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Defects in construction can cause a number of problems for property owners and contractors. Some problems are easy to resolve and cause little more than a brief delay or minimal added costs. Other problems, however, are far more troubling and difficult to resolve. Whatever type of construction defect you may be dealing with, it could lead to legal action and an expensive lawsuit. As such, readers should be aware of some potential defenses to construction defects before they make any decisions regarding legal options and proposed settlements. There are numerous defenses to construction defect claims; below, we briefly examine three of the more common approaches. The problem is not caused by a defect. Leaks, electrical problems, and mold are all commonly cited in construction defect claims. However, to determine if these issues are the result of a defect or something else, a thorough investigation should be done. In some cases, there is another explanation for the problems. Someone else is liable for the defect. Assigning liability can be very complicated because often several parties are involved in a construction project. It is important to hold the appropriate party accountable. For instance, an engineer may not be liable for defective workmanship, and a shower door installer may not be liable for water intruding into the floor below. The project was completed 10 or more years ago. As specified in California laws, actions to recover damages for a latent defect are limited to the 10 years following substantial completion of the project, unless there are claims of fraud or misconduct. These defenses reflect the fact that construction defect claims tend to be highly technical, emotional and involve many parties. To resolve them satisfactorily, parties must be well- versed in construction issues, or work with an attorney who is.

Most employment relationships in California are “at-will” relationships, meaning either an employee or employer may terminate it at any time for any reason, as long as the reason is not illegal. If an employee is terminated for an unlawful reason, then they can file a wrongful termination lawsuit seeking damages from an employer. To avoid this type of claim, which can be costly, frustrating and take time away from the conducting business, employers should understand what makes a termination wrongful in California. The firing was discriminatory-Employees who belong to protected classes cannot be fired because of certain traits or memberships, unless they prevent a worker from performing essential job duties. In accordance with the Fair Employment and Housing Act, an employee may not be fired because of their race, color, national origin, disability, marital status or other protected characteristic. The firing was retaliatory-State and federal laws protect employees who engage in certain activities from retaliation and adverse actions like termination. For instance, you cannot fire an employee for filing a workers’ compensation claim or reporting an employer’s violation of laws. The firing was constructive-Though rare, claims of constructive termination can arise in California if an employee resigns because work conditions are so egregious that a reasonable person would leave the job. While there are numerous legal nuances and requirements that must be in place for this type of claim to be successful, it is one that a former employee may bring. In order to prove their case, employees must show that these or other unlawful reasons were a substantial factor in their employer’s decision. As such, employers should be prepared, by careful and routine documentation of the employee’s personnel file, to explain the reason(s) for terminating the employee. The issues are complicated and ever-changing, so it is wise for employers to have legal representation when responding to wrongful termination claims. Better still would be to discuss employers’ rights with an attorney in advance and try to avoid a claim in the first place.

Protecting intellectual property is crucial for any company or entrepreneur in a competitive industry because it allows them to maintain an edge over their competition. As such, many intellectual property owners copyright materials so that other parties cannot use them without authorization. However, whether you hold or are accused of infringing a copyright, you should understand that there are limitations to copyrights. Knowing this can help you better assess your legal options in the event that a dispute arises involving possible copyright violations. Limit: Things that can’t be copyrighted You cannot protect everything with a copyright. As this Inc.com article discusses in more detail, many things cannot be copyrighted, including: Business names Product names Domain names Inventions Calendars Slogans or mottos Ideas This doesn’t mean these items cannot be protected; they just cannot be protected with a copyright. Limit: Scope of a copyright A copyright is a powerful protection tool, but there are exceptions that allow people to use the protected material. These exceptions include use for educational, news, research and critical purposes. Limit: Duration of copyrights Depending on when content is created and/or published and who created it, it will have a term of protection. Some last until 70 years after the death of the work’s author, though the duration could be in place for as long as 120 years after the work was created. What this information means for California business owners Whether a copyright is properly in place and protects specific content is not always necessarily easy to understand, and harsh penalties may result for the misuse of intellectual property. Consequently, it is important to take copyright issues seriously consult an attorney who can manage, respond to and pursue any legal claims your company may be facing related to copyright issues.

