Craig Harding

California Labor Code §3208.3 Claims: How is “Sudden and Extraordinary” Defined? - https://lnkd.in/ghTygSvq In California, employers are required to carry no-fault workers’ compensation insurance coverage for their employees. If a person is hurt on the job, they can file for benefits. However, California Labor Code § 3208.3(d) states that employers cannot be held liable through a workers’ compensation claim for a “psychiatric injury” of an employee who has not been on the job for at least six months. With that being said, situations where a psychiatric injury was caused by a “sudden and extraordinary” event are an exception. Here, our Sacramento workers’ compensation defense law firm explains how “sudden and extraordinary” is defined under California law. Know the Basics: Psychiatric are Compensable After Six Months of Employment In California, workers' compensation laws provide that psychiatric injuries are compensable, but with a notable caveat: the employee must have been employed for at least six months. If a worker develops a psychiatric injury after one day on the job, that injury is presumptive (but not automatically) non-compensable. The six-month requirement is based on the principle that sufficient employment duration allows for a fair assessment of work-related psychiatric stressors. Note: California’s workers’ compensation laws require six months of total employment. The six-month period need not be continuous. An Exception to the Six-Month Requirement for Sudden and Extraordinary Incident There is a critical exception to the six-month rule for psychiatric workers’ compensation claims in California: Trauma caused by a “sudden and extraordinary” event is compensable regardless of an employee’s tenure. In other words, a worker may apply to get workers’ compensation benefits for a psychiatric injury right away as long as they can assert that they endured some form of sudden and extraordinary event in the workplace. How California Defines “Sudden and Extraordinary” in Workers’ Compensation Cases The definition of “sudden and extraordinary” events in California workers' compensation cases can be central to these cases. However, the legal definition is somewhat vague, and courts will always closely examine the specific facts of the case. From a legal perspective, these terms have been interpreted to mean that a psychiatric injury within the first six months must be: Unforeseeable (sudden); and Unusual and inherently traumatic (extraordinary). The California Workers’ Compensation Appeals Board (WCAB) generally looks for incidents that deviate significantly from the routine work activities an employee might be expected to perform. For instance, a retail worker experiencing a violent armed robbery could be considered exposed to a "sudden and extraordinary" event, given th

4

One major mistake that founders make is ignoring industry regulations. Ignorance is not bliss here - disregard the rules and you will see how penalties or shutdowns could mercilessly kill your momentum. I've seen too many fired-up founders get blindsided by regulatory roadblocks that could've been dodged (or at times, they even chose to ignore). Data privacy, sector compliances, employment laws, IP protection - do a deep dive into what applies to you. Don't treat the legal details like a nagging chore - it can actually be your competitive edge. As you scale up, robust processes to stay compliant are an absolute must. A practical tip for founders: Regulatory gaps often also decrease the risk appetite of investors who are evaluating your business - they will often ask you to fix the issues before they invest (which can at times push the investment by months) or you get sent down the road of providing them comfort through indemnities etc., which can at times really take a monetary hit on your business. #regulations #legal #startup #founders

50

17 Comments

🇺🇲 A new crop of early-stage startups - along with some recent VC investments - illustrates a niche emerging in the autonomous vehicle technology sector. Unlike the companies bringing robotaxis to city streets, these startups are taking their tech off-road. Two recent entrants - Seattle-based Overland AI and New Brunswick-based Potential - are poised to get a first-mover advantage on this segment of autonomy. https://lnkd.in/dDiUnvVY

1

Lara Shortz shared with Law360 her take on the recent Supreme Court of California decision regarding Proposition 22, which permits app-based companies to classify their drivers as independent contractors rather than employees. Lara noted that while Proposition 22 specifically targets app-based drivers, its framework might inspire similar legal carveouts for other industries and open doors for broader applications, potentially influencing independent contractor classifications in other sectors. Read Lara's insights here: https://lnkd.in/gaintuFH required) #LegalInsights #LaborLaw #Prop22 #MichelmanAndRobinson

24

1 Comment

Despite all the challenges and difficulties obtaining and enforcing a patent, it is still worth it for an early stage founder to get one. Here are 5 reasons why:

13

How “willful” does a manufacturer need to be for a sales rep to get a triple damage judgment award under California Law? In 1998 a sales rep in the plastic injection molding industry contacted my firm to have us file a lawsuit over an alleged failure by his principal to pay commissions. The sum wrongfully denied was approximately $150,000. It was our advice that the client try to settle this claim without filing a lawsuit, UNLESS: 1) we were able to leverage an early settlement, or; 2) he was willing to take it all the way through trial to seek mandatory triple damages under California’s Sales Commission Protection Act (the “Act”). The client agreed. Under the Act, we would be required to prove that the principal “willfully” failed to pay the commissions, in order to collect triple damages. We had no concrete idea what the word willfully (as used in the Act) meant, because the term is not defined in the Act, and up until that point there had been no Appeals Court decisions interpreting it. We thus made an argument to the Court that willfully simply meant that the principal knew what they were doing in failing to pay the commissions, versus making an accounting error for example. Opposing counsel argued that willfully meant the defendant had to have some kind of evil intent to deprive the sales rep of the commissions. They were wrong! After a bench trial, the judge found that the sales were attributable to our client, that the defendant knew exactly what they were doing when they failed to pay the commissions, and did so notwithstanding the terms of the contract. The judge awarded our client $749,000: $450,000 in triple damages under the Act plus $299,000 in attorney fees.  This was one of the first triple damage judgments under the Act. Ironically, years after this judgment was awarded, clarity was offered in a California Appeals Court decision: In Baker v. American Horticulture Supply, 185 Cal.App.4th 1295 (2010) the Court stated: "In civil cases, the word 'willful,' as ordinarily used in courts of law, does not necessarily imply anything blamable, or any malice or wrong toward the other party, or perverseness or moral delinquency, but merely that the thing done or omitted to be done was done or omitted intentionally. It amounts to nothing more than this: that the person knows what he is doing, intends to do what he is doing, and is a free agent. That was basically what we had argued on behalf of our client.    

