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D.Law Named to Inc.'s 2025 Best Workplaces List
D.Law Named to Inc.'s 2025 Best Workplaces List

Los Angeles Times

time3 days ago

  • Business
  • Los Angeles Times

D.Law Named to Inc.'s 2025 Best Workplaces List

The annual list recognizes the businesses that set the standard for workplace success and awards excellence in company culture is proud to announce it has been named to Inc.'s 2025 Best Workplaces list, honoring companies that have built exceptional workplaces and vibrant cultures that support their teams and businesses. This year's list, featured on is the result of comprehensive measurement and evaluation of American companies that have excelled in creating exceptional workplaces and company cultures – whether inperson or remote. The award process involved a detailed employee survey conducted by Quantum Workplace, covering critical elements such as management effectiveness, perks, professional development and overall company culture. Each company's benefits were also audited to determine overall score and ranking. is honored to be included among the 514 companies recognized this year. 'At we believe our people are the heartbeat of everything we do. From professional growth opportunities to team celebrations and community involvement, we're committed to cultivating a workplace where everyone feels empowered, supported, and inspired to do their best work,' said Emil Davtyan, founder and managing attorney. 'Being named one of Inc.'s Best Workplaces confirms that our focus on people-first culture makes a meaningful difference. We're proud to be part of a new generation of firms that are redefining what it means to be in this profession.' Founded in 2015, is a purpose-driven law firm focused on providing compassionate, effective legal services to clients across California. With a team-oriented approach and an emphasis on continuous learning, has quickly built a reputation for both its client service and its inclusive internal culture. The firm is part of a growing movement to redefine what it means to be an employment law firm by putting people, empathy and impact at the center of everything it does. 'Inc.'s Best Workplaces program celebrates the exceptional organizations whose workplace cultures address their employees' welfare and needs in meaningful ways,' says Bonny Ghosh, editorial director at Inc. 'As companies expand and adapt to changing economic forces, maintaining such a culture is no small feat. Yet these honorees have not only achieved it – they continue to elevate the employee experience through thoughtful benefits, engagement, and a deep commitment to their teams. is an employment law firm dedicated to defending the rights of workers under California employment law. Based in Los Angeles with offices throughout the state, represents workers in every industry, whether they work for large corporations or small companies. specializes in the full range of employment law, including wrongful termination, pay and overtime issues, discrimination and harassment, workplace retaliation, leaves of absence and more. attorneys have over 350 years of collective experience in employment law and have helped over 150,000 workers get more than $1.5 billion in settlements.

Emil Davtyan and Brian Hegarty Share Insights on Employee Benefits & Effective HR Practices
Emil Davtyan and Brian Hegarty Share Insights on Employee Benefits & Effective HR Practices

Los Angeles Times

time21-04-2025

  • Business
  • Los Angeles Times

Emil Davtyan and Brian Hegarty Share Insights on Employee Benefits & Effective HR Practices

