Michael Gelfound

California recently memorialized reforms to its Private Attorneys' General Act (PAGA). This Perkins Coie Update is a nonexhaustive overview of some of the major changes, which include stricter claim requirements, modified penalties, and new resolution procedures, among others. #LaborAndEmployment #WageAndHour #LaborLaw #EmploymentLaw

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Washington state businesses that have noncompetition agreements with employees or independent contractors will be subject to new requirements under the latest amendment to the state’s noncompetition law beginning June 6. Learn more in this Perkins Coie LLP Update. #NoncompeteAgreements #Noncompetes #LaborAndEmployment #EmploymentLaw

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Yesterday, the California Supreme Court decided John's Grill v. Hartford, a COVID-related insurance case in which the court, as Law360 put it, "reversed an appellate court's finding that a virus endorsement rendered a restaurant's policy illusory in a coverage dispute with a Hartford entity over pandemic-related losses, instead ruling that the endorsement clearly provides coverage 'only if the virus results from certain specified causes of loss.'" COVID-related litigation has taken many curious twists and turns. The COVID-related cases I have mediated have come in many shapes and sizes. Some business interruption/insurance cases have involved whether lockdown orders from multiple government jurisdictions constitute multiple occurrences, or only one occurence because there was only one pandemic. Others have involved issues as diverse as whether lockdown orders trigger "force majeure" clauses in commercial leases, which can differ widely and require close textual and factual analysis. What's your experience? What COVID-related cases are still going strong in your practice? What's next on the horizon for COVID-related litigation, in or out of the business interruption/insurance world?

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Skip Kessler, Tax Partner, addresses the California Franchise Tax Board's (FTB) audit procedures for IRC Section 1031 like-kind tax-deferred exchanges, shedding light on the unpredictability of their audits and two main hot-button issues, Drops and Swaps and Post-Closing Refinancing, in an article published to Genesis Bank. #Section1031 #Tax #RealEstate

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The California State Assembly is considering legislation (SB 1151) to impose FARA-like registration requirements on agents of foreign principals and subsidiaries who advocate before California officials. My Perkins Coie colleagues share more details in this Update. #PoliticalLaw #ForeignAgentsRegistrationAct #FARA

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INSURANCE LAW ALERT: California Supreme Court Affirms "Vertical Exhaustion" Rule For First-Level Excess Insurance On June 17, 2024, the California Supreme Court affirmed that an insured can access a first-level excess policy with standard commercial general liability policy terms, upon exhaustion of the directly underlying primary insurance. However, the court did not decide if the primary insurer could obtain equitable contribution against those first-level excess insurers. Rather, the Supreme Court remanded the case to the Court of Appeal to consider the excess insurers' alternative arguments that ordering contribution against them would be unfair as a matter of equity given the distinct roles of primary and excess insurance. (Truck Insurance Exchange v. Kaiser Cement and Gypsum Corp., S273179).

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The California Supreme Court has issued a ruling to address whether a party can intervene in another party's ongoing Private Attorneys General Act (PAGA) action that asserts overlapping claims. This Perkins Coie blog post delves into the implications for both employers and employees. #LaborAndEmployment #EmploymentLaw #IndependentContractors

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My colleagues Nicole Johnson and Craig Fields will present two sessions at the Tax Executives Institute’s 2024 Region 10 Conference, being held May 22 through 24 in Dana Point, California. They will provide a “State of the States” state and local tax legislative update and, later, discuss the challenges of a hybrid workforce. #statetax #salt #stateandlocaltax #hybridworkforce

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The conversation around #PE investment in health care continues with California's latest bill, #AB3129, which provides the California Attorney General with oversight authority of private equity-backed health care transactions. My colleagues, Jill Gordon, Vidaur Durazo, Freddy R. Lopez, and I analyze its potential impact #healthcare #privateequity

