Drafting an AI Policy for Small Businesses: Why It Matters and How to Get It Right
Photo by Markus Winkler on Unsplash As artificial intelligence (AI), and more specifically, generative AI, increases in capability, use, and acceptance, it becomes increasingly vital for all businesses, even smaller businesses to establish an AI policy. It’s not just tech giants that need to concern themselves with the implications of AI; small businesses are equally accountable and have just as much to gain – or lose – from its potential. The Importance of an AI Policy in the Workplace As a small business owner, you might be tempted to ignore the role of AI in your operations. You might even question the necessity of an AI policy at all. But the reality is that AI has penetrated all facets of the business world and is not limited by size or sector. Whether it’s customer service chatbots, data analytics tools, or HR systems screening potential hires, AI is likely already embedded in your business processes. Then there are the tech savvy employees who may be using ChatGPT or Bard to draft a letter, create content, or make their work easier in … Continue reading
2023 Employment Law Updates
Welcome to 2023. New Year, New You, New California Employment Laws! Here is a quick overview of the most significant new laws that went into effect on January 1, 2023. This is not an exhaustive list but one that will apply to most small to medium-sized business owners in California. PRACTICAL TIP: Make sure your documents reflect that you are implementing changes that are applicable to your business. For example, update your written notice to employees of the terms of their employment to reflect the new hourly rate if you have employees who make minimum wage. Update the language in your employee handbooks to reflect the ability to designate non-family members for CFRA and paid sick leave. PAY Minimum Wage Increases/Exempt Pay Increases The California state minimum wage in 2023 is now $15.50 per hour for all employees, regardless of the employer’s size. However, some cities and counties have even higher local minimum wage requirements. Employers should check the minimum wage requirements for all cities and counties where their employees work. Some cities with higher minimum wage requirements include Los … Continue reading
Do I Need a Lawyer? What to Look for When Hiring a Lawyer
You didn’t see it coming and it knocked the wind out of you. You were furloughed. You were fired. Your employee sued. You did exceptional work and your client refuses to pay. Someone took advantage of your kindness, your flexibility, your willingness to help. You were sexually harassed. You were fired. You were treated poorly, taken advantage of, and it shook you to the core. Your emotions cycle between confusion, hurt, and anger. You may even feel shameful and embarrassed that you found yourself in this situation. At some point you wonder if it’s your fault and how could you have kept this from happening? But then you realize it’s not your fault and that you should do something; you need to do something. But you don’t know what to do. Someone you trust, perhaps your father, your spouse, sibling, or a friend, said you should talk to a lawyer. But you’ve never hired a lawyer before and you don’t see yourself as the type of person who hires a lawyer. It feels so aggressive and just the thought of … Continue reading
Arbitration Agreements and Class Action Waivers Post-Epic Systems
When business owners call my office looking for guidance because their accountant, fellow business owners, colleagues, or friends told them they should talk to an employment lawyer about their fears and concerns surrounding an employee issue, I ask a series of questions to get a better understanding of what is going on in the business. One of the questions I ask is: Do you have an arbitration agreement? 9 out of 10 times there is a pause and a response that ranges from “can you tell me what that is” and “I’m not sure.” It’s understandable because unless you’re a doctor’s office, arbitration agreements aren’t part of your everyday life. However, these businesses are missing out on a great tool that could be used in their favor if they value privacy, expediency, and cost-savings should a dispute arise with an employee. Especially given the Supreme Court’s decision in Epic Systems Corp. v. Lewis. Below is an article I wrote on the decision that was recently published in the Orange County Lawyer’s Magazine. Although aimed at attorneys, it gives employers a better … Continue reading
3 Strategies to Increase Your Business Profits
Many businesses recently reviewed their profit and loss statements and took a closer look at the business’s profitability. This analysis usually prompts the question “how to increase my business profits?” Although this question could only be answered after becoming familiar with your particular business, below are 3 areas where small changes, if done right, could increase your profitability. Decreasing Bad Debt If your business model does not require customers to pay for products or services in advance, collecting on unpaid invoices is likely something you are all too familiar with. However, collection itself comes at a cost to your business. Not being able to recoup that collection cost limits most businesses’ incentive to pursue collection, rightfully seeing it as throwing good money after bad. You can tip the collection scale in your favor. The default rule that each party bears their own attorney’s fees may be modified by statute or by contract. That means that where the law does not provide for recovery of attorney’s fees, you and your customers could mutually agree that if you and your customer find … Continue reading
What to Do When a Client Doesn’t Pay
This is the first post in a new series called “What to Do” where I will discuss “what to do” in various common situations that come up in small and medium sized businesses. Feel free to send me your “what to do” question. Today’s topic is what to do when a client doesn’t pay. This is a common problem that businesses big and small face and if you’re in business, you’re selling services or products in exchange with the expectation that you will be paid for those services or products. The cost to your business of unpaid invoices is not just the dollar amount on each invoice but the opportunity cost of the investment you could make in your business from that income. Additionally, it costs your business time and money to collect on unpaid balances. Thus, the cumulative effect of multiples unpaid invoices, even for small outstanding amounts, is detrimental to your business’s viability and growth. Before starting work: For the proactive business here are some tips to help you avoid or minimize the change of having a client … Continue reading