If you’re looking to a bit of New Year’s Eve partying, we’ve got you covered for any after-effects of all that reveling. There are plenty of union-made items to help you get back to yourself and face 20261 with a clear head and some pep in your step. Fill up your system, your pantry and…

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Happy Holidays! As we close out 2025, I’m reflecting on an incredible year at Zaller Law Group. This year brought both challenges and opportunities for California employers—from navigating new 2026 legislation to managing the ongoing wave of PAGA litigation, to embracing AI tools that are transforming how businesses operate.

Despite the complexity of California’s regulatory environment, our team at ZLG remained committed to one mission: educating, convening, and supporting California employers through every twist and turn. Here’s a look back at how we showed up for you in 2025:

1. 14 Masterclasses with Over 3,000 Participants

In 2025, we expanded our educational programming significantly. These sessions covered everything from PAGA reform strategies to AI compliance in hiring, giving employers actionable insights they could implement immediately. As a State Bar of California-approved multi-activity provider, many of our masterclasses were eligible for MCLE credit for attending attorneys. We also offered SHRM credit for HR professionals in attendance. If you would like to receive notice of our upcoming Masterclasses in 2026 – subscribe to our newsletter below.

2. Four Invitation-Only Employers Summit Events with 100+ Attendees

We hosted four exclusive, in-person events throughout the year at premier venues (and client locations) including Gran Blanco, TopGolf, American Beauty, and Castaway. These summits brought together over 100 California employers, CEOs, HR leaders, and in-house counsel for live education, networking, and candid discussions about the challenges facing California businesses today. The feedback was overwhelmingly positive, and we’re already planning our 2026 summit series.

3. Monthly Newsletter Reaching 9,000+ Subscribers

Our monthly newsletter continued to be a vital resource for staying current on California employment law updates, litigation trends, curated resources and videos, and details on upcoming events like our Employers Summit. With over 9,000 subscribers, this newsletter has become a trusted source for employers across industries who need reliable, timely information.

4. 52 Weekly Blog Posts Read by 8,000+ Subscribers

Since 2007, I’ve published weekly Friday posts offering practical guidance on California employment law developments, litigation trends, and compliance challenges employers face. This year, our blog reached 8,000+ readers who rely on these posts to stay ahead of regulatory changes and emerging legal issues. We are also proud to see many other defense attorneys subscribing to the blog—we are honored to be trusted by so many people to keep up-to-date with California employment law developments and thought leadership. Subscribe to the blog here.

5. YouTube Channel: 3,000+ Subscribers, 88,000+ Views, 770,000+ Impressions

Our YouTube channel, “The Legal Lineup,” saw tremendous growth in 2025. We shared insights from masterclasses, live events, and interviews with industry leaders, reaching over 3,000 subscribers. The channel generated 88,000+ views and 770,000+ impressions, making it an increasingly valuable resource for California business leaders seeking accessible legal education. Subscribe to the channel here.

And one more for 2025: New Office Space!

We’re excited to share that we relocated to our own space at 721 N Douglas Street, El Segundo, CA 90245. This move reflects our continued growth and commitment to serving California employers from a dedicated, professional environment. When looking for an office, it was an easy decision to stay in El Segundo. We are honored to be a part of the amazing business ecosystem developing here in El Segundo.

The work described above reflects the dedication of our entire team at Zaller Law Group—attorneys, paralegals, and staff who work tirelessly not only to defend employers in litigation but also to proactively educate and empower them to avoid legal pitfalls in the first place.

Thank you to our clients, partners, and community for an impactful year. Wishing everyone a prosperous and compliant 2026—we’ll see you at our next summit!

If you’re not already subscribed to our blog or newsletter, now’s the perfect time: Subscribe here

The post Zaller Law Group’s 2025 Year in Review appeared first on California Employment Law Report.

With the holiday season upon us, there are some important tips for employers to keep in mind for holiday gatherings and celebrations. Meagan Bainbridge and Nikki Mahmoudi discuss these best practices in this special edition of California Employment News.

Watch this episode on the Weintraub YouTube here.

By Sandy Southivilay

Before we get into the warm months, Labor 411 has one more recipe for those cold days that are hanging around: vegetable beef soup! It’s jam-packed with lots of vegetables to help boost the immune system; plus, its delicious ingredients will support good jobs.

