California Employment Law Expert Outlines Proactive Compliance Strategies for Modern Workforce Challenges

Michael W. M. Manoukian, Partner at Lathrop GPM LLP in San Jose, advises California employers on navigating the state's complex employment landscape while balancing compliance with practical business needs. His practice focuses on helping companies of all sizes—from startups to multibillion-dollar organizations across technology, healthcare, manufacturing, hospitality, and professional services—turn legal compliance into strategic advantage rather than administrative burden.

Over the past decade, employment law has evolved from a reactive function to a strategic priority for forward-thinking organizations. Manoukian notes that California's sharp rise in wage and hour class actions and Private Attorneys General Act (PAGA) cases has underscored the high cost of even minor compliance gaps. Noncompliance carries significant financial consequences beyond legal fees and penalties, including loss of productivity, employee retention challenges, and damage to brand value that can impact long-term business viability.

With state-level changes like wage increases, paid leave rules, and evolving labor regulations, Manoukian emphasizes that proactive measures are essential for success. He advises clients to invest in comprehensive compliance infrastructure, including regular audits, strategic documentation practices, and cross-jurisdictional policies that meet the highest applicable standards. These efforts not only prevent lawsuits but save substantial resources over time, translating to direct financial value through fewer operational disruptions and reduced employment litigation.

The shift to remote and hybrid work has introduced new compliance complexities while making adherence to regulations more essential than ever. Employers must ensure accurate time tracking, payment for all hours worked, proper expense reimbursement, and consistent policy application regardless of employee location. Manoukian helps companies leverage technology to simplify compliance through automated recordkeeping, expense reporting, and time management systems that remain compliant with state and federal laws. These modernized approaches not only reduce risk but enhance productivity and support scalable operations that facilitate long-term company growth.

As artificial intelligence becomes increasingly integrated into hiring and HR processes, California is leading regulatory efforts in this emerging area. Manoukian cautions that while AI can transform HR operations, missteps in automated decision-making can cause both legal exposure and reputational harm. He works with companies to create AI governance frameworks that align innovation with legal safeguards, allowing employers to capture technology's efficiency while maintaining fairness in hiring processes and employee trust throughout the employment lifecycle.

Wage and hour class actions and PAGA claims continue to represent the fastest-growing areas of employment litigation in California. Manoukian regularly defends companies in complex cases involving alleged off-the-clock work, unpaid overtime, meal and rest break violations, inaccurate wage statements, and delayed final wage payments. Even well-intentioned employers face significant exposure if their policies or recordkeeping practices don't fully align with California's strict requirements. Preventive measures including policy development aligned with current law, manager training, and systematic reviews of time tracking and payroll systems can dramatically reduce risk and litigation costs.

Looking ahead, Manoukian identifies several legislative developments requiring employer attention, including paid sick leave expansion, workplace violence prevention, and noncompete restrictions. Rather than waiting for new rules to take effect, he encourages clients to plan ahead by mapping potential impacts on workforce costs, updating policies proactively, and training managers early. This readiness approach allows companies to maintain operational continuity, preserve organizational culture, and control costs during regulatory changes.

The next frontier for employers will center on adaptability—continuously integrating technology into compliance and culture to drive long-term stability. Challenges including remote workforce management, AI integration, and ongoing legislative changes will test employers' flexibility across all sectors. However, companies that treat compliance as an investment in operational excellence will position themselves for measurable returns including stronger performance, lower risk exposure, and greater employee engagement. When legal, HR, and leadership teams work in synchronization, the result is a framework where employment law works for the business rather than against it.