Mergers and acquisitions are highly complicated business transactions that must be entered into with careful consideration. It is not as easy as a one-time transaction or purchase, and there are financial, employment and organizational implications to think about. As such, it can be prudent to approach growth opportunity discussions with caution. A potential deal could certainly be exciting, but a lot of work goes into these transactions and there is the potential for it to fall apart. Recently, for instance, discussions between Uber and an independent freight logistics company reportedly failed after months of discussions regarding Uber’s purchase of the company. Details on the purported discussions are sparse, but sources say that Uber wanted to acquire Load Delivered Logistics in an effort to expand its reach and offerings in the trucking industry. It is not clear why the discussions came to an end, though some speculate that Uber’s ongoing CEO issues and a particularly strong quarter for the logistics company could have affected the negotiations. While talks between the two companies have ended, this can serve as a reminder that not all merger and acquisition discussions are successful. They can and do fail for a number of reasons, from logistical challenges of reaching a deal to one party’s decision against buying or selling. Whether your company is assessing options for growth into a new area or dealing with internal issues that could jeopardize a transaction, it is important that you identify solutions that minimize disruption and allow you to focus on the future of your company. Considering all that is required in these situations, business owners would be wise to have the guidance and insight of an attorney who understands industry regulations, effective dispute resolutions methods and the challenges of running a business.

In the construction field, contractors face different constraints with publically funded construction projects. One of the limitations of city-funded projects is a local hiring requirement where a predetermined percentage of a project’s workforce must come from the surrounding geographic area to promote the local economy. When creating a bid or reviewing a contract for a publicly funded construction job, check for any hiring restrictions. Local Hiring Currently, Beverly Hills does not have a local hiring ordinance in effect, but the implementation of the Far Chance Initiative for Hiring this summer is a step in that direction. Based on previous enactments elsewhere in the nation, local hiring ordinances have been favorably looked upon by municipal governments. Since 2011, San Francisco has had a local hiring ordinance in place for city contract construction projects over $600,000 or on public land. The ordinance requires contractors to have at least 30 percent of their work hours, per each trade, performed by residents of San Francisco. In addition, at least half of the 30 percent must be enrolled in an apprenticeship program. Before 2011, contractors only had to make a “good faith effort” to hire 50 percent of their workforce from local areas. In order to ensure the ordinance is feasible, the city of San Francisco works provide contractors with qualified employees for each trade. The city targets the ZIP codes of poorer neighborhoods for workers to enter into city-sponsored workforce development programs. Issues with local hiring requirements The purpose of local hiring ordinances is to assist low-income individuals to find a job located near their home to promote the local economy. The practice is beneficial for long-term employment positions, such as civil servants. However, by their very nature, construction projects are not long-term and local workers face unemployment once the project is finished. Additionally, tradesmen do not always live in the communities where the construction is taking place, it may be too expensive and then the hiring requirement is in effect for no reason. In order to balance the cost of sourcing local laborers, contractors can add the labor cost into their bid. Or, if a contractor will not be complying with the hiring ordinance, they may add the penalty for non-compliance into their bid. Contractors and construction companies seeking work in the Beverly Hills area should be on the lookout for any local hiring initiatives as the mid-term elections approach.

It seems that we regularly read news stories about defective products. You don’t have to search too hard to find a current report on a defective airbag, children’s toy or construction element. Despite the fact that we see these stories so often, many cases involving defective products are settled with an agreement that discovery information be kept confidential. That practice was recently challenged with a bill to prohibit confidentiality clauses in cases involving defective products. However, the proposed measure died in the California Assembly. What the bill proposed The bill was introduced to prioritize and increase consumer safety by banning confidential settlements when they involve a defective product. Currently, when a lawsuit involving an allegedly defective product settles outside of court, it is not unusual for all parties to agree to a confidentiality clause that prohibits public disclosure of information regarding the case. Under the terms of this bill, these elements of a settlement would be prohibited. Why the bill was proposed Supporters argue that the secrecy of these settlements puts the public in danger of being hurt or killed by a product known to be defective. When no one involved in the case can disclose information about a potential danger, then there can be no efforts to protect consumers with awareness and possible regulatory action. Impacts on businesses Many business owners are fiercely protective when it comes to the information that is available to the public. Without the protection of a confidentiality agreement, cases involving alleged defects could become even more contentious and lengthy. Business owners can be more motivated to challenge disclosure of information during discovery, especially if it contains confidential or sensitive information. How this can affect business owners today While this measure was not successful, it should alert business owners in California to the fact that these cases are often divisive and have the potential to drastically affect consumers and businesses. Parties who are involved in a defective product lawsuit will, therefore, want to be diligent about how they protect sensitive information, whether this includes a confidentiality agreement or challenges during discovery.

