Articles, news & legal alerts

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

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Although the California Covid-19 Paid Sick Leave bill ended in September 2021, a new bill has been put in place to continue paid sick leave for those affected by Covid-19. This new bill is effective February 19th, 2022 and is retroactive to January 1st 2022. The key similarities and differences between the 2021 bill and the new bill are listed below.

Court of Appeal holds that Covid 19 losses not covered by commercial property insurance

2021 case review: The Inns by the Sea v. Cal. Mutual Ins. Co.

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In this case a hotel sued its insurer to recover for COVID related losses. As the Court itself related in the decision, the case “[P]resent[ed] an issue of first impression for a California appellate court: does a commercial property insurance policy provide coverage for a business’s lost income due to the COVID-19 pandemic?” The Appellate Court affirmed the trial court’s decision that there was no coverage, as the spread of the disease did not cause direct physical damage to the business’ property that resulted in losses.

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The 2021 legislative session touched on a wide array of business topics. Changes in the law include regulating debt collection, automatically renewing service contracts, and privacy. These laws do not affect all businesses, but are nonetheless worth every business owner’s attention, as they may shape you conduct business in California in the future.

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In California, another year means another set of new employment laws that impose burdens on employers. The 2021 legislative session was no exception, with new laws passed and signed that address employment-related confidentiality agreements, wage theft, and family medical leave, to name a few areas. The good news for California employers is that none of the new laws make revolutionary changes to employee rights or employer responsibilities, but employers nonetheless need to understand these changes and adjust their policies to avoid potential liability in the future.

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Scali Rasmussen announced today that it has been selected by the Los Angeles Business Journal as a finalist in its "International Business Award." The publisher says the first annual forum and awards celebrates "the global business community and those outstanding corporate stewards who are leading the way in international trade, investment, technology, and innovation."

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Scali Rasmussen announced today that its Founder and Managing Shareholder, Christian Scali and Shareholder Jeffrey W. Erdman have been selected as nominees by the Los Angeles Business Journal for its 2021 'Leaders in Law Awards.' The journal's Publisher and CEO, Josh Schimmels, says the awards "recognize the achievements of leading attorneys and firms who make a significant impact on the Los Angeles business community."

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Businesses across the country that have 100 or more employees will need to require COVID-19 vaccinations for all employees or regularly test unvaccinated employees for the disease by January 4, 2022. On September 9, 2021, President Biden announced that he was directing the Department of Labor’s Occupational Safety and Health Administration to adopt Emergency Temporary Standards (ETS) on vaccination and testing, but did not announce a compliance deadline at that time. Now, business can get through the holidays without implementing the mandate, but will need to have it in place at the start of the New Year.

Preparing for the federal COVID mandate

Exception for prior COVID infection?

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On September 9, President Biden announced that the Department of Labor would develop an emergency rule to require employers with 100 or more employees – amounting to over 80 million employees – to mandate vaccination of their workforce against COVID-19 or have employees regularly test for COVID-19. The Biden administration has not yet released the new rule for private employers, but many businesses are starting to prepare.

Preparing for the federal COVID mandate

Protecting employee privacy

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This month, the Biden Administration announced that it has directed the Department of Labor’s Occupational Safety and Health Administration (OSHA) to issue Emergency Temporary Standards requiring that employers with 100 or more employees mandate that employees be fully vaccinated for COVID-19 or test on a weekly basis for COVID. OSHA has not yet released these Temporary Standards, but the news has already raised important questions for employers, including how to handle employee medical information. This article reviews the state of the law with respect to employee health information and makes recommendations regarding what every employer should do now to prepare for the new Temporary Standards.

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It’s been a busy 2021 and the momentum is only picking up as we enter the second half of the year. In our continued efforts to regularly keep our clients and friends apprised of useful news, information and resources that can impact your business, we have assembled this list highlighting some of our activities over the past 12 months.

An American solution

Automotive franchise laws serve local communities and consumers

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It is fashionable of late to decry the franchise automotive retail system as inefficient, costly to consumers, and unable to innovate. These complaints are partially inspired by the rise of new brands such as Tesla that do not rely on independent, franchised dealers to sell their vehicles and, therefore, run into conflict with franchise laws in many states. In the authors’ view, what the critics miss is that the franchise system and franchise law are a result of a long history of conflict between manufacturers and dealers that governments mediate for the benefit of consumers and local economies.

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The Los Angeles Times is reporting that Los Angeles County will issue a new health order that will mandate that everyone, regardless of vaccination status, wear masks when in public indoor spaces starting at 12:01 AM on Sunday, July 18. Currently, only individuals who are not fully vaccinated are required to wear masks in public indoor spaces. This new mandate follows on the heels of recommendations from the County that everyone wear masks indoors in response to the increase in spread of COVID-19 due to the prevalence of the Delta Variant. County health officials said that this mandate will likely be in place until there is a decrease in transmission County wide.

Reimbursing business expenses

Litigation hot topic

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At the beginning of the pandemic we shared how telework realities of quarantine resulted in potentially new reimbursable business expenses for employees such as home internet, home telephone, utility, office furniture and other costs. Now, even when employees are getting back to the workspace, many will continue to use their personal devices for business use. Where such use is reasonable and necessary, the employer must reimburse such expenses. The first step is to make sure employees can seek reimbursement for expenses such as cell phone use. Since reimbursement of business expenses is a non-waivable right, employees are entitled to reimbursement and can bring a class action or PAGA case seeking the same even if they never directly requested reimbursement from the employer. Several such cases have already been filed across California.

Cal/OSHA publishes new employee rules

More changes still likely

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In November of 2020, Cal/OSHA adopted emergency COVID-related regulations to prevent the spread of COVID in the workplace. Six months later, on June 4, 2021, it announced changes to these restrictions that it will likely formally adopt in the next few days. These restrictions apply to employers and their employees.

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Congress passed the American Rescue Plan in March of 2021 to extend the paid leave tax credits available to employers with less than 500 employees through September 30, 2021. While employers are no longer required by federal law to provide the leave, if this leave is voluntarily provided (or, provided pursuant to a state or local mandate), employers can continue to obtain tax credits for the maximum amount allowed under federal law for leave taken through September 30, 2021. Please note that the amount paid to the employee may not exactly match the tax credit available if the state or local order requires paying out such leave at a different amount than the federal maximum tax credit.

COVID vaccine mandates

Not recommended at this time

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As we transition back to the “normal” times before March 2020, many employers are wondering whether they can mandate that their employees be vaccinated for COVID. The Equal Employment Opportunity Commission (“EEOC”) and the California Department of Fair Employment and Housing (“DFEH”) have released guidance, stating that subject to certain religious and medical exemptions, the answer is yes. However, we do not recommend employers implement a vaccine mandate, and instead recommend employers take a more relaxed and voluntary approach to obtaining high rates of vaccination among their employees. We have provided the following Frequently Asked Questions and answers.

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There are many reasons why employers may want or need to know whether their employees have been vaccinated against COVID-19: the safety of staff and customers, a desire to modify mask rules, or even legal mandates. As a general rule, employers may ask employees for proof that they have received a COVID vaccination, but there are several factors that should be considered if and when doing so. These include ensuring the questions are asked correctly, that privacy measures are in place, and that employee information is safeguarded.

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