As COVID-19 cases continue to spike across the state, the regulatory landscape is once again changing as local and state authorities try to stem the tide. Look here for information about new requirements that may apply to your dealership.

Los Angeles County issued a temporary stay at home order on November 27, 2020 that will be effective Monday, November 30 and last through December 20. The order further limits business in the county and prohibits all gatherings of individuals from different households.

Governor Newsom signed two new laws at the end of the legislative session this year that modify the California Consumer Privacy Act (CCPA). Most crucially for the majority of businesses in California, one of the laws extends the temporary employee and business-to-business (“B2B”) exemptions from the definition of “Consumer” in the CCPA. The second changes how businesses must treat health privacy.

The U.S. Department of Labor (DOL) issued clarifications for provisions in the Families First Coronavirus Response Act (FFCRA) regulations pertaining to paid leave. They've also released new FAQs clarifying provisions in the FFCRA related to childcare issues. Meanwhile in California, Governor Newsom has signed legislation that expands Coronavirus paid sick leave coverage to employers who have not been covered under the FFCRA, and that intensifies notification requirements in response to a potential employee exposure to the COVID-19 virus. In one way or another, these changes affect almost every California employer.

In anticipation of return to school issues that are bound to arise with so many schools currently implementing distance learning, on August 27, 2020, the Department of Labor (“DOL”) released new FAQs clarifying provisions in the Families First Coronavirus Response Act (FFCRA) related to childcare issues. The FFCRA provides that employees may receive paid leave if they need to miss work in order to care for a child whose school or place of care is closed, or childcare provider is unavailable, for Coronavirus reasons. The clarifications provided by these new FAQs are as follows...

Title 1 of the CARES Act is referred to as the “Keeping American Workers Paid and Employed Act.” The “Keeping American Workers Paid and Employed Act” establishes an SBA Loan program called the “Paycheck Protection Program” (PPP) and process for forgiveness of the loan if certain compensation and employment metrics are met. It also expands access to Economic Injury Disaster Loans (EIDL) and provides a subsidy to help businesses repay SBA loans (with the exception of the PPP loans). Below are many of the frequently asked questions about the Paycheck Protection Program portions of the CARES Act...

As California employers struggle to keep on top of all the developments associated with COVID-19, more updated guidance has been issued by the CDC and State.

Does a case have to be confirmed to be reported? How do you know if the case is “work related?” The Occupational Safety and Health Administration (OSHA) has issued new guidance about reporting work-related cases of COVID-19.

As the Coronavirus pandemic continues to devastate the well-being, physically, mentally and economically, of our country and as outsiders continue to attack the dealer franchise system in a misguided attempt to weaken dealers' economic standing and future, Scali Rasmussen rises up to fight for the rights of the industry, and lends a helping hand to give dealers the tools to navigate and come out of the end of this pandemic healthier than ever.

The COVID-19 pandemic and the related economic shutdown and quarantine orders continue to weigh heavily on businesses across California, and auto dealerships are certainly no exception. During such trying times, it is only natural for dealers to begin thinking about creative ways to operate as efficiently as possible. One idea that dealers have considered is converting relationships with salespeople from one of employment to one more akin to an independent-contractor relationship, where commissions are paid to salespeople. Dealers considering such an idea must be mindful, however, of their continuing legal duties under such circumstances.