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Employers never expect to have trouble with an employee when they hire them. Yet, disputes are all too common and often inevitable. Working to resolve employee disputes can be stressful, but there are a few critical things employers must do. FOLLOW THE RULES This might sound like a simple enough task, but employers must take great care to ensure they understand and adhere to the rules. These rules fall under two categories: The law: Of course, as an employer, you ensure you follow California employment laws every step of the way. However, it is even more important to review what you must do when facing a dispute, as well as the rights your employees have in this situation. This can help prevent issues from escalating and prevent retaliation claims, for example. Your policies: Employers establish conflict resolution clauses and policies for a reason. You expect your employees to follow these procedures, and you must as well. Long before you face an employee dispute, it is a good idea to review the laws and your employee policies to make sure they remain up to date and relevant. It often helps to have an experienced employment law attorney review your policies as well. That way, you can approach and manage disputes much more effectively. COMMUNICATE CRITICALLY Communication is always essential. In terms of any relationship, not just employment or business relationships, communication is how you work through conflict more effectively, especially when pursuing alternative dispute resolution. However, you must also be strategic with your communication. For example, you may want to speak to other parties involved in the dispute through your attorney or only with your attorney present. There are many matters to address in employee disputes. These steps will be critical to remember with every issue that may arise. Do not wait to address disputes. Employers must take swift action in these cases. While you should carefully consider how you move forward, it will be essential to seek guidance as soon as possible.

Under federal law, if a worker is 40 or older, they fall into a protected class. These workers have specific legal protections against employment discrimination. Employers and employees alike may know this. Even so, those protections do not keep discrimination from happening – particularly age discrimination. In 2021, we discussed how this trend was increasing in the workplace. It seems to have become even more prevalent in the last few years. What should California employers consider? WHY IS THIS HAPPENING? AARP reported that nearly 64% of workers over 50 they surveyed witnessed or experienced age discrimination in 2024. There are several likely reasons for the increase of this discrimination, including: Later retirement: Simply put, many people over 50 cannot afford to retire just yet. This could be due to personal or economic factors, but many older individuals continue working. In turn, this leads to an aging workforce. Return to work: On top of that, many retirees are actually returning to the workforce. Some do this for financial reasons, while others might return to work just to fill their time. Generation gaps: As Gen Z enters the workforce, the gap between workers’ ages widens. This is not at all to say younger workers hold responsibility for age discrimination, but the existence of the gap between ages could be a contributing factor. While employers should be aware of the factors that could cause this discrimination, what they do to handle this trend is what is important. 3 STEPS EMPLOYERS MUST TAKE Employers cannot control every aspect of their business – or their employees. However, they can take matters into their own hands to reduce the risk of discrimination claims arising. It is essential to: Pay attention. Stay in tune with your employees and the goings on in your company. This can help to ensure a safe and healthy workplace and manage risk preemptively. Address behaviors promptly. If you receive a report from an employee, take action immediately. Review your policies. Specifically, take a close look at the hiring procedures and termination policies. Make sure they comply with state and federal employment laws and include terms to help prevent discrimination claims. Employers are responsible for maintaining the first line of defense against discrimination claims. To build or strengthen that line, it can often help to seek counsel from an experienced employment law attorney.

California employers are familiar with AB-5 by now. The law aimed to protect workers from misclassification. Employers have had to use the ABC test to reevaluate whether workers they classified as independent contractors are indeed contractors under these terms. However, new statistics indicate that the law may not be working as intended. What should employers know for the future? WHAT DOES THE RESEARCH SAY? According to the U.S. Chamber of Commerce, many lawmakers believed that AB-5 would lead individuals classified as independent contractors to become employees. It seems that did not happen, however. The implementation of the ABC test and the ensuing reclassification of employees led to a decrease in employment across California. Studies found that employment fell by about 4.4%. IT COULD BE AGGRAVATING THE LABOR SHORTAGE Since the beginning of the COVID-19 pandemic, employers of all sizes have been struggling to fill positions. There are various factors behind the country’s labor shortage, including, but not limited to: The effect of inflation and cost of living crises affecting workers’ decisions A higher rate of workers retiring than those entering the workforce Reduced worker retention, for several reasons The effects of AB-5 on employment could contribute to the challenges that many employers face in the job market today, making it even tougher to find talent. WHAT CAN EMPLOYERS FACING THESE CHALLENGES DO? It is natural and understandable for employers and business owners to worry about their bottom lines and the futures of their businesses. However, it is critical to remember that workers play a large role in that success. While employers must still comply with AB-5, there are ways they can manage the challenges they face. It may help to: Invest in their current workforce with new training or opportunities Reevaluate workplace benefits and incentives Foster a healthy work environment for workers and employers alike In navigating the rules of AB-5, it may help to consult with an experienced employment law attorney. That way, employers can ensure they are in compliance with the law, while also preparing strategies to manage the effects of a labor shortage.

