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Why Can't I Hire An Attorney To Send An Email For Me?

Mon, 03 Nov 2025 14:15:05 GMT

Often, people ask the question: why can’t I hire an attorney to send an email (or a letter) for me?

Understanding Legal Representation

When you hire a lawyer, you are asking them to represent your interests. When the lawyer accepts the assignment, he or she is bound to perform the task to a standard of care and according to the Rules of Professional Conduct and the Business and Professions Code. Because of all the responsibilities the lawyer takes on for every case, there is no such thing as "a quickie" for a lawyer.

Lawyers Are More Than Scribes

While you may want to hire a lawyer to perform "a quickie", a lawyer is not simply a scribe who writes. Lawyers spend years training how to evaluate the facts, how to determine what the law is or what it requires, what types of claims can be asserted, and what the potential outcome is for a particular situation. We are required to complete continuing education credits, much like doctors, nurses, real estate agents, pilots and other professionals.

Professional Standards and Obligations

The lawyer is required by law to exercise his best judgment for your situation, and to use the knowledge and skill that a reasonable lawyer would use in your situation.

To fulfill his or her obligations to you, the lawyer needs to know all of the facts surrounding your situation, review as many documents as he or she thinks are relevant to the situation, and advise you on:

what your options are,
what are the consequences of sending or not sending that email or letter, and
what they anticipate will happen if they send the email or letter.

The Scope of Legal Work

Depending on their level of experience, a lawyer may be able to assess your situation and provide you with guidance without a full blown investigation of the facts. However, the written agreement between you and that lawyer will need to limit the scope of the lawyer's assignment pretty specifically and severely to prevent you from being able to say that the lawyer's email or letter was not helpful.

Most good lawyers will not want to risk their reputation or practice on a quick email or letter. Best practices require us to look at the whole situation before writing or sending anything to an adverse party. Most good lawyers have years of experience and may not want to give you the benefit of their years of experience "for cheap."

Beyond the Initial Email

Most lawyers also know that sending an email or letter is an action that does not occur in isolation. If there is a response, you will likely need the lawyer to evaluate the response and advise you on next steps. That requires a conversation with you that may not be covered by your initial "cheap" payment. It may also require additional research to be able to advise you properly.

Quality Representation for Business Matters

At the end of the day, there is a lot more involved in sending an email on behalf of a client that meets the eye. There is no shortcut to quality representation. If the email or letter is connected to an ongoing business relationship, you need a lawyer that has a high level of business acumen to assist you. Sending the wrong email or letter at the wrong time can jeopardize your business and create unnecessary risks for the business.

My super power is the ability to guide business owners with proven wisdom to make the best decision under the circumstances.

What are the Hidden Responsibilities of Rental Contracts?

Mon, 27 Oct 2025 14:15:05 GMT

Understanding Rental Contract Liability

The question presented is: if I rent a home and someone visiting the home gets hurt and files a claim against the homeowner, can the homeowner sue me for breach of contract?

The answer (as always) depends on the contract. The rental or lease agreement is a contract, and the contract is where the rights and responsibilities of each party to the contract are established. The contract normally defines who bears the risk of any injury to a visitor to the property.

Insurance Requirements in Rental Agreements

Sometimes rental contracts, particularly long-term rental agreements, require a tenant to have their own insurance coverage for the rental unit, including coverage for possessions and sometimes personal injuries for visitors. The rental contract may also require the renter to have a minimum amount of renter's insurance. Failing to purchase the amount of insurance required by the contract could be considered a breach of contract.

Common Restrictions in Rental Contracts

Some rental agreements prohibit subletting, and the operation of a business in the home. Some agreements place limits on the number of visitors or how long a visitor stays. Some agreements have restrictions on the type of activities that can occur in the rental unit. Where there is some type of damage to the property, the agreement usually has a clause that determines whether the homeowner is required to repair the damage or is allowed to terminate the agreement.

Short-Term Rentals vs. Long-Term Leases

Short term rental contracts like AIRBNB or VRBO typically do not require or include insurance protection for the renter, and do not make the renter liable for injuries to visitors. They may include a provision that allows the homeowner allows the homeowner to sue the renter for damage to the property, however.

