Articles, news & legal alerts

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

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You may have heard that 6 Northern California counties (Alameda, Contra Costa, Marin, San Francisco, San Mateo and Santa Clara) have issued a “shelter in place” order, shutting down all non-essential businesses until April 7, 2020, unless extended. “Essential Businesses” include “gas stations and auto-supply, auto-repair, and related facilities”.

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Many employees, especially those who are at worksites that put them in contact with others, are understandably on edge about possible exposure to the virus through their work contacts. Employers have a responsibility to take precautions regarding employee safety and to be prepared for possible incidents of virus exposure.

Off the clock? Not so fast

Lessons from Frlekin v. Apple

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The California Supreme Court recently held in Frlekin v. Apple that employees’ time spent on the employer’s premises waiting for, and undergoing, required exit searches of packages, bags, or personal technology devices voluntarily brought to work by the employees purely for personal convenience is compensable as hours worked within the meaning of Industrial Welfare Commission wage order No. 7-2001, under the “control” test.

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On February 27, 2020, the California Assembly voted on whether to allow for an emergency vote on Assembly Bill 1928. If AB1928 had been brought to a vote and passed, it would have taken effect immediately as an urgency statute to repeal the so-called “ABC test” set forth in the 2018 California Supreme Court case Dynamex Operations W. Inc. v. Superior Court. As we previously reported, the Dynamex ABC test was codified in AB5, which took effect on January 1, 2020 and which creates a difficult standard for businesses to meet in order to classify a worker as an independent contractor instead of an employee.

Ransomware attack hits car dealer

What should you do to prepare?

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In December of 2019, a Florida car dealership was hit by a ransomware attack. This sophisticated style of data security attack breaks into a network and locks access to email, databases, and other essential files and programs. The hackers typically then demand a large payment in the form of an untraceable financial instrument. In this case the hackers demanded 65 Bitcoins, roughly equivalent to $600,000, to restore access to the dealership’s systems.

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On February 10, 2020, the California Attorney General issued an amended version of its proposed California Consumer Privacy Act (CCPA) regulations in a redlined format. Overall the redlined regulations are generally favorable to businesses operating in California in that they clarify requirements without imposing significant new requirements. Here are changes that are particularly notable.

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Under California law, employers are required to report occupational injuries or illnesses to their workers’ compensation insurance carrier, or to the Department of Industrial Relations (if the employer does not have workers’ compensation insurance). Additionally, employers are required to report cases involving “serious injury or illness, or death” to the Division of Occupational Safety and Health (OSHA).

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The California Department of Consumer Affairs (DCA), which includes the Bureau of Automotive Repair (BAR), is reporting that its licensees are being targeted in attempted fraud schemes and is urging awareness and caution. This is an important message for all staff members, but also a good opportunity to remind them that any communication with a licensing agency such as BAR or the Department of Motor Vehicles should be treated seriously. Following good fraud prevention habits will also help prevent important notices such as requests for information from falling in the cracks and leading to license enforcement.

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Before you issue those employee expense reimbursement checks for January, don’t forget that the IRS standard mileage reimbursement rate was reduced to 57.5 cents per mile for 2020—down from 58 cents per mile in 2019. The standard IRS mileage rate is usually used as a simpler alternative to calculating the actual reimbursable expenses attributable to an employee’s use of their personal vehicle for work, and such rate is generally presumed to be sufficient to cover the actual expense.

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