4

1 Comment

💡 Founders: Getting to a quick "No" from investors is often a win. Hearing "No" is never fun, especially when you're passionate about what you're building. But here's the thing: the quicker you can weed out the investors who aren't the right fit, the more time and energy you'll have to focus on the ones who get it. Dragging out conversations with investors who are on the fence or trying to make it work "eventually" only burns your precious time (and let’s face it, your sanity). In early-stage startups, time is one of your most valuable assets. A quick "No" gives you clarity. You can regroup, tweak your pitch, and find the right people who align with your vision. Remember, it's not about convincing everyone. It's about finding your people—those who are as excited about your journey as you are. So don't sweat the rejection. Celebrate it, learn from it, and keep pushing forward. The right "Yes" is out there. 💪🚀 #startups #founders #pitching #fundraising #growthmindset #entrepreneurship

13

2 Comments

🎉Congratulations to these outstanding #SoCal #startups for raising ~$443+ million in April 2024!💰Here they are👇 1️⃣ TORL BioTherapeutics, LLC - $158M 2️⃣ Flip - $144M 3️⃣ FloQast - $100M 4️⃣ Nominal - $27.5M 5️⃣ Full Glass Wine Co. - $14M 💸#investors, #VCfunds - Goldman Sachs, RA Capital Management, Avidity Partners, Vertex Ventures, Blue Owl Capital, Streamlined Ventures, Mubadala Capital, WestCap, WiL (World Innovation Lab), Sapphire Ventures, Meritech Capital, ICONIQ Capital, BDT & MSD Partners, XYZ Venture Capital, Overmatch Ventures, Lux Capital, HUMAN CAPITAL, Founders Fund, General Catalyst, Shea Ventures, et al. 🤖#industries #biotech, #mediatech, #retailtech, #ecommerce, #saas, #artificialintelligence, #software 🌴 #LosAngeles, #Glendale, #SantaMonica, #ShermanOaks, #ElSegundo, #OrangeCounty, #BeverlyHills, #Venice, #Pasadena, #Irvine, #CulverCity, #MarinaDelRey #venturecapital, #angelinvesting, #startups, #innovation, #tech Sources: Built In LA and Crunchbase https://lnkd.in/gfPuqYnJ

45

https://lnkd.in/exXWf4GS 🔍 Searching for a San Diego prenuptial attorney? Here’s what to look for! ⚖️✨ First, find an attorney who specializes in family law and has experience with prenups. 👩‍⚖️👨‍⚖️ They should be approachable, understanding, and able to explain complex legal concepts clearly. 💬🧠 Hiring a skilled prenuptial attorney offers more than just a legal document. They facilitate open communication about financial expectations and goals, and ensure both parties are protected. 💑💼 Many believe prenups are only for the wealthy, but couples of all income levels can benefit! 💰❤️ Navigating the prenup process may seem daunting, but a good attorney will guide you through each step, from gathering financial documents to negotiating terms. 🗂️🤝 Remember, prenups aren’t about planning for divorce but about setting clear expectations and protecting interests. 🛡️

1

This week Mikal Ventures brings you a 4-week breakdown of the US capital market with an emphasis on the Mikal verticals. Over the 4-week period ending August 19, about 960 new companies were added, resulting in just under 97,702 companies included in the US Health Tech, Med Tech, Fin Tech, AI Tech, and Ed Tech verticals. AI Tech maintained its most active status, seeing the greatest percentage of growth in both new companies and transactions. The US Fin Tech vertical led the way in SEC Filings and US Med Tech led in news articles. Mikal Ventures publishes these stats to provide a perspective on how the verticals and new startups move through time. We hope you find them informative and thought-provoking. VC Investors are always adjusting their "Play Book" with a variety of options for investing. Mikal Ventures is one of those alternatives, offering curated solutions to real world problems. Reach out if you have questions on how we can be of assistance and bookmark https://mikalventures.com/ for additional insights and information.