Complying with state and federal trucking regulations is a significant responsibility for those operating in this industry. There are equipment, training, hiring and operational obligations that must be observed properly or the companies could face major consequences. As such, any changes to policies or rules in this industry must be considered carefully before implementing. This is the situation currently facing trucking companies and lawmakers who have raised the issue of mandating the addition of side guards to all commercial trucks. The Stop Underrides Act of 2017 Lawmakers recently proposed bipartisan legislation that would require trucks to have side guards in place. The guards would prevent cars from sliding underneath the truck in an accident, which causes catastrophic injuries and at least 200 deaths annually. Currently, side guards are not required, though the National Transportation Safety Board does recommend that trucks have them. The proposed bill would change the recommendation to a requirement. The cost of compliance While there are potential benefits of installing side impact guards, there is also a cost associated with implementing the system. Trucking companies would need to pay for the parts and the addition of the bars, and there is a risk that the guards could increase the weight of the truck and weaken parts of the trailer. Both of these issues could cause other problems in the operation of the trucks. In other words, there are challenges that trucking companies need to deal with when it comes to adding parts to their vehicles. It is typically far more difficult than people outside this industry might expect. Responding to new legislation Trucking companies must comply with federal legal requirements, but until measures like adding side guards become legally required, each company will need to decide whether and how to put certain safety protocols into practice. This calls for an assessment of cost and resources that would be required. In such situations, it will be crucial for companies to understand their legal obligations and options so that a mistake or oversight does not become a costly legal dispute.

Technology is changing the way business is conducted throughout the world. In the transportation industry, driverless trucks are quickly becoming reality for logistics companies. As these trucks are rolled out in the years ahead, logistics firms will need to adjust to new regulations and deal with safety concerns. As a logistics business owner, you are planning your business strategies far in advance. How you navigate the changes in your industry could make a huge difference to your business’ future success. UPS joins block chain in Trucking Alliance (BiTA) Recently UPS made an announcement that they were joining the BiTA in order to learn more about how block chain could serve their business. block chain is a technology which allows for a more secure transfer of digital assets (like import documents) and currency using a peer-to-peer network. UPS cites the potential for increased efficiency and transparency among the different stakeholders in logistics with the use of block chain. Analysts suggest that block chain technology combined with artificial intelligence (AI) assisted real-time matching of loads and empties will transform the industry. Investment in these technologies will increase and eventually lead to a common practice amongst logistics companies. Technology investment will differentiate logistics firms Business owners who make the shift to invest in block chain and other technology will likely be more competitive in the marketplace. Participants in the initiatives that BiTA supports could see an increase in efficiency. The use of new technology could cut down on errors caused by improper paperwork, missed connections or bad deliveries, for example. The consumer will begin to notice the difference when their orders arrive sooner or are less expensive. As it becomes more obvious to consumers that certain companies are performing better they may change their preferences. Within the industry, partners could require the use of block chain to be eligible to work with them. Future impact to your business Those companies that do not comply with the new standards could see a drop in business or maybe go out of business because they cannot compete. It will be important for you to be aware of the impact of block chain, AI and autonomous vehicles on your overall strategic decisions for the business. In addition, you will want to know how these changes will affect your business contracts. You may be required to modify current partner agreements, for example. You will want to put some thought into what potential liabilities may be related to the technology. To navigate the complexities of these business initiatives, you might want to consult with an attorney who understands the intricacies of logistics. Investing in technology is great and yet it brings with it a whole new set of requirements for a successful outcome.

The beginning of a new year can be the perfect opportunity for employers to assess how – and if – an employee handbook is holding up. This is particularly true in 2018 as numerous legislative changes have been made or proposed. Here, we examine various elements of an employee handbook that employers may need to revise, remove or add in order to preserve its effectiveness in the year ahead. Sexual harassment policies It is as important as ever to have strong sexual harassment policies in place. In 2017, there was something of a watershed moment with regard to sexual harassment in the workplace. Additionally, as noted in this SHRM article, California recently expanded requirements for harassment prevention training. As such, it is crucial for employers to ensure they have solid policies for addressing, investigating and reporting workplace harassment. Drug use policies Recently, legislative changes have been made with regard to the legalization of marijuana in California as well as to policies regarding federal prosecution of drug laws in states where the drug is legalized. With the subject in the national spotlight, employers would be wise to review what their handbook says about drug use and testing policies. Parental leave policies California is expanding parental leave laws this year, so it is vital for businesses to review leave policies. This is especially true for companies with 20-49 employees who are now required to offer job-protected leave for parents. These are just a few of the policies that could require updating in light of changing laws and changing attitudes; there could very well be others you discover in a thorough review of your handbook. Workplace disputes can be very costly for both employers and employees. Avoiding them by having in place a comprehensive, updated handbook can prove to be a wise decision. Should you have questions or concerns about any elements of your company’s handbook, you can consult an attorney familiar with employment law cases in California.

