Articles, news & legal alerts

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

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Lyft, Uber, Sidecar and other such “rideshare companies” are undoubtedly changing the automotive industry. The state of California and many of its cities have embraced rideshare companies to varying degrees with new regulations. But lawmakers have not adjusted vehicle sales and finance laws to accommodate this new business model. And rideshare companies continue to innovate, most recently by establishing programs to sell or lease vehicles to their drivers through franchised auto dealerships. These programs raise several difficult legal issues for dealers who desire to participate in these programs to increase their sales performance or revenues.

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This summer, the Department of Labor (“DOL”) released proposed amendments to the “white collar” exemption standards under the federal Fair Labor Standards Act (“FLSA”). The white collar exemptions from the FLSA overtime requirements include the executive, administrative and professional classifications. A 60-day public comment period ended on September 4, 2015 and now the DOL will review and evaluate the public comments submitted and issue final amendments, which may differ from the proposed amendments. It is unknown exactly when the final amendments will be issued, however, they are expected to take effect some time in 2016.

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Although the California sick leave law (Healthy Workplaces, Healthy Families Act of 2014) took effect in July of this year, employers are already anxious for clarification on its practical application. In mid-July, certain issues were clarified through urgency legislation amendments (addressed in our previous newsletter). On August 7, in an opinion letter, the Labor Commissioner issued an employee-friendly interpretation of the legislation as it applied to employees who work 10-hour shifts.

Class action waiver in the Form 553-CA-ARB sale contract is enforceable

California Supreme Court ruling leaves window open for consumers to nonetheless escape arbitration

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Today, the California Supreme Court has issued its long-awaited ruling in the case of Sanchez v. Valencia Holding Company LLC with respect to the arbitration clause in the Form 553 CA ARB retail installment sale contract.

FTC cracks down on dealer advertising again

What can you do to avoid gambling with misleading advertising?

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The Federal Trade Commission (FTC) has again targeted automobile dealers for allegedly deceptive advertising. If you are familiar with the CNCDA’s 2015 Advertising Law Manual, authored by The Scali Law Firm, you already know that the FTC and other regulators are targeting dealers nationwide over advertising violations and your best bet is compliant advertising.

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As anticipated, the California legislature has attempted to clean-up some loose ends left by the original paid sick leave law (AB 1522) which took effect on July 1st. Although these changes may ultimately create some additional questions, it does provide clarity in some areas where employers were left guessing. Moreover, these changes provide some additional options and flexibility for certain elements of compliant policies.

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Phishing techniques have become much more sophisticated, with hackers doing reconnaissance on their victims, targeting those in your organization that have access to confidential financial information or non-public, private information of customers. They cull data from the Internet and social media sites, such as LinkedIn, for tidbits of personal and professional information that can be used in making phishing emails look legitimate. They know where their victims work, whom they do business with, the names of their bosses, and email addresses. The tactic is called spear-phishing.  How do you protect against it?

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A federal district court held that auto dealerships are not required to install hand controls in vehicles they offer for sale in their inventory to comply with the Americans with Disabilities Act. This was the most recent in a series of victories of this type for auto dealers in California faced with these types of lawsuits. But this story isn’t over.  And we strongly urge you to discuss an appropriate course of action for your dealership with your automotive attorneys, because this issue will not be fully resolved for some time to come.

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A sales manager is hauled away from the dealership in handcuffs with Department of Justice officials standing by. At his arraignment he is charged with several counts of fraud and grand theft auto. The local news media is all over this story and highlights the dealership in local coverage. Customers start complaining. Employees quit. Good times. What should you do if your employee is arrested/charged, but not convicted, of a serious crime, endangering your business' reputation?

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The California Supreme Court says a prevailing employer in a discrimination, harassment or retaliation case under the Fair Employment and Housing Act cannot recover mere “costs” without a finding that the employee’s claim was frivolous.

Employment Arbitration Agreements

PAGA waiver issue resolved (for now) for the State, but Federal activity continues…

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Employers have increasingly relied on arbitration agreements with employees for disputes arising out of the employment relationship, and class action waivers contained in those agreements have provided a means to avoid class or representative actions for those disputes as well. In 2014, the California Supreme Court affirmed the enforceability of class/representative action waivers in arbitration agreements generally, but carved out an exception for actions brought under California’s Private Attorneys General Act (“PAGA”). However, a number of federal courts have issued contrary rulings, and the Ninth Circuit Court of Appeal just heard arguments on this same issue in a trio of consolidated wage-related cases.

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This Alert is generated to calm any panic caused by reports from other sources that service advisors are no longer exempt from overtime pay requirements under federal law as a result of the Ninth Circuit’s holding in Navarro v. Encino Motorcars, LLCAt least for now, for California-compliant dealerships, Navarro should have no effect.

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