Notice Requirements and Breach Procedures

When the owner of the home claims the renter breached the contract, the contract may also require the owner to give the renter notice of the alleged breach and an opportunity to fix the breach before filing a lawsuit. If there is a notice requirement, and the homeowner does not follow that procedure, the homeowner is actually in breach of the contract.

Analyzing the Facts and Circumstances

The facts of what actually happened and the circumstances of how the injured person happened to be present in the home have to be analyzed in the light of what the contract says. The scenario where a visitor is spending the night and then has someone else spend the night with her while the renter is away can raise questions about who is in control of the premises, and what type of activity was occurring when the injury happened. If the homeowner claims that the visitor was injured while engaging in some type of activity that was prohibited by the contract, the homeowner may have grounds to sue the renter for breach of contract.

The Covenant of Good Faith and Fair Dealing

Ultimately, every contract or agreement has an expectation that each party will act in good faith and reasonably toward the other party. It is called "the covenant of good faith and fair dealing" and a breach of the covenant of good faith and fair dealing is a form of breach of contract.

Business Formation: Choosing the Right Entity for Your Bay Area Company

Mon, 11 Aug 2025 16:40:03 GMT

There are many different ways to legally structure your business.

The most common business formation is a sole proprietorship. It means that one person owns the business and you do not have to file any papers with the state to own or operate the business. If you want to use a name other than your own, you will need to file a fictitious business name statement with your local government to show who owns the business. Most cities and counties also require you to register your business and get a business license. All banks and some landlords require a business license in order to open a business bank account.

The other non-entity option to structure your business is a partnership. It is the same type of business formation as a sole proprietorship except it has more than one owner.

A business entity is something that is separate from you personally. The two main entities for your business are either a corporation or a limited liability company. An entity has owners and is the legal structure for operating the business.

Business entities have to file a Statement of Information with the California Secretary of State and pay a filing fee. There is an $800 minimum tax (even if you don't make any money) and an annual filing fee.

Benefits of Entities

Limitation of personal liability
Ability to share ownership of the business with others
Ability to get funding from investors
Potential flexibility with employee requirements

Without an entity, there is no limitation of personal liability. As the owner, your personal assets are at risk. A major benefit is the protection that a separate entity offers for your personal assets for an injury or some other happenstance.

Having an entity makes it easier to share ownership of the business. You can create and structure your own unique ownership structure of a business entity. For example, you can create classes of ownership with different rights. Also, you can use corporate shares to compensate your employees by giving them an ownership interest.

Depending on what type of entity you choose, there are different names for the ownership interests. For instance, for corporations, owners receive and hold stock. For an LLC, the owners are called members who receive memberships or units.

LLCs have more flexibility with meeting the requirements for employees. Under the LLC business structure, all of the people who work for the LLC are also owners. They are not considered employees, and therefore they are not subject to the employment requirements under California law.

There are requirements when you create a business entity. You have to always remember that the entity is separate from you as a person. When you sign or create any business document, the document and your signature need to be in the name of the entity, not you as an individual.

You have to create, read and maintain the appropriate legal documents in a safe place.

Corporations require you to have an annual meeting, give the required notice and keep minutes of the meeting. You must also identify an agent for service of process.

Even if you only have one owner, you still must document the corporate actions. You may need an accountant or a bookkeeper that knows how to do the correct accounting for your entity type. You will need to keep your personal finances completely separate from the business accounts.

Which Business Entity to Choose

The choice of entity usually depends on the tax status that works best for you and your business. Corporations can be taxed under IRS Subchapter C or Subchapter S. An LLC can be taxed under Subchapter C, Subchapter S or Subchapter K. When choosing what type of entity you want to have, you should always consult with a tax professional.

Investors will usually require an entity business formation to invest any money.

The requirements for LLCs vs. corporations are very different. An LLC is not a corporation and does not require a board of directors, officers or meetings so it is easier to observe the formalities of having a separate entity. LLCs have more choices for how the entity is taxed - 3 options v. 2. LLCs also have more flexibility under California's strict employment laws for how you pay and insure your employees. The law gives you more flexibility in how you set up your entity. LLCs are required to pay state taxes on gross receipts according to the amount of income, but it may still be more beneficial to have an LLC than not.

