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When you begin the hiring process, you often have one goal in mind: to find the right talent for your business. You want employees you can trust to meet consumer needs and uphold your business’s values. Of course, there are other elements to this process than finding talent. There are many rules you must follow. One of the most critical issues that you must remember is that legal protections apply to job candidates as well – not just your employees. LAWSUIT HIGHLIGHTS POTENTIAL RISKS OF IGNORING HIRING RULES Although this case is in Oregon, the theory applies to business owners here in California too. AP News reports that Viewpoint Construction Software and CampusPoint Corp. are now facing a lawsuit from a candidate who is deaf and whom they refused to hire in 2018. According to the lawsuit brought by the Equal Employment Opportunity Commission (EEOC), the companies: Refused to provide reasonable accommodations in the form of an American Sign Language interpreter for an interview; and In turn, did not hire this candidate because of their disability. Both of these actions are in direct violation of the Americans with Disabilities Act (ADA). We have discussed the importance of complying with these laws in previous blogs. However, it bears repeating that businesses could face discrimination charges from current employees, but also potential candidates. Remember: while candidates do have to meet the qualifications for the job posting, their disability cannot play a role in any hiring or employment decisions. WHY IS IT CRITICAL TO POINT OUT THIS ISSUE? As the focus on promoting diversity and inclusion in the workplace increases, business owners need to recognize that they cannot overlook accessibility. Unfortunately, Forbes reports that accessibility is often the aspect of inclusion that gets lost in the mix. Business owners must make sure they stay ahead of the game when it comes to complying with the ADA and creating an accessible workplace for consumers, employees and candidates. To accomplish this, it can help to: Evaluate hiring processes, as well as internal processes for accessibility; Identify issues or disparities in hiring and take time to resolve them effectively; and Consult experienced business counsel about legal protections and requirements. No business owner wants to face accusations of employment discrimination. Therefore, it is critical to take steps now to improve accessibility measures in the hiring processes

You know that your business’s success depends on both external and internal factors. The external factors of the public image and financial success combined with the internal factors of the company culture and workplace environment help a business thrive. Lately, company culture has become a hot-button issue sparking concerns of legal violations prompting costly litigation. WHAT IS HAPPENING IN THE ACTIVISION BLIZZARD DISPUTE? By now, you’ve probably heard about the lawsuit against Activision Blizzard – the gaming and tech giant and creator of some of the most popular online games – for accusations of a toxic and hostile work environment. Employees filed complaints alleging: Discrimination Sexual harassment Unequal pay Retaliation Now, the California Department of Fair Employment and Housing (DFEH) is involved. DFEH filed a lawsuit against the gaming company for violating state employment laws. As CNN reports, this lawsuit has been copied by employees against their employers across the country and has led to a crackdown on other tech companies. COMPANY CULTURE IS OF THE UTMOST IMPORTANCE The case against Activision Blizzard is not nearly the first involving issues in a company’s culture and won’t be the last. Movements like #MeToo and even the transition to working remotely all placed emphasis on company culture – and its significance is only increasing. Your business’s success could boil down to your company’s culture and making sure it complies with the law. Therefore, it is critical for business owners and employers to take responsibility and take steps to build a positive company culture. WHAT SHOULD YOU DO? Concentrating on improving – and maintaining – the culture can be an important and proactive step to reduce that risk. As a business owner and employer, be sure to: Consider all of the factors influencing your company’s culture Open lines of communication with employees to gain their perspectives Implement creative solutions to foster a good company culture long-term Creative strategies are essential, as the business world is everchanging. You must be ready to change with it to protect your company.

