Posts Tagged "Business Law Issues"

New HR Developments for 2013 – Part II of II: Federal Rules/Guidance

»Posted in News & Resources

Last week we blogged about some of the more significant new California state laws applicable to businesses with employees in California CA Update . This week, we address some of the new HR developments from our friends in the federal government. No matter where your employees are based, you need to be aware of the following: Use of Arrest and Conviction Records in Employment Decisions In 2012, the Equal Employment Opportunity Commission (EEOC) issued new guidance on employers’ ability to use arrest and conviction records in making hiring decisions. Employers may not simply reject an applicant solely because they have an arrest record and/or a “criminal” history. Instead, the employer must consider the impact of a particular conviction on the particular job for...

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New HR Laws for 2013 – Part I of II: New California Laws

»Posted in News & Resources

As always, the new year means new laws and regulations kick into gear, and that impacts your business. If you are a business based in California or have employees working here in the Golden State, then you need to keep up to date with the many new employment laws effective January 1. California – known for its extreme pro-employee bias – has a host of new laws, more than one blog can tackle. But the following list, although by no means an exhaustive list, does address some of the more significant ones that are most likely to impact your employee practices. Employees Paid Commissions Must Have a Written Contract Employers with any commissioned sales personnel in California (regardless of where the company is based) must enter into a written contract with each such...

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The “Best Efforts” Contract Clause: Exactly How Much Effort is Best?

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It is quite common to see best efforts clauses in many different kinds of contracts. A party may be required to use its best efforts to market a product in a licensing, distribution or franchise agreement. In a merger agreement, one or both parties may have to use their best efforts to obtain shareholder or regulatory approval. Similarly, buy-sell agreements often require the parties to use their best efforts to conclude the agreement. These clauses are standard terms in all kinds of contracts, but rarely is it defined what constitutes such “best” efforts. Exactly how much effort does a party have to make and how much do they have to spend in order to meet their obligations under such a provision? A recent case in California provided some practical guidance on...

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California Adds More Burdens on Employers: New Commission Contract Requirements

»Posted in News & Resources

Employers with commissioned sales personnel in California need to be aware of yet another state regulatory requirement: the new commission contract law, AB 1396.  Although this law does not go into effect until January 1, 2013, it’s time to start preparing contracts and implementing procedures in order to comply. Under AB 1396, employers who pay commissions to their California employees are required to: 1) enter into a written commission contract with each employee; 2) describe the method by which commissions are computed and paid; 3) provide a copy of the signed contract to each employee; and 4) obtain a signed receipt from each employee. The new law goes on to state that when a commission contract expires, but the employee continues to work, the terms of the...

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SOX’s Ten Year Anniversary: What Are The Takeaways

»Posted in News & Resources

Wow, time flies, even if you’re not having all that much fun. The Sarbanes-Oxley Act (SOX) will “celebrate” its 10-year anniversary this July 30, 2012. Enacted in the aftermath of large scale corporate accounting scandals like Enron and WorldCom, SOX had the laudable goals of deterring accounting fraud and shoring up confidence in public companies’ financial integrity. But it was a controversial set of regulations that were passed back in 2002. It imposed a host of new duties and responsibilities on public companies, and at a considerable cost. Those of us in public companies at the time had a wide range of reactions, from outrage over perceived regulatory overkill to a shrug that SOX merely codified what were sound corporate governance practices. Your faithful...

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