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Employees deserve to celebrate occasionally, whether it’s for hitting sales goals, making it to retirement or for an annual holiday party. Unfortunately, office parties can get out of hand when alcohol is provided. Employers may be held liable when problems occur at work parties, even when they are hosted offsite. An employer could face litigation if an employee experiences sexual harassment or assault at a company-funded event. Safety and liability issues Employers are becoming wary of serving alcohol at office parties for a variety of relatively obvious reasons, such as safety concerns, liability issues, harassment claims and simple unwanted unpleasant behavior. The US Equal Employment Opportunity Commission states that workplace sexual harassment claims have spiked 12 percent, and lawsuits involving allegations of sexual harassment increased by 50 percent since last year on the heels of the #metoo movement of 2018. With an amplified focus on protecting workers from unsafe situations, small and medium-sized business owners are beginning to limit and even eliminate alcohol from work functions. Attendees may complain about a lack of alcohol at parties, but more employment law firms and HR consultants are advising business owners to consider safety, liability & harassment potential first. Should employers limit or ban alcohol? Business owners might be concerned that banning alcohol will send a message that the company doesn’t trust its employees to act responsibly. Providing drink vouchers is one way to avoid this issue. Vouchers allow party attendees to drink alcohol but limits how many drinks are served per person. Another option is to only provide beer and wine. In the end, the safest route is to avoid alcohol at work parties altogether. Instead of serving alcohol, employers might consider replacing it with a fun activity. Live entertainment and games can keep attendees busy and happy. Employers can rent creative venues, such as hosting parties at Escape Room LA to encourage employees to work together, or GlowZone LA where party-goers can mini golf in black light. Employees will have less concern about harassment during parties and employers can focus on celebrating the success of their company and its contributors.

Business contracts often play a pivotal role in the future of any business. Based on these negotiations and agreements, companies set their goals and define their expectations for the next chapter. When parties to a contract do not come to an agreement right away, though, there can be some fears about the fate of one or both entities. For instance, MillerCoors and Pabst Blue Ribbon battled up until just before a jury was to decide on their contract dispute before coming to a settlement that cements both companies’ future in the brewing industry. What was standing in their way As sources like the Washington Post report observed, the competing companies have long been involved with each other. For nearly 20 years, MillerCoors has been responsible for brewing Pabst beers. That arrangement was set to expire in 2020 when there would be an option to extend the contract. However, when Pabst notified MillerCoors that it was exercising its option, MillerCoors reportedly said that it did not have the capacity to continue brewing Pabst beers in addition to its own would not extend the contract. Pabst challenged their assertion of limited resources in violation of the option provision and countered that MillerCoors’ decision not to extend the contract was an attempt to put the smaller brewing company out of business. It filed a lawsuit against MillerCoors citing bad faith. Reaching an agreement The dispute made it to court and was heard in front of a jury tasked with making a decision on the contract dispute. However, while the jury was deliberating, the two companies reached their own settlement. The details of the settlement have not yet been made public, but Pabst will reportedly continue to be available for “many, many years to come.” Contract negotiations and crunch time Contract negotiations can be highly sensitive and stressful. As such, preparation will be critical. It’s important to think about the active contracts you may have up for option or renewal in the coming weeks and months and prepare accordingly. This is particularly critical if you have a sense that the other side may be positioning themselves to contest an option or renewal.

Employers have numerous tools at their disposal to protect their business and the elements that make it competitive. One such tool is a non-disclosure agreement, or NDA. An NDA is a contract that prohibits signing party from sharing or otherwise misusing protected information, including the company’s trade secrets (which are usually defined in the NDA). If an employee, for example, shares protected information (whether intentionally or unwittingly) in breach of the NDA, the employer can take legal action to enforce the agreement. Immediately after an alleged breach If you suspect or know that an employee or former employee has violated their NDA, the sooner you act, the better. Immediately, you should collect critical data such as the employee(s), the recipient, and what information was disclosed. Then, take steps to prevent further violations. This can include changing passwords and access credentials, and physically moving any files with sensitive data to a more secure location. Pursuing a legal claim Contacting an attorney right away can also be crucial. The sooner you hire an attorney, the sooner you can stem any damage that may have been done, as well as assess the damages that may have been caused. After reviewing the facts that you collected, your attorney would likely (a) send a cease and desist letter; (b) conduct further investigation either personally or with the help of a private detective; and (3) evaluate whether to file a complaint to recover damages or enforce the cease and desist demand. Focusing on your company’s future In addition to being promptly reactive to a breach of an NDA, you should periodically reevaluate which employees should enter into the agreement and what properties it should include to protect sensitive information. Reminding employees and third parties with an NDA of the repercussions of violations can also be helpful. Knowing what to do after an alleged breach of an NDA can be very difficult, especially in a chaotic environment. However, employers would be wise to refer to the NDA itself and a legal representative for guidance.

