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.

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.

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.

Auto industry expert Halbert “Bert” Rasmussen, who joined The Scali Law Firm in 2017, will share the firm’s title. The change to Scali Rasmussen is a major milestone in the development of the firm Christian J. Scali founded in 2013 to bring to dealerships and other clients a deep understanding of the automotive industry and relevant state and federal laws and regulations.

Each year The Scali Law Firm produces a compendium for clients and colleagues, with an overview of new laws and a review of legal developments in the year that past.

The Scali Law Firm announced today that Jack Schaedel, one of California's leading labor and employment lawyers, has joined the firm as a partner.

On December 14, 2017, the Department of Defense (DOD) published new interpretive guidance of the Military Lending Act (MLA) that affects car dealers who sell GAP contracts and other credit-related services and products.

In the midst of the 3rd largest wildfire in California’s history, we thought you would appreciate a primer on some of your obligations in regards to pay and leave issues during times of natural disaster.

The Scali Law Firm had two articles published in the December edition of ADOMA News Trax. If you missed them in last month's Coffee Break newsletter, don't let them slip by again.

What options do California employers have when departing employees try to take clients and valued co-workers with them? More than you might think.

An employer can be severely impacted by an extended leave of absence taken by a high-ranking or functionally indispensable employee. If such an employee needs a leave of absence that is covered under the Family Medical Leave Act and/or California Family Rights Act, the employer may analyze whether the “key employee” provisions of these acts apply. A key employee designation may impact an employer’s ability to replace the employee and deny reinstatement of the employee to their job after the leave.