Corporations require a Board of Directors, corporate officers and shareholder meetings are required. There are fewer options for tax status and it is more standardized in terms of the formal requirements. Corporations are generally more burdensome when there is only one person operating the corporation. Even with one owner, you must still observe all of the formalities.

A LLC or a corporation formed under Subchapter S tends to pay less taxes. S corporations are a popular choice for small businesses. Profits are passed through to the owner and taxed only at the owner level. If the corporation does not pay the profit to the owner but reinvests the profits, the owner is still liable for taxes on that income which is often referred to as "phantom income." This problem of phantom income can happen with either Subchapter S or Subchapter K but not under Subchapter C.

An S corporation has limitations on its business formation requirements. Only individuals, US citizens or permanent residents can be owners of an S Corp. No entities are allowed to own an S Corp. There is a maximum cap of 100 on the number of owners, and all owners have the same economic rights. An S Corp. cannot have more than one class of stock with the exception of voting rights. Worker-owners are considered employees and subject to employment tax and the requirements of California's employment laws.

Subchapter C or a "C Corp" creates what is known as a "double tax." This means that the entity must pay taxes on any income and that same income is taxed again when distributed to the owners. Under all three subchapters, any salary or draws paid to the owner are subject to employment tax. Still, anyone can be an owner of a C Corp. In a C Corp., worker-owners are considered employees and subject to employment tax and the requirements of California's employment laws whereas if the LLC is set up under Subchapter K, the worker-owners are not considered employees.

Single Owner LLCs

If an LLC is formed with only one member, it does not have any tax status. Any income from the LLC is reported on your personal income tax return on Schedule C. The most beneficial practice is to make quarterly estimated payments for income and self-employment tax to avoid penalties and interest.

Conclusion

Bay Area business owners have lots of choices how to set up their business. Choosing the right one means you need to weigh the pros and cons of each type of entity against your personal goals. What to choose depends on your personal goals and preferences and what you imagine the future holds for you.

Sole Proprietorship, Partnership, LLC & Corporations

Business Entities

How To Protect Your Small Business From Discrimination Claims

Mon, 04 Aug 2025 21:04:54 GMT

Protecting Your Small Business in California's Legal Landscape

California has a well-deserved reputation as the "sue me state." With almost 300,000 lawyers in California , we are the largest state bar in the country. Nearly 200,000 of the state's lawyers are in active practices, and many of them are hungry to sue businesses as well as individuals. Here in Oakland, California, every business with employees is vulnerable to a discrimination lawsuit at any time unless the business is proactive in preventing and addressing discriminatory behavior in the workplace.

Understanding Your Legal Obligations

Every employer has a duty to manage the workplace in a manner that does not allow discriminatory practices to occur or take hold. California law also creates a broader scope of protection from discrimination than other states by including sexual orientation, gender expression, genetic information, linguistic freedom and reproductive health decisionmaking. The period of time in which a complaint must be filed is also longer, up to three years after the last act of discrimination, harassment or retaliation. California law does require at least five employees to apply to non-government employers.

Essential Steps to Protect Your Business

1. Create Clear Anti-Discrimination Policies

The first step to protect your business from discrimination claims is to create, publish and share with your employees a clear statement that discrimination is illegal and will not be tolerated in your business. Posters are available online and upon request from the California Civil Rights Department. Secondly, every business should have a clear set of policies and procedures that protect workers' rights and define the employer's responsibilities to each employee such as a Personnel Manual or Employee Handbook. These policies and procedures should be part of the onboarding process and included in any orientation materials.

2. Regular Training for All Employees

Businesses should regularly train all employees, both supervisors and non-supervisory employees on the prohibitions against discrimination and retaliation in the workplace. No business owner should ever assume that people know how to act in the workplace, or understand their rights and responsibilities. Nor should you believe that you are immune because you only hire friends or family members. Every employee is entitled to the protection of the laws, and it is not uncommon for businesses to be betrayed by people you trust.

