Employment Law, Executive Compensation, and HR Compliance
Employment decisions shape a company’s costs, culture, and legal exposure, and for executives they determine compensation, ownership, and what happens at exit. California adds some of the most demanding employment rules in the country.
Sutter Law advises companies and executives on executive compensation, equity and stock options, severance and exit packages, employment agreements, employee handbooks, HR compliance, and wage and labor disputes before the California Department of Industrial Relations (DIR). We focus on practical terms that protect the business or the individual while keeping the relationship workable.
Executive Compensation Structures
Executive compensation is rarely just a salary. A senior offer can combine base pay, annual and retention bonuses, equity, change-of-control protections, severance, benefits, and restrictive covenants, and each piece affects the others.
We help companies design executive packages that attract leadership without creating avoidable cost or tax problems, and we represent executives negotiating offers, promotions, and renewals. We review how the package performs in a termination, an acquisition, or a financing, including potential Section 280G golden-parachute issues.
- Executive offer letters and employment agreements
- Base salary, bonus, and incentive compensation structures
- Change-of-control and retention arrangements
- Section 280G and deferred compensation considerations
- Board and compensation committee approvals
Equity and Stock Options for Executives and Employees
Equity is often the most valuable part of a compensation package and the least understood. We advise companies and individuals on stock options, RSUs, restricted stock, vesting schedules, single- and double-trigger acceleration, exercise periods, repurchase rights, and the treatment of equity at termination or in an acquisition.
For executives, we review grant documents and plan terms before signing so the equity promised in an offer letter is actually reflected in the governing documents. For companies, we coordinate grants with the equity incentive plan, board approvals, and the cap table.
Severance Terms and Exit Packages
How an employment relationship ends can matter as much as how it began. We negotiate and draft severance agreements, separation and release agreements, and executive exit packages covering severance pay, benefits continuation, equity treatment, option exercise windows, non-disparagement, confidentiality, cooperation, and references.
For executives, we evaluate what the existing agreements already provide, what leverage exists, and what rights a release would waive. For companies, we help structure terminations and reductions in force to reduce claims while complying with California and federal requirements, including the additional review periods that apply to releases from employees 40 and older.
- Executive separation and exit package negotiation
- Severance and release agreements
- Equity, vesting, and option exercise terms at departure
- Terminations and reductions in force
- Founder and executive removal disputes
Employment Agreements and Restrictive Covenants
Well-drafted employment documents set expectations and protect the company’s confidential information and intellectual property. We prepare offer letters, employment and consulting agreements, confidentiality and invention assignment agreements, and independent contractor agreements.
California generally prohibits employee non-compete agreements, so protection usually depends on enforceable confidentiality, trade secret, and non-solicitation terms rather than restrictions on future employment. We help companies and employees understand what restrictive covenants can and cannot do in California.
Employee Handbooks and Workplace Policies
An employee handbook sets expectations, communicates policies consistently, and documents the notices and procedures California requires. We draft and update handbooks and stand-alone policies so they reflect current law and how the company actually operates.
- Employee handbooks and annual updates
- Anti-discrimination, harassment, and retaliation policies
- Leave, time-off, and accommodation policies
- Remote work, expense reimbursement, and timekeeping policies
- Complaint and investigation procedures
HR Law and California Employment Compliance
California employment law changes every year and penalizes technical mistakes. We act as a resource for founders, HR teams, and managers on day-to-day HR questions and compliance, including:
- Wage and hour compliance, including minimum wage, overtime, and meal and rest breaks
- Employee versus independent contractor classification
- Exempt and non-exempt classification
- Hiring, onboarding, and required notices
- Remote and multi-state employees
- Discipline, investigations, and terminations
For growing companies without an in-house HR attorney, we can provide ongoing support as part of an outside general counsel relationship.
Labor Disputes and DIR Wage Claims
The California Department of Industrial Relations, through the Labor Commissioner’s Office, handles wage claims, retaliation complaints, and labor law enforcement. A wage claim can move quickly from a filed complaint to a settlement conference and a Berman hearing.
We represent employers and individuals in Labor Commissioner wage claims, settlement conferences, Berman hearings, appeals, retaliation complaints, and citations, as well as in negotiated resolutions of unpaid wage, commission, bonus, and expense reimbursement disputes. Where a dispute involves equity or a founder’s ownership, we coordinate with our founder and shareholder dispute practice.
- Labor Commissioner wage claims and settlement conferences
- Berman hearings and appeals
- Unpaid wages, commissions, bonuses, and final pay
- Retaliation complaints
- Labor Commissioner citations and audits
Why Clients Choose Sutter Law
Experienced Business Counsel
Our attorneys work on the corporate, financing, equity, and transaction issues that intersect with employment, so compensation, equity, and exit terms are reviewed together rather than in isolation.
Direct Attorney Involvement
Clients work directly with the attorneys responsible for the matter. The team is structured to keep senior lawyers involved rather than passing routine responsibility through multiple layers.
Bay Area and California Focus
We serve companies, founders, executives, and employees throughout the Bay Area and California, where employment rules are among the most demanding in the country.
Practical, Negotiation-Oriented Advice
Most employment issues are resolved through well-drafted documents and informed negotiation. We focus on the terms that affect compensation, ownership, risk, and timing, and coordinate with tax, benefits, and HR advisors when needed.
Frequently Asked Questions
Can you help me negotiate an executive compensation package?
Yes. We review and negotiate offer letters, employment agreements, bonus and incentive terms, equity grants, change-of-control protections, and severance so the full package works as intended in a termination, acquisition, or financing.
Should I have my stock option or equity grant reviewed before I sign?
Usually, yes. Vesting, acceleration, exercise periods, repurchase rights, and plan terms determine what the equity is worth and what happens if you leave or the company is sold. Those terms are much easier to negotiate before signing.
Should I sign a severance agreement right away?
A severance agreement usually includes a release of claims and may affect equity, benefits, and future obligations. Review before signing can identify rights being waived and terms that may be negotiable. Employees 40 and older generally must receive time to consider and revoke a release under federal law.
Are non-compete agreements enforceable in California?
Generally no. California law voids most employee non-compete agreements, with limited exceptions such as certain sales of a business. Confidentiality, trade secret, and appropriately drafted non-solicitation terms remain important protections.
Does California require an employee handbook?
California does not require a single handbook, but employers must provide certain written policies and notices, such as a harassment, discrimination, and retaliation prevention policy. A handbook is a practical way to keep those policies current and consistent.
What is a Berman hearing?
A Berman hearing is an administrative hearing before the California Labor Commissioner on a wage claim. After the hearing, the Labor Commissioner issues a decision, which either party may appeal to the superior court.
Employment Law Legal Resources from the Sutter Law Blog
Our attorneys publish practical guidance on executive compensation, equity, severance, California employment compliance, and related business-law issues. Recommended reading:
- Severance Terms and Agreements You Need to Know
- How to Let an Employee Go: The Do’s and Don’ts
- Planning a Reduction in Force in California?
- Section 280G and Golden Parachutes
- How Restricted Stock Units Differ From Stock Options
- Can a Startup Take Back Your Vested Equity After a “For Cause” Termination?
- California’s Non-Compete Agreements: What Employers Need to Know
- Protecting Trade Secrets at Hiring and Termination
- California’s Gig Economy: AB5 and Its Impact on Businesses
- How to File a California Wage Claim
- Remote Work Legalities and California Employment Law
- Annual Immigration-Rights Notices to Employees
Ready to Talk?
Negotiating an executive package, planning a separation, or facing a wage claim? Schedule a consultation or call 415-341-2888.