Los Angeles Employment Attorneys & Lawyers

What Is At-Will Employment?

At-will employment means an employer can contractually terminate an employee for no reason. It may also be referred to as being fired without cause or termination for any reason. An employer can dismiss an at-will employee for any reason, without showing just cause, and without notice or warning.

It is the company's choice whether or not to adopt an at-will employment policy. The concept is so prevalent in the U.S. workplace that courts presume companies use at-will employment practices.

Why is it Important to Understand At-Will Employment?

Most employers will spell out their employment policies in an employee manual or handbook, a contract, or a job application. While it is not a requirement, they often have new hires sign these documents to acknowledge they read and are aware of the policy. An employer can change the job, the benefits, a

...

Convertible Debt: What Is It?

Convertible debt is a loan or debt obligation from an investor that is paid with equity or stocks in a company. Convertible debt is also known as convertible loans or convertible notes.

When a company borrows money from investors and plans to convert it to equity or ownership in the company at a later time, that's convertible debt. The borrower and lender decide the type of equity and a set time when the loan converts based on the company's value when the loan begins.

What Is a Convertible Bond?

A convertible bond, or CV, is a type of debt security (like stocks) that's converted to an amount of c

...

Phantom Stock: What Is It?

Phantom stock is an employee benefit where selected employees receive benefits of stock ownership without the company giving them actual stock. It is worth money just like real stock, and its value rises and falls with the company's actual stock (or what the company is valued at, if it's not a publicly traded company). Employees are paid out profits at the end of a pre-determined length of time.

Also known as shadow stock, simulated stock, or phantom shares, phantom stock is provided as a bonus for hard work and longevity. One form of phantom stock is Stock Appreciation Rights.

There isn't one exact definition of what phantom stock is or how companies use it. The term can apply to any reward that takes time to mature. Usually, the award is for a specific number of units, or phantom shares, that follow the price of the company's actual shares — going up as the

...

A Guide for Businesses on How to Hire an Employee in California.

1. Conduct a background check

An employer is free to gather certain background information on a potential new hire.  As a general rule, a pre-employment background screening firm should not provide an employer any information that an employer could not ask about at a face to face job interview such as sexual orientation, age, religion, race, gender, national origin, or disability. Asking any of these ques

...

What is an Employee Handbook

An employee handbook is a collection of a company's policies and rules of conduct.

A typical employee handbook focuses on policies to follow and lists out what employees cannot do. The employee handbook helps to protect the legal rights and responsibilities of the business, the business owner, and the employee. The employee's rights are sometimes left out of the employee handbook.

An employee handbook can also be used to give a new employee a great first impression of the company. The employee handbook can communicate the company culture and positive benefits as well as policies.

The employee handbook makes sure that each employee understand the expectations of the company. This understanding allows each person to work together as a cohesive team.

The employee handbook can help prevent miscommunication with the team. Typically, a new employee is required to read the manual in the first few weeks after bei

...