How to Choose the Right Legal Structure for Your Business

How to Choose the Right Legal Structure for Your Business

Choosing the right legal structure is one of the most important decisions a business owner can make. In California, common options include sole proprietorships, partnerships, limited liability companies (LLCs), and corporations. Each structure has different legal, tax, management, and liability considerations. For example, an LLC may provide liability protection while offering flexibility in management, while a corporation may be more appropriate for a business seeking outside investment or planning to issue shares. The right choice depends on the nature of the business, the number of owners, the level of liability protection desired, and the business’s long-term goals.

California Legislature Targets AI Workplace Surveillance: What Employers Need to Know About AB 1883

California Legislature Targets AI Workplace Surveillance: What Employers Need to Know About AB 1883

California employers are facing a potentially significant new restriction on the use of artificial intelligence in the workplace. Assembly Bill 1883 (AB 1883), authored by Assemblymember Isaac Bryan, has passed the California Legislature and was sent to Governor Gavin Newsom on August 30, 2026. The bill would regulate certain workplace surveillance tools that use artificial intelligence, particularly technology capable of collecting neural data or recognizing or inferring an individual’s emotional state. If signed, the measure would add new requirements and restrictions to California’s already expanding employment and workplace privacy rules.

Workplace Confidentiality Policies

Workplace Confidentiality Policies

Businesses have legitimate reasons to protect confidential information, including customer information, pricing strategies, financial data, trade secrets, and proprietary business processes. A well-drafted workplace confidentiality policy can help safeguard this information and establish clear expectations for employees. However, policies that are vague or overly broad may be difficult to enforce and, in some circumstances, can interfere with employees’ legally protected rights.

SEC’s 2026 Examination Priorities Increase Focus on AI and Cybersecurity

SEC’s 2026 Examination Priorities Increase Focus on AI and Cybersecurity

The Securities and Exchange Commission’s Division of Examinations has identified artificial intelligence and cybersecurity as significant areas of focus in its 2026 Examination Priorities. The Division will review the use of AI technologies, automated investment tools, trading algorithms and other emerging technologies by SEC-registered firms. In particular, examiners will assess whether firms’ representations regarding their AI capabilities are accurate and whether firms have adequate policies and procedures to monitor and supervise their use of AI. The Division specifically identified the use of AI in areas such as fraud prevention and detection, back-office operations, anti-money laundering and trading functions as potential areas of review.

California Employment Law Compliance Steps Business Owners Can Take to Reduce Employee Lawsuit Risk

California Employment Law Compliance Steps Business Owners Can Take to Reduce Employee Lawsuit Risk

California employers face extensive workplace requirements, and even a small compliance mistake can develop into an expensive wage claim or employment lawsuit. Business owners should regularly review how they classify employees, calculate wages and overtime, track hours, provide meal and rest breaks, and issue accurate wage statements. California generally requires employers to provide a 30-minute meal period when an employee works more than five hours and paid rest periods based on hours worked. Employers must also maintain accurate time and payroll records.

California Employers Face Greater Retaliation Risks in 2026

California Employers Face Greater Retaliation Risks in 2026

California employers should be paying close attention to retaliation claims, which can arise even when an employee’s underlying complaint does not ultimately result in a legal violation. California law protects employees who raise concerns about wage violations, discrimination, workplace safety, and other protected rights. The California Labor Commissioner continues to identify retaliation as an area where employees can file complaints, making it important for businesses to carefully document employment decisions and how managers respond to employee concerns.

Website Privacy and Tracking Technologies

Website Privacy and Tracking Technologies

Businesses increasingly face legal claims involving common website technology such as cookies, tracking pixels, analytics tools, and third-party integrations. Several states have laws that govern these technologies. For example, in California, some claims are brought under the California Invasion of Privacy Act (“CIPA”), with plaintiffs alleging that website technologies improperly intercepted or transmitted information about website visitors. Depending on the technology and applicable law, businesses may be required to provide appropriate disclosures or obtain consent. Whether the claim has merit depends on the specific technology involved, how it was configured, what information was transmitted, and what disclosures or consent mechanisms were provided.

California Businesses Face New Legal Challenges From AI

California Businesses Face New Legal Challenges From AI

Artificial intelligence is changing how businesses operate, but it is also creating new legal issues. California lawmakers are examining how AI and automation may affect employees, layoffs, privacy, and workplace rights. Governor Gavin Newsom has directed state agencies to study how existing employment laws, including Cal-WARN, may need to change as businesses increasingly use AI and automated technology. Proposed legislation could also create additional requirements for companies when technology contributes to large-scale layoffs.

I-9 Compliance: What Every Business Owner Should Know

I-9 Compliance: What Every Business Owner Should Know

Every U.S. employer is required to verify the identity and work authorization of each employee by completing Form I-9. Failing to properly complete, retain, or update I-9 forms can result in costly fines, even if all employees are legally authorized to work. As immigration enforcement efforts continue to increase, businesses of all sizes should ensure their hiring and recordkeeping practices meet federal requirements.

California Employers Face Increased Compliance Risks During Layoffs and Restructuring

California Employers Face Increased Compliance Risks During Layoffs and Restructuring

California employers considering layoffs, business closures, mergers, or operational restructuring must carefully evaluate their obligations under the California Worker Adjustment and Retraining Notification (Cal-WARN) Act. Recent updates and increased enforcement attention have made workforce reductions a higher-risk area for employers. Even when layoffs are necessary for legitimate business reasons, failing to follow proper notice requirements can expose companies to significant financial liability and employment-related disputes.