3. Hold Supervisors Accountable

Business should hold supervisors accountable for following the established policies and procedures when making employment decisions, particularly, promoting or firing an employee. Typically, everyone on a business, particularly a small business, is paying attention to what happens to someone else, and comparing their situation to another employee. Disparate treatment claims can sometimes arise out of simple jealousy or envy of another employee. The business can protect itself from discrimination claims by treating everyone according to the written policy when it comes to promotions, terminations, or discipline.

Critical Areas Requiring Special Attention

Fair Discipline Policies

In cases of discipline, it is especially important to have clear and fair policies. For example, if you want to discipline one person for tardiness, make sure that you are treating that person the same way you treat all the other employees. You must hold all employees to the same standards unless there is a clear explainable reason for any discrepancy. Best practices also suggest the use of progressive discipline, with clear documentation of the steps taken to correct the behavior before any disciplinary action is taken. Without documentation, the business is vulnerable to claims of unfair treatment based on the person's characteristics instead of his or her performance.

Preventing Retaliation Claims

It is especially critical to prevent retaliation in the workplace, as sometimes, the retaliation claim is easier to prove than the discrimination claim. This happens when an adverse employment action or personnel decision is made in close proximity to a complaint about discrimination. Even if the employee cannot prove actual discrimination, he or she may still be able to prove retaliation.

To protect a business from a retaliation claim, it is important to isolate the supervisor or the person who is accused of discrimination from the complainant as soon as possible. If necessary, move the accused person to another location or position. NEVER move the person who made the complaint, even if they ask to be moved. Moving the person who made the complaint is an open invitation to your checkbook.

Building a Strong Complaint Process

Make sure you have a clear and confidential process for reporting, investigating and resolving complaints. Make it clear that if an employee has a complaint about his or her supervisor, they can take the issue to the next level supervisor to address the problem. Make it plain that the business takes all complaints seriously, and wants people to feel comfortable coming forward. Also, keeping the employee informed of the steps of your process or any investigation is critical to avoiding premature lawsuits. Supervisors should be able to quickly identify discrimination complaints or potential discrimination claims when vetting an employee's concerns.

Creating a Culture of Protection

Part of your business culture should be to protect your employee's rights and provide a safe workplace. That is the best protection from discrimination claims.

Protect Your Business Today

Don't wait for a discrimination claim to threaten your business. Take proactive steps now to create comprehensive policies, train your team, and build a workplace culture that protects both your employees and your business interests.

How My United States Supreme Court Experiences Enable Me To Help Small Businesses in Oakland Through My Business Law Practice

Mon, 28 Jul 2025 21:01:39 GMT

From the Supreme Court to Oakland: Lessons for Small Business Success

In 2002, and again in 2007, I was the lead attorney for two cases that went to the United States Supreme Court. In January 2002, I had the honor of arguing Abner Morgan' s case before the Court. In 2007, I was able to successfully get the Supreme Court to decline the petition for writ of certiorari filed by the State of California in the case of Deanna Freitag .

I never expected to go to the Court in the Morgan case. We won the appeal in the Ninth Circuit Court of Appeals and we wanted to get back to the district court to retry the case. But God had another plan. In the summer of 2001, we got the call. At first, I was devastated. Delays and more delays, and justice delayed is justice denied. Plus, the task ahead seemed monumental, far beyond what I felt my business could handle. But the first lesson was the most valuable, which is the value of relationships and mentors.

1) Relationships - Mentorship: The Foundation of Success

My first call upon learning that the Morgan case had been accepted for argument before the Supreme Court was to Attorney Howard Moore Jr. Howard had been my mentor since my first year of law school. My Uncle Richard in Chicago had directed me to contact Howard immediately upon my arrival in California in 1978 with a message: Howard was to watch over me. They were both Morehouse men, and the sacred bond between them as Morehouse men meant that Howard had to and would accept the mission. It turned out to be a lifelong challenge, but that's another story.