Back in 2021, we discussed the difference between trademark infringement and trademark dilution. Business and trademark owners know that both issues can have a considerable impact on their reputations. However, the main concern when it comes to dilution often lies in determining whether or not it is truly a dilution of a trademark or a parody. In that previous blog post, we addressed the particular case involving Jack Daniels’s trademark whiskey bottle design. This case – and the effect parodies have – remains at the center of this complex matter. ONGOING BATTLE OVER DILUTION WENT TO THE SUPREME COURT This legal battle has gone back and forth over the last few years. Some courts determined that the dog toy shaped like the well-known whiskey bottle is indeed a parody, and therefore the company that created it has First Amendment protections. However, in 2023 the Supreme Court ruled that it is not quite a parody. The Supreme Court determined that the toy reflects the trademark enough that it violates trademark protections and rules. The different opinions on this matter illustrate just how complicated it is. So, what must business owners consider? TAKE A CLOSER LOOK AT DILUTION The definition of trademark dilution is quite broad. The federal Trademark Dilution Revision Act of 2006 does not actually consider the risk of confusion or negative economic impacts – as trademark infringement does. The law defines dilution as the use of a mark that might tarnish the mark itself or the reputation tied to it. In short, this law focuses only on protecting the trademark. It is not necessary to prove that consumers may be confused when it comes to a claim of dilution. This allows businesses to protect their image. After all, a business’s public image is an important factor in gaining and maintaining consumer approval. Any mark that would sully or degrade that image the business worked hard to build could be a considerable concern and risk. DILUTION V. PARODY: A SUBJECTIVE ISSUE Of course, the law also explicitly states that parodying is not dilution. These cases are often quite subjective, as the differing opinions also indicate. This subjectivity can just as easily work in favor of businesses trying to safeguard their intellectual property, as it can against them. Protecting a trademark requires vigilance. However, it is also beneficial to obtain skilled legal counsel in order to effectively protect the brand and business in such subjective situations.

It should be simple: you provide a service, and your customer pays you for that service. Unfortunately, it is not always so simple. Not getting paid for your work can be one of the most frustrating issues, especially for small businesses. It also does not take much for money matters to lead to larger disputes. So, what should small business owners do in these cases? 1. START WITH A REMINDER NOTICE Most sources, including the U.S. Chamber of Commerce, agree that business owners should not begin by escalating the situation. Take time to review and fully understand the circumstances of this individual case. Then, begin with resending the invoice or sending reminders to pay. 2. BE OPEN TO NEGOTIATIONS After sending any reminders – and depending on the response you receive – you should then consider scheduling time for negotiations. As much as obtaining that income is important, you do not want to lose a customer or have this issue impact your business’s reputation. Moving forward with a negotiation can show you are serious about obtaining proper payment, but also understanding a customer’s situation. For example, you can arrange a meeting or a call with the customer to discuss the payment. It is not uncommon for customers and other businesses to face financial troubles, especially in today’s market. If this is the case, you could establish a payment plan that will work for both parties. 3. OBTAIN HELP If there is no response to any reminders or offers to negotiate, then you can and should explore the other options to obtain payment. This could involve working with a collections agency to recover the debt owed. However, it is also critical to speak with a knowledgeable California attorney to ensure you understand your rights, as well as the customer’s rights. 4. REVIEW YOUR PROCEDURES Small businesses new and old work hard to gain customers. You may want to protect the relationships you build with them. However, you must also protect your business. It will often help to take another look at your payment policies. Perhaps you make them stricter, to prevent the risk of non-payment issues. A business attorney can also help craft policies to secure finances and the business’s future.

Nearly every day, a new article on artificial intelligence (AI) seems to pop-up, particularly in the context of its use in various business settings. Many California employers may already use AI, while others are looking to implement it in their operations. It is important to stay up to date with current trends in the business world and the employment arena. CONSIDER THE EEOC’S WARNINGS If you utilize AI in the workplace, you must ensure that it complies with federal employment laws, per warnings from the Equal Employment Opportunity Commission (EEOC). This is essential when considering how you use AI and how it affects workers. 3 MATTERS TO KEEP IN MIND Many see AI as an efficient tool, but it is not without risks. There are three particular issues that employers must keep top of mind in relation to AI implementation, including: Discrimination laws: AI is not necessarily less biased than humans. There are various cases of AI discriminating against potential employees when used in employment decisions. Other cases involve discrimination in wage and hour matters. If you choose to use AI in these matters, you may still wish to include a human element to review the processes and avoid the risk of legal issues arising from AI usage. Privacy laws: It is important to ensure that any AI implementation does not violate workers’ rights to privacy. AI applications that monitor employees’ work, for example may pose an illegal invasion of privacy. Employee perception: According to the Pew Research Center, employees are concerned about how the use of AI may affect both their position and privacy. Consequently, employers should be mindful about how to introduce AI to their company. While staying on top of the trends is often essential to keep up with the competition, employers must also understand the risks involved and make sure they have a plan to manage them.

