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

The “Headless PAGA” doctrine

Implications for California employment litigators

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The Private Attorneys General Act of 2004 (Lab. Code, § 2698 et seq.) (“PAGA”) has long served as a formidable vehicle for employee-plaintiffs to pursue civil penalties for Labor Code violations on a representative basis. However, California courts have recently placed renewed focus on the standing requirements for PAGA claims—particularly in cases where the named plaintiff does not pursue his individual PAGA claims. This emerging judicial doctrine is colloquially referred to as “Headless PAGA.”

Arbitration in sexual harassment cases

The impact of the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (EFAA) on California Employers

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In recent years, the landscape of employment law has undergone significant changes regarding the enforceability of arbitration agreements in employment cases. The enactment of the Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act (“EFAA”) has introduced crucial exceptions to the enforcement of mandatory arbitration clauses. The EFAA allows employees who allege sexual harassment, gender-based discrimination, or sexual orientation harassment to evade arbitration agreements and take their claims directly to court.

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The last five years has seen a dramatic rise in cases involving exposure to PFAS—also known as “forever” chemicals—and cases by municipalities and water districts seeking damages caused by water contamination. Unlike benzene, cigarettes and mold, PFAS claims appear to have legs, at least for now.

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Some exotic brands, such as Bugatti, Pagani, and Koenigsegg, sell some or all of their repair parts directly—without passing through a U.S.-based parts distributor. Unlike mainstream manufacturers like Mercedes-Benz or Audi who import parts through U.S. distribution subsidiaries and sell them to dealers, these brands require U.S. dealers to purchase parts directly from their European headquarters. As a result, the dealer becomes the importer of record and is responsible for paying U.S. customs duties and tariffs.

California’s 2025 arbitration reset

What litigators need to know

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For California’s complex employment litigators, 2025’s arbitration rulings have introduced new fault lines in the enforceability landscape—particularly where statutory rights, procedural fairness, and mutuality collide.

Weighing withdrawal

Navigating expungement threats to lis pendens notices

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You recorded a Notice of Pendency of Action (the “Notice”), also referred to as a “lis pendens,” in your litigation involving claims affecting real property. You now have priority to any judgment obtained after the Notice was recorded which affect the property.

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For 60 years the U.S. Government favored the idea that employers should take into account the minority status of employees to foster diversity in the workplace and remedy past discrimination. In a dramatic reversal, the current President of the U.S. has decreed that all such programs should be illegal. At the same time, the laws that encourage diversity programs remain in place. So, what is an international business with a presence in the U.S. to do?

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Read on for more details on how we are getting involved in our community and remaining ahead of the curve in our industry. In this issue, we review the productive seasons of Winter 2024 and Spring 2025, where we attended and sponsored several events and conferences. We also highlight our Firm’s recent industry recognition, including being recognized in the Chambers California Spotlight Guide. The Firm looks forward to continuing the delivery of exceptional service to our clients and embracing ongoing opportunities to make a positive impact on the community.

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While California’s statewide minimum wage rate ($16.50) went into effect January 1, 2025, July will bring a new round of both local and industry-specific minimum wage increases. Employers should be cognizant of these increases, review applicable minimum wage standards for their employees, and ensure that the correct rate is being applied.

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The California Labor Code provides that required meal breaks may be waived by mutual consent of both the employer and employee for any shifts in which the employee works no more than 6 hours, and the second meal period may also be waived if the first meal break is not waived and the employee works no more than 12 hours in the shift. Many employers use standing written meal break waivers in which the employee agrees in advance to waive future meal breaks that fit within these waivable parameters. In Bradsbery v. Vicar Operating, Inc. a California appellate court addressed the enforceability of these written meal break waivers.

Clock’s ticking

LA County’s Fair Workweek law brings big changes for retailers

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Effective July 1, 2025, Los Angeles County’s Fair Workweek Ordinance will impose new scheduling mandates on large retail employers operating in unincorporated areas of the county. Covered employers—those with 300 or more employees globally—must provide good-faith estimates of work schedules at hire, post finalized schedules at least 14 days in advance, and offer additional hours to current employees before hiring externally. The ordinance also requires a 10-hour rest period between shifts and imposes “predictability pay” for last-minute changes. Though more straightforward than many complex wage-and-hour regulations, the law carries real teeth, including fines of up to $500 per violation and $1,000 for retaliation.

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The annual List ranks the legal industry’s leaders in Los Angeles County. “We’re grateful to be featured with such respected industry leaders,” says Founder and Managing Shareholder Christian Scali. “The recognition highlights the legal excellence and tireless dedication of our team to our clients and our profession.”

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The Uniformed Services Employment and Reemployment Rights Act (USERRA) is a federal law that has been in place since 1994, which protects military service members and veterans from discrimination in employment on the basis of their service, and allows them to regain their civilian jobs after their service. On January 2, 2025, the Senator Elizabeth Dole 21st Century Veterans Healthcare and Benefits Improvement Act (Dole Act) took effect and included a new amendment to USERRA that expanded USERRA’s protections for veterans.

Lemon Law Reform

Senate Bill 26 “Clean-Up” of Assembly Bill 1755

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When Assembly Bill 1755 (AB 1755) was signed into law, on September 29, 2024, it marked a major shift in how California handles lemon law disputes—streamlining the resolution processes between consumers and manufacturers, including a consumer notice to a manufacturer 30 days before filing suit. But as with any major change, a few loose ends remained.

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Courts have grappled with how to apply California’s general cost recovery rule, particularly in the context of settlements that provide that the plaintiff may seek costs (including attorney’s fees) by motion. The recent California Supreme Court decision, Madrigal v. Hyundai Motor America, No. S280598, 2025 WL 943693 (Cal. Mar. 20, 2025), has brought some clarity. 

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While employees frequently sign arbitration agreements as part of their onboarding, when a grievance arises, they oftentimes either choose to ignore that agreement, or expect to challenge its enforceability and file suit instead. Employers are then forced to file a motion to compel arbitration to enforce that agreement. In this case, Arzate v. Ace American Insurance Company, the trial court granted the motion, enforced a class action waiver within the agreement, and stayed the action pending arbitration.

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Scali Rasmussen, PC announced today that the firm’s Labor & Employment and Franchise practices have been recognized in the inaugural Chambers California Spotlight Guide for 2025. Distinctions from Chambers Spotlight recognize exceptional small and midsize business law firms throughout the state.

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