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Legal Update San Diego County Joins California Jurisdictions With Fair Chance Ordinances By: Jennifer L. Mora and Pamela Q. Devata Seyfarth Synopsis: Since 2018, California has had a comprehensive Fair Chance Act (CFCA), which places a number of restrictions on employers using criminal history for hiring and other employment purposes. San Francisco and the City of Los Angeles followed suit, and as we discussed here, the California Civil Rights Department made a host of changes to its CFCA regulations, which were effective October 1, 2023. Apparently believing that the CFCA did not provide sufficient protections to applicants and employees with criminal histories, Los Angeles County passed a fair chance ordinance that imposes on employers onerous compliance obligations, discussed here. And now, San Diego County joins the fray, with its own Fair Chance Ordinance (FCO) applicable to unincorporated areas of the County, which became effective October 10, 2024. To view the full Legal Update, click the link below. https://lnkd.in/dDQf6PtU

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Happy Friday! Check out the July case law update that I did with Justin Mahramas and CEB - #1 for California Law! It was a short list of cases this month. Big takeaways are the following: 1. Attorney General Rob Bonta appealed the superior court decision on SB 9 (ministerial lot-splits in SF zones). More to come on this one. Practice Tip: continue to be wary of using SB 9 in charter cities. Completely avoid in Redondo Beach, Torrance, Del Mar, Whittier, and Carson. (City of Redondo Beach v. Rob Bonta [Superior Court of LA]) 2. City of LA's reliance on Appendix G checklist thresholds was upheld and did not require public notice and mayoral approval under the City's charter. (AIDS Healthcare Foundation v. City of Los Angeles [unpublished]) 3. City of LA's GHG methodology upheld, which predominately relied on a qualitative analysis in the EIR. (AIDS Healthcare Foundation v. City of Los Angeles [unpublished]) 4. The Court of Appeal upheld the City of Lafayette's reliance on the Class 32 Infill Exemption for a 12-unit residential project, despite claims that the project would have impacts related to biological resources and air quality. Practice Tip: Expert findings should precisely track the legal standards and facts at issue in a project. Using the wrong standard or not being specific enough, can make or break your argument. (Nassiri v. City of Lafayette) https://lnkd.in/gxRiWTw2

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The California Attorney General has reached a significant settlement with the developer and publisher of a mobile game over children's privacy violations. Perkins Coie LLP partner Janis Kestenbaum discusses how the case underscores the importance of complying with COPPA and CCPA, and what businesses can do to enhance their privacy practices. #PrivacyLaw #ChildrensPrivacy #CCPA #COPPA

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To enhance labor law compliance and reduce litigation, California Governor Gavin Newsom recently announced a groundbreaking agreement to reform the Private Attorneys General Act. Discover how the reforms could impact businesses and employees alike in this Perkins Coie LLP blog post. #LaborAndEmployment #LaborAndEmploymentLaw #LaborLaw #WageAndHour

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In a recent win for employers, the California Court of Appeal in Rodriguez v. Lawrence Equipment, Inc. reinforced that when an arbitrator rules against an employee’s individual wage and hour claims, those findings can block the employee from continuing a related PAGA claim. The key? Issue preclusion—a legal principle that stops someone from relitigating issues that have already been resolved. What Happened: A former employee sued his employer for wage and hour violations and sought civil penalties under PAGA. The wage and hour claims went to arbitration (thanks to a signed agreement), while the PAGA claim was put on pause. The Ruling: The arbitrator sided with the employer, finding no violations of the Labor Code. The trial court then dismissed the PAGA claim, reasoning that since no violations occurred, the employee lacked standing to continue. The Appeal: The Court of Appeal affirmed, applying issue preclusion. Simply put, if you can’t prove a Labor Code violation happened to you, you can’t represent others under PAGA. This aligns with earlier cases, including Rocha v. U-Haul Co. of California and even the California Supreme Court’s guidance in Adolph v. Uber Technologies, Inc. Why This Case Matters: This case highlights how arbitration agreements can streamline disputes and limit exposure to broader claims. Ensuring compliance with wage and hour laws—and documenting that compliance—is your first line of defense against litigation. PAGA Claims Have Limits: Remember, employees need to prove they were personally impacted by violations before they can bring claims on behalf of others under PAGA. Takeaway: Proactive measures like well-drafted arbitration agreements and rock-solid compliance practices can save employers from costly legal battles. While no one wants to face a lawsuit, being prepared can mean the difference between a quick resolution and drawn-out litigation. Employers: Are your policies and agreements ready to stand up to this kind of scrutiny? Now’s the time to review! #PAGA #EmploymentLaw https://lnkd.in/gQ9Mzy87

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