As of January 1, 2013, the state of California has added and amended myriad of new laws that affect employers in a number of important and significant ways. Please join us as we review each of these changes and help employers better understand the impact and importance of these changes to their businesses and employees in California. Presented by Human Resources Account Manager, Rebecca McDonough, CA-SPHR

1. California
Legisla@ve
Update
2013
Employment
Law
Changes
Thursday, January 10, 2012
Presented by:
Rebecca McDonough, SPHR-CA
Human Resources Account Manager
800
Corporate
Drive,
Ste
600
Ft.
Lauderdale,
FL
33334
|
888.335.9545
Toll-­‐Free
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2. AGENDA
• Introductions
• Discussion
• Q&A
• Close
Simplifying business. Benefiting people.

3. AB
1964—Religious
dress
and
grooming
prac;ces
protected
By
FEHA
• Amends the California Fair Employment and Housing Act (FEHA)
• FEHA prohibits an employer from discriminating against an applicant
or employee based on his or her religious creed, including all aspects
of religious belief, observance, or practice.
• Clarifies the scope of the statute’s protections against religious
discrimination.
• Specifies that these protections extend to:
w “religious dress practices,” which include wearing or carrying
religious clothing, head or face coverings, jewelry, artifacts, and
any other item that is part of the person’s religious observance;
and
w “religious grooming practices,” which include all forms of head,
facial, and body hair that are part of the person’s religious
observance.
Simplifying business. Benefiting people. 3

4. AB
2386—BreasCeeding
protected
under
FEHA
• This bill amends the definition of “sex” under the FEHA,
Government Code section 12926.
• Existing law prohibits employment discrimination on the
basis of “sex,” which included gender; gender identity
and expression; and pregnancy, childbirth, or related
medical conditions.
• Clarifies that for all purposes under the FEHA, “sex”
also includes breastfeeding and related medical
conditions.
• Amends existing law and therefore it may be applied
retroactively and takes effect immediately.
Simplifying business. Benefiting people. 4

5. SB
1255—Remedies
for
failure
to
provide
accurate
itemized
wage
statements
• Amends Labor Code section 226(e)
• Specifies the circumstances when employees may recover penalties for
failure to receive accurate itemized wage statements.
• Employers are generally required to provide employees with accurate wage
statements showing nine specific categories of information, (e.g., gross and
net wages earned, deductions, and inclusive pay period dates).
• If an employee suffers “injury” as a result of an employer’s “knowing and
intentional” failure to comply with these requirements, the employee can
recover certain penalties for each violation, plus costs and attorney’s fees.
• An employee is “deemed to suffer injury” in two instances:
w if the employer fails to provide a wage statement; or
w if the employer fails to provide accurate and complete information for any
of the nine items required, and the employee cannot promptly and easily
determine the information from the wage statement alone.
• If an employee establishes a “knowing and intentional” violation of the wage
statement requirements, the employee may now be presumptively entitled to
collect penalties, even if he/she did not suffer any actual injury.
Simplifying business. Benefiting people. 5

6. AB
1744—Hiring
no;ce
&
wage
statements
for
temporary
services
employers
• Amends Labor Code sections 226 and 2810.5, and adds new Labor
Code section 226.1.
• Under the existing Wage Theft Prevention Act of 2011, employers must
provide their non-exempt employees a written notice at the time of
hiring that contains specified information, such as the rate and basis of
the employee’s wages, and the employer’s name, address, and
telephone number.
• Temporary services employers must provide notices that also must
include the name, physical and/or mailing address, and telephone
number of the legal entity for whom the employee will perform work.
• Starting July 1, 2013, this bill further provides that temporary services
employers must include on itemized wage statements (in addition to
the other information required by existing Labor Code section 226(a)),
the employee’s rate of pay and total hours worked for each temporary
assignment. This requirement does not apply to licensed security
services companies.
Simplifying business. Benefiting people. 6

7. AB
2103—Over;me
for
non-­‐exempt,
full-­‐;me
salaried
employees
• Amends
Labor
Code
sec@on
515
-­‐
prohibits
private
agreements
that
contravene
the
over@me
regular
rate
calcula@on
required
for
non-­‐exempt
full-­‐@me
salaried
employees.
• Under
exis@ng
Labor
Code
sec@on
515(d),
to
calculate
over@me
wages
earned
by
such
employees,
the
regular
hourly
rate
used
must
be
1/40th
of
the
employee’s
weekly
salary.
• This
bill
specifies
that
payment
of
a
fixed
salary
to
a
non-­‐exempt
employee
must
be
deemed
compensa@on
only
for
regular,
non-­‐over@me
hours
worked,
“notwithstanding
any
private
agreement
to
the
contrary.”
• Intended
to
overturn
Arechiga
v.
Dolores
Press
(2011).
w Employer
and
non-­‐exempt
employee
made
an
agreement
that
the
employee
would
work
11
hours
a
day,
six
days
a
week,
and
would
earn
a
weekly
salary
of
$880.
w the
salary
included
base
pay
for
the
first
40
hours
of
work
and
26
hours
of
regularly
scheduled
over@me
at
a
higher
hourly
rate.
w The
employee
argued
this
agreement
violated
the
regular
rate
requirement
of
Labor
Code
sec@on
515(d),
but
the
court
of
appeal
enforced
the
agreement.
Simplifying business. Benefiting people. 7

