Articles, news & legal alerts

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

After Janus

Employers should proceed with caution

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The long-awaited decision in Janus v. AFSCME was the second within a month in which the U.S. Supreme Court ruled against unions, and both decisions will put employers in a strong position at the bargaining table. But if employers appear too eager to exploit the moment, they risk facing a backlash.

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With deep regret, Scali Rasmussen gives its condolences to the McKenna family. Mike McKenna was a dear friend, valued colleague and pioneer for California and Hawaii dealers. Mike leaves a legacy of dealerships and he will be greatly missed. Services will be held this Friday June 22, 2018 at 9 a.m. in Kailua, Hawaii at St. Anthony’s Church.

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Dealerships are considered “public accommodations” under the Americans with Disabilities Act and therefore are required to make reasonable modifications to allow disabled individuals the ability to access dealership facilities and services. This is not news if you’ve hired ADA consultants or dealt with an ADA lawsuit. However, while accommodations such as ramps, parking spaces and lowered retail counters may seem obvious (and call us if they do not!), new case law should put you on notice of another kind of accommodation customers may ask you to make: installing hand controls to allow disabled customers to test-drive a vehicle.

Employee travel time

What is compensable?

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We all know the importance of tracking and compensating non-exempt employees for all time that they spend working. When an employee must travel for work, is ALL time spent on the road compensable? Here are the basics as pertains to non-exempt employees.

U.S. Supreme Court upholds class action waivers in employee arbitration agreements

Finds labor laws protecting “concerted activity” no obstacle

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The U.S. Supreme Court recently issued a 3-for-1 opinion protecting class action waivers in employee arbitration agreements. This decision is consistent with the California Supreme Court’s 2014 ruling, in Iskanian v. CLS Transportation Los Angeles, which also upheld the enforceability of class action waivers in employment arbitration agreements, but carved out an exception for actions brought under the Private Attorney General Act (PAGA).

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Here’s a familiar scenario: your counsel advises you about changes in the law requiring you to restructure your pay plans for certain employees, but when you distribute the new plans, one or more employees resist, complain, and refuse to sign. As addressed in our Coffee Break article published on this same date, No secrets: Prohibiting employee discussions about pay, you cannot prohibit these employees from disclosing and discussing pay information with each other. But as for employee resistance and refusal to sign new pay plans, read on for tips on handling this situation.

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Revisions to California’s Fair Pay Act took effect in 2017. Billed as the “toughest in the nation,” the law made it easier for plaintiffs to sue based on gender-based pay differences for “substantially similar” work, even at different locations. For 2018, California law became tougher still, as employers are now prohibited from asking about an applicant’s salary history or seeking such information, and may not rely on it in deciding on a salary to propose, unless the applicant volunteers the information. The rationale is that because women historically have been paid less than men, requesting salary history (and basing compensation offers on an applicant’s current or prior salary) will perpetuate these differences.

No secrets

Prohibiting employee discussions about pay

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Employers often seek to discourage conversations between employees about pay and compensation due to the distraction and potential morale issues that arise when such information is the subject of gossip and speculation in the workplace. Moreover, pay information is generally considered confidential personnel information that employers should protect as private. However, employers must beware of implementing or enforcing any policy that prohibits employees from disclosing their own pay, or discussing co-workers’ pay, as such practices can run afoul of both California and federal law.

Update on Navarro v. Encino Motorcars, LLC case

Service advisors are exempt from overtime under federal law, but overtime obligations may still exist under state law

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It appears that a resolution has finally been reached in theNavarro v. Encino Motorcars, LLCcase, on which we previously reported with updates as the case has bounced back and forth between the Ninth Circuit Court of Appeals and the U.S. Supreme Court. At issue in this case was whether service advisors fall within the federal Fair Labor Standards Act Section 13(b)(10)(a)’s blanket overtime exemption that covers any “salesman, partsman or mechanic primarily engaged in selling or servicing automobiles.”

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With “Free Wi-Fi” becoming a common offering at retail businesses nationwide, Dealership sales and service customers might actually expect free Wi-Fi. There are certainly some advantages to providing it: customers can have something to do while waiting, can research vehicles or accessories online, and they can submit online credit or insurance applications on their mobile devices. However, providing Wi-Fi has its downsides: you may have already experienced bandwidth drain from mobile users and customers or unknown parties can misuse internet access by, for example, accessing or downloading data being transmitted through your network by other users or stored on your own servers or computers. A Wi-Fi network could also be used commit crimes unrelated to your business or other users, such as being used to illegally download movies or music or transmit illegal materials. This article addresses potential liability in offering free Wi-Fi and provides some basics of setting up a secured wireless network to mitigate these risks.

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Employee leaves of absence are an unavoidable, albeit inconvenient, reality for most employers. From a policy and compliance standpoint, we place most of our focus (and rightfully so) on legally protected leaves, such as pregnancy/medical leaves or the other numerous leaves that California law mandates. As such, employers may not feel the need to follow any particular process in administering non-protected leaves of absence. Although the manner in which an employer administers this type of leave may not be as legally risky as a protected leave, improper administration of the leave can nevertheless result in frustration for the employer and lack of accountability by the employee. Here are some tips for successfully handling discretionary leaves that can minimize the risk of potential pitfalls.

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If you are an auto dealer, you are likely familiar with Section 1632 of the California Civil Code. It’s the law that requires businesspeople who negotiate a contract with a consumer primarily in Spanish, Chinese, Tagalog, Vietnamese, or Korean to provide a translation of the contract before the consumer signs it. To comply with this law, dealers routinely have customers sign a Translated Contract Acknowledgement form. But is that enough? What does it mean to negotiate “primarily” in one of the listed languages? And what if you discover that the customer happens to be totally fluent in English? Are you still on the hook? A few court decisions provide some guidance on these questions.

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Nearly every company with products sold in California—whether automobiles, appliances, tools, supplements, etc.—has discovered California’s Proposition 65 even when there is no evidence whatsoever of a risk. And now a federal court has ruled that the State cannot mandate the warning for non-disease causing chemicals without violating the First Amendment. The decision could have impacts far beyond the sandy beaches of California.

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With a new name and new partners, the first quarter of 2018 brought some of the biggest and most exciting staffing news since the firm’s formation.

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Dealers should keep in mind that the terms of a Forbearance Agreement are not etched in stone but are negotiable, so care should be taken not to accept and sign the flooring lender’s first draft of a Forbearance Agreement, but instead to closely examine it and propose reasonable revisions. With that process in mind, here are examples of key terms typically found in a Forbearance Agreement, and the negotiating points a dealer should be aware of to ensure that negotiations will hopefully yield a fair and acceptable Forbearance Agreement...

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