The California Family Rights Act (CFRA), which provides leave for employees for their own (or a family member’s) serious medical condition as well as baby bonding underwent significant changes in the last two years, making it different from FMLA leave in several ways.

Although portions of the California Consumer Privacy Act (“CCPA”) and regulations are not yet effective, California Attorney General’s (“AG”) office is not waiting to enforce. As it stands, the CCPA was modified by the California Privacy Rights Act (“CPRA”) and is not in full effect until January 2023. However, the majority of the CCPA is currently in effect and Sephora is the first one to feel it.

National legislation aimed at reducing inflation is quickly working its way through Congress and is anticipated to hit President Biden's desk for signature as soon as the beginning of next week. Newsworthy in itself, this is especially important news for automobile dealerships because when it is signed into law the Inflation Reduction Act (the "IRA") will cause immediate changes to the federal EV tax credit that will very likely impact vehicles already on your lot.

In the courtroom, at the conference table, and in the community, Scali Rasmussen (SR) continues its efforts to regularly keep clients and friends apprised of useful news, views and resources that can impact your business. Here are some highlights of our activities over the past year.

Reynolds and Reynolds has just introduced a revised version of their "553" retail installment sales contract. The form was last revised in 2016, and Reynolds and Reynolds’ new "8/22" version has come out in both arbitration and non-arbitration versions, LAW®553-CA-ARB8/22 and LAW®553-CA 8/22. Reynolds and Reynolds noted that the revised forms contain the following changes:

While the courts sometimes give employers good holdings that provide a solid foundation for risk management and achieving 100% compliance, most other times, navigating the ever-shifting sands of California’s employment law decisions can be more like trying to tread water in quicksand. Recent rulings are no different – some good and some bad. But keeping abreast of developments and planning a strategy to deal with the changes can help keep you from being mired in a morass. Here’s what’s new, let’s talk about compliance strategies when your arms get tired.

You own the business but not the building where it all happens. Consider your commercial lease options as a critical component of your business. In California, there is no standard lease agreement—every commercial lease is unique, and nearly every substantive paragraph, clause, provision and term can impact your business.

As of July 1, attorneys, brokers and lenders are must have revised their real property purchase and sale agreements and refinancing forms to incorporate the fair appraisal notice now required under California Civil Code Section 1102.6. By January 1, 2023, real estate appraisers must have a "cultural competency" component to their required continuing education. This is all a result of the nearly unanimously passed Fair Appraisal Act that was signed into law on September 28, 2021 in California to combat race-based inequity.

Most civil actions in the California state courts are relatively simple, both from a factual and legal standpoint. Similarly, most civil actions involve one plaintiff (or one group of plaintiffs) and one defendant (or one group of defendants). The California Legislature and each Superior Court have imposed “standard” case management policies and procedures that govern these “simple” cases. In general, these cases are intended to be resolved (by trial or settlement) within 1-2 years from the filing of the complaint. Although this period can be extended for exigent circumstances, trial courts throughout the state pressure lawyers to meet this deadline.

California voters passed Consumer Privacy Rights Act (“CPRA”) which amended the California Consumer Privacy Act of 2018 (“CCPA”) and created the California Privacy Protection Agency (“Agency”). The Agency enforces the CCPA and adopt regulations to further the purpose of the Act. As part of the process to adopt new regulations, the proposed regulations are made available to the public in order to allow a 45-day comment period.

Attorney Jasmin Bhandari has been elevated to co-chair of Scali Rasmussen's Labor & Employment (L&E) Department, the preeminent legal boutique announced today.

In 2016 California enacted legislation that incrementally raises minimum wage for all employers through 2023. The statewide minimum wage effective January 1, 2022, is $14.00 per hour for small businesses (1-25 employees) and $15.00 per hour for large businesses (26+ employees). However, local cities and counties are allowed to enact minimum wage rates, and ordinances in such cities may establish higher minimum wage rates for employees working within that jurisdiction. Employers must follow the minimum wage rate that is most beneficial to the employee.

Under the California Consumer Privacy Act (“CCPA”), businesses are required to respond to verifiable consumer requests. What should you be ready to disclose, and how should you respond to these requests?

Summer is here, and the warmer weather requires employers to monitor potential heat-related illnesses among their employees. Even if your employees are not out working in the sun all day, whenever they are working outside or exposed to hot temperatures—for instance in a service shop or on a sales lot—they could fall prey to heat-related illness. California has regulations that govern heat exposure, and a temperature of 80°F triggers the requirements for California’s Heat Illness Prevention Standard.

Scali Rasmussen announced today that Founder and Managing Shareholder Christian Scali and Shareholder Halbert Rasmussen are recognized as 'Legal Visionaries' in the Los Angeles Times' second annual Business of Law magazine. The special supplement spotlights professionals who have exhibited noteworthy achievements over the last two years, including client successes, leadership positions within their firm and community at large, board affiliations and recognitions.

On May 23, 2022, in Naranjo v. Spectrum Security Services, Inc., the California Supreme Court settled an open question concerning the nature of the meal break premium employers owe to employees when they miss a meal break. It held that they are wages, must be disclosed on the wage statement and must be accurately paid out on the final check. Furthermore, in the event they are not accurately paid, the employer can be liable for waiting time penalties. Finally, the California Supreme Court clarified the rate of pre-judgment interest that applies (7%) to failure to comply with these requirements.

The Federal Trade Commission (“FTC”) amended their Standards for Safeguarding Customer Information (16 CFR Part 314) (“Safeguard Rule”) that requires compliance by December 9, 2022. The Safeguard Rule was designed to protect the security of customer information and the recent amendments were for the purpose of keeping up with technology. Specifically, the latest version of the Safeguard Rule requires financial institutions (which includes motor vehicle dealers) to develop, implement, and maintain an information security program with administrative, technical, and physical safeguards designed to protect customer information. The FTC published detailed guidelines to maintain compliance with the Safeguard Rule.

In a long-anticipated 8-1 decision, the United States Supreme Court invalidated part of a key 2014 California Supreme Court Private Attorneys’ General Act (PAGA) decision, Iskanian v. CLS Transportation Los Angeles, LLC (2014) 59 Cal.4th 348. Absent a possible future legislative “fix” by the California legislature, the state of play is that California employees who sign representative class waivers may be compelled to arbitrate their individual PAGA claims while their representative PAGA claims are dismissed in state or federal court.

California employers facing an attorney demand for waiting time penalties for allegedly failing to pay a freelancer on the employer’s next scheduled employee payday can take comfort from a recent Ninth Circuit Court of Appeals decision, Bijon Hill, Plaintiff-Appellant, v. Walmart Inc., No. 21-15180 (9th Cir. Apr. 26, 2022). Hill involved a print model engaged for 15 day-long non-consecutive photo shoots arranged by Walmart through a third-party agency. Though the agency contract specifically designated models as “independent contractors” and set out a specific payment schedule, Hill claimed she was an employee entitled to be paid on Walmart’s next regular payday. Though she was paid in full, she argued she was entitled to over a half-million dollars in waiting time penalties.

Bleach, hand sanitizer, single use plastic bags all were necessary to human health and safety during the pandemic. Will they be blackballed again once there is a cure, or will we stick by our old tried and true friends?