Howard encouraged me and assured me that I was up to the task of preparing and arguing a Supreme Court case. In fact, Howard told me that "if a woman with a degree from Yale and two degrees from UC Berkeley could not argue her own case in the United States Supreme Court, she should return all of her degrees." Armed with his confidence, I prepared to argue before the Court. Howard had argued many cases in the Supreme Court himself, and because he was a Supreme Court practitioner, he sponsored me into the elite Supreme Court bar. Only 88 cases out of 7,924 cases filed in the 2001 term were argued in the Supreme Court the year that I appeared there.

My success in the Supreme Court was largely due to the fact that I had the best mentor, and a business relationship that spanned more than two decades. Now that I have over 40 years of experience, I work to provide the same quality of mentoring I received to my small business clients in Oakland and the East Bay Area to help their business grow sustainably and be more successful.

2) Collaboration - Teamwork: Building Strategic Partnerships

Another lesson learned from my Supreme Court experience was the value of teamwork and collaboration. For years, I had supported the Legal Aid Society of San Francisco (LAS) . During my bridge year between law school and graduate school, I worked as an intern for Legal Services for Prisoners with Children , a LAS-sponsored project. Later, as an employment law lawyer, I financially supported the work of the Employment Law Center (ELC) , and more than once, called upon their expertise for a case we were handling. Through my mentor Howard, I got to know and respect William C. McNeil , the Managing Director of the ELC.

When the Morgan case was accepted for argument in the Supreme Court, every employment lawyer and Supreme Court practitioner in the country took notice. One of the first people who called me was Bill McNeil. His question - did I want their help? My answer - what time can you get here?

And so began a collaboration between our offices that lasted almost four years. Bill came over right away and brought three eager and brilliant young lawyers with him to start the tedious task of preparing our briefs and our arguments. Our team worked non-stop collaborating with other lawyers around the country for months, and when I appeared before the Court, Bill was at the counsel table with me and Howard.

When we won in the Supreme Court, and the case was sent back to the District Court for trial, Bill and two of his brilliant young lawyers tried the case with me and one of my associates. We made a great team and we finally won the case after almost ten years of litigation. And because we worked together, everybody got paid.

3) Resources - Stretching & Surviving to Get to the Next Level

One of the lessons of both of my Supreme Court experiences was the importance of resources and reserves. We never would have survived the eight years of litigation of the Morgan case, or the six years of litigation in the Freitag case if I had not spent years creating a reserve account, building a line of credit and learning how to "make a dollar out of 15 cents." Every small business has to learn how to stretch its resources, and survive while striving to get to the next level. More often than not, "cash flow" is a myth. There is very little cash and almost no flow. In good times and in bad times, I challenged my employees to help stretch our resources, avoid unnecessary waste, and recycle everything. My pet peeve, which I made known to everyone, was do not throw away or ever order paper clips. Every little bit helps. Focusing on frugality is especially important for Oakland small businesses to maintain profitability during good and bad economic times.

4) Details - Not Just One Decision

One important lesson I learned from my Supreme Court experiences is that "the devil is in the details." It's never one big decision that makes the difference. It's the thousands of small decisions that every business owner must over time make that add up to the big picture. Paying attention to the details of your business to ensure that your operations are running smoothly can make the difference between meeting a deadline or missing it. For us, we had to get the briefs printed according to the Supreme Court's precise specifications and filed in Washington, D.C. on time. We had to get the little details right to get to the big win at the end. Similarly, for small businesses, oftentimes the real levers to success are identified through rigorous analysis of the key details and the wisdom to understand where to look.

5) Walking by Faith: 5 Smooth Stones

Every business owner takes a leap of faith when he or she starts their own business. They believe in themselves and in what they have to offer the world. They believe that they can build a successful business despite the overwhelming odds of business failures.

My Supreme Court experiences taught me the power of "walking by faith, not by sight." I represented Abner Morgan for eight years before we got paid; I represented Deanna Freitag for six years before we got paid. That alone is a testament to faith. But arguing the Morgan case in the Supreme Court was unexpected and intimidating.

The odds were against us. We were up against a true Goliath. Amtrak was a billion dollar corporation with an appropriation of $521 million for fiscal year 2001. I had fought and defeated giant government agencies before - the California Department of Corrections and the United States Postal Service - but not in the United States Supreme Court.

