Articles, news & legal alerts

Read the latest news from Scali Rasmussen, including legal alerts and event listings.

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The Uniformed Services Employment and Reemployment Rights Act (USERRA) is a federal law that has been in place since 1994, which protects military service members and veterans from discrimination in employment on the basis of their service, and allows them to regain their civilian jobs after their service. On January 2, 2025, the Senator Elizabeth Dole 21st Century Veterans Healthcare and Benefits Improvement Act (Dole Act) took effect and included a new amendment to USERRA that expanded USERRA’s protections for veterans.

Lemon Law Reform

Senate Bill 26 “Clean-Up” of Assembly Bill 1755

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When Assembly Bill 1755 (AB 1755) was signed into law, on September 29, 2024, it marked a major shift in how California handles lemon law disputes—streamlining the resolution processes between consumers and manufacturers, including a consumer notice to a manufacturer 30 days before filing suit. But as with any major change, a few loose ends remained.

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Courts have grappled with how to apply California’s general cost recovery rule, particularly in the context of settlements that provide that the plaintiff may seek costs (including attorney’s fees) by motion. The recent California Supreme Court decision, Madrigal v. Hyundai Motor America, No. S280598, 2025 WL 943693 (Cal. Mar. 20, 2025), has brought some clarity. 

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While employees frequently sign arbitration agreements as part of their onboarding, when a grievance arises, they oftentimes either choose to ignore that agreement, or expect to challenge its enforceability and file suit instead. Employers are then forced to file a motion to compel arbitration to enforce that agreement. In this case, Arzate v. Ace American Insurance Company, the trial court granted the motion, enforced a class action waiver within the agreement, and stayed the action pending arbitration.

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Scali Rasmussen, PC announced today that the firm’s Labor & Employment and Franchise practices have been recognized in the inaugural Chambers California Spotlight Guide for 2025. Distinctions from Chambers Spotlight recognize exceptional small and midsize business law firms throughout the state.

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A recent transaction that saw a long-time dealership executive re-enter the retail automotive world is an example of how new forms of capital are coming into play in the buy sell sector. It also illustrates the importance of personal relationships in the buy sell world even as the role of consolidators grows.

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Tariffs have long been used to regulate trade. Companies seek ways to reduce costs, including "tariff engineering"—modifying products to qualify for lower tariffs. While legal, improper execution can lead to severe penalties, as seen in Ford Motor Company’s recent case.

Business losses

Are your employees footing the bill?

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Can California employers require employees to cover the cost of lost or damaged company property? Many organizations implement policies or agreements holding employees financially responsible for lost keys, uniforms, or equipment. However, California law imposes strict limitations on an employer’s ability to recover such losses.

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The U.S. government has announced a one-month delay in the implementation of new tariffs on vehicles and parts imported from Canada and Mexico. These tariffs, originally scheduled to take effect immediately, have been postponed to allow further discussions between policymakers and industry stakeholders.

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On March 2, 2025, the U.S. Department of the Treasury announced a suspension of enforcement for certain reporting requirements under the Corporate Transparency Act (CTA). Effective immediately, U.S. citizens and domestic reporting companies will not be subject to penalties for noncompliance with beneficial ownership information (BOI) reporting obligations.

Wage and hour crackdown

California’s focus on off-the-clock work and overtime

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The California Labor Commissioner has been aggressively enforcing wage and hour laws, particularly targeting off-the-clock work in industries with commission-based or flat-rate pay structures. Recent enforcement actions underscore the importance of compliance, as businesses failing to properly compensate employees face significant penalties. For dealerships, ensuring that service advisors, technicians, salespersons, and other commission-paid employees are paid correctly for all hours worked is crucial to avoiding costly violations.

ICE, ICE baby!

Are you prepared for an ICE raid?

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Federal Immigration and Customs Enforcement (ICE) or other federal law enforcement are gearing up for raids on California businesses in light of new immigration enforcement priorities. This is what you need to know to comply with both state and federal law.

Tariff engineering

A legal practice to avoid tariffs or an illegal practice to evade tariffs?

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Small changes can make a big difference. Add drawstrings or pockets below the waist to a blouse and the import tax drops from 15.4% to 8.1% for a cotton version and from 26.9% to 16% for one made of polyester.

Tales from the trenches

How are you accruing vacation time and paying it out at termination?

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In the course of providing advice and counsel to our clients, we encounter compliance issues that we feel can serve as valuable cautionary tales for all of our readers. Some perennial compliance snags include vacation accrual policies, and how employers pay out unused vacation time when an employee terminates.

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