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By Linda Dao

Do the holidays have you feeling all warm and fuzzy inside? No, not yet? Well how about trying our holiday spiked eggnog recipe to help you feel all RUM AND BUZZY!

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There’s nothing like biting into a warm gooey cookie during the holiday season. If you need cookies for an ugly sweater party, a snack to get you through finals (no, we didn’t forget about you college kids!) or a treat to leave for Santa, we’ve got a recipe for you. When you buy the ingredients…

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For most California employers, employee time and pay data has historically been treated as a legal obligation—something you keep because the law requires it, not because it creates value.

That mindset needs to change in 2026.

After years of defending employers in wage-and-hour class actions and PAGA cases, I have seen firsthand how employee data can either become an employer’s greatest liability or its strongest asset. The difference is no longer about company size or resources—it is about whether employers are using modern tools, including AI, to unlock the value of the data they already have.

Here are five reasons why this shift matters now more than ever.

1. Litigation Exposed Just How Broken the Old System Was

One of the primary reasons I became involved with Scaled Comp is simple: I saw how broken—and inefficient—the old approach was.

When employers were sued, we often had to:

• Manually review thousands of PDF timecards
• Reconstruct meal and rest break data by hand
• Calculate exposure using spreadsheets built from incomplete records
• Or, in some cases, physically go through boxes of paper records and scan them just to create a usable digital file

This process was painfully slow, extraordinarily expensive, and created unnecessary risk. By the time data was analyzed, employers were already on their back foot—reacting instead of defending.

What struck me most was that this kind of analysis should not be reserved only for companies with massive IT teams and unlimited budgets. Every employer deserves access to tools that make compliance manageable and defensible.

2. AI Has Turned Employee Data Into a Strategic Asset

AI has fundamentally changed what is possible.

What once took teams of lawyers, paralegals, and weeks of manual work can now be done in hours. AI-driven platforms can:

• Continuously analyze time entries
• Identify compliance risks in real time
• Generate clear, defensible reports
• Highlight trends and outliers across locations or job roles

In 2026, employee data is no longer static. With AI, it becomes dynamic, actionable, and predictive—allowing employers to address problems before they become lawsuits.

This is not just about avoiding liability. It is about understanding how your business actually operates day to day.

3. Data Is the Key to the “Reasonable Efforts” Defense Under PAGA

The 2024 PAGA reforms changed the calculus for employers—but only if they can prove it.

Employers who can demonstrate reasonable efforts to comply with wage-and-hour laws may limit penalties to 15% of the total potential exposure. That defense does not come from good intentions; it comes from documented, ongoing data analysis.

Employers using software like Scaled Comp can show:

• Continuous monitoring of compliance
• Identification of risk areas
• Corrective actions taken based on real data

In other words, AI-powered data analysis turns compliance from a one-time audit into an ongoing process—exactly what the law now rewards.

4. The Same Data That Protects You Legally Helps You Run a Better Business

Another major shift employers must recognize is that this data is not just for lawyers.

When properly analyzed, employee time data allows employers to:

• Evaluate labor efficiency in real time
• Improve scheduling decisions
• Identify timecard fraud or ghost employees
• Spot systemic issues tied to specific managers, locations, or shifts

AI makes it possible to move from hindsight to insight. Employers can use historical data to fix recurring problems and real-time data to prevent new ones from developing.

Compliance and efficiency are no longer separate conversations—they are driven by the same dataset.

5. Compliance Is Mandatory—But Value Comes From How You Use the Data

California law requires employers to maintain detailed time records.

The Wage Orders mandate records showing when employees begin and end work, meal periods, split shifts, and total daily hours worked. Labor Code section 1174 requires employers to keep records of hours worked and wages paid. And because wage-and-hour claims can reach back four years, employers must be able to produce accurate, readable records long after the fact.

The mistake employers make is stopping there.

In 2026, compliance is the floor—not the ceiling. The employers who succeed will be those who ensure their records are not only compliant, but usable, searchable, and defensible.

Final Thought

Employee data used to be a necessary burden. In 2026, it is a competitive advantage.

AI has made sophisticated analysis accessible to employers of all sizes. The question is no longer whether you can use your data—it is whether you are willing to continue treating it as a liability instead of the asset it has become.

That shift in mindset is exactly why tools like Scaled Comp exist—and why employers who embrace this approach will be far better protected, better informed, and better positioned for what comes next.

The post Why Smart California Employers Are Treating Employee Data as an Asset in 2026 appeared first on California Employment Law Report.

