tag:blogger.com,1999:blog-41683648188695960642024-03-13T23:39:01.111-07:00California Business Law Blog: Law Office of Jonas M. Grant, A.P.C.Offering occasional news and opinion regarding California business/corporate, employment, real estate, intellectual property, entertainment, and estate planning and probate law.Jonas M. Granthttp://www.blogger.com/profile/15104682964101487460noreply@blogger.comBlogger157125tag:blogger.com,1999:blog-4168364818869596064.post-44482186444062232942024-01-02T07:00:00.000-08:002024-01-03T17:45:39.666-08:00California State Court Jurisdictional Filing Limit Changes for 2024Effective Jan. 1, 2024, the following changes to the jurisdictional amounts for California state courts apply:
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<blockquote>Small claims: Maximum claim increased from $10,000 to $12,500;
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Limited civil and unlawful detainer cases: Maximum claim increased from $25,000 to $35,000; and
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Unlimited civil and unlawful detainer cases: Minimum claim increased to $35,000.</blockquote>
Filing fees are unchanged.
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These changes can be seen <a href="https://url.emailprotection.link/?btdD0m-ojJLPKfHn2JJXkl9LSOeJxXdxXhokbWMndNFN72H8WsCOeWWxFlrRweSG3mQQ-ROZmZvHxwPlNpetWjKnTaoLZwrfC3JX4bQGuHtNQHBFhO12ryoze24X3-NfrRrnEqDKZTSERjIWGDeaAyGi3poAZGJT8HiywK-6DqFVgCbrPkJBYUcgF5VsPIwssLl1yMgPw62aXF5qRVbnpljpu6z_mj6sN3vCtKy_0b2stOSvp-PS0z-VxGdgGXL0ElxWrWYcqq6GERsu_9mMe0t0Og4WrLPBrSzTMOupDd4hkteDkR_rs0gJdgJ5FkfHQcDw7BWuw-LzEtqWXGEJuIV7exB9bfIzI0wHb2K1B1k8wK2-EHFJN5RFCsazggi_LpNG4Q67ANU4ZdmKlXlwOn-PcdAcZtlvji3nJkYpj2WfY9-R28m7pcje8oZ_16fbf_mwHQmOQqztn-CnjTndUyk3ESDVgNuaGkMqn9GhIKHvAbWhBlSHFph7iUxtMU_o1">here</a>.
Jonas M. Granthttp://www.blogger.com/profile/15104682964101487460noreply@blogger.com0tag:blogger.com,1999:blog-4168364818869596064.post-70151214283850001222020-03-22T17:26:00.002-07:002020-04-04T16:14:46.732-07:00Economic Assistance Programs for California Small Businesses Affected by Coronavirus (COVID19)<br>Federal, state, and local governments are announcing economic aid and loan programs to assist small businesses impacted by COVID-19 (coronavirus). These include:
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U.S. Federal government (IRS): <a href="https://www.irs.gov/coronavirus?utm_source=Summit+CPA%2C+Inc.&utm_campaign=f247223cfa-EMAIL_CAMPAIGN_2020_03_22_02_30&utm_medium=email&utm_term=0_c3b50b8184-f247223cfa-356485491" target="new">https://www.irs.gov/coronavirus?utm_source=Summit+CPA%2C+Inc.&utm_campaign=f247223cfa-EMAIL_CAMPAIGN_2020_03_22_02_30&utm_medium=email&utm_term=0_c3b50b8184-f247223cfa-356485491</a>
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IRS tax filing and payment deadlines extended to July 15, 2020: <a href="https://www.irs.gov/newsroom/payment-deadline-extended-to-july-15-2020" target="new">https://www.irs.gov/newsroom/payment-deadline-extended-to-july-15-2020</a>
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Federal government (SBA loans): <a href="https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources" target="new">https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources</a>
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State of California: <a href="https://oewd.org/covid-19-small-business-resiliency-fund" target="new">https://oewd.org/covid-19-small-business-resiliency-fund</a>
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<b>New 4/2/2020</b>: Gov. Newsom announces additional small business loans for those that may not be eligible for federal SBA loans: <a href="https://www.gov.ca.gov/2020/04/02/governor-newsom-announces-new-help-for-small-businesses-workers-displaced-by-covid-19/" target="new">https://www.gov.ca.gov/2020/04/02/governor-newsom-announces-new-help-for-small-businesses-workers-displaced-by-covid-19/</a>
