In a couple of weeks California’s “hands free” cell phone law becomes effective.  On July 1, 2008 police officers will begin to issue tickets to drivers who use cell phones that are not operated “hands free.” For businesses, and especially companies employing young people, putting a policy in place that requires employees to follow the new law is important, and now urgent.   

The Law. Sections 23123 and 23124 of the California Vehicle Code prohibit drivers from using a wireless telephone while operating a motor vehicle unless the driver uses a telephone that is designed and configured to be “hands free.”  Drivers who violate the law will face a $20 fine for the first violation and a $50 fine for each time thereafter. There are some exceptions to the law that include drivers using their cell phone in an emergency, in some types of commercial trucks or farm vehicles, and drivers of emergency service vehicles  The law also forbids young people under age 18 from using any mobile device (including a pager or texting phone) while driving.  California joins a handful of Eastern States in adopting a “hands free” cell phone law. These new laws respond to the growing use of cell phones by drivers and accidents involving drivers distracted when using a cell phone.  

The Risk To Employers. If an employee violates a safety law when involved in an accident on the job, they and their employer may be held negligent, even if they are otherwise driving well. This principle is referred to as negligence per se. Lawyers use the principle of negligence per se as a shortcut to establish liability in law suits to win damages for people injured in accidents. The cell phone law is a safety law specifically designed to eliminate distractions and prevent accidents. Depending on the extent of the injuries, this financial risk to an employer could be very substantial. If the cited employee driver has violated the cell phone law before, significant punitive damages may also apply. After July 1 of this year, we are probably going to see negligence per se used more frequently in personal injury cases when a driver was using a cell phone.     

What Employers Can Do. Adopt a policy and/or amend your employee handbook to require strict compliance with the new “hands free” cell phone law by all employees. Many businesses may instruct their employees not to use cell phones while driving and to let incoming calls go to voicemail to be returned outside of the car in a safe area. If your business issues cell phones to its employees, or necessarily requires the use of a cell phone by its employees, make sure that the cell phones can be used “hands free.” Note that a cell phone that has a speaker phone function will not necessarily comply with the law.  Employers who hire employees under age 18 should prohibit their use of a cell phone in a car. The policy should be acknowledged by employees in writing and enforced by the company.   A more detailed article that discusses the impact of this new law on individuals and  businesses may be found on ezinearticles.com, entitled California’s New Cell Phone Law - What Drivers and Employers Need To Know.  

When helpful new technology emerges, it frequently has baggage. California is dealing with the realization that the convenience and increased ability to do business “in route” and stay connected socially, has the baggage of creating a distracted driver and perhaps has made our highways not as safe as before.  This is a predictable response, but with baggage for business as well. Promptly and strategically responding to this new business risk can make your business not only less exposed to liability, but can demonstrate the good citizen that businesses can be in society.    

A strong brand contributes greatly to a company’s success. Generic company names invite confusion in the marketplace and can mask their identity. Strong company names not only identify their products or services, but are marketing tools, vision reminders and communicate the personality of the company.  Branding is about being distinctive. It is an effective way to differentiate your product or service from all others and be recognized easily in your market. Strong branding names usually contain one of three types of words: 

•   Invented Words. These are not existing words, but embryonic words designed to become the description of your product or service. You distinguish your company the most if you use an invented word in your company name. Xerox^® and Kleenex^® are classic examples of company names that were invented words.
• Unrelated Words.  These are actual words – nouns, verbs, adjectives. However, when a company’s name is a word whose natural meaning is unrelated to the product or service of the business, it can be a powerful brand. Apple^®, Dove^®, Google^® and Yahoo^® are company names using actual words whose meaning is unrelated to the company’s product or service. Perhaps this type of name is memorable in the same way that a joke is memorable. Surprise is at the core of an effective joke. To call a computer an apple or a chocolate bar a bird, or an Internet search engine a number or a vocal exclamation creates a memorable surprise – a strong brand.
• Proper Nouns. This category may remind some of junior high school grammar lessons, but no sentence outlining is required to get this concept. Certain products and services have reputations that are built around established family or personal names. Disney^®, Ford^® and Hershey^® are all company names that contain the name of their founders. Their reputation and product identification is personal. How enduring a brand will be when the individual is no longer around is dependent on the success of the team associated with the individual. Dynasty and heritage bring strength to these kinds of company names.    

 In today’s economy, entrepreneurs with business acumen choose company names capable of being strong brands.  Laura Lake, a marketing columnist for About.com, outlines an intelligent way to develop an effective company name in her article, Learn How To Develop A “Winning” Business Name. A reputable marketing firm can also guide you in choosing a company name that will be a strong brand.   Start strong. Choose the name of your new company deliberately. Choose a strong brand for your company.