Arbitration has been around for decades, but it has recently become a hot-button issue in California. For example, Google made headlines when 20,000 employees walked off the job to protect the internet giant’s arbitration policy concerning claims of workplace misconduct. You may be asking yourself, “What’s the big deal? Why should I be concerned with an arbitration clause in a business contract?” Well, let’s start at the beginning. Arbitration Explained Arbitration is a wholly private…
Read More
Many consumers have grown frustrated and skeptical of large companies and social media platforms neglecting to take necessary measures to protect their personal data. As a result, states are taking action to help fill the void. California is a prime example. The California legislature passed one of the most comprehensive privacy laws in the country, the California Consumer Privacy Act (“CCPA”). This legislation is set to take effect on January 1, 2020; however, the actual…
Read More
If you own a business in California, get ready to comply with a newly enacted set of regulations governing the privacy rights of consumers to certain types of data. The legislation, known as the California Consumer Privacy Act (CCPA), is a major piece of privacy legislation that could have more repercussions on U.S. companies and businesses than the landmark General Data Protection Regulation (GDPR) that went into effect in the European Union. Impact of the…
Read More
Successful “gig economy” companies like Uber, Lyft, Instacart, and Postmates, have relied on workers who are legally classified as independent contractors. This means they are not employees and, as a result, are not eligible for an array of benefits (e.g., sick leave, vacation time, and health insurance) that is usually accompanied with a full-time, salaried employee position. These gig economy companies have grown exponentially and have enjoyed the reduced administrative burden and fixed costs associated…
Read More
Contracts are essential in the business world. Enforceable contractual agreements will hold companies or individuals legally accountable for promises to perform certain actions or payment obligations. At the same time, mistakes can be made in preparing and executing contractual agreements. This can result in the contract, or portions thereof, being held unenforceable, or it could lead to your business being required to do something against your intentions. Invalid Contract A contract can be deemed unenforceable…
Read More
Many business owners choose to incorporate their business to avoid personal liability for the debts and liabilities of the business. When done properly, the business is a separate and distinct entity from its owners. However, if the owners are not careful with certain corporate formalities and fail to adequately capitalize the company, a third party may be able to “pierce the corporate veil,” which would shatter the protection of the corporate structure. To the extent…
Read More
One of the most important assets of a startup business may be its intellectual property. This term legally encompasses creations of the mind, including inventions, artistic work, literary pieces, names, symbols, designs, and images that are used in business In other words, your intellectual property can be the very fabric of your business. It can be strictly protected, or it can be sold and licensed to generate an income stream. Hence, your intellectual property needs…
Read More
Many people going into business become so consumed with finetuning their service or product that they overlook the importance of protection afforded to them and their business interests through incorporation. If you want to avoid a host of potentially damaging issues – including false claims of ownership by others and creditors coming after you personally to satisfy debts of the business – the sooner you incorporate, the better. In this issue, Afshin Hakim, a highly…
Read More
In March 2019, music publishing giant EMI filed a breach of contract suit against hip-hop megastar Kanye West. The suit was a response to a claim made by West in a California courtroom that the contract amounted to “servitude” since it violated California’slaw that limits personal services to “no more than seven years.” Unfortunately for West, the details of the contract specify that everything related to their professional agreement be governed exclusively by New York…
Read More