This 'Conversation with the Experts' section is produced by the LA Times Studios team in conjunction with Inc. and Marsh McLennan Agency. Businesses have been navigating through a continuously altering and evolving employee benefits landscape. Return-to-work mandates, new technological advancements and workforce shortages in many industries have led to a new set of expectations, protocols and best practices when it comes to businesses determining the right benefits packages for their employees. What should C-suiters and HR professionals be focusing on in terms of new standards? To answer that and other questions while taking a closer look at the latest developing trends in the business of employee benefits and HR best practices, we have turned to two of the region's leading authorities, Emil Davtyan of Inc. and Brian Hegarty of Marsh McLennan Agency, who graciously weighed in for a discussion and shared insights. Q: Are there any new legislative, compliance or regulatory issues/trends that HR professionals should be aware of in 2025? Emil Davtyan, Founder and Managing Attorney, Inc.: In 2025, several new laws are creating fresh compliance challenges for HR teams. Updates to California's pay transparency rules now require real-time salary range postings in job advertisements and internal listings, placing new demands on compensation systems. Expanded workplace surveillance disclosure rules are also in effect, requiring employers to inform employees of monitoring practices and obtain consent in certain scenarios. Federally, new EEOC guidance on AI in hiring emphasizes bias audits and transparency, catching some employers off guard who haven't yet reviewed their algorithmic tools. Proactive policy updates and internal training are critical to staying ahead of these evolving requirements. Brian Hegarty, Principal; Managing Director, Los Angeles, Marsh McLennan Agency: In 2025, HR professionals should be vigilant about several emerging legislative and regulatory trends that could impact their organizations. Firstly, the Affordable Care Act (ACA) marketplace continues to evolve, with potential changes in enrollment periods and subsidy structures that may affect employee health benefits. Additionally, the Inflation Reduction Act is poised to significantly influence Medicare drug prices, which could have downstream effects on employer-sponsored health plans and overall healthcare costs. The national landscape for paid family leave is also shifting, with various states implementing or expanding their programs, necessitating that HR teams stay informed to ensure compliance and support for their employees. Lastly, the focus on long-term disability and mental health parity is gaining momentum, prompting HR professionals to reassess their policies to ensure they align with new standards aimed at providing equitable support for mental health conditions. Staying abreast of these issues will be crucial for HR professionals to navigate the complexities of compliance and to foster a supportive workplace environment. Q: How should employers navigate California's strict meal and rest break requirements in 2025? Davtyan: California's meal and rest break laws remain among the strictest in the country, and non-compliance continues to drive costly litigation. In 2025, employers should focus on consistent enforcement and robust documentation. This includes clearly communicating break policies to employees, scheduling shifts to accommodate timely breaks and ensuring that breaks are duty-free and uninterrupted. Employers should also implement systems to track when breaks are taken and flag any missed or late breaks, issuing premium pay as required. Training supervisors and HR teams to proactively enforce these policies is essential. A strong compliance infrastructure not only protects workers but also helps employers avoid significant penalties. Q: What emerging employee benefits do you see gaining traction in 2025, and why? Hegarty: In 2025, several emerging employee benefits are expected to gain traction, reflecting the evolving needs of the workforce as highlighted in Marsh McLennan Agency's 2025 employee benefits trends report. One significant area is support for caregivers, with organizations increasingly offering remote work benefits, flexible scheduling and enhanced family leave, childcare and fertility benefits to accommodate employees balancing work and caregiving responsibilities. Additionally, student loan repayment programs and learning opportunities are becoming more prevalent, as employers recognize the importance of investing in their employees' education and financial well-being. There is a growing emphasis on mental well-being, with benefits that prioritize holistic health, such as Health Savings Accounts (HSAs) and Flexible Spending Accounts (FSAs), alongside flexible and remote work options and financial planning resources. These trends reflect a broader commitment to fostering a supportive and inclusive workplace that addresses the diverse needs of employees in today's dynamic environment. Q: What are the most common mistakes HR teams make in conducting harassment investigations? Davtyan: A few common missteps can undermine the integrity of harassment investigations. One is failing to act promptly when a complaint is raised – delays can compromise evidence and erode trust. Another mistake is bias, whether real or perceived, especially if the investigator has a close relationship with the involved parties. Incomplete documentation and inadequate communication throughout the process also pose risks. HR should avoid making premature conclusions and instead ensure the investigation is thorough, impartial and well-documented. Providing clear updates to all parties and taking appropriate corrective action when warranted are essential best practices that protect both employees and the organization. Q: How are companies balancing cost-effectiveness with providing competitive benefits packages? Hegarty: Companies are looking to innovative strategies to balance cost-effectiveness with the need to provide competitive benefits packages. While employers cannot control the rising costs of healthcare, they can optimize their spending strategies to mitigate ballooning prices. According to a 2024 McKinsey roundtable, high-performance networks (HPNs) have emerged as one of the most promising tools, potentially cutting costs by up to 15% and helping employers manage their healthcare expenditures more effectively. Additionally, self-insurance, traditionally favored by large organizations, is