Articles, news & events

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

FTC issues new proposed safeguarding rule

What would it mean for California dealers?

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The Federal Trade Commission in March of 2019 proposed new changes to its Safeguards Rule, which dictates how a financial institution must protect consumer data. In a recent statement the National Automobile Dealers Association opposed the proposed Rule change, citing a study that indicates that the rule change would impose hundreds of thousands of dollars in additional costs on dealers of all sizes. For California dealers that are facing compliance with the California Consumer Privacy Act, though, the question is whether the proposed change to the Rule would impose changes that differ significantly from CCPA requirements.

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For decades the National Highway Transportation Safety Administration (NHTSA) has required a “wet signature” on an odometer disclosure for sales of vehicles 10 model-years old or less. That era came to an end this September as NHTSA released its final rule allowing states to develop new odometer disclosure forms that may use an electronic signature. The rule also expands the disclosure requirement to cover vehicles 20 model-years or less. However, for California dealers there remain state laws to prevent fully electronic vehicle sales, and therefore additional steps before California can move into the electronic future.

We really mean it this time…

Department of Labor issues final rules on minimum salary levels for white collar overtime exemption

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It has now been four years since we initially reported on the new rules proposed by the Department of Labor to update the minimum salary requirement for the federal white collar overtime and minimum wage exemptions. Since then, the proposed rules have bounced around between the DOL under multiple presidential administrations, the federal courts, and the public forum during public comment periods. We have been on the sidelines reporting play-by-play on the status of these rules at every turn and it appears that we may finally have some resolution!

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Last year, we discussed the California Supreme Court decision in Dynamex v. Superior Court, wherein the Court imposed a more stringent standard for employers to show that a worker is an independent contractor and not an employee. This month, Governor Gavin Newsom passed a law that incorporates the Dynamex decision into statutory law and gives the law broader scope.

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The type of biometric privacy lawsuit filed last month against a Hilton Hotel in Chicago is a harbinger of privacy litigation to come—but a very similar case is not likely to come soon to California, where the recently minted California Consumer Protection Act (CCPA) excludes employees like the plaintiff against Hilton.

EVENT on October 26, 2019

ADOMA Mini Conference

California Consumer Privacy Act Compliance

The ADOMA annual Mini Conference is a full day of education and resource gathering. Participants will have an opportunity to connect with new and seasoned industry veterans in order to share ideas and expand their knowledge base. Scali Rasmussen attorneys Monica Baumann and Chris Scali will be speaking at the conference about California Consumer Privacy Act Compliance.

Employment rulings affecting auto dealers

Recent critical California Supreme Court decisions present a mixed bag for employers

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The California Supreme Court giveth with one hand and taketh away with the other. Dealers pay attention. This affects you.

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When an employee raises a concern that he or she has suffered violence or threat of violence that has been, or may be, carried out at the workplace, employers have a duty to investigate the employee’s concerns. An employer whose employee has suffered unlawful violence or threat of violence from any individual that can be construed to be, or to have been, carried out at the workplace, may seek a restraining order through the court, pursuant to California Code of Civil Procedure section 572.8.

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Earlier this year, we provided you with a comprehensive summary of California’s new sexual harassment training requirements. Prior to the enactment of these new requirements, employers with at least 50 employees were required to provide two hours of sexual harassment training to supervisors. Now, employers with at least five employees are required to provide sexual harassment training to all employees.

“40” is the magic number

Don’t forget it when offering a severance package

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Employers who have used severance agreements involving a release of claims are probably familiar with the extra requirements for such agreements when the employee is 40 years or older. Specifically, under the Older Workers Benefits Protection Act (“OWBPA”) a release of age discrimination claims under the Age Discrimination in Employment Act (“ADEA”) must meet certain “knowing and voluntary” elements to be enforceable.