Blog
Law & Beyond provides lawyers and non-lawyers a look at the legal issues of the day.
Purchasing Commercial Real Estate in California
In what form of ownership should one hold commercial investment property in California? The options include owning property in one’s own name or in some corporate form, such as a limited liability company (“LLC”), a C-Corporation, or an S-Corporation. As discussed below, the general “pros” include asset protection/liability indemnity avoidance, anonymity, tax advantages, and estate planning benefits. The general “cons” include additional costs and potential difficulty in obtaining a mortgage. On balance, the best option for most investors...
read moreWhat to Look for When Negotiating a Term Sheet for Venture Capital Financings
What is a term sheet and why is it important to an entrepreneur? In short, a term sheet is a formal document that spells out the initial agreement reached between an entrepreneur and a venture capitalist. It is the primary document attorneys use to draft the final agreement between the parties and resolve any disputes. It is typically the product of high stakes, emotional negotiations between the founders of a company and venture capitalists. For the unwary entrepreneur, a term sheet that seemed like a great deal at the time it was signed...
read moreCommissions, Overtime and Exempt Status of California Employees
Employment commissions are defined in the California Labor Code. Specifically, California Labor Code Section 2751 provides as follow: (a) Whenever an employer enters into a contract of employment with an employee for services to be rendered within this state and the contemplated method of payment of the employee involves commissions, the contract shall be in writing and shall set forth the method by which the commissions shall be computed and paid. (b) The employer shall give a signed copy of the contract to every employee who is a party...
read moreDate of Separation in California
What is the legal “date of separation” in California, and why is it important for divorcing couples? The date of separation generally refers to the date the couple’s marriage “ended”, and is used to determine property rights and spousal support. Impact of Date of Separation California Family Code Section 760, defining community property, provides, “Except as otherwise provided by statute, all property, real or personal, wherever situated, acquired by a married person during the marriage while domiciled in this state is community property.”...
read morePrivate Equity Fund Formation
What is a private equity fund, and how is one formed? A private equity fund is an investment vehicle, whereby capital is used for privately negotiated investments. Types of funds include growth equity, real estate, venture capital, secondary markets, corporate pensions, endowments, wealth funds, and special opportunity. They are typically structured as fixed-term limited partnerships, wherein the investors (the partners) have agreed to contribute capital to the fund. In the beginning, the investors typically make unfunded commitments to the...
read moreCalifornia Severely Limits The Use of Choice of Law and Venue Provisions in Employment Contract
Starting January 1, 2017, California Labor Code, Section 925 generally prohibits choice of law or venue provisions in employment contracts for California employees. Section 925 provides as follows: (a) An employer shall not require an employee who primarily resides and works in California, as a condition of employment, to agree to a provision that would do either of the following: (1) Require the employee to adjudicate outside of California a claim arising in California. (2) Deprive the employee of the substantive protection of California...
read moreNew Wage Laws in California
November 22, 2016, San Diego, California – On April 4, 2016, Governor Brown signed Senate Bill (“SB”) 3 into law. SB 3 incrementally raises California’s minimum wage each year between 2017 and 2022 and also changes what constitutes an “exempt” employee from overtime pay requirements. (Had a bill not been passed, California citizens would have had an opportunity to decide on raising the minimum wage. The California $15 per hour Minimum Wage Initiative, was certified for the November ballot but then was withdrawn after SB 3 was passed...
read moreProp 64 – What Legal Pot Means for California Consumers and Businesses
San Diego, California, November 10, 2016 – On November 8, 2016, the voters of California passed Proposition 64, known as the Adult Use of Marijuana Act. What does this mean for businesses and consumers? First and foremost, licensed businesses can start selling recreational (“nonmedical”) marijuana and any individual over 21 years of age can buy recreational marijuana without a license or prescription, commencing on January 1, 2018. Officials in California estimate it could take a year to establish necessary regulations for the...
read moreUber Class Action Update
This summer, Uber announced a settlement of the class actions claims against it in California and Massachusetts for a monetary payment of up to $100,000,000. But the judge overseeing the case rejected the settlement. Separately, but significantly, a federal appeals court ruled that the arbitration agreements signed by most drivers were enforceable. So what does this mean for the tens of thousands of people who drive for Uber in California? The Rejected Settlement The class action settlement rejected by the judge included both monetary and...
read moreSame Sex Divorce in California
In June, 2008, the Supreme Court of California ruled that a law prohibiting same sex marriages was a violation of the California Constitution. Almost immediately after this decision, many same sex couples were married and received marriage licenses in California. However, this did not last, because the citizens of California approved Proposition 8 in November, 2008. Proposition 8 approved an Amendment to the California Constitution, banning same sex marriages. (This left many same sex couples in legal limbo, because it was unclear if...
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