8. AB
1775
-­‐
Garnishment
Limita;ons
• Existing law limits the amount of employee earnings subject to an
earnings withholding order to the amount specified by federal law, unless
an exception applies.
• Federal law prohibits the amount of earnings subject to garnishment from
exceeding 25% of an individual's weekly "disposable earnings" or the
amount by which the individual's disposable earnings for the week
exceeds 30 times the federal minimum hourly wage in effect at the time
the earnings are payable.
• The new law, effective July 1, 2013, defines "disposable earnings" as the
portion of an individual's earnings that remains after deducting all
amounts required to be withheld by law.
• The bill limits the amount of an individual's weekly disposable earnings
subject to garnishment to the lesser of 25% of the individual's weekly
disposable earnings or the amount by which the individual's disposable
earnings for the week exceeds 40 times the state minimum hourly wage
(currently, $8.00 per hour).
Simplifying business. Benefiting people. 8

9. AB
1396
-­‐
WriTen
Commission
Contracts
• Labor Code section 2751 previously required that out-of-state employers with no
permanent fixed place of business in California that use commission contracts for
paying employees to put these contracts in writing.
• Amendment: Jan. 1, 2013, all employers contemplating payment in commissions
must:
w put the contract in writing;
w identify the method by which commissions will be computed and paid;
w give a signed copy of the contract to every employee who is a party to it;
and
w obtain a signed receipt for the contract from each employee.
• When the contract expires and the parties continue to work under the expired
contract’s terms, the contract terms are presumed to remain in full force and effect
until the contract is superseded or either party terminates the employment.
• Definition of commissions - “compensation paid to any person in connection with
the sale of the employer’s property or services and based proportionately on the
amount or value thereof.”
Simplifying business. Benefiting people. 9

10. AB
2675—WriTen
contracts
for
commission
pay:
the
excep;ons
• Amends Labor Code section 2751, which requires a written contract
of employment for services rendered in the state and paid for by
commissions.
• The current statute excludes two types of compensation:
(1) short-term productivity bonuses such as are paid to retail clerks;
and
(2) bonus and profit-sharing plans, unless the employer offers to pay
a fixed percentage of sales or profits as compensation for work to
be performed.
• This bill adds a third exclusion category for “temporary, variable
incentive payments that increase, but do not decrease, payment
under the written contract.”
• Employers should consider providing employees with any form of
variable compensation a written document that details the formulas,
terms and conditions of the variable compensation plan.
Simplifying business. Benefiting people. 10

11. AB
2674—Employees’
right
to
inspect
personnel
records;
wage
statement
reten;on
• Amends Labor Code section 1198.5, employees right to inspect personnel
records
• Employer must make the employee’s personnel records available for inspection
by any current or former employee or his/her representative, and provide a copy
of the records, within 30 calendar days from receipt of a written request, or if the
parties agree in writing, within no more than 35 calendar days.
• Employers provide current and former employees with form that can be used to
request the inspection.
• Identifies specific requirements for time, place, and method obligations for
inspection and delivery of the records.
• Employers must keep a copy of the employee’s personnel records for at least
three years after termination of employment.
• If a current or former employee files a lawsuit against the employer regarding a
personnel matter, his or her right to inspect or copy personnel records ceases
during the pendency of the lawsuit.
Simplifying business. Benefiting people. 11

12. AB
2674—Employees’
right
to
inspect
personnel
records;
wage
statement
reten;on,
con;nued
An employer may:
(1) designate the person to whom records requests are made,
(2) take reasonable steps to verify the identity of the employee or representative
making the request, and
(3) redact the names of nonsupervisory employees contained in the records.
• If an employer fails to permit inspection or copying of records within the times
required, the employee or Labor Commissioner may recover a $750 penalty
and the employee also may obtain injunctive relief, costs, and attorney fees.
• Existing law requires employers to keep copies of wage statements for at
least three years, either at the employment site or a central location within
the state.
• Clarifies that “copies” may include duplicates of the statements provided to
the employee, or computer-generated records that accurately show all
information required to be included on the wage statement.
Simplifying business. Benefiting people. 12

