Articles, news & events

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

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Every dealership is different, and every market is different. This truth has now also become a rallying cry for dealerships across the country as dealerships push back against sales effectiveness measures. These efforts are picking up steam, and now can serve as a strong argument against termination based exclusively or mostly on measures of sales effectiveness. In a new twist, though, three dealerships in New York have successfully challenged the use of sales effectiveness measures in incentive programs. This may signal a new battleground to fight overbearing factory demands.

Interim adverse judgment rule

Zealous advocacy may foreclose your ability to file a malicious prosecution action after successfully defending a lawsuit

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You’ve successfully defended a lawsuit and obtained a jury verdict in your favor. You lean back, contemplate all of plaintiffs’ actions in the prior case, and think you’ve got a slam dunk malicious prosecution case, right? Not so fast.

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Get an update on the current status of the CFPB arbitration rule. We explore several recent cases—all from California–that highlight various issues facing reliance on arbitration agreements. Dealers and their attorneys will face difficult decisions about how to move forward within the new CFPB rules and case guidance; this article highlights additional considerations that should be kept in mind over the next several months.

EVENT on October 21, 2017

The Scali Law Firm is proud to participate as a Platinum Sponsor of this year's ADOMA mini conference. This full day of education and resource gathering is a great opportunity for dealers to connect with new and seasoned industry veterans, and be rejuvenated with new ideas, resources and peer support insight.

Split shifts

What are they and what special pay applies?

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A split shift is a work schedule set by the employer that includes a block of unpaid time of more than one hour (other than a bona fide meal period) that occurs between two work periods. For example, a split shift would occur for a day in which the employer schedules an employee to work from 9:00 a.m. until 12:00 p.m. and then again at 2:00 p.m. until 7:00 p.m.

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We previously reported on the Encino Motorcars LLC v. Navarro case, in which federal courts have grappled with the issue of whether dealership service advisors fall within a provision of the Fair Labor Standards Act that exempts from overtime employees in certain dealership sales positions. The U.S. Supreme Court has announced that it will once again review the case, which will hopefully resolve the conflicting court rulings.

Investigation processes

Even common issues and decisions warrant them

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Decisions to discipline and/or terminate employees are serious and often difficult judgment calls that employers regularly face. Because these actions can profoundly affect employee morale and even expose employers to legal claims, it is important for employers to carefully approach these decisions through a fair and credible process. One step in the process that is often neglected is the thorough investigation of the facts leading to the employment action.

How long is too long?

Federal appellate court draws the line for an extended leave of absence, but there are still no easy answers

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A recent Federal Court of Appeals decision serves as a reminder of the legal complexity and uncertainty that employers face in administering medical leaves of absence as a reasonable accommodation. In Severson v. Heartland Woodcraft, Inc., the Seventh Circuit affirmed the lower court’s ruling that an employer did not violate the Americans with Disabilities Act by not granting an employee a medical leave of absence that exceeded his FMLA leave period by two to three months.

Paid holidays

What are employees entitled to?

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In the retail sales environment, holidays are often the busiest and most profitable times and such businesses must schedule adequate staffing. But are employers legally obligated to provide any particular paid holidays off for employees? Car dealerships often offer paid holidays for employees whose departments are closed on the major holidays, and even sales department employees often have paid holidays on Thanksgiving and Christmas. The common practice of offering some level of paid holiday benefits can create the expectation or impression that paid holidays are a legal obligation.

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Last year, there was much publicity and concern arising from the Department of Labor’s new minimum salary levels for employees to qualify for the white collar exemptions from minimum wage and overtime pay under the Fair Labor Standards Act. These new minimum salary levels would have dramatically increased from $23,000 to $47, 476 per year, and included automatic upward adjustments over time. However, a Texas court has stepped in to invalidate these changes.