Tag: California employment laws

Business legal services in Silicon Valley

Understand the Regulations Surrounding Employee Recruitment and Hiring in California

Businesses and organizations make major investments into finding, recruiting, hiring, and training employees. If a direct competitor tries to swoop in and take all your qualified staff, it could cause serious harm to your business. California law provides some limited legal protection in this scenario—but employee poaching is technically not a prohibited practice. In this article, our Fremont business law attorney provides an overview of the key things companies should know about the regulations surrounding employee recruitment and hiring in California.

Know the Law: California is an At-Will Employment State—But Workplace Raids are Banned

Businesses in California are right to be worried about protecting their human capital. Companies make tremendous investments into training employees. A competitor may try to come in and take your qualified staff. At the same time, California is an “at-will” employment state. Employees can leave a company for any reason. The law does not stop them from joining a competitor.

In fact, California allows businesses to recruit directly from competitors. State law does not specifically ban the practice of employee poaching—whereby businesses actively seek out and hire workers from their competitors. As frustrating as it can be to deal with a competitor that is recruiting your employees, it is not an unlawful practice.

With that being said, there is an important limit: California does bar workforce raids. That is viewed as an anti-competitive, monopolistic practice. A competitor that attempts to raid your staff—meaning they aggressively try to hire many (or all) of your employees at once—may be in violation of state law. A workforce “raid” is distinct from lawful hiring recruitment.

The Best Legal Strategy to Protect Against Employee Poaching: Employment Agreements

Employers are not entirely helpless against the forceful recruiting of their staff. One of the best approaches to safeguard against employee poaching is to use well-written employment agreements. These contracts should clearly outline the terms of employment—including job responsibilities, salary, benefits, and duration. A contract may be structured so that an employee is strongly (financially) disincentivized from joining a competitor for a predetermined time.

In California, businesses should avoid including non-compete provisions within an employment agreement. Non-competes are not enforceable in California. Indeed, in September of 2023, California Governor Gavin Newsom signed Senate Bill 699 into law—legislation that further expands the state’s ban on non-compete agreements. In other words, an employment agreement cannot directly bar an employee from joining a competing firm in the future.

The bottom line on understanding the regulations surrounding employee recruitment and hiring in California: the state allows competing businesses to recruit directly from each other’s staff—as long as they avoid anti-competitive mass “raids.” Companies can use employment agreements to help retain their staff.

Get Help from Our Fremont, CA Business Law Attorney Today

Lynnette Ariathurai is a business lawyer with considerable experience helping companies navigate California’s employment, recruitment, and employee poaching laws. If you have questions about your rights, your options, or protecting your employees, please do not hesitate to contact us today. With an office in Fremont, we work with businesses throughout the Bay Area.

California employment laws, employee poaching, employment agreements, workforce raids

Stealing Employees from a Medical Practice in California (Know the Law)

Medicine is a highly competitive field in the Bay Area. The Medical Board of California reports that there are nearly 170,000 licensed doctors in the state. There are many thousands of professional practices. This raises an important question: Can medical practices in California protect their competitors from stealing employees? The short answer is that our state has very limited regulations to protect business, but medical practices have some options for keeping staff. Here, our Fremont business lawyer for medical practices highlights the key things you should know about the laws around stealing employees from a competing business in California.

What Medical Practices Should Know About California Law on Stealing Employees

The most important piece of background information for medical practices to understand is that California is an at-will employment state. Either the employer or the employee can end their working relationship at any time for almost any reason, except for an illegal reason. Further, there is no employee poaching statute in California. Quite the contrary, a medical practice can lawfully recruit and hire the employees of a direct competitor.

That being said, there are limits. Most notably, the law strictly prohibits large-scale workplace raids of a competing business. It is a violation that occurs when a business—including a medical practice—intentionally targets another business and tries to hire away a significant number of its staff all at once to undermine that competing firm.

Medical Practices Can Use Employment Contracts to Protect Staff

While the law does not prohibit general employee “stealing” by competing business, there are proactive steps that medical practices in California can take to protect the investment that they made in finding, building, and training their staff. The best option is generally a well-drafted employment agreement. These contracts outline the terms and conditions of an employee’s relationship with the medical practice. While non-compete agreements are not valid in California, an employment agreement could help to keep your staff in place. It may require advance notice and/or the repayment of certain bonuses if your employee leaves the practice before the end of their agreement.

A Medical Practice in California May Protect Proprietary Business Information with an NDA

Although California medical practices ultimately have somewhat limited options for stopping an employee from joining a competitor, they have far stronger options for protecting their sensitive business information. A non-disclosure agreement (NDA) can provide much needed protection if an employee had access to proprietary information about your medical practice. An NDA is a legal document that requires employees to keep certain information confidential for a predetermined period.

Contact Our California Business Lawyer for Medical Practices Today

Lynnette Ariathurai is a top-tier business attorney with extensive experience working with medical practices. If you have any questions about California law regarding the stealing of employees from a competing medical practice, we are here to help. Contact us today for a completely confidential initial case review. From our Fremont office, our firm serves clients throughout the Bay Area.

California employment laws, employee poaching, employee stealing, employment agreements, workforce raids

Updated CA Family Care and Leave Act Impacts Small Businesses

The California Family Rights Act (CFRA) is our state’s counterpart to the federal Family and Medical Leave Act (FMLA). The CFRA provides more expansive protection to employees and, as of January 1st, 2021, the CFRA has been updated and expanded. More small businesses in the Bay Area now have obligations under the statute. In this article, our Fremont employment law attorney for employers provides an overview of the key things small businesses should know about the updated California family care and family leave laws.

