Sullivan Pratt LLP 2026-10-03T14:27:55Z https://www.sullivanpratt.com/feed/atom/ WordPress /wp-content/uploads/sites/1103779/2024/04/cropped-SullivanPrattLLP-site-icon-32x32.png On Behalf of Sullivan Pratt LLP https://www.sullivanpratt.com/?p=48184 2026-10-03T14:27:55Z 2026-10-03T14:27:55Z

When can rounding become wage theft? California courts have recognized that a neutral rounding policy may be lawful when it is designed and applied in a way that does not consistently disadvantage employees. In See’s Candy Shops, Inc. v. Superior Court, the court examined whether an employer’s rounding system was neutral and properly accounted for employees’ working time. However, employers should not assume that having a written rounding policy makes the practice lawful. In Camp v. Home Depot U.S.A., Inc., the court examined a system that could result in employees being paid for less time than they actually worked. The case shows why employers should examine the actual results of their timekeeping practices.

How can employers reduce class action risk?

Employers should periodically audit time records to identify patterns showing that employees are consistently losing compensable minutes. Payroll and timekeeping systems should also be reviewed to make sure they accurately capture working time. If an employer discovers that their rounding practice may have resulted in underpayment, addressing the issue promptly can help limit the potential impact. Because a company-wide policy can affect numerous employees, employers facing concerns about their timekeeping practices should obtain legal guidance before the issue develops into a broader or escalating wage dispute.]]> On Behalf of Sullivan Pratt LLP https://www.sullivanpratt.com/?p=48181 2026-09-22T18:08:45Z 2026-09-22T18:08:45Z

Business owners have options Federal bankruptcy regulations address not just debts eligible for discharge but also contracts that create ongoing financial obligations. Executory contracts are often a focal point during the early stages of a business bankruptcy. There are several different forms of relief available, each of which can be valuable in different circumstances. It is possible to use bankruptcy as a means of terminating an ongoing business lease. Landlords who might otherwise intend to enforce the terms of a lease may need to release a business tenant from their obligation to continue paying rent. Businesses can also potentially work with their landlords to assign their leases to outside parties. By letting someone else assume the lease, the business eliminates its financial obligations without depriving the landlord of rental income. Finally, businesses attempting to restructure can also potentially reaffirm the lease during the bankruptcy. They may work with the landlord to address any challenges created by past-due rent payments or other lease-related issues. Reviewing the company’s financial obligations and major contracts, including commercial leases, with a business bankruptcy attorney can help ensure an organization derives optimum benefit from the bankruptcy process. Legal representation makes it easier to understand the options available during bankruptcy and to negotiate with creditors, landlords and other interested parties effectively.]]> On Behalf of Sullivan Pratt LLP https://www.sullivanpratt.com/?p=48178 2026-09-16T14:01:20Z 2026-09-16T14:01:20Z

Why litigation could be necessary Restrictive covenants are additions to contracts that prohibit certain behavior. Noncompete and nondisclosure agreements are arguably the most common restrictive covenants added to employment contracts. If a business discovers that a worker who is still bound by a restrictive covenant has taken a job with a direct competitor or released non-public information, legal action can help prevent additional damage to the company, enforce contract terms or compensate the business for any harm caused. Organizations that believe a former employee may have violated a restrictive covenant often need help assessing the agreement and documenting the circumstances to effectively pursue justice in civil court. Initiating employment litigation to enforce a valid restrictive covenant after a provable breach is sometimes the best option for companies dealing with unfair competition or the release of non-public information. An in-depth conversation with a business litigation lawyer can help organizational leaders evaluate their options and protect their company from the misconduct of a former worker.]]> On Behalf of Sullivan Pratt LLP https://www.sullivanpratt.com/?p=48162 2026-08-22T13:22:12Z 2026-08-22T13:22:12Z

Joint ventures can relate to the development of new goods and services. They can involve specific projects, such as a real estate development project that requires the resources and connections of multiple parties. Joint ventures can help cement a functional working relationship between two or more businesses or professionals. When joint ventures are successful, everyone benefits. Unfortunately, joint ventures can easily face challenges that can derail plans. What happens when a joint venture falls apart?