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State of California Franchise Tax Board (FTB) tax filing and payment deadlines extended: <a href="https://www.ftb.ca.gov/about-ftb/newsroom/covid-19/index.html" target="new">https://www.ftb.ca.gov/about-ftb/newsroom/covid-19/index.html</a>
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State of California Employment Development Department (EDD): <a href="https://www.edd.ca.gov/about_edd/coronavirus-2019.htm" target="new">https://www.edd.ca.gov/about_edd/coronavirus-2019.htm</a>
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City of Los Angeles: <a href="https://www.lamayor.org/mayor-garcetti-announces-economic-relief-package-small-businesses-impacted-novel-coronavirus" target="new">https://www.lamayor.org/mayor-garcetti-announces-economic-relief-package-small-businesses-impacted-novel-coronavirus</a>
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City and County of San Francisco: <a href="https://oewd.org/assistance-guidance-businesses-and-workers-impacted-covid-19" target="new">https://oewd.org/assistance-guidance-businesses-and-workers-impacted-covid-19</a>
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Facebook Small Business Assistance Program: <a href="https://www.facebook.com/business/boost/grants" tareget="new">https://www.facebook.com/business/boost/grants</a>
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For businesses that are permitted to remain open by state and local authorities, guidance from the U.S. Center for Disease Control has <a href="https://www.cdc.gov/coronavirus/2019-ncov/community/guidance-business-response.html?CDC_AA_refVal=https%3A%2F%2Fwww.cdc.gov%2Fcoronavirus%2F2019-ncov%2Fspecific-groups%2Fguidance-business-response.html" target="new">best practices to avoid spreading coronavirus</a>.
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Posted March 22, 2020, updated April 2, 2020.
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Jonas M. Granthttp://www.blogger.com/profile/15104682964101487460noreply@blogger.com0tag:blogger.com,1999:blog-4168364818869596064.post-45101871217665042602019-09-16T16:46:00.001-07:002019-09-16T16:50:32.253-07:00How to Avoid Tax Audits by Incorporting Your BusinessUpdating my 10-year old post, <a href="http://californiabusinesslaw.blogspot.com/2009/01/avoiding-irs-tax-audit-corporate.html" target="_blank">How to Avoid an IRS Tax Audit: Incorporate Your Small Business</a>, the IRS' own most recently available data (for tax year 2017), show that, for a taxpayer with $100,000 or more in gross revenue, the chances of being subjected to an audit vary substantially based on whether the business was operating as a sole proprietorship reporting taxable income on Schedule C of the owner's personal income tax return (1040) or an incorporated business reporting income on a corporate tax return (1120 for C corporations, 1120S for S corporations), with unincorporated sole proprietors being 12 times more likely to be audited by the IRS:<blockquote>Sole proprietor: 2.40%<br><br>
Corporation: 0.20%</blockquote>
Jonas M. Granthttp://www.blogger.com/profile/15104682964101487460noreply@blogger.com0tag:blogger.com,1999:blog-4168364818869596064.post-21346073007866091172019-01-08T19:26:00.006-08:002019-01-08T19:29:20.910-08:00Out-of-state Online Retailers Now Required to Collect California Sales TaxAs a result of the U.S. Supreme Court's Wayfair decision, starting 2019, California will require remote sellers with no presence in the state to register and collect and pay over to the state sales taxes (technically, "use tax") on sales made to California consumers. This requirement will apply if the seller has made 200 or more transactions, or $100,000 or more in sales, into California in the preceding calendar year.
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Other states are also rolling out similar requirements, so California businesses selling tangible goods to consumers in others states will need to be aware of any out-of-state filing requirements.
