Resources

The Risk of Inaccurate or Inflated Evaluations
Performance reviews are an important management tool, but when handled poorly they can create significant legal risk for employers. Inconsistent or overly positive evaluations that contradict later disciplinary actions are frequently used by employees to challenge termination decisions or allege discrimination, retaliation, or wrongful termination. For this reason, employers should treat performance reviews not only as a management tool, but also as an opportunity to reduce legal risk.

Business owners seeking brand protection ask whether forming a limited liability company (“LLC”) or a corporation is a prerequisite to securing a federal trademark. The answer is “no,” a legal entity such as an LLC or a corporation is not required to file a trademark application with the United States Patent and Trademark Office (“USPTO”). At the federal level, the USPTO simply requires an “applicant,” and that applicant can be an individual, an LLC, a corporation, or another business entity.

Remote and hybrid work arrangements are now a permanent feature of many workplaces. While they offer flexibility and operational benefits, they also present unique challenges when addressing employee misconduct and performance concerns. Employers must balance effective oversight with legal compliance, employee privacy, and consistent documentation practices.

Strong management is not only essential for productivity and morale, but also a critical component of legal risk management. Many employment-related claims do not arise from intentional misconduct, but from inconsistent, poorly trained, or inattentive management practices. When managers fail to follow established policies or apply them unevenly, businesses can face significant legal exposure.

California remains one of the most restrictive states on non compete agreements, and the state continues to uphold a long standing public policy that promotes employee mobility and competition. Under Business and Professions Code Section 16600 and related amendments, post employment non compete clauses are generally void and unenforceable in California, even if the contract was signed outside the state or before the employee worked in California. California views that limiting a worker’s ability to pursue a livelihood suppresses wages and stifles innovation.

Even in the most well-managed workplaces, issues such as harassment, discrimination, retaliation, or policy violations can arise. When they do, employers have both a legal and business obligation to respond quickly and appropriately. A prompt, thorough, and fair workplace investigation not only helps resolve internal disputes but can also protect business from legal liability.

California is stepping up its efforts to make workplaces more transparent and fairer. Beginning January 1, 2026, California employers will face new pay transparency requirements under Senate Bill 642, which requires employers to provide a good-faith pay scale for any position when requested by a job applicant or current employee. The pay scale needs to be a realistic range of expected salary or hourly wage. Employers with 15 or more employees must also include this pay range in all job postings. The goal is to make pay practices more open and consistent, as allowing job seekers and employees to make better-informed decisions about compensation leads to a more equitable workplace and strengthens the job market.

Even the best-run businesses can face disputes with employees. From wrongful termination claims to wage and hour disputes, the reality is that employment-related lawsuits can arise unexpectedly and cost employers significant time, money, and reputational harm. The good news? Many of these risks can be minimized with proactive planning, consistent documentation, and a commitment to compliance.

An advisory board is a group of experienced professionals who provide guidance, insight, and support to a company’s management team. Companies establish advisory boards to leverage the expertise, industry knowledge, and networks of seasoned advisors. In doing so, they gain access to strategic guidance, enhanced credibility, and new business opportunities. Unlike a board of directors, an advisory board has no governance or fiduciary duties. This distinction allows advisors to focus on delivering flexible, high-value insights that directly support the company’s growth and long-term objectives.

Mobile devices have become inseparable from modern business operations. The pervasiveness of mobile devices creates both opportunities and risks for employers. Because of their widespread use in daily business activities, a company’s cell phone policy often determines how effectively those risks are managed. Two areas are particularly significant: (1) managing company-issued devices, and (2) regulating the use of personal devices for business purposes.