On the evening of June 18 CDK, whose dealer management system is used by some 15,000 dealerships, was hit by a cyberattack. The cybercriminals struck again the next day.

Baker Automotive Group acquired a Mitsubishi franchise in Bonita Springs, Florida in June, part of the Group’s growing footprint in The Sunshine State. The brand does well in Florida, according to Brandon Baker, president of Baker Automotive Group. Getting to Go! talked with Baker to hear more about the acquisition.

Getting to Go! surveyed Scali Rasmussen LinkedIn followers and those on our email list regarding cybersecurity concerns when acquiring a dealership. The top concern was how much exposure a dealership has to cybersecurity attacks.

Longtime litigator Halbert B. Rasmussen has seen the car dealership business change a fair bit over his more than four decades in the law.

Christian Scali has been recognized in the 18th edition of The Lawdragon 500 Leading Corporate Employment Lawyers. “This is a guide to the nation’s best advisors on workplace mobility, employee benefits and executive compensation, traditional labor matters and, of course, all matter of disputes — from wage and hour class actions, to discrimination and non-compete agreements,” states the publication. The selections were made based on Lawdragon’s rigorous selection process, combining robust submissions, journalistic research and independent vetting by peers and clients.

The California Department of Finance recently announced that, based on the calculation method set forth in the Labor Code, the California minimum wage shall increase from $16.00 to $16.50 per hour effective January 1, 2025. Employers should plan ahead to ensure that their pay plans are sufficient to cover this increased rate by the beginning of the year, including ensuring that exempt employees’ salaries are at least double the California minimum wage ($68,640 per year or $5,720 per month) and that technicians who supply their own tools are compensated at an hourly rate of twice the minimum wage ($33 per hour).

In the field of employment law, litigators are often in the position of reviewing a complaining employee’s new hire or “onboarding” documents to determine precisely what they and their employer agreed to when the employee began working. Included in many such documents are so-called ‘Binding Arbitration Agreements’ or similar clauses. These agreements (basically a contract between the two parties) can sometimes be more than a decade old, stored poorly, or even lost, but nonetheless have the potential to significantly impact litigation when a work situation turns sour down the road.

As we reported on May 27, 2024, on April 23, 2024 the Federal Trade Commission (“FTC”) announced its Final Non-Compete Clause Rule (“Final Rule”), which bans post-employment non-compete clauses between employers and their workers. The Final Rule was to become effective on September 4, 2024.

Scali Rasmussen Shareholder Jeffrey Erdman and Managing Shareholder Christian Scali have been recognized by Lawdragon in its “2025’s 500 Leading Litigators in America.” The publication received a record number of submissions and based their selections on original journalistic research and an extensive vetting process.

On November 3, 2020, California voters approved Proposition 22 which provided several regulations relating to drivers for app-based transportation or delivery companies such as Uber, Lyft, DoorDash etc. As a result, a new law, The Protect App-Based Drivers and Services Act was enacted and added to the Business and Professions Code.

The California Supreme Court recently published its opinion in Quach v. California Commerce Club, Inc. which abrogated long-standing California Supreme Court precedent that, for over 21 years, has governed the often-disputed issue of whether a party waives a right to arbitration.

A recent Ninth Circuit Court of Appeals decision underscored the fact that activity away from the workplace could nonetheless create a hostile work environment for purposes unlawful harassment/discrimination claims.

Scali Rasmussen announced today its Managing Shareholder Christian Scali has been recognized by Daily Journal as a top labor and employment attorney in California for 2024. The award is the esteemed publication’s annual selection of top attorneys who specialize in litigation, PAGA matters, unlawful terminations and workplace investigations.

Scali Rasmussen and XLNC are pleased to announce the appointment of Mr. Jo Vanbelle as the Global Co-Chair of the XLNC’s Legal Focus Group (LFG). This key leadership role reflects Mr. Vanbelle’s distinguished career and commitment to excellence in the legal profession. Mr. Vanbelle will serve alongside Christian Scali, Managing Shareholder at Scali Rasmussen, P.C.

The Private Attorneys General Act of 2004 (“PAGA” or “Act”), codified in Sections 2698 through 2699.6 of the California Labor Code, has become a key weapon for California’s enforcement of its Labor Code since PAGA’s enactment two decades ago. PAGA supplements the state’s enforcement efforts of violations of the Labor Code by deputizing employees who have been subject to alleged violations as proxies for the state itself to keep up with the ever-growing labor force in California. PAGA is a well-established, robust, and popular mechanism for plaintiffs to initiate lawsuits on behalf of others and the State of California for various types of penalties, particularly for violations of wage and hour rules and regulations.

California Governor Gavin Newsom recently vetoed a bill that would have provided up to $4,000 to California residents who convert eligible fuel-powered vehicles to a zero-emission powertrain. Senate Bill 301, introduced in February 2023 by two Democrat state Senators, Anthony Portantino and Josh Newman, was passed unanimously in May of 2024 by both the state Assembly and Senate.

California Supreme Court follows federal law in holding that a showing of prejudice is no longer required when deciding whether a party has waived a right to arbitration.

In the past several years, dealers have had to deal with a plethora of disruptions to their businesses, including COVID-19, supply chain issues, semiconductor chip shortages, and now cyberattacks. On June 19, 2024, CDK Global, Inc. (“CDK”), a dealership DMS provider holding a majority of its relevant market share, was brought to its knees by ransomware cyberattacks. Out of an abundance of caution, CDK took all of its systems offline, significantly disrupting the operations of more than 15,000 dealerships across North America. On June 21, 2024, Bloomberg News and Reuters reported that Blacksuit, a well-known cybercriminal team, was behind the ransomware attack.

The recent trial in a case involving four brothers provides a stark reminder of the importance of having clear agreements when engaging in real estate transactions in California. Specifically, Shashikant Jogani v. Haresh Jogani, et al., arose from a dispute where it was alleged brothers had formed a partnership—with no formal agreement—to engage in business concerning the diamond trade, private money lending, securities and investments. All of the brothers were born and raised in India which led to them to “both culturally and in actuality” conduct business as partners. Many agreements within the family’s partnership were based on “binding oral agreements and handshakes in which an individual’s word is his or her bond”.

One of the most significant procedural considerations in a case may be whether to challenge the assigned judge. Every case will be presided over by a judge whose rulings can determine the outcome of the case, even if it never gets to trial.