Jonas M. Granthttp://www.blogger.com/profile/15104682964101487460noreply@blogger.com0tag:blogger.com,1999:blog-4168364818869596064.post-1809443788632732102018-12-10T18:44:00.000-08:002018-12-10T18:48:45.007-08:00FTB Loses in Out-of-State LLC "Doing Business" Tax CaseThe recently created California Office of Tax Appeals (OTA) has issued a ruling in the <i>Satview</i> case against the Franchise Tax Board (FTB)'s position that a 25% member of a <a href="http://www.incorporatecalifornia.com/llcs.html">California limited liability company</a> was "doing business" in California and subject to California's minimum annual corporate franchise tax. The OTA found that passive ownership, without management, did not subject the out-of-state corporate member to California tax (although the LLC that was conducting the business in the state, and that the out of state company had invested in, was of course subject to it).
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With this and other decisions, the OTA has shown that it will not rubber stamp positions taken by the FTB or other California tax agencies, especially when they make little sense, like the FTB's position in this case. Nonetheless, the FTB is anticipated to continue to apply the prior <i>Swart</i> case narrowly, and continue to maintain that passive members of LLCs organized or doing business in California are themselves also doing business in the state.
Jonas M. Granthttp://www.blogger.com/profile/15104682964101487460noreply@blogger.com0tag:blogger.com,1999:blog-4168364818869596064.post-6299477119573073572018-06-04T14:10:00.004-07:002021-09-26T15:36:05.963-07:00California Supreme Court Ruling Makes Independent Contractor Classification More DifficultThe California Supreme Court has made an important change to employment classification law for California employers, that will make it more difficult for companies to appropriately classify workers as independent contractors. <br><br>The new "ABC" standard is simpler but more strict than the prior classification scheme. In order for the company to properly classify a worker as an independent contractor, the company must prove the following (note that the burden is on company seeking IC treatment and if the burden is not met, the worker is an employee, the criminal law equivalent of "guilty until proven innocent"):<br><br>A - that the worker controls his or her work,<br><br>B - that the duties go beyond what the business normally does, and<br><br>C - that the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hiring entity.<br><br>Any of these can derail a would-be independent contractor relationship, but it is the second of these prongs - the "B" in "ABC" - that will be perhaps the most difficult for many California companies including ride-sharing services that claim all drivers are independent contractors.
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Whether Uber and Lyft, who have just received subpoenas for more information from the California Attorney General, will be able to argue they are in the business of providing a mobile app, rather than actual transportation, remains to be seen. If not, their business model will need to change dramatically, at least in California.
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Companies whose consulting arrangements with ICs previously may have passed muster may find themselves unable to show that the pre-existing relationship still qualifies under the new ABC standard and are well advised to have a business and employment law attorney review the circumstances and agreement and then implement any needed changes.
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The case is Dynamex Operations West, Inc. v. Superior Court, County of Los Angeles, Supreme Court of California, No. BC332016, April 30, 2018.
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In <a href="https://californiabusinesslaw.blogspot.com/2012/01/2012-new-employment-law-california.html">2012</a>, a California law went into effect providing for additional civil penalties for wilfully misclassifying workers as independent contractors of $5,000 to $15,000 per violation.
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<u>Update</u>: On January 1, 2020, AB 5 became law, which essentially codified Dynamex into statutory law.
Jonas M. Granthttp://www.blogger.com/profile/15104682964101487460noreply@blogger.com0tag:blogger.com,1999:blog-4168364818869596064.post-1996461023012514092018-05-22T08:07:00.000-07:002018-06-04T23:13:17.026-07:00SCOTUS Rules for Employee Arbitration Class Action WaiversThe Supreme Court has resolved a conflict amongst the U.S. Federal Circuit Courts, and once again the Ninth Circuit has been overruled. This time it was for SCOTUS to confirm that class action waivers in employee arbitration agreements are enforceable (if properly drafted). The Supreme Court had previously ruled these as enforceable in consumer arbitration agreements in 2011. <br><br>
Despite the favorable ruling for employers that was opposed by the Obama Administration and supported by the Trump Administration, California employers need to ensure their arbitration clauses are carefully drafted and be aware of the trade-offs in selecting arbitration over litigation in the first place.
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The cases are Epic Systems Corp. v. Lewis, No. 16-285; Ernst & Young LLP et al. v. Morris et al., No. 16-300; and National Labor Relations Board v. Murphy Oil USA, Inc., et al., No. 16-307 (May 21, 2018).