Hiring new talent is one of the many factors that help the business world keep moving and growing. It is a chance for employers to introduce new perspectives into their business and company culture. Even so, employers must ensure their efforts and endeavors to bring in new talent do not lead to employment disputes. They should be particularly mindful of disputes involving accusations of ageism in these cases, as this risk seems to be increasing. THE CASE AGAINST HP DEMONSTRATES THE RISK EMPLOYERS FACE HP and the Hewlett Packard Enterprise Company have dealt with accusations of age discrimination for several years now. Employees in California first filed cases against the company in 2016. In 2020, a federal judge denied HP’s efforts to dismiss the claim. Now, there are 36 former employees a part of a class-action lawsuit. The particular issue in question stemmed from the so-called unwritten policy of the “Workforce Restructuring Initiative.” Plaintiffs claim that the company introduced this initiative in 2012 to replace older employees with younger ones, which led to denied promotions and wrongful termination. Whether policies are written or not, it is against the law for employers to consider age in any employment action or decision, from hiring employees to laying them off. As this case shows, allegations of age discrimination could result in long-lasting litigation that puts both the business and the company’s reputation at risk. EMPLOYERS MUST STAY AHEAD OF DISCRIMINATION Reports in recent years indicate that: Older workers make up a larger percentage of the workforce and will continue to do so In turn, employee claims of age discrimination are on the rise It is often helpful for employers to assess their recruiting practices, diversity efforts and company culture for signs of age discrimination. Such discrimination can often be subtle, and employers might not be aware of issues until they face a lawsuit. That is why employers must search for and mitigate these risks preemptively.

Workplace safety is a hot-button issue. PPE was already one of the most critical issues in the construction industry,. The COVID-19 pandemic placed more emphasis on PPE than ever before. Employees began to worry about safety measures and PPE to mitigate the risks of illness, and that concern overlapped with general PPE rules as well. PROVIDING PPE IS AN EMPLOYER’S RESPONSIBILITY Most employers know that federal and state laws require them to provide and pay for their employees’ PPE. According to OSHA, this responsibility obligates employers to take specific steps, including: Identifying and assessing all hazards in the workplace Determining which PPE is appropriate to combat these hazards Providing such PPE to employees and training them on the proper use Failing to take these steps – and take this responsibility seriously – could put employers and their companies at risk. They could face financial penalties and citations for violating OSHA’s policies. However, those are not the only consequences employers could face. There are many cases where employees can take legal action against their employers if they do not provide the proper PPE. For example, if the contract or employment agreement addresses PPE, employers could face claims that they breached the contract. Moreover, the risk of these types of lawsuits seems to be increasing as employee concerns increase. EMPHASIS ON PPE WILL LIKELY KEEP GROWING A recent report indicated that the increased focus on PPE will continue well beyond the Covid crisis.  There are two specific reasons why PPE will remain in the spotlight in the construction industry: Renewed focus on workplace safety: Even as vaccinations become widely available, PPE and workplace safety will still be a primary concern for both California employees and employers. I ncreases in wearable PPE: The concept of wearable PPE has been a point of interest in the construction industry for some time. These devices help identify hazards and prevent workplace injuries, which remain a critical risk in this line of work. More and more wearable devices are becoming accessible, and employers must carefully consider how they will implement this form of PPE into their workplace.

There are no independently self-driving vehicles on U.S. roads yet. Many transportation companies hope to change that. The auto industry proclaims that self-driving vehicles offer many safety features. Meanwhile, these vehicles can also make business more efficient for the transportation industry. Many companies have been testing self-driving trucks in California for a few years now. However, these tests indicate that the closer companies get to using autonomous vehicles, the more questions they must answer. BUSINESS OWNERS MUST TAKE CARE INTRODUCING NEW TECH Introducing new technology can be exciting for the whole business. It can also give companies an edge in their industry. However, there are several issues business owners must consider when it comes to new technologies like self-driving vehicles. For example: How will it impact short-term and long-term operations? How will company policies need to change? How will companies revise training guidelines? How will they evaluate cybersecurity measures? Accordingly, even if the new technology may present enormous benefits, it is still necessary to assess the risks. One predominant risk to assess is the potential liability. WHO HOLDS LIABILITY WHEN AUTONOMOUS VEHICLES CRASH? Trucking companies already face a unique risk when it comes to auto accidents. If their drivers are involved in an accident, companies inevitably end up dealing with the legal fallout. They must comply with state and federal regulations – and ensure their drivers do as well. Any violations or accusations of negligence could leave trucking companies facing serious liability. Autonomous vehicles will not eradicate that risk. In fact, transportation companies could face a higher risk if self-driving technology malfunctions or causes an accident. COMPANIES MUST PREPARE FOR THE FUTURE Even with extensive testing, there is no way to understand how self-driving technology will impact the future of the transportation industry just yet. However, industry leaders should take steps now to: Understand all the potential risks of implementing this technology Strategize how to manage liability and protect their business Keeping up with the latest technologies is a critical aspect of a business’s success, but the associated risk is a critical factor to assess before implementing new technology.

