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

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

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

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

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

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

The hiring process is a nervous time for both the prospective employees who apply for the open position, and the employer that is trying to hire the most talented applicant available. There are many things to consider on both sides, but today we want to focus on the employer and what they must do in order to ensure a successful and litigation-free hiring. The first thing to realize about the hiring process is that there are many different questions that the interviewer is not allowed to ask the applicant. For example, they can’t ask if the applicant is considering having a child. They can’t ask about the race, religion, age, or sexual preference of the applicant. And they can’t ask about the disability or citizenship status of the applicant. Another factor of the hiring process is that there are a lot of administrative steps that need to be completed. The employer must get a federal identification number for any new hire, as well as register the new hire for tax purposes. Workers’ compensation insurance and other benefits must be considered too, as well as aiding the new employee with registering for these benefits. Last but not least, any employer should refrain from making any promises to a prospective employee during the interviews and discussions they have with applicants. This is because those promises become an “implied contract,” and if the situation changes with your hiring process and another applicant is actually selected as opposed to the one your promised something to, then you could have a legal mess on your hands.

Efficiency and meeting deadlines are the top priorities for any transportation or logistics company. In an effort to meet these priorities and compete in a highly competitive industry, some business owners take risks others may not be willing (or able) to take. For instance, some of the largest logistics and transportation companies in North America are spending tens and even hundreds of thousands of dollars to reserve heavy-duty electric trucks from Tesla. The benefits and potential risks of electric trucks If everything that electric truck makers like Tesla promise occurs, then companies that utilize electric vehicles in their fleet could expect to save considerable amounts of money in fuel and operating costs. According to reports, Tesla models could be roughly 20 percent less expensive than diesel fuel trucks. However, that is assuming that the trucks perform as expected, which remains to be seen. Further, there could be issues to consider if the trucks are able to travel as far as expected in terms of complying with federal regulations, including equipment inspection as well as Hours of Service. Recently released details on the Tesla electric model note that the vehicle does not have space for sleeping. Having said all this, the potential benefits of the trucks currently seem to far outweigh the potential risks, and some of the largest companies are eager to put their money on the future of electric fleets. What readers can take away from this As logistics and transportation companies increasingly invest in new technologies to gain a competitive edge, it can be crucial that they consistently assess their impact on the business and avoid costly mistakes. Innovative tools and solutions are certainly exciting, but they can also lead to unforeseen challenges and consequences with regard to compliance, employment, and contractual obligations. As such, it can be wise to seek legal counsel when operations, resources, and procedures change.

Can you imagine if every soda company on the planet had access to Coca-Cola’s recipe? Or if every fast food chain knew the secret spices that went into Kentucky Fried Chicken’s meals? If either of those things were true, then every soda company would make Coca-Cola and every fast food restaurant would make KFC chicken. The secrets that these companies have are valuable because of the secrecy behind their products. If their trade secrets were public knowledge, there would be no reason not to copy them. It is for this reason that companies must protect their trade secrets. They hold immense value and they allow you to differentiate your service or product from other companies. So how do you go about securing your trade secrets? In order to protect your trade secrets, you need to identify them and then label the information accordingly (whether this is in the form of physical documents or electronic files). Then you need to properly store them and secure them. Utilizing passwords and keys is obviously important, but you would also want to make sure that there isn’t a particularly largely group of people that even have access to those passwords and/or keys. Regardless, you will want to train and educate your employees on this matter. Having security measures for your trade secrets is also a plus — and again, whether it is a physical document or an electronic file, you can find effective security measures to protect your trade secret.

The holiday season is the most important time of year for many California business owners, as it can be the final push to maximize profits. With all that is on the line, any issue that jeopardizes business can be catastrophic. One such issue is construction work. Construction work is often necessary to the safety and/or success for one business, but it can interfere with another’s business. In these situations, there are a few ways to resolve construction disputes that can arise. Know the rules Commercial leases often provide guidelines and protections regarding construction work. It should address when landlords must notify tenants of construction projects, what restrictions are in place to prevent interference with other businesses and whether rent reductions may be available. If you are proposing construction work or if construction work on another site is infringing on your business (noise, mess or obstructing access to the customer), then you should review your lease to assess what options and protections may be in place to address the issue. Make adjustments Business owners should examine their options to adjust to the disturbance. That may mean securing signage from the contractors to alert customers that you are still open or work with landlords and other business owners in the area to develop parking solutions, promotions, and other strategies to attract customers during the disruption. Take legal action When these efforts fail or are not feasible, then legal action may be the only way to resolve a construction dispute.

Accuracy, clarity, and specificity are crucial when it comes to drafting (or signing) a contract. Failure to prioritize these elements can lead to confusion and, in many cases, costly litigation. Recently, issues stemming from contract language and inaccuracies spurred a dispute between the operators of a stadium and a security company they hired to work events for 14 months. According to reports, the company hired to run the stadium accused the security company of overbilling and fraud. Among other violations, the security company allegedly submitted invoices listing workers who had been terminated, workers who worked more than 24 hours in a day and workers who appeared twice on the same list. Problematic contract terms In that case, the security company defended the claims based on a contract provision that the contract gave the stadium the opportunity to audit their performance, but the stadium chose not to do so and thereby waived claims of over-billing. Skillfully drafting a contract that includes specific language for auditing performance and billing can be valuable protection for your business. Dispute resolution In that case, the security company also expressed dissatisfaction that the stadium publicized its allegations of over-billing rather than bring the complaints privately to them. Again, including appropriate dispute resolution methods in that contract would have avoided the public embarrassment and, even though the security company prevailed, they lost business due to the bad publicity. What California business owners can take away from this case Situations like this one are not uncommon, but they can be prevented. Businesses should always retain an experienced attorney to examine or draft an agreement that is clear, accurate and specific, with your company’s best interest in mind.

To remain competitive in the marketplace, businesses often need to provide something special to consumers and clients. This might include faster service, a better product or unique solutions. In any of these cases, the information or method that gives your company its edge may be classified as a trade secret. Examples of trade secrets For instance, your company might create consumer profiles or develop advertising and marketing strategies that are unique to your business and not available to the public. You might also have customer lists, bid specifications or business plans that are valuable because they are a compilation of information not otherwise readily available to your competitors. Challenges with protecting trade secrets These resources can give you an advantage over your competitors, and because of this, it is important that you protect them from misappropriation. But this can be difficult to do without the requisite knowledge or experience. As an example, business owners can be confused about whether to patent a specific invention or protect it as a trade secret. Or they might assume something is protected as a trade secret but fail to take the necessary steps to confirm this. It is also possible that a company protects a trade secret but is unsure of how to enforce it properly. These types of issues are not uncommon. As the World Intellectual Property Organization notes, trade secrets and protection measures aren’t necessarily as concrete and well defined as a patent, for example. There is no formal registration process; there is no timeline for protection; they are often defined using broad terms. What business owners can do Recognizing the importance of protecting these unique assets, business owners, and administrators should seek the advice of an intellectual property attorney who can help you identify, protect and enforce your company’s trade secrets.