Jonas M. Granthttp://www.blogger.com/profile/15104682964101487460noreply@blogger.com0tag:blogger.com,1999:blog-4168364818869596064.post-65856833597529571882017-12-02T11:39:00.000-08:002017-12-02T11:49:17.397-08:00Suspended Corporations and LLCs Lose the Right to Conduct Business in California<a href="http://www.jonasmgrant.com/attorney.html">Jonas M. Grant</a> was recently quoted as a California corporate law subject matter expert in an article in an online journal covering Los Angeles real estate news:<blockquote>[The] corporation ... continues to conduct business even though the state of California suspended its registration over two months ago. Operating without a valid registration is illegal under California law, legal experts said. ...<p>
Jonas Grant, an L.A.-based attorney who practices corporate entities law, said as a business without a valid corporation registration, “you’re basically dead in the water until you fix the problem.” ...<p>
Suspension temporarily strips corporations of a number of rights ... including being able to defend itself in court or bring a lawsuit. Such corporations could also have contracts voided by a court, according to California law.<p>
“If you don’t have the right to conduct business that would include the right to contract,” said Grant.</blockquote><a href="https://therealdeal.com/la/2017/12/01/inside-mercer-vine-a-suspended-brokerage-a-potential-fraudster-at-the-helm-and-260m-in-dead-deals/" target="new">Inside Mercer Vine: A suspended brokerage, a potential fraudster at the helm, and $260M in dead deals</a> by Natalie Hoberman and Will Parker, The Real Deal, December 1, 2017.
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A suspended corporation cannot conduct any business in the State of California until it is revived to active, good standing, a process called revivor. This is generally accomplished by filing any past due annual reports or tax returns, and by paying any past due taxes, interest, and penalties with the Franchise Tax Board.
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Recommended steps to avoid a suspension include engaging an accountant to assist with tax preparation and filing and to keep track of associated deadlines, and enrolling the LLC or corporation in a <a href="http://www.incorporatecalifornia.com/maintenance.html">lawyer's corporate maintenance program</a> to ensure legal compliance.Jonas M. Granthttp://www.blogger.com/profile/15104682964101487460noreply@blogger.com0tag:blogger.com,1999:blog-4168364818869596064.post-4041591349560314112017-05-14T18:03:00.002-07:002017-09-16T15:02:26.581-07:00Does LegalZoom Handle Its Own Trademark Registrations?LegalZoom offers trademark filing services, so naturally, when it comes to its own trademarks used to promote this and other of its online, non-attorney document preparation services, it trusts these to its in-house team, the same ones used by its customers, right? <p>Wrong. According to publicly available U.S. Trademark Office records, LegalZoom.com is currently using Bryan Cave, a large law firm, to register its new trademarks and maintain its existing marks.<br />
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Click the image below to view one example:<p>
<a href="https://2.bp.blogspot.com/-jwD6u7zmEe8/WRj_wwVvESI/AAAAAAAAKbU/FxjoM2szGjsG1GaRnnf1mi5-xUcx3Nl8ACLcB/s1600/LegalZoom%2BTrademark%2B0517.jpg" imageanchor="1" ><img border="0" src="https://2.bp.blogspot.com/-jwD6u7zmEe8/WRj_wwVvESI/AAAAAAAAKbU/FxjoM2szGjsG1GaRnnf1mi5-xUcx3Nl8ACLcB/s320/LegalZoom%2BTrademark%2B0517.jpg" width="320" height="175" /></a><p>
You may want to consider following Legalzoom's lead and engage a <a href="http://www.jonasmgrant.com/trademark.html">trademark attorney</a> to register, maintain, and advise your small business regarding trademark matters.
Jonas M. Granthttp://www.blogger.com/profile/15104682964101487460noreply@blogger.com1tag:blogger.com,1999:blog-4168364818869596064.post-29343789851354089262017-03-21T18:49:00.002-07:002017-03-21T18:52:53.961-07:00Why don't TV/film studios and producers accept unsolicited material?<a href="https://www.linkedin.com/pulse/why-do-tv-networks-have-unsolicited-materials-policies-jeanne-simon" target="new">Why Do TV Networks Have 'No Unsoliciated Materials' Policies?</a>
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One reason:<blockquote>LAWSUITS. Networks do not want to get sued because you thought they stole your idea. When creators pitch an undeveloped idea anybody could have come up with ... they think a show that has anything do with their idea was stolen from them.
