As workplace laws continue to shift, employers are facing new challenges and greater litigation risks. Michael W. M. Manoukian, Partner at Lathrop GPM LLP in San Jose, advises and defends employers in all areas of labor and employment law, including wage-and-hour class and PAGA actions, and claims involving discrimination, harassment, retaliation, and wrongful termination.

In this Q&A, Michael shares how he helps employers balance compliance with practical business needs and build proactive strategies to reduce risk and support long-term success.

Can you tell us a bit about your practice, client base, and how you help them balance compliance with practical business realities?

My practice centers on helping California employers and business owners turn legal compliance into a strategic advantage. I represent companies of all sizes — from nonprofits and early-stage startups to mature, multibillion-dollar organizations — across sectors such as technology, healthcare, manufacturing, hospitality, and professional services, among others.

More specifically, I counsel clients through the full employee lifecycle, advising on hiring and onboarding, wage and hour compliance, performance management, leaves of absence, and terminations, as well as defending employers in complex employment and business litigation and charges filed with federal and state agencies.

My approach is rooted in business practicality: California’s employment laws are complex, and noncompliance can be costly — not only in legal fees and penalties, but also in loss of productivity, employee retention, and damage to brand value. By working closely with leadership teams, I strive to help businesses design compliant, efficient systems that prevent problems before they start and resolve them effectively when they inevitably arise. The ultimate goal is measurable ROI for the business — fewer disputes, reduced liability exposure, and more time for executives to focus on efficiency and growth, rather than litigation.

Over the past 10 years, how has employment law evolved, and what changes have you seen in how employers adapt to new legal and workplace dynamics?

Employment law has evolved from a reactive function to a strategic priority. Ten years ago, many employers treated compliance as a checkbox exercise; today, it’s central to risk management and business planning. In California, the 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.

Over the last ten years, I have developed a deep expertise in helping businesses navigate these complex matters by working with forward-thinking clients to conduct audits, strengthen pay and timekeeping practices, and training managers to prevent issues before they arise and escalate. When litigation does occur, which in California is sometimes inevitable, I focus on resolving cases efficiently and strategically to protect both financial and reputational interests.

In my view, forward-thinking employers should view compliance as an investment in stability and culture. By integrating legal strategy into daily operations, companies reduce risk, strengthen retention, and enhance long-term profitability. In today’s environment, smart legal guidance delivers a measurable return on investment.

With state-level changes like wage increases, paid leave rules, and evolving labor regulations, what steps can employers take to stay compliant across multiple jurisdictions and avoid costly disputes?

Being proactive is the key to success. As companies expand across California — or into other states — they need systems that can adapt quickly to shifting requirements, and they need strategic partners like experienced legal counsel who understand how legal developments across multiple jurisdictions impact operations. I advise clients to invest in proactive audits, implement strategic documentation practices, and maintain up-to-date cross-jurisdictional policies that meet the highest applicable standards.

Those efforts don’t just prevent lawsuits; they save substantial resources over time. Every dispute avoided and every HR process that is streamlined, ultimately translates to direct financial value to the company. Employers who invest early in compliance infrastructure, including educating their workforce and training their managers, tend to see fewer operational disruptions, less employment law based lawsuits, and ultimately generate a far stronger bottom line.

With remote and hybrid work becoming permanent, what steps should employers take to ensure wage, hour, and expense compliance across a dispersed workforce?

Remote work has blurred traditional boundaries, making compliance both more complex and more essential. Despite the remote or hybrid nature of the workforce in many industries, employers still must ensure accurate time tracking, payment for all hours worked, reimburse all necessary expenses, and maintain consistent policies and records regardless of where employees work.

But hybrid or remote work is also a chance to modernize. I help 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. Done right, these systems reduce risk and enhance productivity. Remote compliance isn’t just about avoiding penalties — it’s about building scalable, efficient operations that support employee retention and long-term company growth.

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As more employers utilize AI in hiring and HR processes, how can they strike the right balance between leveraging this technology and ensuring fairness and compliance in a way that maintains trust with employees?

California is leading the charge in terms of regulating the implementation of AI in the employment lifecycle. AI can transform HR operations, but only if implemented responsibly. Employers should view compliance in this space as brand protection. Missteps in automated decision-making — especially those that result in bias or unfair, discriminatory outcomes — can cause not just legal exposure but reputational harm. Several test cases against large companies are working their way through the legal system right now.

My goal is to work with companies to educate their decision-makers and help them create AI governance frameworks that align innovation with legal safeguards. This allows employers to capture the efficiency and insights of technology while maintaining fairness in the hiring process, employee trust throughout the employment lifecycle, and adherence to the law. Companies in all sectors should be investigating implementing responsible AI use — when utilized correctly, it can be a competitive differentiator.

Wage and hour class actions have become one of the most significant areas of risk for California employers. What kinds of cases are you seeing most frequently, and how can companies protect themselves?

Wage and hour class actions and Private Attorneys General Act (PAGA) claims continue to be among the fastest-growing areas of employment litigation in California. I regularly defend companies in complex cases involving alleged off-the-clock work, unpaid overtime, meal and rest break violations, inaccurate wage statements, delayed or nonpayment payment of final wages, and claims alleging noncompliant time records. Even well-intentioned employers can face significant exposure if their policies or recordkeeping practices don’t fully align with California’s strict requirements.

One of the primary focuses of my work is helping employers get ahead of these issues through preventive audits, policy development that aligns with the current state of the law, and training managers and human resources teams. We review how hours are tracked, how breaks are scheduled, provided, and recorded, and whether pay stubs and payroll systems are compliant with the various obligations California laws impose on employers. By addressing gaps before they become claims, companies can dramatically reduce their risk and litigation costs, and, ultimately, being proactive will help companies resolve matters more efficiently.

For employers, investing in sound wage and hour practices before claims arise isn’t just about avoiding lawsuits — it’s about building foundational operational compliance, employee trust, and long-term savings. Strong compliance systems provide measurable ROI by minimizing disputes and protecting the company’s reputation and bottom line.

In California, several workplace-related bills are currently awaiting Governor Newsom’s decision. Which developments are you most closely monitoring, what potential impacts could they have on employers, and how can they prepare in advance to adapt effectively?

I’m closely following legislation related to paid sick leave expansion, workplace violence prevention, and noncompete restrictions. Each carries potential ripple effects for staffing, budgeting, and overall business agility.

Rather than waiting for new rules to take effect, I encourage clients to plan ahead—mapping out potential impacts on workforce costs, updating policies, and training managers early. This type of readiness isn’t just about avoiding penalties—it allows companies to maintain continuity, preserve culture, and control costs even in times of regulatory change.

Looking ahead, what do you think will be the biggest challenges, or opportunities, for employers in the next few years, and how can they best prepare?

The next frontier for employers will be adaptability — continuously integrating technology into compliance and culture in ways that drive long-term stability will help position companies for both short and long term success. Challenges like remote workforce management, AI integration, and continued legislative change will test employers’ flexibility across all sectors.

But for companies willing to invest in proactive legal strategy, these changes present opportunity. The employers that thrive will be those that treat compliance as an investment in operational excellence. When legal, HR, and leadership teams work in sync, the return is measurable: stronger performance, lower risk, and greater employee engagement.

My goal is to help clients reach that point—to make the law work for their business, not against it.

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