My oral argument was set for January 2002. In December, after the briefs were filed and we were waiting our turn, I traveled to San Diego to rest my anxious mind. While there, I went to the beach. The argument was heavy on my mind, but my spirit was inspired by the biblical story of David and Goliath. At the beach, I gathered five smooth stones and prayed for our victory. I returned home refreshed, with the five smooth stones in my bag. I took my five smooth stones with me to Washington DC. Today, those five smooth stones still sit in a prominent place in my living room, to remind me of the power of prayer, and walking by faith.

Key Takeaways for Oakland Small Businesses

In summary, the key lessons I learned from my US Supreme Court experiences that I use to help my small business law clients in Oakland are: mentoring relationships, collaborative teamwork, keeping costs low, resourcefulness, attention to the details, and, last but certainly not least, faith.

5 Employment Law Mistakes That Can Destroy Your Small Business

Mon, 21 Jul 2025 20:54:52 GMT

Every business owner makes mistakes, sometimes costly ones. Legal mistakes are usually always costly to fix. Employment law mistakes can uniquely destroy your business. This is true for small businesses in Oakland and the East Bay Area, California, as it is throughout the state and around the country.

In this article, I outline the top 5 employment law mistakes that all small business owners need to avoid:

1) Payroll Taxes

One of the worst employment law mistakes to make in any business is failing to budget for and pay payroll taxes. Every employer is required to pay its share of taxes on wages and deposit taxes withheld from each employee's wages on a strict time schedule. The due dates for these payments depend both on the number of employees and the amount of payroll taxes paid in previous payroll periods. Failing to meet the deadline for payment of payroll taxes results in hefty penalties that quickly add up and can easily destroy your business.

The solution: Do your homework and learn the amount of your payroll taxes and the due dates. When making payroll, be sure to include the amount of your taxes and the amount of wages withheld from the employees in the budget and promptly deposit these amounts with the appropriate federal and state agencies. If you do fall behind, catch up ASAP. It only gets worse with time.

2) Wage & Hour Violations

Another common legal trap for business owners is wage and hour violations. If an employee is an hourly, non-exempt or non-salaried employee, the employee is entitled to meal and rest breaks. The law defines what those meal and rest breaks must look like - a set time and no work during that time. Neither the employer nor the employee can change what is legally required. Sometimes employees choose to work during their lunch break or forego the rest break. That works for you until it doesn't. There is nothing that protects the business when the employee decides that he or she wants to make a claim for missed meal and rest breaks.

The solution: Establish clear written guidelines for the entire workforce as to who is exempt or salaried and who is not exempt and hourly. Upon hire, have each employee acknowledge in writing his or her employment classification, and if they are entitled to breaks, agree to take the breaks as required. If you become aware that an employee is not following the policy, intervene as soon as possible to limit your liability. Document your efforts to ensure that the wage and hour policies are being followed.

3) Employee vs. Independent Contractor

Under California law, the ability to hire and pay someone as an independent contractor is limited by specific requirements. Many businesses are still unaware of these requirements and inadvertently pay their vendors as independent contractors when the person is actually working as an employee. Failure to comply with the law in this area can create huge liabilities and penalties for wages and payroll taxes that can destroy your business.

The solution: Familiarize yourself with the requirements for independent contractors and follow the guidelines. Create a record that supports your decision to pay the vendor as an independent contractor. Ask them for a copy of their business license, document their business profile (i.e., a website or an Employer Identification Number (EIN)) and maintain a record of payments made to them and the purpose of the payments.

4) No Workers Compensation Insurance

Workers' compensation is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment. California is one of the few states that requires all employers to provide workers' compensation insurance, even if they only have one employee. Without workers compensation insurance, an employee can sue the business, and in some circumstances, the owner individually, for lost wages, medical bills and pain and suffering.

Once a business owner is notified of a potentially work-related injury or illness, they must provide the employee with a state-issued claim form within 24 hours. Failure to post a "notice to employees" poster in a conspicuous place at the work site that provides employees with information on your workers' compensation coverage and where to get medical care for work injuries is a misdemeanor that can result in a civil penalty of up to $7,000 per violation.