For instance, Marc Zicree was a writer on “Star Trek Next Generation” and he told us there were one, or more, lawsuits filed for every episode by people who claimed their ideas had been ripped off.
Are ideas ever stolen? Yes. Does it happen as often as rumored? Absolutely not.</blockquote>
Also see: <a href="http://www.jonasmgrant.com/hollywood.html">Help, Hollywood Stole My Idea (or Script)!</a>Jonas M. Granthttp://www.blogger.com/profile/15104682964101487460noreply@blogger.com0tag:blogger.com,1999:blog-4168364818869596064.post-17090647178972005022016-10-07T17:32:00.002-07:002016-10-07T17:34:56.862-07:00Screenwriters: How to Find An Agent<a href="http://www.screenwritingu.com/" target="new">ScreenwritingU</a> is offering a free teleconference on a topic many new screenwriters have lots of questions about - how to land an agent. Sign up <a href="http://www.screenwritingu.com/classes/how-get-agent-teleconference" target="new">here</a>.
Jonas M. Granthttp://www.blogger.com/profile/15104682964101487460noreply@blogger.com0tag:blogger.com,1999:blog-4168364818869596064.post-48514534353399706532016-09-19T18:10:00.003-07:002016-09-19T18:13:02.111-07:00Tips for Starting a Part-Time Side Business While Still Employed<a href="https://www.thebalance.com/how-to-start-a-business-while-you-re-still-employed-1200672" target="new">Tips for Starting a Side Business</a> from balance.com include:<blockquote>[C]onsider running your business as a part-time operation alongside your current job...
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understand and follow your employment contract to the letter, especially if it makes reference to inventions and intellectual property (IP) that you develop as part of your job. Almost always, anything developed on company time and using company property belongs to the company.</blockquote>Jonas M. Granthttp://www.blogger.com/profile/15104682964101487460noreply@blogger.com2tag:blogger.com,1999:blog-4168364818869596064.post-46198977142823792702016-09-16T13:03:00.005-07:002016-09-16T13:06:35.787-07:00Screenwriters: Find An Agent (or Manager) with Script Contests<blockquote>Getting representation from an agent or manager in Hollywood is not easy. You have to find someone who believes in you and your work, and you need to believe that they are both capable and willing to sell your work.<br><br>
One of the better ways to get noticed by agents, managers and producers is script contests. ... it can lead to an offer of representation.</blockquote>
<a href="http://screenwritingumagazine.com/2016/09/16/5-script-contests-actually-worth-entering/" target="new">5 Script Contests Actually Worth Entering</a>, Screenwriting Magazine, Sept. 16, 2016Jonas M. Granthttp://www.blogger.com/profile/15104682964101487460noreply@blogger.com0tag:blogger.com,1999:blog-4168364818869596064.post-23553179400114826712016-07-13T19:17:00.004-07:002016-07-13T19:31:07.875-07:00Inspirational Quotes for EntrepreneursSome of my favorite quotes of interest to entrepreneurs and small business people from a collection of <a href="http://sbinformation.about.com/od/startingabusiness/fl/20-Small-Business-Quotes-That-Will-Inspire-You.htm" target="new">20 Small Business Quotes</a> ("20 Small Business Quotes That Will Inspire You", about.com, March 15, 2016):<p>
<blockquote>“The critical ingredient is getting off your butt and doing something. It’s as simple as that. A lot of people have ideas, but there are few who decide to do something about them now. Not tomorrow. Not next week. But today. The true entrepreneur is a doer, not a dreamer” - <a href="http://nolanbushnell.com/bio/" target="new">Nolan Bushnell</a></blockquote><p>
<blockquote>“If you're going to run a small business, you need to know what everyone is doing, be the first one in and the last one out, and work weekends.” - <a href="http://www.fastcocreate.com/1681711/the-walking-deads-glen-mazzara-on-managing-the-undead-way" target="new">Glen Mazzara</a></blockquote><p>
<blockquote>“In America, small business is a big deal.” - <a href="http://townhall.com/columnists/bobbeauprez/" target="new">Bob Beauprez</a></blockquote><p>Jonas M. Granthttp://www.blogger.com/profile/15104682964101487460noreply@blogger.com0tag:blogger.com,1999:blog-4168364818869596064.post-57904297592049655602016-06-01T21:49:00.003-07:002016-06-01T21:51:20.827-07:00Client Launches New Science Fiction WebsiteToday, a client launched a new website - <a href="http://www.recursor.tv/" target="new">www.recursor.tv</a> - "The Future Reflected" - dedicated to original and aggregated science fiction videos and web series. Please visit and enjoy!