There are many reasons that entrepreneurs and business owners enter into partnerships. The collaboration, shared responsibilities and different perspectives that partnerships offer can be incredibly valuable in the business world. However, studies report that nearly 70% of business partnerships fail. After all, disputes between partners and failed partnerships can not only put friendships at risk, but also the entire investment into the business. Why is the statistic of failed partnerships so high? Disputes certainly play a large role in partners’ falling out, but the reasons behind the failures might surprise many business owners. WHAT ARE THE COMMON REASONS BEHIND FAILED PARTNERSHIPS? Entrepreneur recently reported on some of the most common reasons partnerships fail. These reasons are so surprising since many of them do not stem from within the business, but from external, personal factors. For example, the list states that business partnerships frequently fail because: Business partners are at different stages in their lives Partners do not share the same level of motivation The level of dependence on the other partner is unequal There is a lack of trust between partners These factors may be personal, but they affect the business in significant ways. Consider the matter of trust. Business partners should have a very high level of trust in each other as they embark on a financial and commercial investment. If they don’t, that only increases the chance of a dispute over business matters. Some might say that involving personal matters is what puts business partnerships at the greatest risk of failure. However, the reasons listed above seem to indicate that partnerships require a healthy balance of both professional and personal compatibility. Striking that balance is not only important for success but also to avoid legal risks. PARTNERSHIP AGREEMENT: PLANNING FOR THE WORST IS PRACTICAL – AND CRITICAL The effects of a failed partnership are not only financial. They frequently lead to legal risks as well, including: Internal risks, whether it is a breach of contract or violation of the partnership agreement. External risks, if the dispute leads to breaches of agreements with suppliers or shareholders. That is why it is critical to thoroughly vet a potential partner long before establishing a partnership. It is equally important to have a comprehensive partnership agreement that will address such critical issues as the: responsibilities of each partner; apportionment of expenses and profits; procedures to address disputes; and dissolution of the partnership.

Employers know that terminating employment requires a delicate process. Whether an employee resigned, retired or was let go, employers must ensure they continue to uphold the employee’s rights. However, they must also take steps to protect their business as well. One step that employers may not think necessary is the exit interview. But this often-overlooked step can be critical. WHY ARE EXIT INTERVIEWS SO ESSENTIAL? In an exit interview, managers, supervisors or Human Resources representatives meet with the employee leaving the company. These interviews are important for many reasons, including: Maintaining open lines of communication between employers and employees Preserving the company and employer’s brand Helping businesses continue to improve and grow from employee feedback However, another reason that exit interviews are so important is the protection of trade secrets. An unfortunate amount of cases involve current and former employees taking a company’s confidential information. The case involving the alleged theft and sale of Apple’s trade secrets is one of the more recent examples. According to reports, the employee in question announced their resignation, but then continued to attend meetings and saved trade secrets to a personal drive on their last day of work. HOW CAN EMPLOYERS SECURE TRADE SECRETS IN THE EXIT INTERVIEW? Whoever conducts the exit interview should make sure they: Remind employees about their legal obligations and terms of agreements that are still in effect Verify what confidential information the employee had access to throughout their employment Ensure they return all company property, including documents, devices and other company information Of course, employers must establish security measures for trade secrets long before an exit interview occurs. But exit interviews still play an important role in protecting them. CONDUCT THE INTERVIEWS WITH CARE California employers must prepare for the exit interview. These interviews require great care and strategy. Employers should not make employees feel overwhelmed or threatened, and they must ensure the questions they ask do not violate employee rights. Employers should develop best practices for managing these interviews and the termination of employees.