Contracts may govern the response

Joint ventures frequently require thorough, complex written agreements. In fact, the parties cooperating may have signed multiple separate contracts all relating to the same joint venture. When issues arise that delay a joint venture, prevent its completion or reduce its profitability, one party may technically be responsible. Provided that the circumstances clearly show a failure to uphold the contracts or there is evidence of misconduct, one party committed to a now-failed joint venture can potentially take legal action against the other. They could potentially ask the courts to enforce any liability protection or special clauses integrated into their contracts with the other party. The failure of a joint venture could also produce numerous economic setbacks, which may warrant a lawsuit to cover damages. Working with the lawyer to discuss different solutions can be helpful for those frustrated by the failure of a joint venture or similar project. Legal action is sometimes necessary when one party's failure to fulfill their responsibilities or meet professional standards results in a negative impact on others.]]> On Behalf of Sullivan Pratt LLP https://www.sullivanpratt.com/?p=48160 2026-08-08T00:43:43Z 2026-08-08T00:43:43Z

Subchapter V makes Chapter 11 accessible Chapter 11 bankruptcy, also known as reorganization bankruptcy, allows a company to structure, streamline operations and discharge debts in an effort to keep the company operational and regain solvency. During a Chapter 11 bankruptcy, leaders within the organization typically maintain control of the company. They can work with the courts, as well as their creditors, to establish a reorganization plan that should bring the company back into the black. Chapter 11 bankruptcy is expensive and lengthy, which may make it inaccessible to struggling small businesses. Federal lawmakers addressed this gap in the law by establishing Subchapter V bankruptcy cases. A Subchapter V bankruptcy is a streamlined Chapter 11 bankruptcy designed especially for small businesses rather than massive, complex corporations. Successful companies that face temporary economic challenges may find that a Subchapter V filing is the best option available. Discussing different types of business bankruptcy with a skilled legal team can help business leaders and owners choose the best option for their circumstances. A Subchapter V filing can help a small business continue operating while addressing its unsustainable financial obligations.]]> On Behalf of Sullivan Pratt LLP https://www.sullivanpratt.com/?p=48158 2026-07-28T14:12:31Z 2026-07-28T14:12:31Z

Corporate officers are entrusted with significant responsibilities. They often have access to confidential business information, trade secrets, customer data, pricing strategies, financial records and proprietary technology. That access is intended to benefit the company for which they work—not any individual officer. When an officer misappropriates business data for personal gain or to assist another organization, the fallout can be severe. Data theft by a corporate officer may unfold in a variety of ways. An individual may copy confidential files before resigning, transfer customer lists to a personal device, download sensitive research, email proprietary documents to a competitor or retain access credentials after leaving their company.  The harm associated with this kind of data breach often extends beyond the value of the data itself. Stolen confidential information may undermine a company's competitive advantage, damage customer relationships, interfere with ongoing business opportunities or expose the business to regulatory and contractual issues. If trade secrets or other protected information are disclosed, years of investment in product development or strategic planning may be placed at risk.

What can be done?

Successful business litigation involving alleged data theft may involve multiple legal claims. Depending on the facts, a company may pursue claims for breach of fiduciary duty, misappropriation of trade secrets, breach of contract, conversion, unfair competition or other business torts. In some situations, emergency court orders may be necessary to prevent additional disclosure or misuse of confidential information while the litigation is pending. Prompt action is often critical when data theft is suspected. Delays may allow confidential information to spread further or make important electronic evidence more difficult to preserve. To that end, seeking experienced legal guidance can help businesses to seek appropriate injunctive relief and pursue compensation for any financial harm caused when corporate officers abuse their positions by stealing valuable business data.]]> On Behalf of Sullivan Pratt LLP https://www.sullivanpratt.com/?p=48156 2026-07-18T20:48:26Z 2026-07-18T20:48:26Z

Understanding freedom of expression The right to express oneself extends to social media platforms. An employee can often talk about their workplace experience online. Furthermore, an employee’s freedom of expression is protected under state and federal laws. This includes discussing workplace conditions, exposing unsafe workplace activities and sharing political beliefs.