Jonas M. Granthttp://www.blogger.com/profile/15104682964101487460noreply@blogger.com0tag:blogger.com,1999:blog-4168364818869596064.post-81353477418683638942016-04-18T15:53:00.001-07:002017-04-20T13:42:45.689-07:00California personal income taxesTwo-thirds of California's overall tax revenue comes from personal income taxes, with the top fifth of income earners paying 90% - and the top one percent paying 45% - of these taxes.<br><br>
Source: <a href="http://www.sacbee.com/news/politics-government/capitol-alert/article71944477.html" target="new">The tax man cometh, and California rich – getting richer – pay most</a><br><br>See how California compares to other U.S. states, including the seven that have no personal income tax, here:<br><a href="http://www.skloff.com/top-state-marginal-income-tax-rates-2016-020816/" target="new">2016 Top State Marginal Income Tax Rates</a>. Jonas M. Granthttp://www.blogger.com/profile/15104682964101487460noreply@blogger.com0tag:blogger.com,1999:blog-4168364818869596064.post-5497742082133547022016-04-14T22:17:00.003-07:002016-04-14T22:25:46.497-07:00State of the San Francisco and Los Angeles, California Legal Markets 2015 / 2016A recent <a href="https://www.upcounsel.com/business-attorneys-los-angeles-ca#law-report" target="new">survey</a> of 15,000 California lawyers uncovered the following statistics concerning the Los Angeles and San Francisco legal markets and the lawyers who work there:<blockquote>New business growth slowed by 16 percent in Los Angeles and 26 percent in San Francisco; however, growth in Los Angeles (2.7 percent) was still lower than San Francisco (6.7 percent) in 2015;<br><br>
Los Angeles has one lawyer per 23 businesses, while San Francisco has one lawyer per eight businesses;<br><br>
Growth in the number of newly barred attorneys in 2015 was comparable in Los Angeles (1.6 percent) and San Francisco (1.4 percent);<br><br>
The number of newly barred attorneys across all of California in 2015 was the lowest it has been in 10 years;<br><br>
Hourly billing rates are slightly higher in Los Angeles (on average $302 - $410) than in San Francisco (on average $293 - $408); and<br><br>
Customer satisfaction with legal services in both Los Angeles (86 percent) and San Francisco (84 percent) is slightly higher than the California average (82 percent).</blockquote>Source: UpCounsel's 2016 Los Angeles Business Law Report.
Jonas M. Granthttp://www.blogger.com/profile/15104682964101487460noreply@blogger.com0tag:blogger.com,1999:blog-4168364818869596064.post-81333552977171993782016-04-04T18:18:00.000-07:002016-04-05T23:17:28.742-07:002016 California Minimum Wage IncreaseCalifornia has implemented legislation that is slated to increase the state minimum wage to $10.50 for larger employers on January 1, 2017, with employers of 25 or less employees following behind a year later. Further annual increases will push the state's minimum wage to $15.00 per hour by year 2022.<br><br>That is, unless the law's economic downturn provisions delay the implementation of the increases. After the $15.00 level is reached in 2022 (2023 for small employers) - or later if the governor delays implementation of the increases - then further increases tied to inflation will occur automatically.<br><br>Either way, <a href="http://www.dailynews.com/social-affairs/20151231/minimum-wage-will-rise-twice-in-2016-in-los-angeles" target="new">Los Angeles' minimum wage law</a> will increase the city minimum wage to $10.50 on July 1, 2016, with phased increases to $15.00 by 2020, and a similar Los Angeles County law will do the same thing outside of city limits.