Business owners must consistently stay on top of the latest innovations, or see their market share erode. New and dramatic shifts are already underway in the logistics and transportation industries, which will affect every aspect of your business in 2018. Here are the top six trends to be faced by logistics companies in 2018 according to Sourcing Journal: Logistics Online 2017 may have been the year when freight operators like DHL started venturing into online sales in order to come into alignment with their e-commerce partners. Look for this trend to come into full realization in 2018, when all aspects of logistics business will be online from ocean, to air freight. block chain Pioneered for Bitcoin, this technology allows for secure and verified sharing of electronic currency and documents. Pilots are underway with a consortium of logistics companies. Innovation with block chain could positively affect cross-border transactions, solve document discrepancy issues and save on administrative costs. Increased Use of Big Data Competition is at an all-time high – how will you differentiate, improve customer service, cut costs and increase productivity? With the right use of digital data and advanced technology, your company can optimize terminal usage, predict maintenance needs, track containers and generate more consistent results. Sustainability The dual ports of Beverly Hills-Long Beach are phasing out use of diesel trucks in favor of natural gas and zero emissions vehicles. Tesla is taking orders for its fully-electric Semi tractors. Freightos is using its technology to calculate the carbon footprint of each shipment for optimized routing and transparency among carriers. How can your logistics company innovate here? Freight rate volatility Ocean rates are at an all-time low and quite volatile, the low is also unsustainable. Ocean carriers are having a difficult time with over-capacity. Air, on the other hand, is seeing prices peak. Look for how this issue will impact your business in 2018. Panama Canal Improvements Over a year after undergoing a $5 billion renovation and expansion, the Panama Canal projections for vessel accommodation look exceedingly positive. Logistics costs can be lowered with decreased ocean time and keeping goods closer to the end user. The Panama Canal renovation appears to be increasing market share on East Coast imports. With all these changes it will be important to ensure your business is up-to-date with the latest legal and industry standards related to new technologies.

Construction defects, heavy machinery operation errors and failed safety precautions can all put people in danger of being hurt or killed on a construction site. These dangerous conditions can, therefore, lead to serious penalties for noncompliant parties. As such, there are numerous state and federal regulations with which companies and property owners must comply. However, even when people comply fully with the law, accidents can and do happen due to the nature of these environments. Understandably, there is a major push to identify new solutions to improve safety on construction sites. Recently, for instance, one company known for making video game technology is reportedly working with machinery giant Komatsu, which manufactures heavy construction machinery such as earth movers, dumper trucks, and hydraulic excavators, to develop solutions to make construction sites safer. According to this article from Equipment World, Komatsu and NVIDIA are working together to bring artificial intelligence to construction sites. They plan to do this by equipping heavy machinery with intelligent cameras that can constantly assess their surroundings and gather valuable data. Eventually, they hope to also create autonomous machines. Once in place, the technology is expected to constantly monitor surroundings, identify hazards and then engage measures to avoid the hazards. The goal is to minimize human error to improve job site safety, which can save lives and save companies considerable amounts of money. Innovative solutions like this are rapidly progressing in industries like construction and heavy machinery. However, while these solutions are often exciting and ambitious, it is important for businesses to think carefully about the impact of adopting new technologies. Not only is it typically a massive financial investment to adopt new technological solutions, it can also involve legal risks that leave a company vulnerable to certain challenges and disputes. Companies in these industries would, therefore, be wise to have legal representation when it comes to implementing new solutions in their business.

No matter the size of your enterprise, having an employee handbook can benefit your organization. A handbook summarizes company policies and gives employees a roadmap for what is expected. It’s also a way to promote your brand and culture internally. As workplaces evolve, a handbook can help protect your organization against misunderstandings and potential lawsuits. What is a handbook? An employee handbook is a document outlining your employment policies and company rules. It sets the tone for how your organization functions. It contains information about various policies (such as paid holidays, vacations), behavior standards and the dress code. Why do I need one? A handbook is an essential business tool and sets a fair company standard. If an employee deviates from standard best practices, you have a documented description of your organizational expectations. Written policies and procedures can help you avoid lawsuits, but in the event your company is facing a lawsuit, an existing policy manual can be used as evidence of company rules. Once you have created a handbook, distribute it and have other copies available. Make sure to collect signatures from each employee receiving a handbook. If possible, have a mobile option as well so you can post it on your intranet. You want to avoid an employee pleading ignorance to your organizational policies and the more places they have access the less valid their argument. Also, each updated version of the handbook should have a note stating that it supersedes all other editions. Is it required? California does not require you to have an employee handbook, but if you create one it needs to contain certain policies. Below is a list of policies that must be included: It must contain an at-will employment policy. It must outline an equal opportunity policy. It must outline an anti-harassment and anti-discrimination policy and include information for contacting the California Department of Fair Employment and Housing. It must outline an attendance and leave of absence policy. It must contain wage and overtime policies and include information about break and meal times. Your company can benefit from written policies; however, if the need for litigation arises, a consultation with an experienced employment law attorney can help get your focus back on work.