Articles, news & legal alerts

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

Action required by April 1, 2016

Amendments to FEHA regulations impose new requirements

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New regulations for the Fair Employment and Housing Act are set to take effect April 1, 2016. Many of the provisions merely restate changes that are already in effect. But these regulations also provide some additional specificity to certain FEHA provisions and include some new obligations. We look at some of the more significant amendments and the requirements they impose on employer policies and their distribution.

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Now that we are just getting adjusted to the new employment laws that took effect at the beginning of the year, it is time to look at the bills that are currently developing in the California legislature to see what possibly lies ahead and what it would mean for you and your employees.

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Despite all the ways driverless cars will make our roads safer, less congested and more accessible, at the moment the biggest roadblock, ironically, seems to be a government agency tasked with keeping our roads safe.

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As scores of Los Angeles-area residents, many of them blind or disabled, lined up Tuesday to urge the Department of Motor Vehicle (DMV) to allow completely self-driving cars, The Scali Law Firm’s autonomous vehicle expert, John Swenson, urged officials not to stand in the way of progress.

New laws for 2016

Effective January 1, unless indicated otherwise

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With the New Year comes a host of new obligations for businesses—from employee time-off regulations and workers’ compensation benefits, to consumer protection and electronic communication privacy laws. Attorneys at The Scali Law Firm have compiled the highlights in this article to help you understand the changes that lie ahead.

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The Scali Law Firm’s Christian J. Scali and Gus N. Paras are certified as Corporate Compliance and Ethics Professionals (CCEP) with the Society of Corporate Compliance and Ethics. As CCEPs, Mr. Scali and Mr. Paras assist dealer groups in creating, adopting and implementing corporate compliance and ethics programs that merge best practices in advertising, employment and human resources, OSHA/safety, F&I and privacy into a comprehensive compliance program to effectively manage risk, whether it be governmental regulatory enforcement or civil liability.

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This article, by Christian Scali, in the California New Car Dealers Association's fall edition of DRIVEN provides a primer on the basics of advertising compliance in the digital space with some answers to more advanced and frequently asked compliance questions concerning digital marketing and advertising.

Daily Journal recognizes The Scali Law Firm as the top boutique automotive firm in California

Firm recognized in the publication’s inaugural list of boutique law firms

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California’s most prestigious legal publication, the Daily Journal, recognized The Scali Law Firm for its “high degree of specialization” in the automotive industry.  The firm was one of 24 firms throughout California to be recognized for industry specialization; The Scali Law Firm was the only firm recognized in the Automotive category.

Volkswagen dealers in crisis

Mind your messaging

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The response to Volkswagen’s deceptive use of software to fake emissions results is still unfolding, as are announcements of measures the automaker will take to address the damage. Governments around the world, including the U.S., have announced they will launch investigations. At last count, over two dozen class action lawsuits have already been filed in the U.S., several of which have been filed in California. And the American public often doesn’t understand the difference between the factory and the independently owned and operated Volkswagen dealerships.

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Effective January 1, 2016, the minimum wage in California will increase to $10 per hour. However, for Los Angeles employers, the increase does not stop there. On June 13, 2015, Los Angeles Mayor Eric Garcetti signed a law requiring businesses to increase pay for minimum wage workers to $15 by 2020. The Los Angeles increase will be introduced over the next five years, with the first pay hike to $10.50 per hour taking effect on July 1, 2016.

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In Benson v. Southern California Auto Sales, Inc., Case No. G050484, the Court of Appeal held a car dealer’s offer of rescission, $2,500 in attorney’s fees and a requirement that plaintiff release all other claims was “appropriate” and sufficient to cutoff a plaintiff’s ability to recover damages or attorney’s fees. (The court indicated this ruling would not necessarily apply to a claim seeking injunctive relief.) In this brave new post-Benson world not only can car dealers insist with confidence that a plaintiff release all claims as part of the settlement of a CLRA demand but can point to this written legal opinion quantifying $2,500 as reasonable amount for attorney’s fees incurred in pursuing a CLRA claim. This quantification of reasonable attorney’s fees should provide especially welcome relief from the previously plaintiff favorable climate where plaintiff’s attorneys routinely demanded upwards of $15,000 in attorney’s fees when negotiating settlement of CLRA claims before a complaint was even filed.

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Lyft, Uber, Sidecar and other such “rideshare companies” are undoubtedly changing the automotive industry. The state of California and many of its cities have embraced rideshare companies to varying degrees with new regulations. But lawmakers have not adjusted vehicle sales and finance laws to accommodate this new business model. And rideshare companies continue to innovate, most recently by establishing programs to sell or lease vehicles to their drivers through franchised auto dealerships. These programs raise several difficult legal issues for dealers who desire to participate in these programs to increase their sales performance or revenues.

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