<br><br>The current California minimum wage can always be viewed on the <a href="https://www.dir.ca.gov/iwc/MinimumWageHistory.htm" target="new">Department of Industrial Relations website</a>. Employers must generally comply with the highest of the U.S. federal, California state, or local city minimum wage where their employees work.<br><br>
<a href="http://www.sacbee.com/news/politics-government/capitol-alert/article69842317.html" target="new">Jerry Brown Signs $15 Minimum Wage in California</a>, Sacramento Bee, April 4, 2016:<blockquote>
California and New York become first states to commit to $15 minimum wage;
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Bill expected to avert costly November ballot measure fight;
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Labor unions celebrate, while Republicans and business groups groan</blockquote>
Jonas M. Granthttp://www.blogger.com/profile/15104682964101487460noreply@blogger.com0tag:blogger.com,1999:blog-4168364818869596064.post-37274454036463656202016-02-07T15:10:00.000-08:002016-02-07T15:13:11.385-08:00Hillay Clinton Calls for Estate Tax IncreaseAs part of her campaign, Democratic candidate for president Hillary Clinton has <a href="http://www.npr.org/2016/01/13/462944798/hillary-clinton-s-new-tax-proposal-likely-wont-affect-you" target="new">called for</a> increasing the estate tax rate and the number of estates the tax would apply to. Specifically, her proposal calls for reducing the individual estate and gift tax exemption from its current level of $5.45 million to $3.5 million, and raising the estate tax rate from 40% to 45%.<p>
President Obama has supported similar tax increases, but a Republican Congress has not enacted them.<p>
Some estate planning techniques that critics term loopholes would remain under her plan, including some she and Bill Clinton have <a href="http://www.fa-mag.com/news/clinton-s-estate-tax-plan-doesn-t-address-her-own-tax-planning-24602.html" target="new">used themselves</a>.Jonas M. Granthttp://www.blogger.com/profile/15104682964101487460noreply@blogger.com0tag:blogger.com,1999:blog-4168364818869596064.post-36192760026200263352015-06-25T19:49:00.000-07:002015-06-25T19:52:30.553-07:00Form Operating Agreements Not Recommended For Multi-Member LLCsNew York "business divorce" lawyer Peter Mahler <a href="http://www.nybusinessdivorce.com/2015/06/articles/llcs/legalzoom-llc-agreement-bargain-or-blunder/" target="new">blogs</a> about his experiences involving two members of a New York limited liability company who relied on LegalZoom to draft their <a href="http://www.incorporatecalifornia.com/llcs.html">LLC's operating agreement</a>. New York's LLC act differs from California's, but the key takeaways may be the same for Californians considering entering into a partnership based on an online, cookie-cutter document:<blockquote>[When] the members’ relationship turned bitter .... shortcomings in the operating agreement also contributed significantly to the parties’ legal postures and willingness to risk litigation....
I’m not suggesting that every lawyer-drafted LLC agreement is a model of perfection, but I found it incredible ... that a standard form operating agreement being sold online by a major company to the unknowing public as a more affordable alternative to using a lawyer could suffer from such a fundamental flaw that, in the end, only intensified the parties’ legal conflict.</blockquote>
Jonas M. Granthttp://www.blogger.com/profile/15104682964101487460noreply@blogger.com2tag:blogger.com,1999:blog-4168364818869596064.post-69179385993465080132015-06-19T22:22:00.000-07:002015-06-19T22:31:27.289-07:00Independent Contractors Versus Employees in California The California Labor Commissioner has determined than a driver for Uber was misclassified as an independent contractor rather than as an employee. The decision is <a href="http://www.techtimes.com/articles/61791/20150619/uber-drivers-are-employees-not-independent-contractors-rules-california-labor-commission.htm" target="new">under appeal</a> and will not therefore immediately affect Uber's operations in California, although it could lead to more similar claims against them inside and outside of California, as well as more claims of misclassification by nominal independent contractors of other California companies.<p>Uber's assertion, if correct, that similar claims have been rejected in five other states highlights California's pro-employee labor laws.<p>The decision is a reminder that California small businesses desiring to keep or engage independent contractors need to do so only after consulting with an <a href="http://www.jonasmgrant.com/employmentlaw.html">employment law attorney</a> and implementing policies, procedures, and agreements that support the proper classification of the workers as "ICs" rather than "EEs". In some circumstances, this won't be possible, and the workers will need to be hired as employees, or - if already working as independent contractors - converted to employees.
