Yuwen L. Chang

I’m joining a great panel this Weds to talk about how AI has impacted IP, and what it means for companies looking to innovate. Hope you can join us for a great conversation!

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Probably 70% of my recruiting practice is for BigLaw. That may be lower than many of my MLA colleagues. Why do I do so much work with mid-sized and smaller firms? A few reasons. In California we are spoiled for choice when it comes to boutiques -- both subject matter focused firms, and full-service boutiques are local institutions here. So, there are a lot of options! A lot of people don't want to work in BigLaw anymore/again/ever. My job is candidate-focused, so it's my job to find a role that matches what people want. It's definitely not my job to wedge them back into BigLaw because I don't have other options to offer them. In the last week MLA has begun a relationship with 3 new boutiques in Northern California, and the list grows all the time. Smaller firms allow associates to broaden out their practices -- their litigation teams do ALL kinds of work, because they don't have critical mass to have specialist strike teams. This model exists across corproate too - smaller firms' corporate teams may include M&A, ECVC, funds, tech trans... Being a generalist is appealing on its face but is also a great path to an in house role. Many, but not all, smaller firms offer better work/life balance. They may also be a more comfortable format for lawyers who want to know their colleagues more closely. So, don't rule out a smaller firm -- you may be surprised if you speak to them at just how much it sounds like the right fit.

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This case highlights the challenges companies face seeking trade secret protection of customer lists.

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PAGA reform for California businesses. On June 18, 2024, Governor Newsom announced that a compromise had been reached to reform California’s Private Attorneys General Act (PAGA). The negotiations were brought about by a ballot measure to repeal PAGA this November. PAGA cases have been increasing astronomically against California employers, exposing them to huge penalties, and on average PAGA cases settle for $1.1 million. This reform package introduces several key elements that impact employees and employers alike, focusing on penalties, standing requirements, employer rights to cure, and strengthening enforcement mechanisms. While many details are still yet to be disclosed, our article reviews what this reform package means for California employers: https://lnkd.in/gh6tF7Wv #PAGA #california #wageandhour

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Even nonresidents can be susceptible to considerable California tax. Check out my latest article in Forbes to learn how to avoid an audit: https://lnkd.in/ggQxf9gy

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Calling all process nerds!! Big things are happening in California Civil Procedure. So many cases, perhaps most, already live or die by fealty to required process or the lack of it. Wiemond and I are excited to share insights and expectations about the new requirements and their impact on litigation in California. #processmatters #civpronerds #hansonbridgett #cadiscoveryact

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I wrote an article about administrative law in this issue of OC Lawyer. Please read if you are curious about a career as an ALJ.

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In a split opinion that “rather obviously invites a grant of review,” the Second District Court of Appeal in Hernandez v. Sohnen Enters. (D2d5 May 22, 2024 No. B323303) [cert. for pub.] held that, unless parties expressly invoke the California Arbitration Act, the Federal Arbitration Act preempts the CAA rule that deems any late fees to be a waiver of arbitration. The CAA, and specifically Code of Civil Procedure section 1281.97, creates a special waiver doctrine that applies only to arbitration agreements. When an employer fails to pay arbitration fees within 30 days, the statute deems the employer to have materially breached and thus waived its contractual right to arbitration. That special legislative innovation of judicial doctrines of material breach and waiver are inconsistent with the “equal-treatment” principle under the FAA. Dissenting, Justice Baker says that the Legislature can impose a “time is of the essence” policy upon obligations to timely pay arbitration fees. Which is true, but doesn’t really matter because even a “time is of the essence provision” “does not always make untimely performance a breach.” This leads to what is, to me, the most interesting point in the case. Justice Baker says: “The majority also appears to hint that the Legislature has somehow impermissibly invaded a judicial function to determine what constitutes "minor" or "inadvertent" delay.” This is the hint I took as well, and it strikes me as sound. But not Justice Baker, who says he is not aware of any authority suggesting such a limitation. Me, I think “material breach” and “waiver” are juridical concepts, meaning they are based on weighing evidence and common-law principles. They may not be substituted by Platonic declaration. The Legislature may impose penalties. But it can’t just make things up—”waiver” is a finding of fact, and findings of fact are not made, as statutes are, in a vacuum. Fact findings are the court’s province. Not the Legislature’s.

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The California Supreme Court recently clarified what constitutes compensable time for employees. Perkins Coie LLP provides key takeaways and discusses the implications for California businesses in this blog post. #WageAndHour #LaborAndEmployment #LaborAndEmploymentLaw #CaliforniaEmploymentLaw

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In the competitive legal landscape of Los Angeles, lateral hiring, especially at the partner level, has been on the rise, surpassing pre-pandemic levels. The diversity in firm types and practice areas has contributed to the market's resilience amid broader fluctuations, indicating a strategic emphasis on partner recruitment for growth. While some firms focus on rejuvenating their workforce and revenue, the statistics reflect a market correction among associates. Looking beyond the surface, the recent slowdown in attorney hiring follows a frenzy of recruitment driven by heightened legal activity in 2021 and 2022. Despite the dip, lateral moves in these years far exceeded those in the previous four years combined, highlighting a temporary outlier. As the market adjusts, firms are recalibrating their headcounts and compensation packages to adapt to the changing landscape. In 2021, real estate partner laterals in major U.S. markets saw a significant increase, with banking and finance partners and associates also experiencing growth. Notably, law firms from various regions are increasingly establishing a presence in Los Angeles to tap into the California market, with many acquiring local firms to expand their footprint in the city. As the legal industry navigates evolving hiring trends and market dynamics, Los Angeles emerges as a strategic hub for law firms seeking growth opportunities and market expansion. #LegalIndustry #LosAngelesMarket #AttorneyHiringTrends

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While the FTC’s new noncompete ban is facing challenges on multiple fronts, Washington State has enacted new worker-friendly amendments to Washington State’s existing noncompete law, effective as of June 6. This Lawflash provides the details. #employmentlaw #noncompete #wearemorganlewis

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For some practical guidance for employers on the California Supreme Court's recent Estrada decision on claims under the Private Attorneys General Act (PAGA), check out our article in HR Daily Advisor.

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Interesting article describing the tax challenges that face those who do business in California. International clients - both business and individuals - must bear in mind that tax treaties do not apply in California (they are federal treaties and bind the national government, not the states - that is federalism, for those who still don’t get it -). An individual can be a tax resident of California and a nonresident for federal tax purposes. A foreign company can have a tax nexus and taxable income in California even though it does not have a permanent establishment in the US (the FTB does not really care) for federal income tax purposes. And if it did not file a timely water’s edge election, well, it is in trouble. If you generate income from activities or investments in California you are taxable there even though you are not a California tax resident. And if you sell your business and cash your gains after leaving the state, you may still be taxable there. California is a beautiful state, and taxes are one of its most fascinating attractions. Don’t miss them!

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Twenty years after PAGA was enacted, the California Legislature is finally set to pass a reform bill making material changes to the statute that offer significant benefits to employers. These changes include: (1) a restriction on the types of PAGA claims Plaintiffs can bring, (2) a 50% reduction in penalty exposure for companies that pay their employees weekly, (3) a 70 - 85% reduction in penalties for companies that take "reasonable steps" to comply with the Labor Code, even after a claim is filed, (4) codification of the trial courts' authority to narrow the scope of PAGA claims, (5) a broader opportunity to cure violations, and (6) a procedure to stay litigation at the outset to pursue an early evaluation with a neutral. To read more about these changes and their implications on Labor Code compliance efforts and litigation defense strategy, check out our summary here: https://lnkd.in/eQAB6w9C

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