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Conflict between business partners can sometimes seem inevitable. Many business owners understand the benefits of using alternative dispute resolution (ADR) to settle disputes. For those finding themselves facing potential litigation, ADR might be a better option. ADR is an alternative to courtroom litigation that enables entities or individuals to settle disputes through compromise by way of mediation, or through arbitration which the parties can agree to be binding and final. ADR also keeps information private, is generally cheaper, more convenient and often provides much faster results than through the courts. TYPES OF ADR There are five primary types of alternative dispute resolution: Arbitration: Like trying a case in a courtroom, arbitration includes a ruling third party or panel who hears arguments and determines an outcome. All parties must agree on the arbitrator and their potential outcome before the process begins. Mediation: In mediation, a neutral party facilitates voluntary discussion with the goal of compromise. Mediators do not impose rulings but suggest courses of action and encourage parties to listen, empathize and collaborate. Mediation works best for parties seeking to preserve long-term relationships. Minitrial: Often used by businesses to settle large disputes, minitrials mimic the lawsuit process. Attorneys present arguments in brief to a panel of officials consisting of clients and company management, representing both sides of the dispute. The purpose is to ascertain the likely ruling of an actual trial then negotiate a settlement from there. Summary jury trials: Used primarily in federal courts, summary trials involve an advisory panel of jurors. A judge or arbitrator will discuss each jurors’ opinions on the arguments and determine the likely results of a jury trial. The purpose of summary jury trials is to quickly identify a realistic starting point for negotiations and establish a speedy timetable. Early neutral evaluation: Sometimes court-ordered, this process employs an objective third party to quickly assess the strengths and weaknesses of each side’s arguments. Negotiation and mediation may follow, but that depends on each party’s willingness to compromise. DISCOVER A COMPROMISE THAT MAINTAINS BUSINESS OPERATIONS Those facing a potential lawsuit or small claims case might pursue alternative dispute resolution for a solution. A local lawyer with experience in business litigation can advise on options, draw up ADR contracts and schedule the necessary personnel.

On January 1, 2020, the California Consumer Privacy Act (CCPA) went into effect. Called “the first consumer privacy act in the country” by local legislators, this new law extends protections to the data consumers provide businesses. California lawmakers and tech companies have debated the specifics of the CCPA for nearly a year. In June 2020, after three rounds of revision, the California Attorney General (AG) released the final version of the law. Courts began to enforce these regulations in July 2020, so business owners must understand the new expectations. CCPA PREPARATIONS AND EXPECTATIONS FOR BUSINESS OWNERS Most businesses in California likely have electronic data on their clients. With the regulations finalized, now is a great time for business owners to examine this data for CCPA compliance, and increase security. Cybersecurity firms recommend businesses take the following steps to secure their client’s information: Locate, identify, classify: Companies can first conduct an internal review of data management systems, locating client data and consolidating data. Security personnel should not overlook defunct systems or rarely accessed folders, as they might contain information on older clients. Protected information includes all identifying information, customer records, personal characteristics, purchase history, biometric information, internet activity, geolocation data, employment-related information, education history, and inferences. Comply: All protected data will likely require updated permissions and security measures. Business owners can limit employee access to information with role-based controls. If security programs are below standard, companies must invest in improvements. Maintenance: Just as more governments increase protections, information thieves devise new tactics. Cybersecurity managers at California companies must remain aware of new and developing technologies and upgrade security measures accordingly. Companies must also allow consumers to access their information at any time and delete data upon request. Several technology solutions can remedy access issues. LEGAL COUNSEL CAN REVIEW COMPLIANCE After July 1, the State of California will begin taking legal action against local businesses not in compliance with the CCPR. Business owners looking for a legal review of their company’s security protocols can reach out to a local lawyer familiar with business law.

Day laborers make up a significant portion of California’s workforce. Groups of these individuals wait outside home improvement stores, construction staging sites and Day Labor Centers. Contractors and homeowners come through to hire people to contribute to contract work, landscaping and home improvement projects. Many employers may not understand that the Fair Labor Standards Act (FLSA) protects these workers under federal law. These laws help protect everyone who works in America, guaranteeing fair wages and safe workspaces for all. RIGHTS OF DAY LABORERS Day laborers help contractors secure affordable help quickly, and without long-term commitments. These non-union workers are also often undocumented, making them particularly vulnerable to exploitation. Those who use day labor must protect their workers’ rights: Right to organize: Even day laborers can organize to improve working conditions. Several non-profit organizations help protect these rights, including the Day Labor Centers from California Human Development. Right to pay: Even undocumented workers have a right to minimum wage and overtime. Day laborers may even sue for back pay. Right to safety: Employers must provide workplace health and safety protections in line with federal and state regulations. These responsibilities include covering all medical expenses for injuries sustained on the job and securing worker’s compensation insurance. Right to be free from discrimination: Discriminating against day laborers for their race, color, age, religion, disability, sex, or immigration status is illegal. Right to remain silent: Workers are under no obligation to answer questions about their legal status, even from their employer. Employers frequently take advantage of day laborer populations. According to the United Workers Congress, about 1 in 5 day laborers suffer workplace injuries. Many of those injured do not receive medical care because employers deny that they were ever employees. Rarely do these people stand up for themselves in court, fearing retaliation from immigration services. AN ATTORNEY CAN HELP ENSURE PROTECTIONS Residents and business owners who use day labor for convenience and cost-effectiveness must protect their employees under federal and state law. A local lawyer familiar with employment law can look over the terms of job agreements and help create safe and responsible workspaces.