No business owner wants to be sued. However, the fact is that disputes can and do arise involving employees, partners and third parties, despite efforts to avoid them. As such, it is important for owners to prepare for potential lawsuits. Knowing that there are protocols and resources in place to respond to a legal claim can make it less intimidating and overwhelming if the situation does arise. Prioritize good recordkeeping practices Whether a dispute involves an employee claiming unpaid overtime or another entity seeking remedies for an alleged contract breach, having solid records can be vital in protecting the company. This includes timesheets, email correspondence and copies of any contracts or agreements you have. The better your recordkeeping practices are, the more effectively you or your attorney can respond to claims. Err on the side of caution when communicating As this article notes, everything you say or write before and during a lawsuit can be under scrutiny. As such, you would be wise to have a plan in place for how people in the company should communicate. You might ramp up security on email correspondence, for instance, or avoid making overly specific claims that you may not be able to back up. You might also decide to leave all legal communications up to just one person, like a spokesperson or attorney to control the information coming from your company. You can provide directions for others on what they can say should the situation arise. This could include “no comment” or an explanation that they are not at liberty to discuss the details of a lawsuit. Have support Business owners may be experts when it comes to running their business, but they may not know everything about matters like regulatory compliance, contract laws or the legal system. This is why it is crucial to put a support team in place to respond to these complex issues and help minimize potential disputes and repercussions. Having these elements in place before a lawsuit ever arises can make it easier for business to respond to one. They can also allow a business owner to avoid them altogether or resolve them as quickly as possible.

As a business owner, you likely go to great lengths to avoid legal disputes and follow state and federal laws. You may have employment or independent contractor agreements with your workers, and partnership or joint venture agreements with your partners; if there are regulations with which you must comply, you might diligently review them and make any changes necessary to avoid fines and penalties. However, you may not realize that you or your employees are doing something that could land you at the wrong end of a lawsuit claiming you are breaching copyright law. A costly streaming misstep As discussed in articles like this one from Forbes, businesses all across the U.S. are violating copyright laws by streaming music for commercial purposes without the appropriate license. For instance, if you operate a business like a retail store, salon or coffee shop and have music playing to entertain your customers, you might be doing so with a service like Spotify, Apple Music or Pandora. And if you are like over 70 percent of business owners in the U.S., you might think that using a personal account to do this is okay. However, streaming music for commercial purposes without securing a commercial license is a violation of copyright law. Avoiding a lawsuit To avoid a possible legal claim, businesses would be wise to secure a proper license to use a streaming music service for commercial purposes. These services are relatively inexpensive, and some even offer additional features that can appeal to businesses. Is this really such a problem? One survey reveals that playing music out loud without paying for a license to do so lawfully could be taking roughly $2.65 billion away from the artists, composers and musicians who create that music. This staggering number reveals just how big of a problem this really is. And while many companies may not be concerned that they will face legal repercussions for streaming music without the proper license, it is a possibility. There are increasingly sophisticated tools that allow services to identify users who are likely misusing their licenses. As such, making sure you’re in compliance with licensing and copyright laws can help you and your customers get more enjoyment out of the music you play.

As we have mentioned numerous times in previous blog posts, one of the most important responsibilities business owners have is ensuring their company and operations comply with state and federal regulations. This can be easier said than done, however, especially when state and federal laws sometimes seem to say different things. For instance, the trucking industry must comply with Hours of Service regulations designed to keep fatigued, overworked drivers off the road. However, the State of California’s Meal and Rest Break rules (until recently) required truck drivers to have the same meal and rest breaks as other types of employees. That California law, however, was recently amended. What are the rules? According to reports, the Federal Motor Carrier Safety determined that California can no longer enforce these meal and rest break rules. The FMCSA determined that the state’s conflicting regulations created a burden on companies and consumers. It also created confusion when truckers and companies operated in multiple states. As such, the FMCSA granted a petition to preempt the state rules. What we can learn from this situation This is just one example of the confusion that can arise when state and federal regulations vary or conflict with each other. It’s not just an issue for the trucking industry, either. All types of companies must comply with numerous laws and regulations that may not be as straightforward or clear as business owners would like. Rather than expend energy and time trying to translate (or challenge) these rules, business owners can consult an attorney who has the legal knowledge and resources to navigate these complex issues. Securing legal counsel to handle these matters can allow owners to focus on running their business effectively.

In previous posts, we have talked about the various tools business owners can utilize to protect their intellectual property: non-disclosure agreements, patents and copyrights among them. These measures can protect the originality of the work in question and help prevent others from unauthorized use. However, understand that people may still try to copy or recreate your product or service. To more fully protect your product, the author of this Forbes article suggests you try to steal your own work. Designing around protections When it comes to a product you invented, expect there to be competition if the product is successful, the author notes. And that competition may invest a hefty amount of resources in figuring out your product, reverse engineer it and determine what makes it work. This investment can include hiring workers who can work around or recreate a product without using patented materials or designs, for instance. This allows another party to create a similar – but not the same – product without violating any legal protections you have in place. Stepping back to protect more However, if you step back from your product and look at ways other people might recreate or redesign it, you can identify additional points to protect. For instance, you might have the exact product you want, but others might change the shape, color or materials and then sell a similar item without violating your patents. If you also patent those materials, uses and processes, you can give yourself an even greater head start. Keeping it all in check Keep in mind that owning more intellectual property takes more resources and effort. Not only must you figure out what to protect, you should also navigate the systems and applications to secure those protections. You will also have more to protect, which, again, requires resources and effort when enforcing ownership rights. To keep everything in line with the best interests of your business, it can be wise to work with a legal professional skilled in protecting intellectual property. With this type of support, you won’t have to manage the legal details of your intellectual property rights alone, allowing you to focus on other elements of your business.

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.

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.

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.

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.

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.