Articles, news & legal alerts

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

CA Supreme Court circumvents SCOTUS

Requires employers to litigate PAGA claims

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In its highly-anticipated opinion in the case of Adolph v. Uber Technologies, the California Supreme Court held on July 17, 2023 that a plaintiff-employee who files a PAGA action against his/her employee for violations of the Labor Code retains standing to pursue the “non-individual PAGA” claims in civil court even if the employee’s “individual PAGA” claim is subject to arbitration.

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On July 11, 2023, in unanimous court opinion, a three judge San Francisco appellate court panel overturned a trial court ruling in favor of International Business Machines Corporation (IBM), holding that employers are required under California law to reimburse employees for work from home expenses regardless of whether such work from home was the result of government actions to combat the COVID-19 pandemic.

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You know it's coming. That significant factual decision by the trial court that counsel has warned you won’t go your way. While you’ve geared up mentally for the losing ruling, and know the appeal is coming, the first step counsel will take is to prepare to secure a Statement of Decision.

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Background music is often a ubiquitous element of a workplace environment, especially in the retail space, where businesses seek to create a positive mood for customers and employees. However, as illustrated recently in the case Sharp v. S&S Activewear, L.L.C., No. 21-17138, 2023 WL 3857491, (9th Cir. June 7, 2023), the 9th Circuit Court of Appeals ruled that music with explicit lyrics can create a sexually harassing hostile work environment, even though men and women were equally exposed.

Check your email and IT policies!

Court of Appeal indicates employee may have privacy interest in employer’s email system absent express policy stating otherwise

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In Militello v. VFARM 1509 (2023) 89 Cal. App. 5th 602, the plaintiff sued her fellow co-directors of a cannabis company. In that case, the plaintiff’s attorney attempted to use as evidence private emails between one of the defendants and the defendant’s spouse that had been sent through the company’s email system. The defendant challenged this and moved to disqualify the attorney on the ground that the emails were improperly introduced as they were protected by the spousal communications privilege.

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For almost three years, California employers operated under the COVID-19 Prevention Emergency Temporary Standards that were implemented by Cal/OSHA early in the pandemic, and revised as the pandemic situation evolved. Now, with the decline of the COVID-19 emergency situation, Cal/OSHA has implemented new permanent COVID-19 standards that took effect on February 3, 2023. So what employer obligations remain?

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Buy/sells are exciting, intense, and hopefully rewarding for all parties when completed. They come with ups and downs, surprises, and different opinions. Both sides churn through their checklists, working to validate their opinion of valuation.

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Gill Automotive Group in April acquired H & J Chevrolet in Kerman, California. The single-point dealership wasn’t struggling, which most of his acquisitions are, Jay Gill tells Getting to Go! But he was compelled to buy it for one main reason – Gill lives in Kerman.

Scali Rasmussen celebrates 10th year in the business of aiding businesses

The law firm was founded in 2013 to offer Big Law service with a boutique’s flexibility

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A litigation boutique founded around the philosophy of comprehensive and cost-effective service for entrepreneurs and businesses, Scali Rasmussen is celebrating its first full decade in business. The Los Angeles-based law firm was launched in 2013 by Managing Shareholder Christian Scali, who was joined a year later by fellow named Shareholder Halbert Rasmussen.

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Scali Rasmussen Principals Colleen O'Brien and Jasmin Bhandari have been selected as honorees by Los Angeles Business Journal recognizing the city's most influential women attorneys. The "Women of Influence: Attorneys" list recognizes women lawyers that have been recognized for exceptional legal skill and achievement across the full spectrum of responsibility, exemplary leadership as evidenced by the highest professional and ethical standards, and for contributions to the Los Angeles community at large.

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In June of 2009, “marijuana smoke” was added to the Proposition 65 list of chemicals known to the state of California to cause cancer. OEHHA’s Carcinogen Identification Committee “determined that marijuana smoke was clearly shown, through scientifically valid testing according to generally accepted principles, to cause cancer.” As a result, all cannabis flower is subject to Proposition 65 cannabis warnings, because all flower contains/produces “marijuana smoke” and because there is no safe harbor level per OEHHA.

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OEHHA announced that the 2022 meeting of the Carcinogen Identification Committee (“CIC”) will be held virtually on December 14, 2022. Among other issues, the CIC will consider listing Bisphenol A (“BPA”) on the Proposition 65 list as a chemical known to the State of California as causing cancer. (BPA has been listed as a chemical causing reproductive toxicity since April of 2013.) BPA was placed in the ‘high’ priority group for future listing consideration by the CIC at their November 2020 meeting.

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On April 4, 2023, the California Court of Appeal’s Second District affirmed the trial court’s ruling in Ochoa v. Ford Motor Company and related cases, denying Ford’s motion to compel arbitration in a Lemon Law lawsuit. In so doing, the Second District split from the Court of Appeal’s Third District’s 2020 holding Felisilda v. FCA US LLC holding manufacturers could enforce arbitration provisions in car sale contracts between dealers and customers.

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Dealership facility upgrades are a constant point of contention between factories and dealers. Factories can impose a wide range of facility demands, ranging from light brand image or signage updating, to complete facility refurbishment, rebuild, or even relocation. Dealers view many such requests as onerous and/or unlikely to provide any boost to sales.

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We recently reported on various types of policies employers have adopted concerning cell phone use in California. California employers are required to reimburse a “reasonable” percentage of their employees’ cell phone, data and internet usage bill when said employees are required or expected to use their cell phone, data or internet connection for work-related purposes. This legal obligation arises from Labor Code Section 2802, which requires employers to reimburse their employees for “all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties.” One form of policy employers use to comply with this obligation is a “bring your own device policy” (“BYOD”). However, BYODs require diligent oversight to minimize risk of noncompliance. Different forms of BYOD exist that employers can implement, and each has its own benefits, administrative burdens, and risks.

Coffee and Prop 65

The long and winding road is over

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Most of us enjoy a cup of coffee (or two) in the morning. In fact, we rely on it for the caffeine boost it provides. Other than the potential harmful effects of caffeine, we do not think that coffee can cause a major illness such as cancer or heart disease. But, unbeknownst to us, there has been a long running debate between California regulators, courts, business, and consumer advocates regarding whether drinking coffee can cause cancer.

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