Why Does Classification of Service Providers Matter? Appropriately classifying workers is extremely important for several reasons under applicable employment, labor and tax laws and is a matter of both federal and state law. Misclassification of workers is illegal. Some employers may intentionally misclassify workers as independent contractors instead of employees in order to avoid paying for and observing certain employee-related
Avoiding Labor & Employment Disputes from Onboarding to Exit. (Mitigating Risk of Liability in the Employee Lifecycle)
Introduction Now more than ever companies must be on top of staffing and employment issues. It’s always important to properly document onboarding employees and contractors, any issues that arise in the lifecycle of the employment relationship and any exit documentation, but in difficult economic times it is especially important to maintain recordation thereof and any human resources issues. Mitigating Labor
Understanding Cal-OSHA Injury and Illness Prevention Program (IIPP)Requirements for California Cannabis Businesses
Introduction Most commercial cannabis businesses in the state of California spend a significant amount of time ensuring they are compliant with the regulations promulgated by the California Department of Cannabis Control (the “DCC” and “DCC Regulations”). However, there are a number of non DCC rules and regulations that all commercial cannabis businesses must also comply with that often get overlooked.
As more and more States legalize medical and/or adult-use cannabis, the issue of worker’s rights in the cannabis industry has taken center stage. Many States with regulated commercial cannabis business industries, including California, require applicants for licensure and licensed cannabis businesses with a certain number of employees to enter into and abide by the terms of a Labor Peace Agreement.
The mountain of legal issues facing businesses in regulated industries often seems overwhelming. But, thoughtful management can utilize an important tool – internal investigations – to uncover and mitigate potential workplace-related liabilities before they spiral out of control. What is Workplace Misconduct? Workplace misconduct — such as health and safety violations, retaliation, drug and alcohol use, and theft or fraud
Earlier this month, Governor Newsom signed into law Assembly Bill No. 1291 (“A.B. 1291”), which amends Section 26051.5 of California’s Business & Professions Code to strengthen California’s pro-union requirements for cannabis companies. Specifically, the new law, which will go into effect on January 1, 2020, rewrites the express union organizing commitments cannabis companies must make as part of their state
Lamps Plus, Inc. v. Varela Confirms (Yet Again) That Arbitration Agreements Should Be Taken Seriously
Recently the U.S. Supreme Court rendered its decision in Lamps Plus, Inc. v. Varela, 587 U.S. ____ (2019), reported at 2019 WL 1780275, a case with at least three striking lessons: Lesson #1 Because arbitration agreements are formed by contract through mutual consent, parties negotiating arbitration agreements should pay very careful attention to the specific words used in the contract.
Sometimes California’s cannabis laws can be surprising, even to the experts. Our firm came across one example of this recently: Section 26065 of MAUCRSA (Cal. Bus. & Prof. Code § 26065), which provides simply that employees “engaged in the cultivation of cannabis under this division shall be subject to Wage Order No. 4-2001 of the Industrial Welfare Commission.” A Brief
We are offering the following observations so that HR managers in the cannabis field can better understand some of the rules that govern wage and hour requirements here in California. These rules are important because failure to follow them can expose employers (the operating cannabis companies) and sometimes their executives to significant civil fines and penalties and, in the case
Privately held cannabis companies might want to give serious consideration to awarding their employees “phantom stock” rather than equity options. Working so close to Silicon Valley and its “option holder” millionaires, can make it easy for California entrepreneurs to forget the many challenges private companies face when awarding equity options to employees. Obviously, private companies lack a public market for