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

As workplace laws continue to shift, employers face increasing challenges and greater litigation risks according to Michael W. M. Manoukian, Partner at Lathrop GPM LLP in San Jose. Manoukian advises and defends employers across all areas of labor and employment law, including wage-and-hour class actions, Private Attorneys General Act (PAGA) claims, and cases involving discrimination, harassment, retaliation, and wrongful termination. His practice centers on helping California employers turn legal compliance into strategic advantage, representing companies ranging from nonprofits and early-stage startups to multibillion-dollar organizations across technology, healthcare, manufacturing, hospitality, and professional services sectors.

Over the past decade, employment law has evolved from a reactive function to a strategic priority, with California experiencing a sharp rise in wage and hour class actions and PAGA cases that underscore the high cost of even minor compliance gaps. Manoukian has developed deep expertise helping businesses navigate these complex matters by conducting audits, strengthening pay and timekeeping practices, and training managers to prevent issues before they escalate. When litigation occurs, which in California is sometimes inevitable, he focuses on resolving cases efficiently and strategically to protect both financial and reputational interests. Forward-thinking employers should view compliance as an investment in stability and culture, integrating legal strategy into daily operations to reduce risk, strengthen retention, and enhance long-term profitability.

With state-level changes like wage increases, paid leave rules, and evolving labor regulations, Manoukian emphasizes that being proactive is key to success. As companies expand across California or into other states, they need systems that can adapt quickly to shifting requirements and strategic partners like experienced legal counsel who understand how legal developments across multiple jurisdictions impact operations. He advises clients to invest in proactive audits, implement strategic documentation practices, and maintain up-to-date cross-jurisdictional policies that meet the highest applicable standards. These efforts don't just prevent lawsuits but save substantial resources over time, with every dispute avoided and every streamlined HR process translating to direct financial value for the company.

The remote and hybrid work revolution has blurred traditional boundaries, making compliance both more complex and more essential. Despite the dispersed nature of modern workforces, employers must still ensure accurate time tracking, payment for all hours worked, reimbursement of all necessary expenses, and consistent policies regardless of where employees work. Manoukian helps companies leverage technology to simplify compliance and accountability, automating recordkeeping, expense reporting, time management and pay practices that remain compliant with all applicable state and federal laws. Remote compliance isn't just about avoiding penalties but building scalable, efficient operations that support employee retention and long-term company growth.

As more employers utilize AI in hiring and HR processes, California is leading the charge in regulating AI implementation throughout the employment lifecycle. While AI can transform HR operations, Manoukian cautions that it must be implemented responsibly, with compliance viewed as brand protection. Missteps in automated decision-making that result in bias or discriminatory outcomes 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, employee trust, and legal adherence.

Wage and hour class actions and PAGA claims continue to be among 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, delayed final wage payments, and noncompliant time records. Even well-intentioned employers face significant exposure if their policies or recordkeeping practices don't fully align with California's strict requirements. His work focuses on helping employers get ahead of these issues through preventive audits, policy development aligned with current law, and training managers and HR teams to review how hours are tracked, breaks are scheduled and recorded, and whether pay stubs and payroll systems meet California's various obligations.

Looking ahead, Manoukian identifies adaptability as the next frontier for employers, with challenges like remote workforce management, AI integration, and continued legislative change testing flexibility across all sectors. He's closely monitoring legislation related to paid sick leave expansion, workplace violence prevention, and noncompete restrictions, each carrying potential ripple effects for staffing, budgeting, and business agility. Rather than waiting for new rules to take effect, he encourages clients to plan ahead by mapping potential impacts on workforce costs, updating policies, and training managers early. For companies willing to invest in proactive legal strategy, these changes present opportunity to treat compliance as an investment in operational excellence, resulting in stronger performance, lower risk, and greater employee engagement when legal, HR, and leadership teams work in sync.