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Don’t Miss California’s New Noncompete Notice Requirement (Deadline 2/14/24): Review Equity Award Agreements + Other Employment-Related Contracts ASAP to Avoid Costly Penalties

By , , and 4 Mins Read

As many readers likely know, last fall California doubled-down on the state’s hostility to noncompete agreements. Assembly Bill 1076 codified the landmark 2008 Edward v. Arthur Andersen decision that invalidated all employment noncompetes, including narrowly tailored ones, unless they satisfy a statutory exception.AB 1076 also added new Business & Professions Code §16600.1, requiring California employers to notify current (and certain former) employees that any noncompete agreement or clause to which they may be subject is void (unless it falls within one of…

Changes to California’s State Disability Insurance Program Increase Taxes for California Employees in 2024

By 2 Mins Read

Happy New Year from California.  As a reminder, starting January 1, 2024, changes to California’s state disability insurance (SDI) program will effectively increase taxes for employees working in California by 1.1% on income over $153,164. This is the result of both the elimination of the taxable wage limit (which was $153,164 in 2023) and an increase in the California SDI rate, from 0.9% in 2023, such that SDI will apply on all wages at a…

California Proposes to Tax Nonresident, Non-Employee Director Compensation based on Corporation’s Domicile

By and 3 Mins Read

California nonresident board members of companies based in California may soon be subject to income tax in California, regardless of whether they perform services within the state, if a newly proposed tax regulation is adopted. The proposed regulation — new section 17951-8 of Title 18 of the California Code of Regulations — released by the Franchise Tax Board of California on September 24, 2020, treats the compensation of a California nonresident, non-employee director of a…

Impact of California Consumer Privacy Act (CCPA) on Employee Data

By and 3 Mins Read

The California Consumer Privacy Act (“CCPA”) takes effect on January 1, 2020 and imposes a wide range of new requirements for the collection and processing of personal data of California residents. Under the CCPA, “consumer” is defined broadly as a natural person who is a California resident. Assembly Bill 25 (“AB 25”), signed into law on October 11, 2019, provides a temporary and limited reprieve for employee data by establishing an exemption to the CCPA’s…