gaining traction among small and medium-sized businesses. When managed with a dynamic, data-driven strategy, it can yield long-term savings. Another effective approach is reference-based pricing, which establishes fixed maximum prices for medical services based on Medicare rates, allowing employers to avoid surprise costs and potentially save 20% to 30% annually on healthcare expenses (according to a 2022 BenefitsPRO study). These strategies can be further enhanced by utilizing data analytics and reporting tools to create more accurate forecasts of future healthcare spending. Marsh McLennan Agency's Planning & Analytics for Total Health (PATH) transforms your data into prescriptive strategies so you can offer competitive, cost-effective benefits while empowering healthier employees. Overall, employers must carefully consider the long-term consequences of reducing benefits, as this can lead to increased employee dissatisfaction and higher turnover rates, ultimately jeopardizing their ability to attract and retain top talent. Q: What best practices help ensure pregnancy-related accommodations are law-compliant and employee-supportive? Davtyan: To comply with California's pregnancy accommodation laws, employers should engage in a timely, good-faith interactive process as soon as an employee makes a request. This includes evaluating the employee's needs, considering physician recommendations and offering reasonable accommodations, such as modified duties, schedule adjustments or temporary leave. It's also important to educate managers about their responsibilities to avoid discriminatory remarks or actions, even unintentionally. Creating a supportive culture around pregnancy and parenthood helps ensure compliance and boosts employee morale. Documenting each step of the process protects both the employee's rights and the employer's legal interests. Q: How is AI being used to improve benefits administration and employee engagement? Hegarty: AI is increasingly transforming benefits administration and employee engagement, positioning human resources as one of the departments most affected by this technological expansion. The majority of HR leaders believe that AI will 'radically change how work gets done,' (as quoted in ServiceNow's 2024 Employee Experience trends report) with clear use cases emerging across various HR functions, including hiring, learning and development, performance management, and benefits administration. In the recruitment process, AI solutions enhance efficiency and have been shown to improve the diversity of new hires, with nearly one in three HR professionals noting this positive impact according to SHRM's 2024 Talent Trends report. AI can also personalize learning and development materials to align with individual employee learning styles, significantly enhancing the employee experience while reducing associated costs. Organizations are leveraging AI to identify skill gaps, analyze performance metrics, and provide managers with actionable feedback, while also granting employees access to their performance data to track their progress. As HR departments prepare for the future, many are actively upskilling or reskilling employees to adapt to AI initiatives, recognizing the need for a more technology-minded approach to business decisions and organizational growth. While AI is expected to reduce workloads in the long run, the current talent and skills crunch may strain HR resources, making the integration of AI both a challenge and an opportunity for enhancing employee engagement and benefits administration. Q: What's the current landscape of bereavement leave rights in California? Davtyan: California now mandates bereavement leave for eligible employees at companies with five or more workers. The law provides up to five days of unpaid leave upon the death of a qualifying family member. While the leave is unpaid, employees may use other available paid time off, such as vacation or sick leave. Employers must allow the leave to be taken within three months of the death and may request documentation, such as a death certificate or obituary. To remain compliant, employers should update their handbooks and ensure supervisors are aware of these requirements, balancing legal obligations with empathy during sensitive times. Q: What protocols do you recommend to help companies communicate better with their workforce? Hegarty: To enhance communication within the workplace, companies should adopt a comprehensive communication strategy that considers the diverse preferences and needs of their workforce. Employers who take the time to analyze their employee base and tailor strategies accordingly – whether through voluntary benefits that appeal to specific age groups, personalized communication methods or flexible work arrangements – position themselves as organizations that truly value their people. This approach not only addresses generational differences but also fosters a culture of inclusion where every employee feels supported. Utilizing technology to share benefits communications is essential in this context, as it allows for real-time updates and easy access to information. Companies can implement user-friendly platforms that centralize benefits information, making it accessible to all employees regardless of their preferred communication style. Additionally, incorporating interactive elements, such as webinars, video tutorials and FAQs, can further engage employees and ensure that they fully understand their benefits. By fostering an inclusive communication environment that leverages technology and tailors strategies to meet the needs of a diverse workforce, organizations can improve employee engagement, satisfaction and overall workplace harmony. Q: How should HR document terminations to prevent wrongful termination claims? Davtyan: Thorough documentation is the cornerstone of a defensible termination. HR should maintain clear records showing the employee's performance issues, disciplinary actions taken, and communications about expectations and improvement opportunities. When terminating for cause, employers should document the specific policy violations and provide the employee with a written explanation. Conducting an exit interview and having a witness present during the termination meeting can further protect the employer. Importantly, all documentation should be factual, objective and free from emotional language. Well-maintained records demonstrate fairness and transparency – key elements in defending against wrongful termination claims.

