wise to exercise with caution. A policy cannot stop employees from moonlighting. If so, it becomes similar to a non-compete agreement, which California prohibits. Attempting to control what employees do outside of the workplace could lead to legal repercussions. After instituting a moonlighting policy, consistency is important. Multiple employees might approach a business with moonlighting requests. Each individual should be asked the same set of questions, regardless of the circumstance. After that analysis, denying or accepting the request requires managerial discretion. Since moonlighting policies impact both the business and its employees, it is wise to work with an attorney when creating policies that best fits the challenges at hand. Doing so will ensure employees are treated fairly, and the business is protected.

Contact Us

Fill out this form below and we'll contact you shortly
*Required Fields