Workplace policies reduce risk only when they are followed. Manager training, consistent enforcement, clear ways for employees to raise concerns, and prompt responses to complaints help turn written policies into everyday practice.
When an employee raises a complaint about wages, working conditions, discrimination, harassment, safety, or another workplace issue, how the employer responds can become just as important as the underlying complaint. California law protects employees from retaliation for exercising certain workplace rights, including raising concerns about workplace conditions or participating in investigations. In 2026, California also implemented the Workplace Know Your Rights Act, which requires employers to provide employees with an annual notice explaining several workplace protections, including protection from retaliation.
Contracts are critical to business operations. Agreements with customers, vendors, independent contractors, landlords, business partners, and other third parties establish the rights and obligations that shape important business relationships. Signing a contract, however, should not be the last step. As a company grows and its operations change, agreements that once accurately reflected the parties’ relationship may become outdated, incomplete, or inconsistent with current business needs. Businesses should review their contracts before renewal and whenever there are significant changes in pricing, services, ownership, management, technology, or operations. Many commercial agreements include automatic-renewal terms, notice requirements, termination deadlines, or pricing adjustments that can affect a company’s rights and obligations if missed. Regular reviews help ensure agreements still reflect how the business operates and allow potential issues to be addressed before they become disputes.
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 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.
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.
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 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 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.
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.