Lawrance A. Bohm, Emil Davtyan, David J. Fishman and Todd B. Scherwin Share Insights on Labor & Employment Law
Lawrance A. Bohm, Emil Davtyan, David J. Fishman and Todd B. Scherwin Share Insights on Labor & Employment Law

Los Angeles Times

time24-03-2025

  • Business
  • Los Angeles Times

Lawrance A. Bohm, Emil Davtyan, David J. Fishman and Todd B. Scherwin Share Insights on Labor & Employment Law

The Labor & Employment Law Roundtable is produced by the LA Times Studios team in conjunction with Ballard Rosenberg Golper & Savitt, LLP; Bohm Law Group; Inc.; and Fisher & Phillips LLP. With the many unprecedented operational changes and adjustments that businesses in every sector have had to make over the last three years, a whole new landscape has emerged in terms of labor and employment issues. This has left even the most seasoned human resources and C-suiters struggling to find answers to crucial questions, not to mention the confusion among employees themselves. Are the changes that have emerged trend-driven or here to stay? What should management be focusing on in terms of new standards and laws pertaining to employee relations? What do employees need to know? To address these issues and concerns as well as many other topics pertaining to labor and employment hot buttons, the LA Times Studios team turned to four uniquely knowledgeable experts for their thoughts and insights about the most important 'need to know' trends and updates and to get their assessments regarding the current state of labor legislation, the new rules of hiring and firing, and the various trends that they have been observing in general from both sides of the table. Q: What are the biggest labor and employment law trends businesses need to be aware of in 2025? David J. Fishman, Partner, Ballard Rosenberg Golper & Savitt, LLP: California businesses should be aware of several significant labor and employment law trends including minimum wage increases, expanded leave rights, freedom from employer intimidation, whistleblower protections, independent contractor classification, artificial intelligence (AI) in the workplace, amendments to the Private Attorneys General Act (PAGA), and equal pay and transparency. California's labor and employment landscape is continually evolving. Employers should regularly consult legal counsel and stay informed about legislative changes to ensure compliance and maintain fair workplace practices. Emil Davtyan, Founder and Managing Attorney, Inc.: The evolving workplace continues to shape California's labor and employment landscape, with several key trends emerging in 2025. Pay transparency laws are expanding, requiring employers to provide more detailed disclosures about compensation structures. AI in hiring and workforce management is under increasing regulatory scrutiny, particularly regarding bias and privacy concerns. Additionally, enforcement of wage and hour laws remains a priority, with heightened penalties for misclassification and off-the-clock work violations. Employers must also stay ahead of shifting regulations on workplace surveillance and data privacy, ensuring compliance with both state and federal standards. These trends highlight the need for proactive policy updates and a commitment to fair, compliant employment practices. Todd. B. Scherwin, Regional Managing Partner, Fisher & Phillips LLP: While there may be major shifts on a federal level following the Trump administration's policies and executive orders and some belief that there will be employer-leaning policies and orders, that will not be the case in California. In California, and particularly Los Angeles, we should continue to expect an active Labor Commissioner's office, a flurry of wage-hour and Private Attorney General Act (PAGA) actions and a continual crack-down on independent contractors and employer safety. Employers should update and review their policies – and in particular their wage-hour policies – to stay compliant. Q: How can businesses develop and enforce effective workplace harassment and discrimination policies in today's environment? Lawrance A. Bohm, Principal and Lead Trial Attorney, Bohm Law Group: Developing and maintaining policies is the easy part; enforcing and fairly applying them is the issue. For smaller businesses, most local chambers of commerce have a template policy manual that can be purchased and modified. Larger corporations should retain experienced employment counsel. Every business my firm has hit with a giant verdict had appropriate policies. The number one indicator of an unlawful employment action is failing to follow company policies. That is the essence of an unfair workplace, and there is not a juror out there who believes employers should be allowed to treat employees unfairly. When leadership sees that policies have not been followed, alarm bells should ring. Training and performance management should be implemented and documented. A zero-tolerance policy should mean 'zero' tolerance. Do not claim employees will be treated with 'integrity and fairness' while simultaneously firing an employee without any effort to adhere to progressive discipline. Scherwin: To develop a positive workplace culture and help prevent harassment, employers should implement clear policies with zero tolerance, detailed examples and reporting procedures. Communicate these policies effectively through onboarding, regular reminders and leadership involvement. Train managers to recognize and address harassment, avoiding assumptions about 'welcomed' behavior or excusing conduct. Promptly investigate all complaints, documenting