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When you hire someone new, it can be difficult to know how things will work out. Some employees are fabulous – hardworking, smart and get along well with your team. Others, not so much all the time. Maybe they aren’t so great at following rules and directions, or they don’t mesh well with your other employees. As a business owner, it’s important that you know how to deal with difficult employees while also protecting yourself and your business. Here are some tips to bring into your next employee situation: WRITE DOWN EVERYTHING It’s so important to make sure that you get documentation of problems you have with an employee and how you deal with it. Keep all emails or texts and write down key points from any conversations that you have with them about the issues. Document all incidents and if the issues persist. Even if you think the problem will be solved with a simple talk, having everything documented will be extremely helpful if things don’t get resolved or escalate. GO BACK TO YOUR COMPANY POLICIES When you started your business, you probably made policies and specific processes to help in instances like this. If you’re having an issue with an employee, lean on those policies. You can always kindly remind your employee of the agreement that they made upon getting hired. If things continue and you think disciplinary action may need to be taken, be sure to follow your stated processes carefully to protect your company. OFFER CLEAR AND CONSTRUCTIVE FEEDBACK It can be easy to talk about what an employee is doing wrong, but a good leader is able to help employees correct their behavior. Help them understand what to do differently and how they can improve. KEEP IT PROFESSIONAL Difficult employees can be frustrating to deal with. It’s easy to get overwhelmed by bad behavior, but it’s important to keep your own actions professional. Try to look at the situation calmly and objectively so that you can best understand what is going on and how to resolve it. Don’t talk about the issue with anyone who doesn’t need to be involved. Talking about employees with other employees is one of the quickest ways to escalate the situation. Don’t let a situation with a difficult employee have a negative impact on your business. If the situation persists, seek legal advice to ensure that you are keeping your company safe.

Construction contractors face professional challenges every day. Between client relations, workers, suppliers, vendors, building inspectors and a different workplace with every new job, contractors must satisfy a wide range of demands at once. To complicate matters, contractors must deal with frequent litigation over contract disputes or errors. Thankfully, many states in the U.S. attempt to reduce the volume of these lawsuits with limiting statutes. Among these protections is California’s Right to Cure statute. CALIFORNIA’S RIGHT TO REPAIR STATUTE Many states in the U.S. support a Right to Cure statute, including California. In 2002, after an adverse decision by the California Supreme Court denying homeowners the right to sue for construction defects that had not yet caused actual damage to other property or parts of a home, the California General Assembly adopted the “Right to Repair Act” (Civil Code §§ 895 – 945.5), often referred to as SB 800. When a client finds a defect or error in a contractor’s work, they must inform the contractor before filing a lawsuit. The client must allow the contractor to inspect the error and perform repairs. Sometimes though, the error might not be easily repaired. If the contractor is unable to fix the defect, they can offer alternative solutions for the client. These can include covering the cost of repairs through another company or contractor or even a cash credit. If all else fails, the client may advance their claim to the courts for a legal solution. These statutes are designed to ease court caseloads by precluding certain lawsuits and allowing parties to resolve disputes before taking legal action. LEGAL PROTECTIONS TO SAVE TIME AND MONEY Contractors with questions about Right to Cure statutes can find answers with a local lawyer familiar with construction law. An attorney can navigate legal statutes, help draft comprehensive contracts with extensive protections and assess any legal claims.

When a former employee misappropriates your company’s secrets in violation of their non-compete agreement with your company, it may feel like a punch in the gut and you may not know how to respond. WHAT DO NON-COMPETE AGREEMENTS PROTECT? Non-compete agreements protect a variety of business interests. They prevent employees from working for a competitor, or providing them information, within a certain geographical area and/or period of time after leaving your company. They may also prohibit employees from using company trade secrets if they decide to start their own business. By law, California does not enforce these agreements in most circumstances. But your company – and many others in the state – may use a properly crafted non-compete agreement, in conjunction with a non-disclosure agreement, to discourage the misappropriation of your business information. WILL EMPLOYEES FACE CONSEQUENCES? You may have concerns that a former employee will use or reveal your company’s trade secrets. California does not recognize inevitable disclosure doctrine. This doctrine assumes an employee would use your secrets in their new role and enjoins them from doing so. Yet, your company can receive injunctive relief if the employee has threatened to appropriate your secrets. A court-ordered motion will stop them from acting on their threats. When your former employee uses your company’s secrets for personal or business advantage, they have committed theft. In this case, you can file a lawsuit against them for stealing your information. Understanding the difference between non-compete agreements and non-disclosure agreements, and how they can be applied in California, will help you to implement the appropriate, enforceable safeguards to protect your business secrets.

