OEHHA announced that the 2022 meeting of the Carcinogen Identification Committee (“CIC”) will be held virtually on December 14, 2022. Among other issues, the CIC will consider listing Bisphenol A (“BPA”) on the Proposition 65 list as a chemical known to the State of California as causing cancer. (BPA has been listed as a chemical causing reproductive toxicity since April of 2013.) BPA was placed in the ‘high’ priority group for future listing consideration by the CIC at their November 2020 meeting.

On April 4, 2023, the California Court of Appeal’s Second District affirmed the trial court’s ruling in Ochoa v. Ford Motor Company and related cases, denying Ford’s motion to compel arbitration in a Lemon Law lawsuit. In so doing, the Second District split from the Court of Appeal’s Third District’s 2020 holding Felisilda v. FCA US LLC holding manufacturers could enforce arbitration provisions in car sale contracts between dealers and customers.

Dealership facility upgrades are a constant point of contention between factories and dealers. Factories can impose a wide range of facility demands, ranging from light brand image or signage updating, to complete facility refurbishment, rebuild, or even relocation. Dealers view many such requests as onerous and/or unlikely to provide any boost to sales.

We recently reported on various types of policies employers have adopted concerning cell phone use in California. California employers are required to reimburse a “reasonable” percentage of their employees’ cell phone, data and internet usage bill when said employees are required or expected to use their cell phone, data or internet connection for work-related purposes. This legal obligation arises from Labor Code Section 2802, which requires employers to reimburse their employees for “all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties.” One form of policy employers use to comply with this obligation is a “bring your own device policy” (“BYOD”). However, BYODs require diligent oversight to minimize risk of noncompliance. Different forms of BYOD exist that employers can implement, and each has its own benefits, administrative burdens, and risks.

Most of us enjoy a cup of coffee (or two) in the morning. In fact, we rely on it for the caffeine boost it provides. Other than the potential harmful effects of caffeine, we do not think that coffee can cause a major illness such as cancer or heart disease. But, unbeknownst to us, there has been a long running debate between California regulators, courts, business, and consumer advocates regarding whether drinking coffee can cause cancer.

The Consumer Privacy Rights Act (“CPRA”) amended the California Consumer Privacy Act of 2018 (“CCPA”). The CPRA also created the California Privacy Protection Agency (“Agency”) to implement and enforce laws for the CCPA. As part of the Agency’s rulemaking authorities, the Agency published their first set of regulations which, among other things, update previous regulations to conform with the amendments to the CCPA through the CPRA.

The U.S. auto retail sector has in recent years seen a growing number of foreign firms and individuals seeking to acquire dealerships here. Meanwhile, U.S. dealership groups are also starting to look across the border for acquisitions.

The CPAs from Rosenfield & Company, PLLC were recently approached by a small group who own a very successful dealership group in India that are looking to acquire dealerships here in the U.S. It is an indication of how foreign investors from near and far are eyeing the U.S. auto retail market as a lucrative investment opportunity.

Dalton Corporation, headquartered in Guadalajara, Mexico, recently acquired its first automotive franchises in the U.S. Dalton’s vice president of innovation and new ventures Juan Carlos Rodriguez Villava spoke with Getting to GO! about Dalton’s U.S. expansion plans and the importance of working with a law firm with experience in cross-border transactions.

In 2020, the National Labor Relations Board (“Board”) (controlled by President Trump appointees) issued two opinions (Baylor University Medical Center (369 NLRB No. 43) (“Baylor”) and IGT d/b/a International Game Technology (370 NLRB No. 50(“IGT”)) which made it easier for employers to present employees with or enforce severance packages and other agreements containing confidentiality and non-disparagement provisions.

On February 15, 2023, the Ninth Circuit Court of Appeals issued its opinion holding that AB 51 is preempted by the Federal Arbitration Act (“FAA”) and, therefore, unenforceable. The opinion is the most recent legal step in a fairly complicated history of the federal court’s rulings on AB 51.

In Helix Energy Solutions Group, Inc. v. Hewitt, Case No. 21-984, the United States Supreme Court held that an offshore oil rig supervisor who was paid nearly $1,000 for each day he worked was not exempt from the Fair Labor Standards Act (“FLSA”) because he was not paid a predetermined amount per week and, thus, was not compensated on a “salary basis” in accordance with applicable regulations. As a result, his employer was held liable for plaintiff’s overtime pay.

California employers are prohibited from passing on their business expenses to their employees: if an employee uses their personal cell phone to clock in and out, receive or make work-related calls, receive, view or send work-related text messages, the California Labor Code obligates their employer to reimburse those employees a “reasonable” percentage of their employee’s cell phone bill for the employee’s work-related use. Plaintiff’s attorneys argue that it is not enough to simply prohibit employees from using their cell phone for work. Rather, the obligation arises when the employee is required or expected to use their cell phone for work purposes.

In practicing law, staying Ahead of the Curve is critical. That's what we do. Scali Rasmussen, PC, has collated all of the new case law for last year, categorized by area of practice. If you want to stay ahead too, take a look.

We previously reported on the regulations issued for California employers regarding criminal history inquiries. The regulations took effect July 1, 2017. That prior article outlined existing regulations. These regulations have now been updated. Specifically, in December of 2022, the California Civil Rights Department (“CRD”), formerly known as The Department of Fair Employment and Housing (“DFEH”), released its proposed modifications to the 2017 regulations in the Fair Employment and Housing Act (“FEHA”) regarding the legal use of a job applicant’s criminal history.

Up until a few years ago, only employers with 50 or more employees were required to provide sexual harassment training. Starting January 1, 2021, a new law required all employers with only 5 or more employees to provide such training. We previously detailed the requirements of this training, which requires one hour of training for non-supervisory employees and two hours for managerial/supervisory employees, but one important reminder is that the training must be renewed every two years.

In 2021, we reported that the California Supreme Court held that employers must pay meal and rest break premiums (for missed or noncompliant breaks) at the regular rate. This is simple to calculate for an employee earning a standard hourly rate for every hour worked. However, the appropriate calculation is more complex for employees who earn commissions, piece rate (flag or flat rate pay), or other nondiscretionary compensation.

When an employee requests significant time off for health reasons, most employers are aware of their obligations to consider family and medical leave requirements. However, short term leave requests paid out via accrued vacation or sick leave can fly under the radar. Employers are cautioned to remember that even short-term requests for 1-2 weeks off for health reasons qualify for potential FMLA or CFRA leave. If an employee brings such a request, even if it is otherwise paid for by accrued paid time off, employers are obligated to provide a Notice of Eligibility and Rights and Responsibilities within 5 business days of the request – even if the employee does not qualify for FMLA/CFRA leave.

On Friday, January 27, 2023, California Attorney General Rob Bonta announced an investigative sweep, sending letters to businesses with mobile apps that fail to comply with the California Consumer Privacy Act (CCPA).

California has approved a new, alternative “Safe Harbor” warning label for foods containing acrylamide, a naturally-occurring byproduct that occurs during high-heat cooking. Acrylamide is a substance that forms through a natural chemical reaction in certain plant-based foods during high-temperature cooking, and can be found in foods like potato chips, bread, grilled vegetables, nuts, crackers, and olives. There is conflicting evidence regarding the risk it poses to humans. While studies exposing laboratory rats and mice to high levels of acrylamide have been shown to produce cancer, other studies have found no consistent evidence that dietary acrylamide increases the risk of cancer in humans.