15 Jul Expert Insights on Employment Law: A Conversation with Kelly Raney

Interviewee: Kelly Raney

Role: Partner
Firm: Greenberg Glusker LLP
Firm Website:  https://www.greenbergglusker.com/kelly-m-raney/
LinkedIn Profile : https://www.linkedin.com/in/raneykelly/

Bio:

Kelly Raney is a partner at Greenberg Glusker LLP, where she counsels and defends employers and management in a full range of employment law issues at both state and federal levels. She represents clients of all sizes, including start-ups, high-net-worth individuals, and Fortune 500 companies, on matters such as employment policies, practices, compliance, pre-litigation disputes, investigations, and all stages of litigation. With extensive experience in high-stakes intellectual property and commercial contract disputes, Kelly advises her clients strategically, offering trial and appellate representation when necessary.

General Employment Law Questions

Gold: What are the key components of a comprehensive employment contract for hiring domestic or executive staff?

Kelly: The most important component is confidentiality, which can be included as a provision or as a standalone agreement, like an NDA. For private clients, a standalone document written in plain language is preferable. It could range from a short paragraph to a 6-7 page document, depending on complexity. Another key element is an arbitration agreement, which is crucial. Additionally, employment contracts should include job title, duties, schedule, overtime rights, and meal/rest break provisions.

• • Statement of position/duties/schedule/hourly rate
  • Provision regarding overtime and breaks (if applicable)
  • Confidentiality provision/agreement
  • Arbitration
  • Provide paid sick time
  • Include the CA mandatory form called Notice to Employees: https://www.dir.ca.gov/dlse/lc_2810.5_notice.pdf

Gold: What are the common pitfalls employers face when drafting employment agreements for domestic or executive roles?

Kelly: A common misconception is that personal assistants/executive assistants can be paid a salary and exempt from overtime. However, duties such as making appointments and coordinating tasks typically do not qualify for exemption. Misclassifying employees can lead to significant legal issues, especially if disputes arise and go to litigation. It’s essential to ensure job descriptions and confidentiality agreements are included, along with arbitration provisions.

• • Assuming they can be classified as exempt
  • Not including a job description
  • Not including a confidentiality agreement 
  • Not including an arbitration agreement

Gold: How can employers handle the classification of employees vs. independent contractors in home and office settings?

Kelly: Start with the assumption they’re an employee. Even if they have an LLC, unless they genuinely have their own business, they should usually be classified as employees. If someone will be retained as a contractor, written contracts are essential, outlining responsibilities such as workers’ comp insurance and payroll obligations. Misclassification can lead to audits and significant liabilities.

Gold: What steps should employers take to protect themselves from wrongful termination lawsuits?

Kelly: Documenting performance issues and disciplinary actions is critical. This includes maintaining a thorough file of all performance related conversations and documentation. Offering severance and ensuring fair treatment during terminations can also help mitigate risks.

• • Have a signed confidentiality and arbitration agreement
  • Document, document, document performance issues
  • Offer severance

Domestic Staff-Specific Questions

Gold: What unique legal considerations should be addressed when hiring live-in domestic staff?

Kelly: Live-in staff are still hourly employees and must be paid overtime and given time off. They should have a set schedule, and any work outside of their regular schedule needs to still be compensated appropriately. Employers should avoid becoming too casual or familiar with live-in staff to prevent misunderstandings and potential legal issues.

• • They are still hourly employees. They must be paid overtime and must be given time off:
    • Must get 12 consecutive hours off for each 24 hour period, but if asked to work more than 12 hours a day then get paid 1.5x for that. 
  • Avoid getting too casual/familiar/generous with them. If you give them gifts, document it. If you loan them things, document it. Don’t ask them to do things outside of their job they were hired to do.

Gold: What are the best practices for setting clear job expectations and duties for household staff?

Kelly: Clear communication at the time of hiring, along with a written job description, is essential. Regular performance reviews should be conducted, and any disciplinary actions should be documented. An employment manual can be beneficial, especially for households with multiple staff members.