findings and ensuring no retaliation. Take immediate action, prioritizing investigations over other tasks. Consistently enforce standards, disciplining fairly and ensuring accountability regardless of employee status. This reinforces policy effectiveness and fosters a respectful workplace culture. Moreover, with the recent decisions by California courts making it clear that arbitration is not permissible for cases in which sexual harassment is alleged, it is even more important to implement and enforce a zero-tolerance policy. Q: How are hybrid and remote work policies evolving, and what legal considerations should employers keep in mind? Davtyan: Hybrid and remote work policies continue to evolve, balancing flexibility with legal and operational challenges. Employers are refining policies to address work-from-home reimbursements, timekeeping for remote employees and cross-state employment tax implications. Additionally, California's wage and hour laws, including meal and rest break compliance, apply equally to remote workers, requiring employers to maintain accurate tracking mechanisms. Data security and privacy remain key concerns, particularly with increased reliance on monitoring software. Employers should ensure policies clearly define expectations while aligning with evolving legal standards to mitigate risks and maintain compliance. Q: What impact are recent legislative changes having on employee classification (W-2 vs. independent contractor)? Fishman: Recent legislative changes in California have significantly impacted employee classification, particularly concerning the distinction between independent contractors and employees. Enacted in 2019, AB 5 codified the 'ABC test' from the 2018 California Supreme Court's Dynamex decision, establishing stricter criteria for classifying workers as independent contractors: The worker must operate free from the company's direction and control; the worker must perform tasks outside the usual course of the hiring entity's business; and the worker must be engaged in an independently established trade, occupation or business similar to the work performed. Workers not meeting all three criteria must be classified as employees, granting them access to benefits like minimum wage, overtime and unemployment insurance. While certain professions are exempted, most industries had to reassess their classification practices. These legislative changes underscore the evolving landscape of employee classification in California, reflecting the state's efforts to balance worker protections with the flexibility of gig economy models. Q: How can businesses prepare for new pay transparency laws and ensure compliance? Scherwin: With pay transparency laws expanding at the state and local level, now is the time to create or update your compliance plan. Many states are now requiring employers to disclose salary ranges in job listings and for promotional opportunities, and because pay transparency affects all aspects of workplace relationships – including hiring, recruitment, and retention efforts; supervision and leadership; and compensation and benefits – compliance with these changing laws is important. Employers should review job postings, train staff and establish regular compensation reviews. You should also coordinate with third-party job posting services, conduct a privileged pay audit with counsel and consider a standardized pay scale. And finally, decide whether to adopt a uniform or patchwork approach for multi-state operations. Q: What are the latest best practices for handling employee terminations to minimize legal risks? Fishman: To minimize legal risks during employee terminations, it's essential to implement the following key strategies: (1) Maintain thorough documentation of performance issues, disciplinary actions and any communications related to the employee's conduct. This documentation serves as evidence to justify termination decisions, demonstrating that they are based on legitimate business reasons; (2) Compliance with federal, state and local employment laws as well as internal company policies, including providing any required notices or severance benefits; (3) Engage legal advisors early in the termination process to assess potential legal risks and ensure that all actions comply with applicable laws and regulations; (4) Consistently apply company policies uniformly to all employees to prevent perceptions of bias or favoritism, which can lead to discrimination claims; (5) Conduct termination meetings in a private setting, clearly and respectfully communicating the reasons for termination; and (6) Offer resources such as severance packages, information on unemployment benefits or outplacement services to assist the employee's transition. By implementing these best practices, employers can handle employee terminations in a manner that minimizes legal risks and upholds a respectful workplace environment. Bohm: First, remember the golden rule – do unto others as you would have them do to you. If you treat employees like you would want to be treated, most lawsuits would be avoided or defeated. As a best practice, employees should never be surprised by the termination because warnings should be given with the opportunity to correct poor performance/issues. Never make termination decisions while you are angry or emotional. Second, do NOT overreach. If you are firing an employee because they are chronically and habitually late, then leave it at that. Unfortunately, many untrained managers think that one good reason is not enough. Adding other flimsy reasons for termination that can be