Failing to have workers' compensation coverage is a criminal offense. Section 3700.5 of the California Labor Code makes it a misdemeanor punishable by either a fine of not less than $10,000 or imprisonment in the county jail for up to one year, or both. Additionally, the state issues penalties of up to $100,000 against illegally uninsured employers. If the Division of Labor Standards Enforcement (State Labor Commissioner) determines an employer is operating without workers' compensation coverage, a stop order will be issued. This order prohibits the use of employee labor until coverage is obtained, and failure to comply is a misdemeanor punishable by imprisonment in the county jail for up to 60 days, or by a fine of up to $10,000, or both.

The Commissioner will also assess a penalty the greater of (1) twice the amount the employer would have paid in workers' compensation premiums during the period the employer was uninsured, or (2) $1,500 per employee employed during the period the employer was uninsured.

Additionally, if an injured worker files a workers' compensation claim that goes before the Workers' Compensation Appeals Board and a judge finds the employer did not have insurance, when the dispute is resolved, the uninsured employer may be assessed a penalty of $10,000 per employee on the payroll at the time of injury if the worker's case was found to be compensable, or $2,000 per employee on the payroll at the time of injury if the worker's case was non-compensable, up to a maximum of $100,000.

The solution: Employers must purchase workers' compensation insurance from either a licensed insurance company or through the State Compensation Insurance Fund (State Fund). Employers may also have the option to self-insure for workers' compensation.

A commercial broker-agent can assist a business with purchasing workers' compensation insurance from a licensed insurance company and can assist with information on State Fund and self-insurance. Also, information on insurance companies licensed to sell workers' compensation insurance and an online rate comparison of the top 50 workers' compensation insurers can be accessed on the California Department of Insurance (CDI) Web site at www.insurance.ca.gov .

The posting notice is available online and must be prominently displayed at each worksite. Make sure to get and keep a current certificate of insurance.

5) Hostile Work Environment Claims

Many employers do not understand the legal complexities of a hostile work environment claim. These types of claims arise based on behavior of both supervisors, co-workers and clients or patrons of a business. Hostile work environments are also cumulative, based on a pattern of behavior that may take place over a long period of time. Failure to recognize your exposure to this type of claim can lead to a costly lawsuit and settlement or judgment against your business.

Employers are required to both prevent and address a hostile work environment. Under federal and California law, harassment in the workplace creates a hostile work environment when it is so severe or pervasive that it alters the conditions of employment and creates an abusive work environment. The harassment must be because of the employee's protected characteristics, like age, race, sex, sexual orientation, religion, disability, national origin and a host of other characteristics protected by law. It can also arise out of retaliation for a complaint about offensive or illegal behavior.

A hostile work environment can be created by:

A supervisor who makes repeated sexual comments or advances
Coworkers who use racial slurs or tell offensive jokes based on national origin
Managers who mock an employee's disability or refuse to accommodate it
Employees who regularly bully or demean another employee for being LGBTQ+
Customers who routinely demean or make derogatory comments about an employee because of their race, gender, disability, sexual orientation, etc.

Employers that overlook illegal behavior that creates a hostile work environment are vulnerable to both workers compensation claims and civil lawsuits. Employers are strictly liable for harassment by supervisors. They will also be held liable for harassment by co-workers or third parties (like clients, patrons or vendors) if they knew or should have known about the harassment and failed to take prompt, effective remedial action.

The solution: Pay attention to what people are doing and saying in your business. If an employee complains about harassment, take it seriously. Investigate promptly and make everyone aware of your written anti-harassment policy. If you don't have one, get one fast. If it turns out that illegal harassment is occurring or has occurred, take prompt, effective corrective action and don't hide it. Make sure the complainant knows that you took action, even if you can't disclose exactly what happened. Be accountable for creating a safe work environment for everyone who works for you.

Need help with employment law compliance? Contact Pamela Y. Price, Attorney at Law, for expert legal guidance tailored to your small business needs in Oakland and the East Bay Area.