Background: An Overview of the CFRA

The CFRA is our state’s primary family care and leave law for employees. Under the CFRA, eligible employees may take up to 12 weeks of job-protected unpaid leave to deal with a qualifying family or medical emergency. The California Department of Fair Housing and Employment emphasizes that the law provides leave for eligible workers to “care for their own serious health condition or a family member with a serious health condition, or to bond with a new child.”

Dramatic Expansion of CFRA—It Now Applies to Many Small Employers

Recent legislation has changed the scope of the family care and medical leave laws in California. Effective as of January 1st, 2021, many more small businesses are covered by the CFRA. Here are five key things that all small business owners in the Bay Area need to know about the law:

Five or more employees: The CFRA applies to all businesses and organizations with five or more total employees. Only employers with four or fewer workers are exempt from coverage.
Executives are employees: The CFRA clearly states that executives and officers are counted as employees.
No more 75 mile radius: The 75 mile radius requirement—which still counted for the federal FMLA—is no longer an element in the CFRA. It doesn’t matter where employees are located. As more and more workers began to work remotely, California removed the 75 mile radius requirement.
No exception for employers based outside of CA: The CFRA counts all employees—regardless of state. Further, there is no exception to the law for employers based outside of California. If you have an employee in California and you have five or more total workers nationwide, that California employee is covered by the CFRA.
“Family member” is broader: Finally, the term “family member” has been dramatically expanded to include more people. A worker may now be able to take unpaid, job-protected leave to care for an adult child, a sibling, or a grandparent.

Small Businesses Must Ensure that their Employee Handbook is Updated

All small businesses in California should review and, if necessary, revise their employee handbook and/or any other materials that they provide to staff. As the reformed CFRA applies to many more small businesses, it is possible that some companies or organizations are using outdated materials that improperly state that they are not covered by the CFRA. Small businesses can consult with an employment lawyer for employers to ensure that their handbook is fully compliant with the January 1st, 2021 revisions to the CFRA.

Get Help from an Employment Lawyer for Employers in California

Lynnette Ariathurai is an experienced employment attorney for employers. If you are a small business owner in Fremont CA, near Newark, or Hayward, East Bay, Milpitas, Union City, San Leandro, Gilroy, San Jose, or Santa Clara with questions about the updated California Family Rights Act (CFRA), we are here to help. Contact us today to set up a confidential initial appointment.

California employment laws, California Family Rights Act, CRFA, family care, family leave, medical leave

Changing California Employment Laws Could Impact Your Business

Changing California Employment Laws

Several important employment law changes are taking effect in California on January 1st, 2022. If you own or operate a small or mid-sized business it is crucial that you take action to ensure that your company’s policies and procedures are still in full compliance with federal, state, and local regulations. Here, our Fremont employment lawyer for employers provides an overview of the changing employment laws in California and explains the value of seeking professional guidance.

An Overview of the Key Employment Law Changes in California

Over the past several years, California Governor Gavin Newsom has signed a number of bills with employment law provisions. A few changes officially took effect on January 1st, 2022. Some of the most notable employment law changes include:

Revision of the California Family Rights Act: In 2020, there were significant changes made to the California Family Rights Act (CFRA). In 2021, a new bill (AB 1033) was passed to fix a drafting error within the previous CFRA reform. Further, AB 1033 expands the CFRA mediation program for small employers.
Heightened enforcement of wage and safety violations: As of January 1st, 2022, Senate Bill 606 took effect in California. The legislation significantly expands the Cal/OSHA’s authority to hold employers accountable for certain types of wage violations and workplace safety violations. It is crucial that small employers ensure full compliance with all state and federal wage and hours laws and all state and federal safety regulations.
New rules on severance and settlement agreements: New regulations regarding severance and settlement agreements are taking effect in California. Among other things, the law prohibits employers from including non-disclosure provisions in most settlement agreements pertaining to a workplace harassment claim or a workplace discrimination claim.
Continued COVID-19 workplace safety compliance: Finally, there are continued COVID-19 workplace safety regulations that employers need to be aware of in 2022. With the spread of the highly-transmissible Omicron variant, COVID-19 is expected to be a significant workplace safety issue in 2022. Employers must comply with SB 336 and AB 654.

Small Business Can Benefit from an Employment Law Review for 2022

As a small business owner in the Bay Area, you undoubtedly have a lot on your plate. It is imperative that you do not allow California employment law changes to go unaddressed. The start of a new year is an excellent time to seek professional legal guidance regarding employment handbooks as well as employment policies and benefits. Our experienced California employment lawyer for employers can conduct a comprehensive review of your company’s practice to ensure that you are in full compliance with all applicable regulations—both the already established rules and the updated laws.

Contact Our California Employment Law Attorney Today

Lynnette Ariathurai is a skilled employment lawyer for employers. If you have any questions about California’s changing employment laws, we can help. Contact us today for a confidential consultation. We provide employment law representation throughout the region, including in Fremont, Newark, Hayward, East Bay, Milpitas, Union City, San Leandro, Gilroy, San Jose, and Santa Clara.

California employment laws, employment law attorney, employment law changes