Jonas M. Granthttp://www.blogger.com/profile/15104682964101487460noreply@blogger.com0tag:blogger.com,1999:blog-4168364818869596064.post-80795637914770887862015-01-03T16:33:00.000-08:002015-01-03T16:43:31.727-08:00New California Laws for 2015California's many <a href="http://www.sfgate.com/politics/article/California-readies-for-900-new-laws-5980406.php" target="new">new laws</a> for 2015 include some of interest to employers, including local minimum wage increases in <a href="http://www.ci.richmond.ca.us/index.aspx?nid=2615" target="new">Richmond</a>, <a href="http://www.sanjoseca.gov/minimumwage" target="new">San Jose</a>, and <a href="http://californiabusinesslaw.blogspot.com/2014/11/california-local-minimum-wage-increases.html">other California cities</a> and mandatory paid sick leave starting in July.Jonas M. Granthttp://www.blogger.com/profile/15104682964101487460noreply@blogger.com0tag:blogger.com,1999:blog-4168364818869596064.post-15789975641565899762014-11-05T18:18:00.001-08:002014-11-05T18:18:12.374-08:00California Local Minimum Wage Increases 2014In the November 2014 elections, voters in the Northern California cities of San Francisco and Oakland have approved local increases to the minimum wage, that will apply to employees working within the city limits:
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<u>San Francisco</u>: The minimum wage will rise to $15 per hour in 2018. The first increase - from the current $10.74 - is to $12.25, effective May 1, 2015.
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<u>Oakland</u>: The minimum wage will rise from its current $9.00 to $12.25 per hour on March 2, 2015. Employers must also pay out all accrued, unpaid vacation time on this date. (March 1 is a Sunday; hence, the March 2 effective date.)
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For localiites without a minimum wage ordinance, the statewide minimum wage remains at $9.00 per hour, but will increase to $10.00 on January 1, 2016.
Jonas M. Granthttp://www.blogger.com/profile/15104682964101487460noreply@blogger.com0tag:blogger.com,1999:blog-4168364818869596064.post-22480192621554701812014-09-23T23:48:00.001-07:002015-01-03T16:42:34.631-08:00Mayor Proposes City of Los Angeles Minimum Wage IncreaseFollowing an <a href="http://californiabusinesslaw.blogspot.com/2014/07/california-minimum-wage-increase-for.html">increase in the California state minimum wage</a> (with another coming in 2016), Los Angeles mayor Eric Garcetti has proposed raising the City's minimum wage by steps to $13.25 by 2017. San Francisco already has, and San Diego recently passed, a minimum wage ordinance that exceeds that required by California (which in turn exceeds the U.S. federal minimum). Employers must pay the highest of the wage rates where their employees work.
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<a href="http://www.latimes.com/business/money/la-fi-garcetti-minimum-wage-20140911-story.html" target="new">Garcetti / Los Angeles</a>, latimes.com 9/12/2014
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<a href="http://money.cnn.com/2014/08/18/news/economy/san-diego-minimum-wage/" target="new">San Diego</a>, cnn.com, 8/18/2014
Jonas M. Granthttp://www.blogger.com/profile/15104682964101487460noreply@blogger.com0tag:blogger.com,1999:blog-4168364818869596064.post-71289747927350285492014-09-09T13:21:00.002-07:002014-09-09T13:22:21.117-07:00How Not to Leave an Inheritance to a ChildA good example of why it's often not a good idea to leave an inheritance outright to a young child, and better to instead consider an ongoing trust, staggered and/or contingent distribution schedule, or simply a greater age than 18, 21, or 25 for outright distribution:<p>
<a href="http://www.learnvest.com/2014/09/from-trust-fund-kid-to-average-joe-what-blowing-a-250k-inheritance-taught-me/" target="new">From Trust Fund Kid to Average Joe: What Blowing a $250K Inheritance Taught Me</a>, as told to Marianne Hayes, LearnVest.com, September 9, 2014.Jonas M. Granthttp://www.blogger.com/profile/15104682964101487460noreply@blogger.com0