The most important civil procedure-related bill passed by California relates to arbitration in employment actions. Previously, if a court denies an employer’s motion to compel arbitration and the employer files an appeal, the civil action was automatically stayed during the pendency of the appeal. In an effort to protect employee rights, California passed SB 365 which now gives the trial judge the discretion to stay the civil proceedings during the pendency of the appeal.

On October 31, 2023, the National Labor Relations Board (“NLRB”) and the Occupational Safety and Health Agency (“OSHA”) executed a Memorandum of Understanding (“MOU”) that aims to promote safe and healthy workplaces and protect workers who speak out about unsafe working conditions. As a result, employers must prepare for increased safety and health enforcement efforts by both NLRB and OSHA. The goal of this collaboration is to strengthen health and safety protections for workers. Among other matters, the MOU sets forth a process for information sharing, training, and outreach between the NLRB and OSHA.

California employers are going through the annual year-end scramble to update policies and practices to comply with the rash of new laws that are taking effect in the upcoming new year. Understandably, businesses in the state are frustrated with the potentially onerous obligations they must keep up with.

In recent years, Cal-OSHA has modified and refined heat illness prevention requirements for outdoor work areas. Now, employers will be facing new Cal-OSHA requirements for indoor work areas. In the past several months, the Cal-OSHA Board (“Board”) has issued multiple rounds of revised standards on Indoor Heat Illness Prevention, with public comment on the most recent revisions closing on November 28, 2023. The Board is scheduled to vote on the latest version in early 2024.

In Mattson Technology, Inc. v. Applied Materials, Inc., a California Court of Appeal ruled that the trial court erred by not staying Applied Materials’ (“Applied) trade secret misappropriation claims against rival Mattson Technology (“Mattson”) while Applied pursued arbitration against its ex-employee who allegedly absconded with confidential information and provided it to Mattson.

The Federal Trade Commission (the “FTC”) has just approved an amendment to the Safeguards Rule of the Gramm-Leach-Bliley Act (“GLBA”) pertaining to reporting obligations for motor vehicle dealers for certain data breaches and other security events to the FTC.

Scali Rasmussen, PC remains committed to bringing awareness of the critical work Give.Mentor.Love. is doing to fight sex trafficking of children and young adults in L.A. County.

In response to a 2021 workplace massacre at the Valley Transportation Authority in San Jose, State Senator Cortese moved to pass legislation that requires employers to implement safety plans to prepare for potential outbreaks of serious workplace violence. Senator Cortese’s work resulted in SB 553 which, after much “give-and-take” in Sacramento, was passed by the Legislature on September 20, 2023 and signed by Governor Gavin Newsom on September 30, 2023.

Employers were overwhelmed with countless obligations during the COVID-19 pandemic, through legislation and emergency standards that focused on the interests of employee safety and wage loss. However, in its recent decision in Corby Kuciemba et al. v. Victory Woodworks Inc., the California Supreme Court drew the line in favor of employers by ruling that employers are not responsible for the spread of COVID-19 to employees’ family members.

The California Supreme Court recently issued its opinion in Raines v. U.S. Healthworks Medical Group, deciding a question from the Ninth Circuit Court of Appeals as to the possible extent of liability for business-entity agents who carry out activities regulated under the California Fair Employment and Housing Act (“FEHA”) on behalf of employers. Under the FEHA, a covered employer includes: “any person acting as an agent of an employer, directly or indirectly.”

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.

California’s Office of Administrative Law has issued final approved modifications to regulations on background checks administered by employers.

Scali Rasmussen announced today that Shareholder Jeffrey Erdman and Principal Colleen O’Brien have been recognized by Lawdragon in the 2nd edition of its “500 Leading Litigators in America”

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.

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.

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.

Chris Irwin is a third-generation auto dealer in New Hampshire. He recently acquired a Chevrolet franchise from Tom Cantin. The transaction — and the transition — was smooth partly because the franchise passed from one family-owned group to another.

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.

The City of Los Angeles’ Freelance Worker Protections Ordinance is now in effect. This ordinance sets forth requirements for businesses who use freelancers to perform work within the City after July 1, 2023.

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.