http://www.californiaemploymentlawreport.com/articles/best-practices/ en-us Copyright 2010 Tue, 15 Sep 2009 07:43:54 -0800 Wed, 19 May 2010 08:35:54 -0800 http://www.movabletype.org/?v=3.34 http://blogs.law.harvard.edu/tech/rss Start-up companies are usually saving every penny and operating on small margins. Simply the cost of defending an employment lawsuit could bring the entire venture into jeopardy. Here is a list of ten common California employment law mistakes made by start-ups:

1. Assuming everyone can be paid a salary, and not paying overtime for hours over 8 in one day or 40 in one week. For a company to not pay overtime, it has the burden of proof to establish that the employee meets an exemption to California’s overtime laws. The exemptions are based on the amount of pay the employee receives and the duties the employee performs.
2. Not researching particular laws that apply to the industry or city. For example, businesses in San Francisco have to provide for paid sick leave.
3. Not having a meal and rest break policy. It goes without saying, every company in California needs a meal and rest break policy – and evidence that this policy is regularly communicated to employees.
4. Not recording meal breaks. Employers are required to not only provide meal breaks, but also keep records of when the employee started and stopped the meal break.
5. Not paying accrued vacation when employment is severed. Accrued and unused vacation is considered wages under California law, and needs to be paid out at the end of employment regardless of whether the employee is fired or quits.
6. Overestimating the enforceability of covenants not to compete. Nine times out of ten, covenants not to compete are unenforceable in California.
7. Underestimating the importance of an employee handbook.
8. Assuming any worker can be classified as an independent contractor. Just like exempt employees, employers will bear the burden of proof when it comes to classifying independent contractors. Generally, the test is how much control the employer has over the worker.
9. Withholding the money necessary to hire an HR manager knowledgeable with California law.
10. Not reimbursing employees for business related expenses, such as travel expenses. Under Labor Code section 2802, employers are required to repay employees who pay for business related items out of their own pocket.

]]> http://www.californiaemploymentlawreport.com/2009/09/articles/best-practices/10-common-california-employment-law-mistakes-by-startup-companies/ http://www.californiaemploymentlawreport.com/2009/09/articles/best-practices/10-common-california-employment-law-mistakes-by-startup-companies/ Best Practices For California EmployersEmployee HandbooksExempt EmployeesExpense ReimbursementMeal & Rest BreaksWage & Hour Lawstart-up companiestop ten Tue, 15 Sep 2009 07:43:54 -0800 Anthony Zaller