6

Non-competes might be kaput. What does that mean for start-ups? Many start-ups may not feel the impact of this change. But, should the FTC’s ban hold up, start-ups should put more energy towards: 👉Retention Retention is already crucial in a start-up where losing 1 or 2 key employees can significantly hinder progress. But now there’s a new worry: What happens when someone with equity in your company leaves, keeps the equity, then works for or founds a competitor? To get in front of this issue, be more conscious about employees’ equity vesting terms. Keeping to multi-year vesting schedules will be even more useful if non-competes are not available. The FTC’s ban is still under review, but discipline and focus on retention and being rigorous about multi-year vesting schedules will help your start-up either way. What vesting schedules do you use for your team? #noncompete #FTC #startup #founder #legal #equity

19

5 Comments

Riding the Monday tide! So, here is the game, aggressive goals need aggressive steps! Its been a learning advising growth accelerated start-ups. This is a groovy read, although can lawyers convince their clients the importance of this, I would rate at moderately difficult on the difficulty scale! A stable business can any day outweigh accelerated growth business. Speaking of which, stability may not be an issue with India, at least for sometime now. A stable government goes a long way, people have aligned to the ideologies and operate therein - run the familiar terrain! #tech #product #design #designthinking

1

This week Mikal Ventures brings you a 4-week breakdown of the US capital market with an emphasis on the Mikal verticals. Over the 4-week period ending September 16, 1,245 new companies were added, resulting in just under 98,450 companies included in the US Health Tech, Med Tech, Fin Tech, AI Tech, and Ed Tech verticals. US AI Tech again saw the greatest percentage growth in new companies at 30%, vs. the vertical average of 13% for the period. AI Tech also led the group in transactions and news articles. US Med Tech led in SEC Filings. Mikal Ventures publishes these stats on a rolling 4-week basis to provide a perspective on how the verticals and new startups move through time. We hope you find them informative and thought-provoking. VC Investors are always adjusting their "Play Book" with a variety of options for investing. Mikal Ventures is one of those alternatives, offering curated solutions to real world problems. Reach out if you have questions on how we can be of assistance and bookmark https://mikalventures.com/ for additional insights and information.

2

2 Comments

Having a Cars and Capital event tomorrow in Southern California with Oren Klaff. If you want to join message me. https://lnkd.in/gDQ4D39u Oren Klaff Bridger Pennington #InvestorEvent #FamilyOffice #InvestmentOpportunity #CarlsbadEvent #PrivateEquity #WealthManagement #InvestmentConference #CapitalRaising #NetworkingEvent #IndustryLeaders #FinancialGrowth #InvestorsMeetup #WealthBuilding #BusinessGrowth #InvestmentForum

24

1 Comment

Mastering QME Panel Replacements: A Deep Dive into California Code of Regulations Section 31.5 https://lnkd.in/gSaV8W4T Joseph Yrulegui

4

This week Mikal Ventures brings you a 4-week breakdown of the US capital market with an emphasis on the Mikal verticals. Over the 4-week period ending September 16, 1,245 new companies were added, resulting in just under 98,450 companies included in the US Health Tech, Med Tech, Fin Tech, AI Tech, and Ed Tech verticals. US AI Tech again saw the greatest percentage growth in new companies at 30%, vs. the vertical average of 13% for the period. AI Tech also led the group in transactions and news articles. US Med Tech led in SEC Filings. Mikal Ventures publishes these stats on a rolling 4-week basis to provide a perspective on how the verticals and new startups move through time. We hope you find them informative and thought-provoking. VC Investors are always adjusting their "Play Book" with a variety of options for investing. Mikal Ventures is one of those alternatives, offering curated solutions to real world problems. Reach out if you have questions on how we can be of assistance and bookmark https://mikalventures.com/ for additional insights and information.

1

A New Car Smell and New Car Warranty do not a New Car make. The California Supreme Court just held that the state Lemon Law, which contains a refund-or-replace requirement for repeatedly troubled cars does not apply to used cars that are still covered under their original manufacturer warranty. Why? Expressio unius est exclusio alterius. Because the Lemon Law calls out a few specific types of non-new cars to be covered by the Lemon Law (e.g., dealer demonstrator models), this means the legislature clearly intended to only cover those limited types of used cars. And now you can understand why lawyers always add the phrase "including, but not limited to," whenever we cite examples in a contract.

2

A recent article by The San Diego Union Tribune (linked below) had some interesting stats on the life science market: - During Q3 of 2024, there were 56 deals totaling $1.4B in San Diego County - While deals declined year over year by 5%, the value generated by SD’s startups increased by 14% - The top 9 VC deals during Q3 were by healthcare companies - The largest raises were by Candid Therapeutics ($370M on September 9th) and Element Biosciences ($277M ), followed by Vignette Bio ($105M), Autobahn Therapeutics ($101M), TRC ($90M) and Truvian ($74M) -Despite all of these fundraising rounds, 2024 is another consecutively slow year at the VC level – reasons for this include high interest rates, instability relating to the upcoming elections & increased regulatory pressure on M&A transactions -VC money is going to established teams or startups in later stages, which is causing more companies to stay private longer and the market is experiencing fewer large exits through IPO activity - Pitchbook’s AI analysis selected Element Biosciences and Resilience as two companies to have a successful IPO exit https://lnkd.in/gpTGeu4E

22

1 Comment