In January 2020, California’s controversial Assembly Bill 5 (AB5) went into effect. This new law dramatically changed the way California businesses are required to classify independent contractors. Intended to target ride-share companies Lyft and Uber, legislators hoped the bill would force employers to provide these “gig workers” higher wages, increased job security and health benefits. The law has been resoundingly unpopular and has had much more far-reaching effects than intended. For example, it severely adversely effects truck drivers who rely on their independent contractor status to work for several different companies and the ability to work across state lines where employee laws are different. Consequently, both judges and legislators have attempted refine AB5 since January 2020 to better define the scope and application of the law, although much of these efforts have been unsuccessful. NEW CLASSIFICATION RULES UNDER AB5 The history of AB5 traces back to a 2018 ruling against the company Dynamex. Their delivery drivers alleged that Dynamex misclassified them as independent contractors. The California Supreme Court rejected previous rules classifying independent contractors and adopted a new standard that presumes all workers are employees, not contractors. Under the new “ABC test,” hiring entities can only classify a worker as an independent contractor if they establish: that the worker operates without direction in the performance of the work; that the worker performs work outside of the hiring entity’s usual course of business; and that the worker is engaged in an independently established business of the same nature of the work. CONFLICT SURROUNDS RECLASSIFICATION Ever since the 2018 ruling, California businesses and local legislators have been at odds, taking aggressive legal action. Uber and Lyft, along with other companies affected by AB5, have formed a coalition that is funding a multi-million dollar ballot measure that combats the new classification. Truck drivers and trucking companies have also railed against the bill, securing the support of a federal judge who blocked AB5 from changing their classification. On the other hand, driver advocacy group Rideshare Drivers United weighed in as well, pressuring state legislators to enforce AB5 and award its members over $630 million in back pay. The State of California is currently suing both Uber and Lyft for refusing to adhere to the new classifications. PROPOSITION 22 As the law matured throughout the year, subsequent lawsuits tested the law with industry-specific context and interpretations, most of which ruled against the law. Not surprisingly, a ballot initiative to define app-based transportation (rideshare) and delivery drivers as independent contractors and adopt labor and wage policies specific to app-based drivers and companies. This past November, it passed by an overwhelming margin. It’s not yet clear how the new bill will affect AB5 with regard to non-rideshare and delivery drivers, but it is clear it sent a clear message to the California legislature by both employers and employees that AB5 is hugely unpopular and needs additional refinement.

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.

Most construction contractors are very with client disputes. With so many people involved in every project, some contractors may feel like every job comes with legal disputes. What are the most common causes of disputes? 5 CONSTRUCTION DISPUTES TO LOOK OUT FOR Among construction projects, contractors run into these disputes either during or after the job: Contract misunderstanding: Though both parties agree to contracts beforehand, the context of some clauses may not appear relevant until typically the customer decides they do not like something or misunderstands the construction process. It is critical to have the most complete contract possible to avoid misunderstanding and to minimize the possibility of mischaracterization. Quality of construction: Construction is a human business and sometimes errors occur. When discovered, customers have a certain amount of time to file suit. California law allows contractors a Right to Cure, which mandates that clients allow contractors to fix errors or defects before pursuing litigation. Payment disputes: Some clients may refuse payment upon completion of a project, requiring contractors to file suit. Clients may argue they are withholding payment due to dissatisfaction with another element of the project, so these cases often spill over into other suits. Delays: Construction projects are notorious for their delays. Between unpredictable weather, availability of supplies and acts of God, many outside influences can delay project timelines. In most cases, the contractor has no choice but to delay the work due to unsafe or unworkable conditions. Without a comprehensively worded contract, some clients may capitalize on these delays. Materials used: Sometimes, a client may claim a contractor used improper materials or materials not detailed in the contract. Contractors can avoid these suits by providing exhaustive lists of all the materials required for the project. However, if the materials prove faulty, these lawsuits may end up involving suppliers and parts manufacturers. A SOLID CONTRACT CAN HELP AVOID THESE ISSUES Contractors can avoid these common disputes with detailed contracts that account for unforeseen circumstances. Many contractors find success working with a local attorney familiar with business law and contract disputes.