Gold: How should employers approach wage and hour laws for nannies, housekeepers, and other domestic workers?

Kelly: Employers must be aware that domestic workers are entitled to the same rights and protections as other employees. This includes being paid for all hours worked, including waiting time (meaning, to remain available to the employer even if there is not a specific task to do at the time). Understanding the specific laws for different types of domestic workers, such as live-in vs. live-out nannies, is crucial.

• • Remember they are still hourly employees and are entitled to the rights and protections as such. Just because they live in the home doesn’t mean it’s appropriate to ask them to make a sandwich at 10 pm or get the crying baby at 1:00 am if that is not expressly part of their duties and schedule.
  • They must be paid for all time worked, no matter how small (that includes “waiting time” if they are expected to be available but not necessarily performing a task until asked).

Gold: What legal recourse do employers have if they discover theft or misconduct by a domestic employee?

Kelly: Employers should document the incident, terminate the employee, and consider filing a police report. They can also pursue small claims or civil court actions to recover stolen property. It’s important to handle these situations legally and avoid any self-help measures.

Gold: Do you recommend sexual harassment training for homes and offices?

Kelly: Yes, especially if there are five or more employees, as it is legally required. A harassment prevention policy is also advisable for all employers to minimize risks and ensure a safe working environment.

Family Office-Specific Questions

Gold: What legal challenges are unique to hiring for family offices compared to traditional corporate environments?

Kelly: Confidentiality and personality management are significant challenges. Long-term employees or principals with strong personalities can create a unique dynamic. Hiring practices should be thorough, including background and litigation checks, to ensure confidentiality and trust.

• • Confidentiality 
  • Personality management (long term employees in control or of principals)

Gold: How can family offices ensure confidentiality and trust when hiring personal assistants and advisors?

Kelly: Comprehensive hiring practices, including NDAs before interviews and confidentiality agreements upon hiring, are essential. Running thorough background and litigation checks and, where appropriate, credit reports, can help ensure trustworthiness.

• • Thorough and comprehensive hiring practices:
    • Conduct background search with litigation search and if legally appropriate, credit report
    • Call references and prior employers
  • Consider NDA at the outset of the interview process
  • Confidentiality agreement and arbitration agreement upon hiring

Gold: What are the best practices for handling employment disputes within a family office setting?

Kelly: Early dispute resolution through coaching or mediation is recommended. Proper documentation of performance issues and having severance packages ready can help manage disputes effectively.

Gold: How should family offices manage the employment of family members to avoid conflicts of interest or nepotism?

Kelly: It’s crucial to treat the office as a professional environment and ensure family members are qualified for their roles. Proper documentation and formal agreements can help mitigate conflicts of interest.

• • Treat it like any other employment relationship to the extent possible
  • Have clear job titles and descriptions
  • Try to run it like any other professional firm, to the extent possible

Gold: What legal advice would you give to a family office setting up an employment policy manual for the first time?

Kelly: Setting up a manual involves documenting all employment policies and practices comprehensively. It’s essential to formalize things like vacation time and ensure the manual reflects current legal standards and the office’s needs. Issuing a handbook/manual is a great time to make changes to policies and practices and/or to adopt formal ones.

• • Figure out what your policies/practices have been in the past with respect to things like paid vacation, leaves of absence, promotions/wage increases, etc. so you can decide what worked, what didn’t work, and what you want to change or keep
  • Work with an employment lawyer to ensure you have legally compliant policies and practices
  • Just because it is a family office doesn’t mean you aren’t subject to wage and hour laws or laws against discrimination, harassment and retaliation.

Conclusion

Kelly Raney provides invaluable insights into the complexities of employment law for domestic and executive staff. Her expertise ensures that employers can navigate these legal waters with confidence, protecting both their interests and those of their employees. For more detailed advice and tailored legal support, visit Greenberg Glusker LLP or connect with Kelly Raney on LinkedIn.