Establishing a social media policy

However, businesses can enforce a social media policy. For example, they may prohibit employees from using social media during work hours unless they are doing it as part of their job. Employees may also be prohibited from using social media on company electronics or using company social media accounts for personal use. A social media policy can also limit an employee’s right to harass a business, manager or co-worker. They may also be prohibited from disclosing confidential company information. Failing to follow the social media policy can result in disciplinary action. It is important for employers to create a clear social media policy that protects their business but does not harm their employees’ right to protected speech. Having experienced legal guidance can help businesses accomplish this.]]> On Behalf of Sullivan Pratt LLP https://www.sullivanpratt.com/?p=48140 2026-06-30T16:08:16Z 2026-06-30T16:08:16Z

“white knight” strategy is one possible way to avoid an imminent hostile takeover, but it can potentially lead to litigation in some cases.

The hostile party could allege misconduct

Outside entities attempting to conduct a hostile takeover may have lawyers on standby, ready to initiate litigation in response to any type of organized pushback. If a white knight solution involves halting stock sales already in progress or diluting stock, the hostile party seeking a controlling share of the business might take legal action. While litigation intended to derail a defense strategy in a hostile takeover situation can be complex, costly and lengthy, court delays can be helpful. A defense strategy that leads to a lawsuit can ultimately protect a business from an acquisition attempt that could lead to resource liquidation and business dissolution. When shareholders, executives and other interested parties note an alarming trend in stock sales, acting quickly to intervene and preparing for litigation can reduce the risk of a hostile takeover succeeding. Reviewing possible responses to a hostile takeover attempt with a complex commercial litigation lawyer can help executives, shareholders and other interested parties evaluate their options. White knight strategies and other attempts to subvert hostile takeovers can trigger litigation, and business leaders usually need to be ready for pushback accordingly.]]> On Behalf of Sullivan Pratt LLP https://www.sullivanpratt.com/?p=48138 2026-06-16T23:58:13Z 2026-06-16T23:58:13Z

Records should support employer claims In cases where the decision to terminate a worker relates to an acquired medical condition, the company may need to maintain thorough internal records to validate that the decision was not discriminatory but rather the result of the employee’s inability to perform necessary functions. Workers may sue if they believe a termination was wrongful. If the company cannot accommodate the worker without facing undue hardship or if the worker truly cannot meet company requirements anymore due to their new medical limitations, the employer can theoretically proceed with the termination without risking a discrimination lawsuit. Especially if the worker refuses a transfer to a better-suited position, defending the termination in court is possible. The more documentation the company has of performance issues and the demands of the job, the easier it may be to push back on claims that the firing was inappropriate and unlawful. Managers and other business leaders realizing that a worker can no longer perform critical job functions may need to discuss their employment law concerns with a legal professional. Having assistance when responding to employment litigation stemming from disability discrimination claims is of the utmost importance for the reputation of a California organization. Managing scenarios like this is not a DIY project.]]> On Behalf of Sullivan Pratt LLP https://www.sullivanpratt.com/?p=48136 2026-06-07T12:02:43Z 2026-06-07T12:02:43Z

How contracts help Vendor and service provider contracts can include nondisclosure agreements. Also known as confidentiality agreements, nondisclosure agreements prevent an individual or business from releasing non-public information or using confidential information for the benefit of an outside business. While people often think of these agreements as part of an employment arrangement, they can also be important when a company relies on vendors and service providers. These agreements strengthen the right of companies to take legal action after the release or misuse of trade secrets.

How litigation helps

Legal action brought against a vendor or service provider can prevent the continued release or misuse of trade secrets. Judges can issue injunctions to protect a company when an outside party has accessed trade secrets through business relationships. Judges can also potentially award damages in cases where the release of trade secrets causes verifiable economic harm. If there is a nondisclosure agreement in place, the courts can help enforce that agreement, including any consequences imposed by the contract. Working with a business litigation attorney when drafting or reviewing contracts can help companies protect some of their most valuable resources. A lawyer may also be critical to the success of business litigation pursued due to the misuse or disclosure of trade secrets.]]>