Whether you are opening the doors of your first small business, or you are growing your business, hiring employees is a critical step. Approaching this process can be overwhelming, especially while balancing other aspects of your business. A CHALLENGING FIRST STEP Employment plays a key role in your business, yet it is often the area that involves the biggest risk of legal disputes and issues. For many small business owners, it might be their first experience with employment laws, so there are a few things that small business owners must keep in mind as they begin the hiring process. According to CNBC, many small businesses in California and across the nation are facing challenges on the hiring front. There are various reasons for this, but this struggle is leaving many small business owners desperate for quality employees. Even if you feel this stress, it is important to approach the hiring process with great care – especially if it is the first time you engage in hiring. TWO MOST IMPORTANT FACTORS TO KNOW As you begin the hiring process, you must: Know all the rules: As we have discussed in previous blog posts, there is a long list of laws and regulations that you must adhere to when hiring, such as the Americans with Disabilities Act (ADA) and the more recent Create a Respectful and Open World for Natural Hair (CROWN) Act. The Equal Employment Opportunity Commission (EEOC) provides extensive information on the important hiring rules to understand – and practices to avoid. Understanding these rules is not just important for large corporations; small businesses must also know the regulations of hiring practices. Consider consulting an attorney: It is often beneficial to seek guidance from a lawyer when you first open or expand your business, including when you begin to plan for the hiring process. Working with someone to fully understand the legal aspects of hiring can help avoid issues that could potentially develop into legal claims or disputes. Taking these two steps may seem simple. However, it can help small business owners start hiring and growing their businesses with confidence. It can also guide them to actively prepare and avoid the risk of litigation.

Concerns about inflation are leading to financial stress for nearly everyone across the country – including small business owners. It can already be difficult to strike a balance between running a business and efficiently managing finances, and the current circumstances are weighing heavily on business owners. Financial stress can escalate quickly. This is especially true considering that claims of unpaid wages are some of the most common lawsuits small business owners face. So, what must small business owners consider in these cases? THREE ASPECTS OF WAGE CLAIMS TO UNDERSTAND As a small business owner, because payroll should be a top priority, it is important to be aware of how to handle employee claims. Make sure employees report to you: It is likely that your employees will speak to you first if they encounter a wage issue. However, you can help to ensure this by establishing a clear complaint process in your company policies or employee handbook. That way, you remain aware of any issues within your business – and can resolve them quickly. Then, you should also have a plan in place for how you will handle any complaints. Know the process: It is also important to understand the process your employees might engage in if they file a claim or lawsuit to recover unpaid wages. This knowledge allows you to prepare and protect yourself before a claim is filed. Know the law: You should also take time to understand federal and state wage laws as you first establish your business, and be aware of California’s penalties for unpaid wages and employees’ waiting time. Speak to an attorney: The moment you are notified of a claim or lawsuit, you should contact your attorney, or an employment attorney to counsel you on your next move. The more you delay, the harder it will be to defend your position. As we have stated in previous blog posts, being proactive is highly beneficial. Even if you do not face a wage dispute, you can take steps now to prevent issues in the future. YOU MAY HAVE TO REEVALUATE FINANCES If you face financial stress, it might be necessary to reevaluate your business operations and expenses – at least temporarily – to manage current wage issues or avoid future ones. Current events may create challenges for small business owners, but being prepared and actively addressing these concerns can help you effectively handle disputes and litigation that may arise.

Over the past two years, many California businesses transitioned to full-time remote work. It has become the norm for many employers and employees across the country, as well as a convenient option. However, remote work comes with its own risks. Employers faced new concerns regarding cybersecurity and intellectual property protection. Now, many are facing employee disputes as well. BUSINESS OWNERS SHOULD BE AWARE OF THIS TREND IN LAWSUITS According to The Los Angeles Times, the number of lawsuits businesses face from remote workers is increasing. The reason for this wave of lawsuits? The costs related to working from home. These lawsuits list a wide range of costs employees want their employers to cover, including: Home office and technology costs Increasing internet bills due to working from home Increasing utility costs due to working from home Lost revenue from being unable to rent out home office space The sheer number of these lawsuits means that business owners should take note – and be prepared. WHAT DOES THE LAW SAY? California law require employers to reimburse their remote employees for certain work-related costs, such as: Internet costs Phone bills Employer-directed expenses An employee’s claim for cost reimbursement must be reasonable and related to the business’s needs or the employee’s work at home. HOW CAN YOU HANDLE THIS SITUATION? There are a few steps you can take in the face of this rising risk of this type of lawsuit. You should: Carefully compare and contrast in-office practices to remote work practices Review policies, employee benefits and the employee handbook Proactively classify what business expenses you will cover Document everything, from communications to expenses

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

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.