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Fotolia_69411638_Subscription_Monthly_M-300x200Contracts are essential to any business deal. No matter how close the parties and no matter how clearly the terms are spelled out, there is always a possibility of the other party breaching the contract. Whether a contract is with a vendor, another business, an employee, or any other party, a breach can cause financial harm to your company.

Fortunately, a contract should also dictate your rights and options to seek legal remedies in the event of a breach. Our experienced business and contract attorneys can help you through each step of this process to ensure the matter is resolved as efficiently and favorably as possible.

  1. Talk to the other party. Sometimes, a party to a contract may not even realize they are in breach of the agreement. If the breach involves non-payment, there may be ways to agree on a payment plan or another arrangement to fulfill the contract without taking legal action. It is always a good idea to speak with a party – or have your lawyer do so – to explore options to resolve the issue.
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Fotolia_171059478_Subscription_Monthly_M-300x200A right of first refusal is an important legal right in business law. It gives a certain party the opportunity to engage in a transaction before another party can do so. The right of first refusal can be used in many different contexts and can be extremely important for many companies. If a right of first refusal is granted and not subsequently honored, it can lead to a legal dispute.

If you are including a right of first refusal provision in a contract, you should always have a skilled business lawyer review the contract to ensure the provision properly protects your rights. We can also ensure the contract allows you the appropriate remedies should another party breach the contract provision.

Situations Involving a Right of First Refusal

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It is always advisable for employers to have an employee handbook, which will contain important information that protects you legally. Even if a company only has a few employee, without a handbook, it might expose itself to the greater risk of a lawsuit regarding sexual harassment, wrongful termination, and other wrongful treatment of employees.

What to Include in Your Handbook

A handbook is a great reference for employees, who can return to the handbook if they have questions. A handbook also forces employers to carefully consider their philosophy and the rules of the business. An adequate handbook should contain:

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Fotolia_75565417_Subscription_Monthly_M-300x200If your business employs workers in California, you need to be aware of California laws that govern employer obligations and employee rights regarding overtime. Employer compliance is strictly enforced, and a failure to comply can result in a class action lawsuit against your business. California courts are known for being very employee-friendly, which can mean extensive liability for employers in overtime claims. At Structure Law Group, we can help your business understand the obligations regarding overtime and assist it with a plan to help manage those obligations.

Exempt vs. Non-Exempt Employees

California law requires overtime to be paid to all non-exempt employees. An employee is only exempt if they fit into a specific category codified by the State of California Department of Industrial Relations. The list includes many professions and occupations, but some of the more common business classifications for an exempt employee includes:

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Starting a business partnership can be very exciting. You are ready to hit the ground running with your new venture. However, you will want to pause and make sure you have your legal interests well documented and in order before you jump into starting the business. The corporate attorneys at Structure Law Group understand the intricacies of forming a partnership and putting safeguards in place should a problem later arise.

California Partnership Legal Classifications

General Partnership

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Fotolia_206780729_Subscription_Monthly_M-300x129Hiring a new employee is an important business decision that can impact your business’s success. You must take the necessary steps to protect both your business and keep your employee happy, especially today when the unemployment rate is at a historic low . If your San Jose business is considering hiring a new employee, there are some things you might consider.

Confidentiality Agreement

Your business likely has certain information it must keep confidential. This might be company trade secrets, business methods, and sensitive employee or customer data and information. Liability concerns and legal compliance with laws (e.g., HIPPA) require a business to have safeguards in place. One of these safeguards might include a confidentiality agreement.  A confidentiality agreement is a specially crafted legal agreement that an employee signs upon acceptance of his or her employment, or inherently agrees to through the employee handbook. The agreement should include remedies if an employee breaches the confidentiality agreement. A skilled San Jose business attorney can assist your business in drafting the necessary agreement tailored to your business’s needs.

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Fotolia_180008799_Subscription_Monthly_M-300x200Startup companies often use stock options to attract new quality talent. If you have decided to do so, there are some special considerations when deciding the best approach to compensate your employees. Two common approaches include restricted stock and stock options.

What is Restricted Stock?

Restricted stock is a stock plan that gives particular employees a right to purchase stock shares. These restricted shares may be at a discounted value, fair market value, or even at no cost. Despite the right to buy the restricted stock, the shares are not actually owned by the employee until a particular triggering event occurs. For example, a company may restrict the transfer of the stock until a particular amount of time has elapsed (e.g., three years from the date of hire). Another example would be a condition regarding company performance (e.g., $1m in gross revenue). The employee then takes possession after the triggering event occurs, thereby lifting the “restriction” on the stock.

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Fotolia_194134312_Subscription_Monthly_M-300x200It may seem simple to try and put together a shareholder agreement on your own. However, a carefully drafted shareholder agreement is imperative to how your business functions in the present, but more importantly how you might need to handle things in the future. You will want your shareholder agreement to be carefully drafted to match your business’ specific needs. Even though every shareholder agreement will be different, there are some common components that most shareholder agreements include.

Governance Procedures

The shareholder agreement can outline how often meetings should be held. It can also describe the process for general or special meetings, quorum needed for specific types of matters, and how notices for the meetings should be sent. The addition of theses details not only spells out the procedural process, but also notifies members of their duties and rights as a shareholder.

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It seems almost once a week there is data breach in the news-Facebook, Experian, Target, Delta Airlines. The list goes on and on. San Jose business owners have a legal obligation to protect their customers’ personal information (also called Personally Identifiable Information or PII). Every business, regardless of the size, should have a privacy policy and measures to safeguard PII. This is especially true if your business collects user information online or stores sensitive employee information.

What is Personally Identifiable Information (PII)?

PII is any information that can be used to identify an individual’s personal identity. There are many definitions, but most often the following list is considered PII:

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Securities law is something you might hear in the news because of some violation or in relation to white-collar crime. With the wild ride that the stock market, including the gradual introduction of permissible, legal trading of cryptocurrencies (like bitcoin) and tokens from initial coin offerings (“ICO’s”), has securities laws a popular, researched and well-debated topic among entrepreneurs, businesses, investors, lawyers, and regulators. But, what are these laws? Securities laws are detailed and complex laws that govern securities. Below, we discuss some of the basic concepts of securities laws. For more information, contact a Mountain View transctional attorney today.

Understanding Securities

A security is a common word used in investment circles. It is a broad term that refers to the instrument used in certain transactions, financing or investments that are sold in various financial markets. The Supreme Court uses the Howey Test to determine whether a transaction represents and investment contract (and thus a security) by using the following definition of when an investment contract is a security: “a person invests his money in a common enterprise and is led to expect profits solely from the efforts of the promoter or a third party.” Examples of securities include:

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