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.

The employee handbook is not only a guide for employees, but also your legal protection against future issues with any of your company’s policies. It’s important to clearly delineate your company’s stance on employment matters and also go beyond taking a generic legal stance on things like anti-discrimination. In today’s political and cultural climate, specificity is necessary. Here are eight items that must—and may not currently—be included in your handbook): Acknowledgment of receipt for employee file. Have a place for the employee to sign in acknowledgement that they have read and received the handbook, so that they cannot use the excuse, “I never knew about that rule.” Gender bathroom policy: Are nonbinary individuals allowed to use opposite gender bathrooms if they identify as such? Be clear and compassionate, no matter your policy. Updated dress code. You may have a dress code, but is it specific enough to account for current fashion? Have you noticed younger employees dressing in a way that does not represent your company’s culture or values? Make sure that your code gives enough detail so that it can be followed faithfully. Do not expect younger generations to “just know what’s appropriate.” Room to edit. Make sure that you leave in a clause stating that you can update the handbook at any time. This is your business, and you have the right to edit or change the rules as you see fit. Lunch policy. Lunch rules are often unclear. Lay them out so that employees know how long or short their lunch can be and how to report it on a timecard if they are hourly. Phone rules. Is it okay to have personal conversation at their desk? What about texting during the workday? Posting on social media at work? What are your cell phone policies? Do you have any at all? This is something to consider adding to the handbook. Training Payback. To prevent employees from leaving directly after you’ve spent money training them, you can institute a mandatory payback clause. This is a great practice for mid-size businesses who would suffer from the loss of the cost of training more than most employers. Work from home policy. Do your employees have the option to work from home any days of the week? If so, how many? It’s worthwhile to consider updating your handbook every year as things change in culture, politics and general workforce expectations. In a fast-changing and increasingly flexible world, strong guidelines are a must for employers who want to avoid legal issues and provide firm boundaries and a safe, inviting work environment.

The federal government awards billions of dollars every year in construction contracts. These projects cover everything from constructing government buildings to improving infrastructure to even classified jobs. To maintain fairness and impartiality in rewarding these lucrative jobs, the federal government is required to employ a highly regulated sealed bidding process. The Federal Acquisition Regulation (FAR) oversees the sealed bidding process, ensuring that all proposals adhere to employment regulations like affirmative action and minimum wage. Contractors may have a better chance of securing these profitable jobs with a clear understanding of the process and expectations. THE SEALED BID SOLICITATION PROCESS Government agencies seeking contractors first issue an Invitation for Bids (IFB). The IFB contains all relevant details about the project, regulated by FAR rules for accuracy and clarity. The agency then advertises the IFB in trade journals, contractor mailing lists, the federal government’s Commerce Business Daily (CBD) and elsewhere. Contractors can then begin to submit bids. Once the deadline to submit bids has passed, the agency’s Contracting Officer reads them aloud in public to ensure transparency. Regulators examine the offers for mistakes, clarity and adherence to the expectations outlined in the IFB. If contractors made mistakes in drafting their bid or fail to understand the demands of the IFB, the reviewers will reject the offer, regardless of cost. The CO then awards the contract to the lowest qualified bid. After revealing the winning contractor, the government requires a final review called an “affirmative finding of responsibility.” The FAR determines that the winning contractor: has the funds necessary to complete the job; will comply with the performance schedule and deliver on time; maintain a solid performance record that emphasizes integrity; possesses the required experience, accounting, technical expertise, operational ability, and accommodating facilities; is eligible to receive a government contract award under applicable law. The FAR may also review price considerations based on location, added transportation costs and applicable taxes. If a different bidder appears more advantageous after this evaluation, the FAR will award them the contract. The CO then sends the winning bidder the document and closes the process. DO NOT OVERLOOK LEGAL CONSIDERATIONS Much of the bidding process can get hung up on hidden regulations or agency quirks. Securing a lawyer familiar with contract law can help draft a comprehensive bid, work with the FAR and help with research.

