Articles, news & legal alerts

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

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Dealers should keep in mind that the terms of a Forbearance Agreement are not etched in stone but are negotiable, so care should be taken not to accept and sign the flooring lender’s first draft of a Forbearance Agreement, but instead to closely examine it and propose reasonable revisions. With that process in mind, here are examples of key terms typically found in a Forbearance Agreement, and the negotiating points a dealer should be aware of to ensure that negotiations will hopefully yield a fair and acceptable Forbearance Agreement...

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Scali Rasmussen attorneys descended on Las Vegas to attend the 2018 NADA Conference where they also entertained their clients and friends of the firm at the Mandarin Hotel on Friday, March 23.

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Congress passed the Military Lending Act (MLA) in 2006 to provide specific protections to active duty service members and their dependents from perceived predatory lending. The Department of Defense (DOD) interprets the rule, and on December 14, 2017, published new interpretive guidance of the MLA that affects car dealers.

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Now that the new Used Motor Vehicle Trade Regulation Rule that made significant changes to the Buyer’s Guide is in effect, you may have questions about how to implement the changes. This Coffee Break addresses common questions and pitfalls in how to use and display the new Buyer’s Guide.

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In our 2018 New Laws publication, we reported on the new Immigrant Worker Protection Act (Labor Code Section 90.2) that went into effect on January 1, 2018. This new Act in part requires employers to post a written notice to employees of an upcoming inspection by immigration enforcement authorities of I-9 Employment Eligibility Verification forms or other employment records, within 72 hours of receiving notice of the inspection. The posted notice must contain the following information...

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Employment arbitration agreements have become commonplace among employers’ personnel documents. However, some unintended consequences can result when arbitration agreement provisions are contained within an employee handbook. This is because most employee handbooks contain provisions to ensure that the employment policies contained therein are not construed as binding agreements. As such, it is important to distinguish policies from agreements.

Scali Rasmussen attorneys published in the Daily Journal

New ruling on bonus pay favors employees

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The Daily Journal has published a column (subscription required) by Scali Rasmussen attorneys Chris Scali, Jack Schaedel and Jasmin Bhandari. The article provides an expert analysis of the recent California Supreme Court reversal of the Court of Appeal's decision in Alvarado v. Dart Container Corp.—an important employment law case that dictates how to calculate bonus overtime. The three are very familiar with this area of the law, having written about the case before.

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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.

Bonus overtime overhaul, a departure from fairness

California Supreme Court decision exposes employers to liability for unpaid overtime on flat sum bonuses

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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.

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