Your company likely does its best to compensate employees in a fair and timely manner. Yet on occasion, a disgruntled employee might claim you violated wage and hour regulations. They may try pursuing a settlement, and you may worry that it will hurt your business’ reputation and finances. While your company may have made wage and hour mistakes, it’s crucial to protect it against employees seeking damages. Following these suggestions can help you do so. Follow California’s wage and hour laws California’s minimum wage will increase to $15 per hour in 2022. Currently, it sits at $12 an hour for businesses with 25 or less employees, and $13 per hour for those with 26 or more. The state and country’s fluctuating wage standards may confuse workers. But if you hire an employee at a pay rate that’s now lower than the current minimum wage, you must raise their pay to meet state standards. California’s overtime statutes decree that employees who work between eight and 12 hours in a day will receive one-and-a-half times their hourly pay. And employees who work over 12 hours in a day can receive double their hourly rate of pay. This rate also applies to employees who have worked over eight hours in a row on seven consecutive days. Some employees are exempt from this law, and it’s important to know if your employee’s work falls under this category. Keep detailed employee and pay records Make sure your company has comprehensive employee and pay records on hand. Employee records can help you identify their pay rate, pay changes and work schedule. And pay records track the number of hours the employee worked, any overtime they worked and the dates they received their paychecks. While auditing these records may help you find the mistakes your employee alleged, doing so may also dispel their claim. Wage and hour violations are serious matters. But by following California’s wage and hour laws and keeping proper records, you can protect your business against them. If your company faces a wage and hour suit, working with a legal professional can help you fight it.

Have you, as Summoner, been able to guide your Champion to destroy a Nexus or two? If you are one of the estimated 100 million active League of Legends players world with League of Legends, it is likely that you fully understand how elusive victory can be in the online battle arena. Those unfamiliar with the popular streaming game might not understand its terminology, but will regardless understand the stakes in intellectual property litigation brought by League of Legends developer Riot Games. The Beverly Hills company has filed a claim against a far less well-known esports developer called Riot Squad. In its lawsuit, California’s Riot Games claims that Chicago’s Riot Squad “hopes and intends that by its use of the Riot brand name, consumers will mistakenly believe that its esports organization is in some manner associated with, sponsored or endorsed by, or otherwise affiliated with Riot and its hugely popular products and services.” It should be noted that Riot Games has secured trademark protections for “Riot” and “Riot Games” when the terms are used in connection with esports and video games, the firm said. Riot Game has asked the U.S. District Court in the Central District of California’s Western Division to stop Riot Squad from using its trademarked “Riot” terms, award damages and require the fledgling firm to “deliver up for destruction” all products and materials using the terms. A news report on the dispute noted that Riot Squad does not own a League of Legends team. Rioters around the world are getting ready for the upcoming 10th anniversary of League of Legends with a day of streamed activities. Individuals and companies that need to protect their intellectual property can enforce their IP rights with the help of an attorney experienced in protecting client interests in intellectual property disputes.

Holidays – particularly the year-end Holidays, are supposed to be a time for relaxing and disconnecting. However, in the business world, that doesn’t always happen. Between the end-of-year demands and the stress of trying to accommodate employee holiday needs and wishes, it can be a lot for employers to manage. However, there are some basic steps every employer can take to minimize the disruption and conflict that can arise during this time of year. Revisit holiday pay and hour expectations Do you give your employees the New Year’s holidays off? Do you pay them for certain days, or offer extra pay for anyone who works on Christmas? Under California law, there is no requirement that businesses close or provide extra compensation to workers on either secular or non-secular holidays. However, many employers establish policies that provide such benefits to employees. Review your company’s policies and make sure you make your employees aware of the policies. Consider hiring and firing decisions carefully The need for workers can change drastically during the year-end holidays. Be cautious when it comes to hiring seasonal workers or terminating employees. Such decisions have financial and personal ramifications, and a business owner can face legal complaints if these processes are not in line with state or federal laws. Reinforce your technology policies As noted in this article, roughly 56 percent of Beverly Hills employees plan to shop online at least a few times a week during work hours. This is particularly true during the year-end Holidays. If you have strict policies on personal use of a work computer that prohibits employees from shopping online, make sure you remind your workers of this. And if you do allow some amount of such activities on the clock, discuss with employees what is reasonable and how to avoid exposing the company to security breaches when shopping online. Respect your employees’ rights During any State, Federal or religious holidays, be respectful your employees’ rights regarding discrimination and leave. This means addressing and preventing acts of harassment stemming from a person’s gender or religion as well as refraining from any retaliatory acts against people who take time off for medical or family reasons. Reviewing these policies with employees during this time of year can go a long way in preventing disputes that could otherwise arise.

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.