proven to be false or unfair will likely result in a finding of liability for wrongful termination and possibly defamation. In a worst-case scenario, this can result in massive punitive damages and a public relations nightmare for companies. Davtyan: Handling terminations properly is crucial to minimizing legal exposure. Employers should ensure termination decisions are well-documented and based on legitimate, non-discriminatory reasons. Conducting termination meetings with professionalism and providing employees with clear explanations can help reduce disputes. Severance agreements with clear language and enforceable waivers can also mitigate risk. Additionally, compliance with final paycheck laws – including timely payment of wages, accrued PTO and expense reimbursements – is essential to avoiding wage claims. A well-structured termination process not only reduces legal risk but also protects the company's reputation. Q: What are the key legal risks associated with using AI in hiring, performance reviews and workforce management? Scherwin: In the new age of remote work, more and more employers are showing an interest in artificial intelligence (AI) when it comes to recruiting and hiring new talent. By applying AI in pre-employment assessments and interviews, employers are able to streamline their recruiting processes and screen through a seemingly unmanageable pool of candidates. This practice, however, needs to be carefully managed to eliminate legal concerns. When using AI in the workplace context, privacy concerns arise from data collection, necessitating compliance with state and federal laws like HIPAA. Bias and discrimination are significant issues to consider, as AI algorithms reflect existing data, potentially favoring profiles similar to current employees. This can disadvantage women, minorities and older applicants. Resume scanning tools may inadvertently penalize women returning to work. Furthermore, AI analyzing word choice or expressions risks discriminating against individuals with speech impediments, accents or mental impairments. These limitations can perpetuate existing biases, leading to unfair hiring practices and opening companies up to risk. Davtyan: The use of AI in employment decisions raises significant legal concerns, particularly around bias, transparency and privacy. California's anti-discrimination laws apply to AI-driven hiring and evaluation tools, meaning employers must ensure these technologies do not disproportionately impact protected classes. There is growing regulatory focus on requiring transparency regarding how AI-driven decisions are made, and employees may soon have more rights to challenge automated decisions affecting their employment. Employers using AI must conduct regular audits, maintain human oversight and ensure compliance with emerging laws addressing algorithmic bias and data privacy. Q: What are some best practices for handling employee accommodations under ADA and other disability-related laws? Bohm: In addition to following the golden rule, employers should remember that the cost of allowing an employee to remain out on leave is negligible compared to the astronomical legal bills of defending a lawsuit. While accommodations can cause disruption and headaches, these annoyances rarely qualify as an 'undue burden.' Financially solvent companies rarely avoid having to make reasonable accommodations, because they are expensive (even though this is the most common unsuccessful defense seen in failure to accommodate cases.) The best practice to handle accommodations is to work collaboratively with the employee and their healthcare provider. The employee is not entitled to their choice of accommodation but rather an accommodation that works. The important aspect is that an employer makes an effort to find a reasonable workable solution before they throw their hands up in defeat. Q: How should companies address wage and hour compliance to avoid costly litigation? Davtyan: Wage and hour violations continue to drive litigation, making proactive compliance critical. Employers should implement strong timekeeping policies to prevent off-the-clock work, ensure proper classification of employees and conduct regular payroll audits. Meal and rest break compliance remains a major area of risk, requiring clear policies and enforcement. With California's strict reimbursement laws, employers must also ensure remote work expenses and job-related costs are properly documented and reimbursed. Staying updated on evolving state and local wage laws can help businesses prevent costly disputes and class-action lawsuits. Fishman: California employers must be proactive in addressing wage and hour compliance to avoid costly litigation. Employers must ensure that they are properly classifying employees; staying updated on state and local minimum wage rates; properly calculating overtime using the correct regular rate of pay for all hours over eight in a day or forty in a week; ensuring meal and rest break compliance; maintain accurate timekeeping records that record all time worked (i.e., do not round time); avoid any off-the-clock work of any duration; reimburse for all reasonable and necessary business expenses including mileage, cell phone and internet; and pay employees on time during employment and at time of separation. Employers should implement clear policies (including the use of arbitration agreements) and training and have regular wage and hour audits conducted by legal counsel. Employers who proactively follow these steps can mitigate risks of class action and Private Attorneys General Act (PAGA) lawsuits as well as create a fair workplace. Scherwin: Wage and hour laws present many challenges to businesses, ranging from increasingly complex compliance demands to the risk of high-stakes litigation. In California, this means wage-hour class actions and Private Attorney General Act (PAGA) actions. Having clear and concise policies when it comes to employee pay – and in particular, meal and rest period policies – is important as that continues to be one of the more popular claims filed against employers in Los Angeles and California as a whole. Importantly, companies in California should explore whether to implement arbitration agreements to help mitigate the risk of class action lawsuits related to wage-hour claims and ensure compliance with PAGA by continuing to audit/remediate any issues. With the PAGA reform statute that passed during the summer of 2024, employers can greatly reduce exposure and litigation risks by being proactive in continually auditing their wage-hour policies and practices. Q: What practices should be implemented by a business to ensure documents and records are kept appropriately? Bohm: Employers should know that every time a case involves missing employment records, there is going to be a problem for the employer. Companies should develop reasonable and consistent document retention policies. Documents should not be destroyed unless required by law. Juries hate when a document that is supposed to exist cannot be found. Missing and/or shoddy documentation is an enormous red flag, pointing a jury in the direction of finding a company liable for an unlawful employment action. There is an expression in nursing, 'If you did not document it, it did not happen.' Q: What trends are you seeing related to arbitration agreements in the employment context? Davtyan: Arbitration agreements remain a contentious issue in California employment law. While they provide employers with a tool to limit costly litigation, courts continue to scrutinize their enforceability, particularly in cases involving allegations of workplace misconduct. Employees are increasingly challenging these agreements, arguing they limit access to justice. Additionally, recent legislative efforts may further restrict mandatory arbitration in certain employment disputes. To ensure enforceability, arbitration agreements should be carefully drafted with clear, fair terms and explicit opt-out provisions. Q: What proactive steps should businesses take to prepare for anticipated changes in employment law over the next few years? Scherwin: It sounds cliché or easy to say, but anticipated changes and compliance with changes start with an updated and compliant employee handbook. Employers should watch out for the latest legal alerts and legal updates to understand what is on the horizon and what may need to change. Updating the employee handbook every year is key in a state like California, which has several new laws (at least) that pass every year that affect the workplace. Q: Can employers still test for marijuana in California? Fishman: As of January 1, 2024, California law prohibits most employers from discriminating against employees or job applicants based on off-duty marijuana use. This means that employers cannot take adverse action based on a drug test that detects non-psychoactive cannabis metabolites (which remain in the system long after use). However, employers can still test for marijuana if the test detects active THC, which indicates recent use and possible impairment. Employers can also prohibit cannabis use during work hours and at the workplace. Certain industries, such as federal jobs, positions requiring security clearances, and jobs in construction, may still require traditional drug testing. Therefore, while employers in California can still test for marijuana, the type of test and how they use the results are now more restricted. Q: How would you describe the current climate for employee whistleblowers in 2025? Bohm: Whistleblowing is an employment claim that appeals to everyone, regardless of political affiliation or ideology. During jury selection, it is clear that jurors across the board detest the idea of companies breaking the law and getting away with it. CEOs hate the idea of competition getting a leg up while their company complies. Employees hate the idea of their loved ones losing their jobs because they reported illegal conduct. Over the years, Bohm Law Group, Inc. has represented numerous employees across various industries who tried to stop their company from breaking the law. When retaliation is proven, juries view the employer as evil. The hammer of a massive headline-grabbing verdict awaits any employer foolish enough to terminate an employee who has blown the whistle. No juror has ever disclosed a bias in favor of companies firing people who speak out. Davtyan: California remains one of the most protective states for whistleblowers, but challenges persist. Strong anti-retaliation laws continue to safeguard employees who report legal violations, yet many whistleblowers still face subtle forms of retaliation or career setbacks. Regulatory agencies are increasing oversight, particularly in industries with high rates of wage violations and workplace safety concerns. As more businesses adopt AI-driven compliance tracking, new concerns about digital whistleblower protections are emerging. While legal protections remain strong, fostering a workplace culture that encourages transparency and ethical reporting is key to ensuring employees feel safe speaking up.

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