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.
Effective January 1, 2026, California employers with unpaid wage judgments will be subject to significantly increased liability as a result of SB 261, signed by the Governor on October 13, 2025. Employers seeking further guidance regarding these or other changes in California laws may contact MNK Law, APC at info@mnklawyers.com, or 562.362.6437.
On October 20, 2025, U.S. Citizenship and Immigration Services (“USCIS”) issued updated guidance clarifying which H-1B petitions are subject to the $100,000 fee established by President Trump’s September 19, 2025, Proclamation. The new guidance confirms that the fee applies to new H-1B petitions filed on or after September 21, 2025, for beneficiaries outside the U.S. who do not have a valid H-1B visa. Petitions for extensions, amendments, or changes of status for individuals already in the country are exempt. However, consular notification petitions filed after the effective date are subject to the fee, regardless of the beneficiary’s physical location at the time of filing.
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.
The California Supreme Court has provided further guidance regarding the “Good-Faith Defense” available to an employer in lawsuits brought for wage violations. In Iloff v. LaPaille, the California Supreme Court addressed when “liquidated” or double damages may be avoided by an employer for minimum wage violations. Any employers looking for guidance as to any labor regulations should contact MNK Law at 562.362.6437 or info@mnklawyers.com.
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.
In 2019, the California legislature amended the California Arbitration Act (“CAA”) to require the party drafting an arbitration agreement—most often the employer—to pay all arbitration fees within thirty days of receiving the invoice, unless the agreement specifies a different deadline. A company’s failure to pay on time is considered a material breach, allowing the employee or consumer to withdraw from arbitration and pursue claims in court. California appellate courts have strictly enforced this rule with harsh results, even in cases where payment was only a few days late due to mailing delays or natural disasters.
Properly classifying employees as exempt or non-exempt is one of the most important, and commonly misunderstood, compliance issues facing California employers. In simple terms, exempt employees are not entitled to overtime pay, meal and rest breaks, or other wage-and-hour protections under California law. To lawfully classify an employee as exempt, however, the employer must meet a strict multi-part test, and the burden of proof is on the employer.
California officials have announced that the statewide minimum wage will increase for all employers to $16.90 on January 1, 2026, as required by the state’s annual inflation-based adjustment process.
California regulators have approved new, far-reaching regulations targeting the use of Automated Decision-Making Technology (“ADMT”) under the California Consumer Privacy Act (“CCPA”). These rules require businesses to issue pre-use notices, honor opt-out rights, and conduct detailed cybersecurity audits and risk assessments when using ADMT to make “significant decisions” affecting individuals, such as employment, healthcare, housing, or education. The regulations are expected to take effect after review by the Office of Administrative Law and impose compliance deadlines beginning in 2027.
