Articles, news & events

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

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Earlier this year the Department of Defense rescinded its guidance effectively prohibiting the sale of GAP contracts to “covered” military borrowers. This is a victory for service members and their families, who will once again have access to financial products that protect them in the event of a total vehicle loss. This article covers the remaining requirements regarding the Military Lending Act and how dealers should design their compliance.

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Data breaches continue to be among the biggest risks that businesses face today. This is due to both the prevalence of bad actors that seek to access and use consumer data for criminal purposes, as well as laws, such as the CCPA, that allow consumers to bring private actions against businesses for a data breach. One of the simplest steps a business can take to prevent a data breach is to limit access to sensitive data.

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As we previously reported, last year, the California legislature passed AB 5, which codified the “ABC Test” under the Dynamex case to determine whether a worker qualifies as an independent contractor. Under the ABC Test, a worker is presumed to be an employee unless the employer can show that: A) the worker is free from the direction and control of the hiring entity, B) the worker performs work that is outside the hiring entity’s main business; and C) the worker normally performs work in an independent business or occupation that is in the same area as the work that the worker is performing for the hiring entity. AB 5 carved out some exceptions to application of the stringent ABC Test, under which the previous (and more lenient) test under the Borello case applies. Now, AB 2257, which took effect immediately, expands and clarifies AB 5’s previous provisions as follows...

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On September 28, 2020, Governor Newsom signed AB 1731 as urgency legislation that took effect immediately. This bill, among other things, adds Section 1279.7 to the Unemployment Insurance Code to create an expedited process for employers to be approved for work-sharing programs. The bill states that, according to many economists, work sharing programs are much better options than laying off workers, as these programs keep workers in their jobs, let employers cut their hours, and provide for benefits that allow workers to backfill their lost wages.

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Governor Newsom signed two new laws at the end of the legislative session this year that modify the California Consumer Privacy Act (CCPA). Most crucially for the majority of businesses in California, one of the laws extends the temporary employee and business-to-business (“B2B”) exemptions from the definition of “Consumer” in the CCPA. The second changes how businesses must treat health privacy.

Scali Rasmussen Partner Monica Baumann quoted today in Automotive News

California's fossil fuel ban likely in for long fight

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Within 15 years, the nation's largest auto market would stop selling new passenger cars and trucks with internal combustion engines under an executive order signed last week by California Gov. Gavin Newsom. Scali Rasmussen Partner Monica Baumann explained to Automotive News that the move is the first step in what will be a long fight over the state's authority to set vehicle-emission standards.

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Today, September 23, 2020, Governor Gavin Newsom issued a new Executive Order directing the California Air Resources Board (CARB) to develop regulations that lead to all new passenger vehicles and light trucks sold in California being zero-emissions by 2035. It also requires that new medium- and heavy-duty trucks and buses sold and operated in the state be zero-emissions by 2045.

Federal privacy law

Will we see a national standard?

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With the California Consumer Privacy Act in full force and effect, businesses in California and across the country are starting to wonder if the time to pass a national standard is now. However, with the 2020 election looming and little action from Washington, such a bill is unlikely to relieve California businesses in the near or even medium term future.

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The U.S. Department of Labor (DOL) issued clarifications for provisions in the Families First Coronavirus Response Act (FFCRA) regulations pertaining to paid leave. They've also released new FAQs clarifying provisions in the FFCRA related to childcare issues. Meanwhile in California, Governor Newsom has signed legislation that expands Coronavirus paid sick leave coverage to employers who have not been covered under the FFCRA, and that intensifies notification requirements in response to a potential employee exposure to the COVID-19 virus. In one way or another, these changes affect almost every California employer.

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