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

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Get an update on the current status of the CFPB arbitration rule. We explore several recent cases—all from California–that highlight various issues facing reliance on arbitration agreements. Dealers and their attorneys will face difficult decisions about how to move forward within the new CFPB rules and case guidance; this article highlights additional considerations that should be kept in mind over the next several months.

Split shifts

What are they and what special pay applies?

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A split shift is a work schedule set by the employer that includes a block of unpaid time of more than one hour (other than a bona fide meal period) that occurs between two work periods. For example, a split shift would occur for a day in which the employer schedules an employee to work from 9:00 a.m. until 12:00 p.m. and then again at 2:00 p.m. until 7:00 p.m.

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We previously reported on the Encino Motorcars LLC v. Navarro case, in which federal courts have grappled with the issue of whether dealership service advisors fall within a provision of the Fair Labor Standards Act that exempts from overtime employees in certain dealership sales positions. The U.S. Supreme Court has announced that it will once again review the case, which will hopefully resolve the conflicting court rulings.

Investigation processes

Even common issues and decisions warrant them

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Decisions to discipline and/or terminate employees are serious and often difficult judgment calls that employers regularly face. Because these actions can profoundly affect employee morale and even expose employers to legal claims, it is important for employers to carefully approach these decisions through a fair and credible process. One step in the process that is often neglected is the thorough investigation of the facts leading to the employment action.

How long is too long?

Federal appellate court draws the line for an extended leave of absence, but there are still no easy answers

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A recent Federal Court of Appeals decision serves as a reminder of the legal complexity and uncertainty that employers face in administering medical leaves of absence as a reasonable accommodation. In Severson v. Heartland Woodcraft, Inc., the Seventh Circuit affirmed the lower court’s ruling that an employer did not violate the Americans with Disabilities Act by not granting an employee a medical leave of absence that exceeded his FMLA leave period by two to three months.

Paid holidays

What are employees entitled to?

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In the retail sales environment, holidays are often the busiest and most profitable times and such businesses must schedule adequate staffing. But are employers legally obligated to provide any particular paid holidays off for employees? Car dealerships often offer paid holidays for employees whose departments are closed on the major holidays, and even sales department employees often have paid holidays on Thanksgiving and Christmas. The common practice of offering some level of paid holiday benefits can create the expectation or impression that paid holidays are a legal obligation.

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Last year, there was much publicity and concern arising from the Department of Labor’s new minimum salary levels for employees to qualify for the white collar exemptions from minimum wage and overtime pay under the Fair Labor Standards Act. These new minimum salary levels would have dramatically increased from $23,000 to $47, 476 per year, and included automatic upward adjustments over time. However, a Texas court has stepped in to invalidate these changes.

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We previously published information on the Equal Employment Opportunity Commission’s new reporting requirements for which employers with 100 or more employees would be required include compensation data in their annual EE0-1 reports commencing on March 31, 2018 for 2017 data. These new EEO-1 reports include information regarding total compensation and hours worked by race, ethnicity and gender, EEO-1 category and salary ranges.

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In July, the U.S. Customs and Immigration Service issued a new Form I-9 for documenting eligibility to work in the U.S. For the time being, employers could use either the new form or the existing I-9 Form (which has a revision date of November 14, 2006). But commencing September 18 2017, employers must start using the revised form, which contains a revision date of 07/17/17.

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The Scali Law Firm announced today that Halbert “Bert” Rasmussen has joined the firm as a partner in the Los Angeles office. Rasmussen, previously a partner at Arent Fox, LLP, is highly regarded for the breadth and depth of his industry knowledge and experience in representing major players in car, truck, bus, and motorcycle sales, finance, and technology. “Bert’s addition represents a milestone in the expansion of the firm’s practice, which now includes thirteen lawyers in 5 offices,” said Christian Scali, principal of the Scali Law Firm.

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