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Treasury Regulation (26 CFR) Section 1.704-1

Section 704(b) of the Internal Revenue Code determines a partner’s distributive share of income, gain, loss, deduction, or credit based on their partnership interest unless the partnership agreement provides otherwise. The IRS regulations under section 704 establish rules for determining substantial economic effect, including maintaining partners’ capital accounts in accordance with specific rules. Compliance with these capital account maintenance rules provides a safe harbor for respecting partnership agreement allocations.

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Labor Law

Workplace Sexual Harassment

WHAT IS SEXUAL HARASSMENT? Sexual harassment can rear its ugly head from several perspectives, ranging from full-on rape to psychological workplace harassment. We have dealt

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Labor Law

Meal Periods

The relevant California Wage Orders mandate that employers must provide: A first 30-minute unpaid meal period beginning within five (5) hours from the start of

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Labor Law

Meal Break Waivers & Premium Pay

California law requires periodic paid rest periods and meal breaks for non-exempt workers. Under California Industrial Welfare Commission (IWC) Wage Order 11090, employers must provide:

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Labor Law

Dynamex ABC Test

MISCLASSIFICATION UNDER THE ABC TEST In Dynamex Operations W. v. Superior Court, the California Supreme Court addressed the long-standing issue of whether a worker in

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Labor Law

The Borello Test

WHAT IS THE BORELLO TEST? In S.G. Borello & Sons, Inc. v. Dept. of Industrial Relations, the California Supreme Court established a series of factors,

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