In light of a December 23, 2024, federal Court of Appeals decision, reporting companies, except as indicated below, are once again required to file beneficial ownership information with FinCEN.

Effective January 1, 2025, California’s new Freelance Worker Protection Act takes effect. This new law applies to any person or organization in California that hires or retains any one-person individual or entity as an independent contractor for professional services for an amount greater than $250 total in the preceding 120 days.

It’s that time of the year again for employers to plan for their new obligations that come with the rash of new laws effective January 1st. Some of the new laws effective 2025 call for updates to employee handbooks. Here is a summary of handbook updates that you should plan for.

With the new year comes new changes to California’s ever-evolving wage and employment regulations.

Employers should keep abreast of the new requirements for California employers pertaining to time off for employees who are victims or violence of have family members who are victims of violence.

Scali Rasmussen announced today that its Managing Shareholder Christian Scali has been appointed to the Steering Committee of XLNC, a global alliance of independent, professional services firms.

The most impactful legislation enacted by California relates to motions for summary judgment which are usually filed by defendants in civil cases. In 2003, based on lobbying efforts by the plaintiff’s bar, the Legislature increased the notice period for such motions from 28 days to 75 days which gives plaintiffs substantial time to obtain the evidence necessary to oppose a motion. In 2024, the Legislature again increased the notice period to 81 days and, again buckling to pressure from the plaintiff’s bar, passed legislation barring “new” evidence in a reply to an opposition to a motion.

In 2024, California enacted legislation impacting several labor and employment issues, including raising the minimum wage for certain workers, protecting employee’s reproductive rights, protecting employee’s rights to take family leave, and expanding employee’s rights against discrimination and whistleblower retaliation. Not all legislation benefits employers. In particular, California enacted two pieces of legislation setting forth major reforms to the Private Attorney General Act (“PAGA”) which streamlines the PAGA process and potentially minimizes the penalties to be imposed against employers. California has also passed several bills protecting employees from so-called Labor Trafficking.

As with prior years, California continues to enact legislation aiming to increase the use of electric vehicles (EVs) as well as hydrogen fueled vehicles (HFVs). In 2024, California passed legislation focusing on making EV and HFV charging stations more reliable and accessible. Foreseeing the use of autonomous vehicles in the near future, California passed legislation relating to liability for accidents caused by autonomous vehicles and legislation aimed at assisting the police in investigating accidents involving autonomous vehicles. In addition, based on intense lobbying efforts by certain auto manufacturers, particularly General Motors, California enacted legislation aimed at streamlining and expecting claims made under the Song Beverly Act, California’s Lemon Law.

The 2024 legislative session touched on a wide array of business topics. The new laws do not affect all businesses, but are nonetheless worth every business owner’s attention, as they may shape you conduct business in California in the future. In particular, California continues to pass legislation aimed at protecting consumer’s privacy rights.

Scali Rasmussen Founder Christian Scali has been recognized by Los Angeles Times as a “Legal Visionary” as highlighted in a special supplement that published earlier this week. “Being recognized as a visionary is not only a reflection of exceptional skill, but also underscores each attorney’s commitment to excellence, thought leadership and impactful contributions to both their clients and the broader legal community,” states the publisher.

On October 31, 2024, the California Supreme Court published its long-awaited opinion in Rodriguez v. FAC US, LLC which answered the following question relating to claims under the Song-Beverly Act: Is a used vehicle that is still covered by the manufacturer’s express warranty a “new motor vehicle” within the meaning of Civil Code section 1793.22(e)(2), which defines “new motor vehicle” as including a “motor vehicle sold with a manufacturer’s new car warranty”?

Lawsuits involving sexual, gender-based, and sexual orientation harassment claims may circumvent arbitration under valid arbitration agreements. Recently, a California Court of Appeal held that sexual harassment claims covered under the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (“EFAA”) preclude the entire lawsuit form arbitration by the plain language of the statute, even if the lawsuit involves non-sexual harassment claims. This decision underscores the potentially far-reaching consequences of the EFAA on California employers.

In November of 2014, plaintiff Andre Pompey purchased a recreational vehicle (“RV”) from JD’s RV (“Dealership”). Defendant Bank of Stockton (“Bank”) financed the purchase. The sales contract inaccurately reflected the downpayment as $19,100 in cash instead of $1,000 in cash and $18,100 in trade-in value. Two weeks after delivery, Pompey discovered that the RV leaked.

Scali Rasmussen Principal Jasmin Bhandari and Managing Shareholder Christian Scali have been recognized in Los Angeles Business Journal’s “Leaders of Influence: Labor & Employment Attorneys 2024” special supplement. The attorneys selected for inclusion were chosen based on their demonstrated impact on the legal profession and on the Los Angeles community.

Scali Rasmussen Shareholder Jeffrey Erdman has been recognized by Los Angeles Times as a 2024 “Diversity, Equity, Inclusion & Accessibility (DEIA) Visionary,” highlighted in a special supplement. “These thought leaders are overcoming headwinds – especially in the form of social backlash to diversity, Equity, inclusion and accessibility – to achieve their goals, however challenging they may be,” states the publication. “Based on submissions of dozens of nominated DEIA professionals and experts, the below list represents some of the most prominent game changers in the business world today.”

There has been an uptick in litigation in California surrounding disability discrimination claims, especially given the separate causes of action for failure to provide reasonable accommodations and failure to engage in the interactive process (to determine effective reasonable accommodations). 

Proposition 65 was passed by the voters in 1986 and requires businesses to provide warnings to California consumers when they may be exposed to listed chemicals known to cause cancer, birth defects or reproductive harm. These chemicals can be found in the products that California consumers purchase, in their homes or workplaces, or that are released into the environment. Proposition 65 is overseen by the California Office of Environmental Health Hazard Assessment (“OEHHA”). As part of administering Proposition 65, California maintains a comprehensive list of these chemicals which is updated annually. Currently, there are approximately 900 chemicals identified by OEHHA.

A recent California Court of Appeal decision, Mahram v. Kroger Co., 104 Cal. App. 5th 303, 324 Cal. Rptr. 3d 575 (2024) underscores the importance of ensuring that arbitration agreements are as clear as practicable.

Although potentially customized and of a different vintage for each dealer, we looked at a copy of CDK’s Master Services Agreement (the “MSA”) to see how it addresses CDKs privacy and cybersecurity obligations and liability.