Utah’s notorious ban on collective bargaining has been reversed. The Associated Press reports: “Utah has repealed a collective bargaining ban passed earlier this year that prevented labor unions serving teachers, firefighters, police and other public employees from negotiating on behalf of their workers. Republican Gov. Spencer Cox on Thursday approved the repeal of a policy that experts…

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The affordability crisis can be solved, according to America’s top bank official. It’s simple: Give Americans a raise. This is not news to us, as the productivity gap has become wider with each year. But to see the Fed Chair make the argument is a newsworthy moment to say the least. We hope that his…

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After more than twenty years defending California employers, I have seen a consistent pattern: even companies with sophisticated systems struggle with one of the most fundamental compliance obligations in California employment law—maintaining, accessing, and analyzing employee time records. These challenges are not merely operational inconveniences. They routinely lead to unnecessary legal exposure, inflated PAGA penalties, and missed opportunities to extract meaningful business insights. Scaled Comp was built to solve these exact problems.

Here are the five reasons I founded Scaled Comp:

1. Employers were struggling just to keep and store basic time records.
California law requires employers to maintain accurate employee time and payroll records, yet many organizations still rely on systems that scatter data across PDFs, screenshots, or outdated exports. Time records were difficult to store in an organized manner, hard to preserve over time, and even harder to retrieve years later—particularly when litigation arose. What should have been a basic compliance function was becoming a persistent liability.

2. Accessing time records during litigation or audits was far more difficult than it should be.
When a claim was filed, employers were often scrambling: Where are the records? Are they complete? Are they readable? Too often, the answer was no. I watched clients spend weeks hunting down files, reconstructing data, and manually preparing materials just to respond to a lawsuit or a PAGA notice. This was especially true when employers had changed payroll providers; obtaining historical time data from former providers was often difficult, if not impossible. The result was increased risk, higher legal fees, and unnecessary stress.

3. Even when records were available, they were nearly impossible to analyze at scale.
Time records are one of the most critical data sets an employer possesses, yet most companies cannot run even a basic compliance-rate analysis without significant manual effort. Determining whether employees took compliant meal or rest breaks, identifying missed premiums, or estimating potential exposure often required hours of spreadsheet work and hand-coding. The lack of clean, structured data prevented employers from proactively managing risk—and in litigation, it slowed defense strategies and drove up costs.

4. Clean, analyzable time records are essential to reducing PAGA penalties—and unlocking operational insights.
Under California’s 2024 PAGA reforms, employers that can demonstrate reasonable and consistent efforts to comply with wage-and-hour obligations may reduce penalties to as low as 15 percent. But compliance cannot be proven without reliable, well-organized time data. Centralizing and structuring time records allows employers to demonstrate good-faith compliance, quantify true exposure, and negotiate from a position of strength.
Beyond compliance, structured time data reveals valuable operational insights, including manager performance trends, scheduling efficiency, productivity patterns, and workforce behaviors that would otherwise remain hidden.

5. With AI-ready time data, employers can finally use information strategically—not just defensively.
Once time and payroll data is standardized and loaded into an AI-driven platform, employers can begin asking more sophisticated questions:

• Can we predict labor needs weeks in advance?
• What happens to labor costs under different scheduling scenarios?
• Can we identify early indicators of compliance risk before claims arise?
• What insights exist that we have not yet considered?

This is the future of workforce management—moving from reactive to predictive, from manual cleanup to automated intelligence, and from fragmented systems to accessible, actionable data.

Scaled Comp was founded to address a problem I encountered daily: employers already had the data they needed to protect themselves and improve operations, but that data was locked in formats that made it difficult—or impossible—to use. By transforming time records into clean, structured, AI-ready data, employers gain a powerful compliance tool, a litigation shield, and a new source of operational insight.

We have been working with a select group of clients and recently completed our beta phase. The feedback has been extremely positive. In addition, the platform has enabled my legal team to analyze client records more quickly, efficiently, and comprehensively—resulting in stronger assessments of legal defenses and litigation strategy.

If you would like help evaluating whether your current timekeeping data is litigation-ready or AI-ready, visit Scaled Comp’s website or I am always happy to discuss, you can sign up for a call here.

The post Friday’s Five: Why I Founded Scaled Comp, AI-powered Wage and Hour Compliance Software Company appeared first on California Employment Law Report.