Dealership asset sales commonly involve the termination by the seller of its employees at closing, and the rehiring of the employees by the buyer. Depending on the number of affected employees, both federal and state law may impose prior notification requirements on the seller, failing which the seller could be hit with substantial financial damages and penalties.

Yesterday, the California Supreme Court reversed the Court of Appeal deciding the issue of how overtime pay must be calculated for flat sum bonuses, such as flat bonuses for working on a weekend. Unfortunately, its Alvarado v. Dart Container Corp. opinion presents bad news for employers and dealers that have been paying overtime by dividing such bonus by all hours worked to determine a regular rate of pay, and then multiplying by 0.5 to determine the overtime premium rate for such bonus.

Jack Schaedel, Co-Chair Labor & Employment Practice for Scali Rasmussen is quoted in the Daily Journal article Google now sued by fired engineer from other end of political spectrum.

The article Auto Dealers Should Note FTC’s Deceptive Ad Actions was recently featured in Law360. Written by Scali Rasmussen attorneys Christian Scali, Melanie Cliff and Monica Baumann, the article discusses recent actions by the FTC against auto dealers who deceive consumers by switching languages.

The SLF, is a charitable 501c(3) organization separate from and independent of the Sacramento County Bar Association. The group provides grants to organizations that improve the administration of justice, enhance public confidence in the legal profession, cultivate understanding of and respect for the rule of law, and support law-related public services.

The Labor Commissioner’s Office recently updated its FAQs on the subject of rest breaks to provide further clarification and guidance on some nuances that employers may overlook. We already know the basics—that employers must authorize and permit non-exempt employees to take a rest break of at least net ten consecutive minutes for each four hours worked, or major fraction thereof, and that the break must, insofar as practicable, be taken in the middle of each work period. However, the FAQs illuminate a few other issues.

A reminder to employers that certain 2016 changes to disability benefits (per AB 908) take effect January 1, 2018. Employers should revise any policies or notices that are affected by these changes.

A little-noticed change in the tax bill recently signed in to law will affect how employers resolve sexual harassment claims against them. Section 13307 of the tax bill amends the Internal Revenue Code to provide that no individual may deduct a “settlement or payment related to sexual harassment or sexual abuse if such settlement or payment is subject to a nondisclosure agreement.” It also prohibits the deduction of attorney’s fees related to any such payment.

As of January 1, 2018, “adult use” or recreational marijuana became legal in California. Since then, hundreds of dispensaries have opened across California selling marijuana products to any adult over the age of 21. However, this change has surprisingly little impact on your rights and responsibilities as an employer.

Justices Weigh Overtime Rules, an article by Christian J. Scali, Jennifer W. Burns and Jack Schaedel, opining on Encino Motorcars, LLC v. Navarro, a case before SCOTUS this term addressing the applicability of overtime exemptions under the FLSA to auto dealership service advisors, was published in the Daily Journal yesterday. SCOTUS heard oral argument in that case on January 17, 2018.