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

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It has been officially announced by the California Department of Finance that effective January 1, 2024, California’s minimum wage will increase from $15.50 per hour to $16 per hour for all employers, regardless of size.

Tales from the trenches

Family dynamics derail succession intentions

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A detailed succession plan, decided upon long before it is executed, is not only necessary in a family-owned business, it can also prevent a family-destroying fallout. Scali Rasmussen’s partners share tales from the trenches that prove that point.

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Succession planning is about much more than who takes over when a dealer owner dies. It is also about creating the conditions for the next owner or owners’ success. Hugh Robert, a partner and succession advisor at family business succession planning experts The Rawls Group, spoke with Getting to Go! about how The Rawls Group assists families in crafting a succession plan which benefits diverse needs. Below is an edited version of that conversation.

So, you want to keep your dealership in the family?

Crafting the proper financial platform is key

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In today’s environment of roll ups, acquisitions, financial requirements imposed by manufacturers, changes in driving habits, the types of vehicles being produced, and the ever-changing economy, it is no wonder that dealers are questioning the future of their business. Many options are available, and none are really bad, but one must figure out what is best for you, the owner.

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On August 7, 2023, the U.S. Equal Employment Opportunity Commission (“EEOC) issued a Notice of Proposed Rulemaking (“NPRM”) to implement the Pregnant Workers Fairness Act (“PWFA”). As required by federal law, the NPRM was published for public comment in the Federal Register on August 11, 2023. Members of the public wishing to comment on the NPRM will have 60 days from the date of publication to do so through www.regulations.gov.

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On August 02, 2023, the National Labor Relations Board issued a decision (Stericycle, Inc.) that established a new standard for scrutinizing employee conduct rules under Section 8(a)(1) of the National Labor Relations Act. This decision states that prior standards for workplace conduct rules issued by the NLRB, permitted employers to adopt overbroad work rules that chill employees’ exercise of their rights.

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Time rounding policies have been a source of unsettled contention and conflicting court rulings recently. The most recent California Court of Appeal came down against the practice in Woodworth v. Loma Linda Univ. Med. Ctr. The plaintiff in that case claimed that she was not paid for all hours worked as a result of the employer’s practice of rounding time punches to the nearest tenth of an hour.

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For years, the federal “Equal Employment Opportunity is the Law” poster has been a familiar sight in workplace break rooms, hallways and other work areas. In 2022, this poster was replaced by a new poster issued by the EEOC entitled: “Know Your Rights: Workplace Discrimination is Illegal.” There is now an update to this new poster with the same title, issued June 27, 2023, which includes information about protections under the new federal Pregnant Workers Fairness Act.

Prop 65 update

New chemicals added to the list

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Proposition 65 contains approximately 900 chemicals that are known to cause cancer or reproductive toxicity. The list grows every year and, as in the past, new chemicals have been added since January of 2023. In addition to identifying the newly-added chemicals, this article describes the process by which chemicals are considered for and thereafter added to the list.

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The lack of an updated I-9 Employment Eligibility Verification Form has caused confusion for some employers who have observed that the latest Form I-9 has an effective date through October 31, 2022 only. Although the U.S. Citizenship and Immigration Services (USCIS) indicated that an updated Form I-9 will be coming soon, it has still not released the new version, which is anticipated to have some significant alterations per the USCIS’ proposed changes that include restructuring/compressing the form and reducing the length of the instructions section. In any event, employers may, for now, continue using the expired Form I-9s until further notice.

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Federal law requires employers to physically inspect identity/eligibility documents substantiating a new employee’s authorization to work in the U.S. within three days of hire as part of completing the Form I-9 Eligibility Verification. Effective March 2020, the U.S. Immigration and Customs Enforcement agency (ICE) relaxed the physical inspection requirements due to concerns about COVID-19 spread from physical proximity and contact.

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Under the California Fair Employment and Housing Act, supervisors/managers are held to a high standard of conduct in interacting with subordinates, and employers are strictly liable for their harassing conduct. Despite this high level of accountability, the Court of Appeal refused to find an employer strictly liable for a supervisor’s off-duty conduct unrelated to work.

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On July 6, 2023, the California Privacy Protection Agency (CPPA) rolled out its soft-launch of a new on-line complaint system which is currently active on the CPPA’s website. The new electronic complaint form allows consumers afforded the protections of the California Consumer Privacy Act in 2018 (CCPA) with the ability to lodge both sworn and unsworn complaints alleging possible violations of California privacy laws.

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The issue of whether a worker is an “employee” or an “independent contractor” has vexed employers and workers for decades. The impact for misclassifying an employee as an independent contractor can have severe (and costly) consequences for employers. Employers and their lawyers look to the courts, legislatures and government agencies for guidance, and for standards employers should follow when making the determination of whether a worker is an employee or an independent contractor. But, depending on the political environment, the standards set by the courts and government agencies are in constant flux, changing from administration to administration. The most recent example of this flipflop in standards comes from the National Labor Relations Board (“NLRB” or “Board”) which issued a new decision on June 13, 2023 that once again set the new standard or, more accurately, reverted to the standard implemented by the prior Board appointed by President Obama.

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