In a world dominated by technology, everything often boils down to data. Business owners must make sure they manage and protect everything from company data to consumer data. However, this wide range of categories that require employer attention also includes employee data. Employers should make sure they secure their employees’ data as well, so they can reduce the risk of facing a lawsuit. ARE DISPUTES OVER EMPLOYEE DATA ON THE RISE? According to Forbes, disputes regarding employee data could become a primary issue for businesses. The article highlights two cases involving claims that: In one case, employers did not warn employees about the use of biometric data or inform them how they would store and protect the data In the other, employers did not take the proper steps to protect employee data Neither of these cases took place in California. However, the issues they address still pose problems to which all employers should pay attention. This is a growing concern for employees. And the focus on protecting consumer data only stoked the fire more. That is why employers must ensure they prioritize employee data security and comply with the protections under relevant laws. EMPLOYEE DATA IS ALREADY A CRITICAL TOPIC IN CALIFORNIA Of course, concerns about data are nothing new for California employers. The California Consumer Privacy Act (CCPA) as well as the California Privacy Rights Act (CPRA) both include protections for employees as well. The employee protections under CPRA will not go into full effect until 2023. However, employers should still: Review all legal requirements Prepare to comply with these laws by their respective deadlines Protecting data is a priority nowadays – in both the business world and in our personal lives. However, employers could face serious penalties if they do not take steps to secure employee information or comply with these laws. It is important to strategize and put policies into effect now, so businesses are ready for when these deadlines arrive.

It seems that nowadays, tech companies face risks from all directions. With claims that companies violated labor laws or breached antitrust laws, many companies in Silicon Valley frequently make national headlines nowadays. And a recent case could lead to another wave of lawsuits, as well as a new kind of liability for tech companies. WHEN CONSUMERS MISUSE PRODUCTS, COMPANIES ARE NOT USUALLY RESPONSIBLE Companies often face liability claims, but many do not go far since companies cannot be held responsible for consumers misusing products. That is one of the primary reasons why it is critical for companies to: Test products and manage risks effectively Provide appropriate warnings to consumers Tech companies take these precautions as well, though they have additional protection through Section 230 of the Communication Decency Act. Section 230 is what protects tech companies and online platforms from facing liability for what users post. It’s one of the fundamental laws regulating the internet and social media platforms. IS A RECENT CASE AGAINST SNAP INC. A TURNING POINT? The popular app Snapchat is at the center of a controversial and complex case. Plaintiffs state that the design of the app – particularly, one of the apps many filters – encouraged misuse and reckless behavior that led to the death of three boys. The filter in question marks the speed at which users are driving, which led to the fatal high-speed crash. However, a federal court of appeals determined that the parents of the three boys can sue Snap Inc. – despite Section 230. And according to National Public Radio (NPR), the case against Snap Inc. could: Lead to more cases challenging tech companies and their platforms Set precedents for cases specifically targeting Section 230 Whether or not these particular worries come to fruition, the challenges to tech companies and Section 230 will likely continue. And business owners must be prepared. WHAT CAN BUSINESS OWNERS DO? Tech companies must conduct frequent reviews and upgrades of their products, whether they are apps or gadgets. It is often beneficial to have teams dedicated to identifying potential risks and troubleshooting them proactively. Additionally, regulations in the tech industry are ever-changing. And California business owners must be ready to change with them to be successful. Business owners must stay on top of these changes, and implement the necessary modifications to mitigate risks.

