Daniel J. Navigato Business Law Blog

Starting your own business can be both exciting and overwhelming. There are many crucial decisions that you must make at the time of formation that will effect the business for years to come. Likely the most important decision that you will make is determining what type of legal structure is most appropriate for your company’s needs. There are several types of entities to chose from. You may wish to form a sole proprietorship, partnership (general or limited), limited liability... Read More

Pursuant to Labor Code section 201(a), employers must pay final wages "immediately" upon terminating an employee. If an employee’s final wages are not paid immediately, the employer is subject to a "waiting time" penalty (of up to 30 days) while the wages remain unpaid. Recently, in Pineda v. Bank America, the California Supreme Court held that these "waiting time" penalties can be collected for up to three... Read More

With the cost of litigation today, the reality is that many claims, no matter how clear cut, may not be worth pursuing after comparing the cost of enforcing the claim to the potential recovery. For example, say Company A desires to file a lawsuit against Company B for an undisputed $10,000 debt arising out of a business agreement. Depending upon how Company B decides to defend the action on the debt, Company A may be forced to spend nearly the full amount it is owed, if not more, in order... Read More

Most responsible companies maintain Director & Officer insurance policies ("D&O Policies") in order to protect their directors and officers against all types of potential liabilities, including shareholder derivative lawsuits. In fact, a company would be hard pressed to recruit and maintain experienced and skilled officers and directors without adequate D&O insurance coverage.

A typical... Read More

Are you sure your employee payment policies and record keeping are compliant with California's complex labor laws? Are you willing to bet your business on it? Because with the significant potential fines, penalties, and costs the Division of Labor Standards Enforcement ("DLSE") can impose on your business for even the smallest, most innocent payroll mistakes or misunderstandings, that is exactly what you could be doing.

THE DLSE... Read More

Is your company doing enough to protect its confidential information? A recent court ruling made it clear that simply inserting a contractual provision in your employment agreements is not enough to protect a company's valuable information. Companies must do more. In order for information to qualify for protection under California law, it must qualify as a "trade secret."

THE TRG CASE AND LESSONS LEARNED

In a recent case... Read More

EMPLOYERS BEWARE. Do your hourly employees send and receive work related emails or texts after their workshifts are over? If so, your company may be in danger of becoming a defendant in the next wave of "wage and hour" lawsuits.

California has experienced a rash of wage and hour lawsuits. These lawsuits, many of which are brought as class actions, involve claims of misclassifying employees as salary exempt, meal and rest break... Read More