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

EVENT on July 18, 2018

Scali Rasmussen is sponsoring this timely and important Labor & Employment Conference and our Jack Schaedel is presenting on sexual harassment issues in the #metoo movement.

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Here’s a familiar scenario: your counsel advises you about changes in the law requiring you to restructure your pay plans for certain employees, but when you distribute the new plans, one or more employees resist, complain, and refuse to sign. As addressed in our Coffee Break article published on this same date, No secrets: Prohibiting employee discussions about pay, you cannot prohibit these employees from disclosing and discussing pay information with each other. But as for employee resistance and refusal to sign new pay plans, read on for tips on handling this situation.

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Revisions to California’s Fair Pay Act took effect in 2017. Billed as the “toughest in the nation,” the law made it easier for plaintiffs to sue based on gender-based pay differences for “substantially similar” work, even at different locations. For 2018, California law became tougher still, as employers are now prohibited from asking about an applicant’s salary history or seeking such information, and may not rely on it in deciding on a salary to propose, unless the applicant volunteers the information. The rationale is that because women historically have been paid less than men, requesting salary history (and basing compensation offers on an applicant’s current or prior salary) will perpetuate these differences.

No secrets

Prohibiting employee discussions about pay

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Employers often seek to discourage conversations between employees about pay and compensation due to the distraction and potential morale issues that arise when such information is the subject of gossip and speculation in the workplace. Moreover, pay information is generally considered confidential personnel information that employers should protect as private. However, employers must beware of implementing or enforcing any policy that prohibits employees from disclosing their own pay, or discussing co-workers’ pay, as such practices can run afoul of both California and federal law.

Update on Navarro v. Encino Motorcars, LLC case

Service advisors are exempt from overtime under federal law, but overtime obligations may still exist under state law

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It appears that a resolution has finally been reached in theNavarro v. Encino Motorcars, LLCcase, on which we previously reported with updates as the case has bounced back and forth between the Ninth Circuit Court of Appeals and the U.S. Supreme Court. At issue in this case was whether service advisors fall within the federal Fair Labor Standards Act Section 13(b)(10)(a)’s blanket overtime exemption that covers any “salesman, partsman or mechanic primarily engaged in selling or servicing automobiles.”

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With “Free Wi-Fi” becoming a common offering at retail businesses nationwide, Dealership sales and service customers might actually expect free Wi-Fi. There are certainly some advantages to providing it: customers can have something to do while waiting, can research vehicles or accessories online, and they can submit online credit or insurance applications on their mobile devices. However, providing Wi-Fi has its downsides: you may have already experienced bandwidth drain from mobile users and customers or unknown parties can misuse internet access by, for example, accessing or downloading data being transmitted through your network by other users or stored on your own servers or computers. A Wi-Fi network could also be used commit crimes unrelated to your business or other users, such as being used to illegally download movies or music or transmit illegal materials. This article addresses potential liability in offering free Wi-Fi and provides some basics of setting up a secured wireless network to mitigate these risks.