Articles, news & legal alerts

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

FTC amends Safeguards Rule

Non-banking financial institutions must now report data security breaches

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The Federal Trade Commission (the “FTC”) has just approved an amendment to the Safeguards Rule of the Gramm-Leach-Bliley Act (“GLBA”) pertaining to reporting obligations for motor vehicle dealers for certain data breaches and other security events to the FTC.

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In response to a 2021 workplace massacre at the Valley Transportation Authority in San Jose, State Senator Cortese moved to pass legislation that requires employers to implement safety plans to prepare for potential outbreaks of serious workplace violence. Senator Cortese’s work resulted in SB 553 which, after much “give-and-take” in Sacramento, was passed by the Legislature on September 20, 2023 and signed by Governor Gavin Newsom on September 30, 2023.

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Employers were overwhelmed with countless obligations during the COVID-19 pandemic, through legislation and emergency standards that focused on the interests of employee safety and wage loss. However, in its recent decision in Corby Kuciemba et al. v. Victory Woodworks Inc., the California Supreme Court drew the line in favor of employers by ruling that employers are not responsible for the spread of COVID-19 to employees’ family members.

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The California Supreme Court recently issued its opinion in Raines v. U.S. Healthworks Medical Group, deciding a question from the Ninth Circuit Court of Appeals as to the possible extent of liability for business-entity agents who carry out activities regulated under the California Fair Employment and Housing Act (“FEHA”) on behalf of employers. Under the FEHA, a covered employer includes: “any person acting as an agent of an employer, directly or indirectly.”

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It has been officially announced by the California Department of Finance that effective January 1, 2024, California’s minimum wage will increase from $15.50 per hour to $16 per hour for all employers, regardless of size.

Tales from the trenches

Family dynamics derail succession intentions

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A detailed succession plan, decided upon long before it is executed, is not only necessary in a family-owned business, it can also prevent a family-destroying fallout. Scali Rasmussen’s partners share tales from the trenches that prove that point.

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Succession planning is about much more than who takes over when a dealer owner dies. It is also about creating the conditions for the next owner or owners’ success. Hugh Robert, a partner and succession advisor at family business succession planning experts The Rawls Group, spoke with Getting to Go! about how The Rawls Group assists families in crafting a succession plan which benefits diverse needs. Below is an edited version of that conversation.

So, you want to keep your dealership in the family?

Crafting the proper financial platform is key

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In today’s environment of roll ups, acquisitions, financial requirements imposed by manufacturers, changes in driving habits, the types of vehicles being produced, and the ever-changing economy, it is no wonder that dealers are questioning the future of their business. Many options are available, and none are really bad, but one must figure out what is best for you, the owner.

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On August 7, 2023, the U.S. Equal Employment Opportunity Commission (“EEOC) issued a Notice of Proposed Rulemaking (“NPRM”) to implement the Pregnant Workers Fairness Act (“PWFA”). As required by federal law, the NPRM was published for public comment in the Federal Register on August 11, 2023. Members of the public wishing to comment on the NPRM will have 60 days from the date of publication to do so through www.regulations.gov.

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On August 02, 2023, the National Labor Relations Board issued a decision (Stericycle, Inc.) that established a new standard for scrutinizing employee conduct rules under Section 8(a)(1) of the National Labor Relations Act. This decision states that prior standards for workplace conduct rules issued by the NLRB, permitted employers to adopt overbroad work rules that chill employees’ exercise of their rights.

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Time rounding policies have been a source of unsettled contention and conflicting court rulings recently. The most recent California Court of Appeal came down against the practice in Woodworth v. Loma Linda Univ. Med. Ctr. The plaintiff in that case claimed that she was not paid for all hours worked as a result of the employer’s practice of rounding time punches to the nearest tenth of an hour.

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For years, the federal “Equal Employment Opportunity is the Law” poster has been a familiar sight in workplace break rooms, hallways and other work areas. In 2022, this poster was replaced by a new poster issued by the EEOC entitled: “Know Your Rights: Workplace Discrimination is Illegal.” There is now an update to this new poster with the same title, issued June 27, 2023, which includes information about protections under the new federal Pregnant Workers Fairness Act.

Prop 65 update

New chemicals added to the list

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Proposition 65 contains approximately 900 chemicals that are known to cause cancer or reproductive toxicity. The list grows every year and, as in the past, new chemicals have been added since January of 2023. In addition to identifying the newly-added chemicals, this article describes the process by which chemicals are considered for and thereafter added to the list.

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The lack of an updated I-9 Employment Eligibility Verification Form has caused confusion for some employers who have observed that the latest Form I-9 has an effective date through October 31, 2022 only. Although the U.S. Citizenship and Immigration Services (USCIS) indicated that an updated Form I-9 will be coming soon, it has still not released the new version, which is anticipated to have some significant alterations per the USCIS’ proposed changes that include restructuring/compressing the form and reducing the length of the instructions section. In any event, employers may, for now, continue using the expired Form I-9s until further notice.

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