California businesses, especially those in construction, understand the influence that powerful suppliers wield over the industry. These once-competitive fields supported dozens of different suppliers, but after decades of business, they have since consolidated into a handful of gigantic conglomerates. Many companies hold regional monopolies, leaving buyers few options when searching for a good deal. Clients of these huge companies are not powerless, though. There are many tactics smaller businesses may employ to find a little leverage when dealing with intimidating suppliers. USE THESE FOUR TACTICS WHEN NEGOTIATING WITH SUPPLIERS Local businesses have several advantages over large suppliers. Entrepreneurs have taken the time to invest in their community by building relationships and creating jobs. This unique perspective gives small business owners access to a few key tactics to gain leverage over suppliers: Increase value: Clients can negotiate with suppliers by offering value beyond spending cash. Look closely at the standard deals made with this supplier for opportunities. Offering to sign a longer-term contract can provide security for the supplier’s cash flow and bundling orders together can create lucrative price breaks. Suppliers might reward clients who bring them leads into untapped regions or connections with other potential clients. Change purchasing habits: Large suppliers often increase the value offered to their clients by bundling other needed products or materials in with the main order. Small businesses can look carefully at the individual products in these “package deals” and shop for alternatives. Reducing one’s business with a supplier reduces the power they have. Additionally, smaller companies can secure better pricing by grouping together into buying consortiums to combine orders. Create the supply: Ambitious entrepreneurs might look for opportunities to create the supplies themselves, bypassing the supplier altogether. Though vertical integration is expensive and involves considerable research, an in-house solution will likely pay off in the long run. The supplier will likely recognize what is happening and offer a better deal to keep another competitor from entering the market. Legal discovery: Though an intimidating prospect, litigation is always an option. Many large suppliers may attempt to bury disputes under mounds of paperwork while protected behind ranks of lawyers but balk at the threat of a subpoena into their spending. Nothing scares a large supplier into cooperating like the threat of government regulation. LEGAL COUNSEL CAN HELP Business owners hoping to renegotiate a bad deal with a large supplier find more success with the help of a local lawyer familiar with business law. An attorney can bring a fresh eye to existing contracts, locate potential opportunities and navigate complex legal issues.

Litigation can be time-consuming, expensive and stressful for business owners. While it is not always possible to avoid litigation, a party might be able to reach settlements during the discovery phase of litigation. WHAT IS DISCOVERY? Discovery is the process where both parties collect information and evidence to prove their claims and/or disprove the other party’s claims. This evidence often includes witness statements, documentary items such as notes, letters, emails and text messages, recorded conversations, and information about the business. This information may be obtained by five main methods: Form Interrogatories (general written questions on a standard form approved by the California Judicial Counsel); Special Interrogatories (case-specific written questions typically prepared by your attorney); Request for Documents (case-specific written questions typically prepared by your attorney); and Request s for Admissions (case-specific written true or false statements typically prepared by your attorney); and Depositions (a stenographically recorded question and answer session conducted by one of the party’s lawyers of a party of witness under oath). BUSINESS OWNERS CAN OBJECT TO DISCOVERY REQUESTS A party can object to an improper discovery request from the other party on the basis that the request: Is too broad; Not relevant to the dispute; Seeks information that is protected by attorney-client privilege; and Is unduly burdensome. While failing to object may waive your right to later protest an improper request, an improper objection could cause a lengthy dispute that may result in a motion to compel a response to an objected to request. Business owners should remember that discovery is a critical process that is sometimes lengthy and expensive, but it also provides an opportunity to resolve the underlying dispute before taking the dispute all the way to trial.

Business contracts do not last forever. Many of them include a specific date when the contract ends, whether it is an employment contract or part of a partnership agreement. However, terminating the terms of a contract is not always in the best interest of the business. There are ways to make conditions of a contract continue to apply, even after the contract ends. Most California business owners are familiar with survival clauses, but they must understand how these clauses work and when to use them. HOW DO SURVIVAL CLAUSES WORK? If a section of a contract has a survival clause, that section persists and legally binds the parties even after the contract expires – or the parties terminate it. Business owners often use survival clauses in confidentiality agreements. Ensuring that these agreements remain legally binding for a time after the contract expires can help business owners proactively protect their company, should they face any changes regarding the contract. SURVIVAL CLAUSES ARE CRITICAL WHEN BUSINESS OWNERS DISCLOSE THEIR INTELLECTUAL PROPERTY Business owners can add a survival clause to their contract when they want specific warranties or liabilities to persist. However, since these clauses are commonly used with confidentiality agreements, these clauses are generally essential whenever intellectual property is involved. Survival clauses can help protect intellectual property when: Businesses enter into a new deal; Employers hire or terminate an employee; Businesses create a new partnership; or Businesses engage with manufacturers. REMEMBER, THE STATUTE OF LIMITATIONS STILL APPLIES Creating a survival clause can allow the terms of a contract to continue for a time. However, even this clause is subject to a statute of limitations. That is why it can be beneficial for business owners to consult an experienced business attorney to craft an effective survival clause that protects their business and prevents serious contract disputes in the long-term.