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

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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.

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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