Disputes with employees often stem from two concerns – their financial interests and their workplace rights. Wage and hour claims cover both of those categories. That is one of the reasons wage and hour lawsuits have become so dominant in recent years, particularly in California. Employers frequently conduct wage and salary reviews, usually when they review the employee’s annual performance. But there are generally two critical reasons employers should carry out these reviews routinely. 1 REVIEWS CAN HELP PREVENT WAGE AND HOUR DISPUTES The purpose of performance and salary reviews is not only to evaluate and reward employees. They also help employers maintain their records and proactively prevent disputes. In these reviews, employers should work with experienced business counsel to assess: Job descriptions and employee classifications Payroll, overtime and benefits policies Compliance with California’s wage laws Timekeeping records and policies Recent lawsuits or changes to the law can significantly impact these matters. For example, both employee classifications and timekeeping policies recently fell under the spotlight in California. Reviewing wage policies regularly can help employers stay up to date and on top of these issues. 2 THEY ALLOW EMPLOYERS TO BE PREPARED IN THE EVENT OF AN AUDIT In the business world, it pays to be prepared. Both the U.S. Department of Labor and California Department of Industrial Relations can conduct audits in your workplace – typically following complaints from employees. Reports indicate that the rate of audits is increasing. Following an audit, if officials discover that employers violated wage and hour laws during an audit, employers could: Be required to pay back wages Pay considerable civil penalties Make that employer be more susceptible for a future audit If employers complete their own audits, they have documentation of their compliance. Regular reviews allow employers to protect their business from an audit or a complaint from an employee that could jeopardize their reputation with both employees and consumers.

Business owners know the importance of monitoring the presence of their brand – and their trademarks – online. It is a critical issue we have covered before in previous blog posts. Monitoring trademarks and brands may have become easier with the help of technology and social media, but it also became more essential. Many businesses take advantage of social media and the e-commerce market, but they must also be prepared to manage the risks. One of these risks includes counterfeit products. WHAT IS THE RISK OF COUNTERFEITING? Most counterfeit products target luxury goods, such as clothing brands, but many types of businesses could be a target. Counterfeit products pose serious threats, including: Loss of sales and profits Customer confusion Damage to the brand Additionally, the risk of counterfeiting is increasing. This is due in part to the e-commerce boom. Online markets are useful for businesses and convenient for consumers, but it is also easier for parties to sell forged products. Business owners can take legal action against counterfeiters. As long as they have the evidence necessary to prove infringement, they can pursue a claim to protect their business and mitigate the damages they face. In these situations, it is often beneficial to seek guidance from an experienced business and intellectual property attorney. TRACKING TRADEMARKS IS MORE IMPORTANT THAN EVER To counter this threat, many companies are teaming up. Most recently, fashion giant Gucci and social media giant Facebook filed a lawsuit in California against a counterfeiter. The individual used Facebook and Instagram to sell fake Gucci products. Combining forces could allow the businesses to stop the current counterfeiting, but it could also set a precedent to prevent it in the future. Even so, companies should be mindful of these risks when they do business online. They should also make sure they monitor their trademark carefully. Whether they outsource this service or have a team in-house dedicated to tracking trademark use, this is a critical step to minimize the risks.

Insider threats are often some of the most common sources of trade secret misappropriation – and theft. The risk of employee theft gained national attention with the recent lawsuit involving Coca-Cola. It also brought this danger to the forefront of business owners’ minds. Though the former Coca-Cola employee faced charges and now faces a conviction, the insider theft still put the company at risk. Any form of data theft involves such risks, and business owners must be prepared to handle them. HOW DO EMPLOYEES STEAL TRADE SECRETS? Business owners know they must take reasonable measures to protect their trade secrets, whether it is a secret recipe or a client list. But even with reasonable measures, these secrets could still be at risk. There are a few common methods employees might use to steal trade secrets, including: Saving company files to personal drives Taking hard copies of files or information Using mobile phones to record or take photos Of course, access to the trade secrets is necessary for any of these methods to work. That is why it is essential to limit access to trade secrets. However, business owners should also establish policies to monitor access and use to secure intellectual property belonging to the business. MITIGATE THE THREAT NOW Even if businesses already have safeguards in place, it is critical to regularly review their trade secret policies and procedures. The World Intellectual Property Organization (WIPO) reports that making regular adjustments and improvements to trade secret protection is important but too often overlooked. California business owners must address security proactively to handle threats – both internal and external. Trade secrets are often one of a company’s most valuable assets, and business owners must take the proper steps to avoid and handle threats effectively.