13. AB
1844—E-­‐mail
and
social
media
passwords
Prohibits an employer from requiring or requesting an employee or applicant to:
1. disclose a username or password for the purpose of accessing personal
social media;
2. access personal social media in the presence of the employer, or
3. otherwise “divulge” any personal social media to the employer.
4. The bill also prohibits an employer from discharging, disciplining, threatening
to discharge or discipline, or otherwise retaliating against an employee or
applicant for not complying with a prohibited request.
2 exceptions:
1. can require disclosure of usernames and passwords if relevant to an
investigation of employee misconduct or employee violations of laws or
regulations.
2. the bill does not preclude employers from requiring an employee to disclose a
username or password for the purpose of accessing an employer-issued
device.
Social Media Definition: videos, photographs, blogs, instance messages, text
messages, email, websites or online accounts, and other web-based profiles.”
Simplifying business. Benefiting people. 13

14. A.B.
2492:
Expanded
Protec;ons
for
Whistleblowers
• Amends various provisions of California’s False Claim Act
(“CFCA”) to conform to the federal False Claim Act.
• The CFCA provides protection and financial incentives for
employees who oppose or report fraudulent claims made by their
employers in connection with work performed for the state and its
political subdivisions.
• The CFCA amendments include:
w expands whistleblower protections to include contractors and
agents who pursue false claims actions;
w expands the definition of a false claim;
w amends the statute of limitations;
w authorizes courts to award attorneys’ fees in more cases;
w increases civil penalties by 10%, now ranging from $5,500 to
$11,000 per false claim.
Simplifying business. Benefiting people. 14

15. S.B.
863:
Reform
of
Workers’
Compensa;on
System
• Reforms the Workers’ Compensation system changing:
w medical provider networks;
w independent medical and bill reviews;
w lien reform;
w fee schedules;
w medical care reforms;
w permanent disability claims;
w return to work rules;
w eliminate permanent disability claims related to sleep disorders, sexual
dysfunction, and psychological “add-ons”; and
w adopts an independent medical review system in which independent medical
experts will issue final, binding decisions in coverage disputes, which can
only be appealed on limited grounds, such as fraud, conflict of interest,
discrimination, or clear mistakes of fact that do not involve medical expertise.
Simplifying business. Benefiting people. 15

16. S.B.
1038:
Eliminates
Fair
Employment
&
Housing
Commission
• S.B. 1038 eliminates the Fair Employment and Housing Commission, the
administrative adjudicatory agency created under the FEHA.
• The Commission was the California agency that developed regulations and
acted as the judicial body that heard claims of discrimination brought before
the agency, instead of court.
• Those duties will now be handled internally by the Fair Employment and
Housing Counsel
• The law establishes a Fair Employment and Housing Council, comprised of
7 members within the Department of Fair Employment and Housing (“DFEH”).
• The Council’s members are appointed by the governor, will conduct public
hearings, and will take regulatory action when necessary.
• The law allows the DFEH to file cases directly in court.
• Before filing any civil action in the courts, the DFEH will require all parties to
undergo free dispute resolution through its in-house Dispute Resolution
Division. The law also authorizes the courts to award reasonable attorney’s
fees and costs to the DFEH.
Simplifying business. Benefiting people. 16

17. Civil
Code
s.
52.6
–
No;ce
Regarding
Slavery
and
Human
Trafficking
• Effective January 1, 2013, the law requires the following businesses and other
establishments to conspicuously post a notice guiding the public to report
suspected slavery and human trafficking:
w Restaurants
w Urgent care and emergency room facilities
w Privately operated job recruitment centers
w Commercial airports, rail stations, bus stations and truck stops
w “Adult or sexually oriented businesses”
w Businesses offering “massage or bodywork services” from uncertified
message therapists
w Farm labor contractors
• The notice must be in English, Spanish and at least one other language that is
“the most widely spoken” in the county where the establishment is located.
• The California Department of Justice will develop and make a model notice
available online by April 1, 2013.
• The state is authorized to fine any business or other establishment that
remains in non-compliance 30 days after a written warning ($500 first offense,
$1,000 each subsequent offense).
Simplifying business. Benefiting people. 17

18. Slavery
and
Human
Trafficking
No;ce
Requirements
The notice must be at least 8.5” x 11” with 16-point font and state:
If you or someone you know is being forced to engage in any activity and
cannot leave—whether it is commercial sex, housework, farm work,
construction, factory, retail, or restaurant work, or any other activity—call:
w the National Human Trafficking Resource Center at 1-888-373-7888 or
w the California Coalition to Abolish Slavery and Trafficking (CAST) at
1-888-KEY-2-FRE(EDOM) or 1-888-539-2373
to access help and services.
Victims of slavery and human trafficking are protected under United States and
California law.
The hotlines are:
w Available 24 hours a day, 7 days a week
w Toll-free
w Operated by nonprofit, nongovernmental organizations
w Anonymous and confidential
w Accessible in more than 160 languages
w Able to provide help, referral to services, training, and general
information
Simplifying business. Benefiting people. 18

19. Other
Noteworthy
Changes
Simplifying business. Benefiting people.

20. Other
Noteworthy
Changes
SB 1140 - Provides that marriage is a personal relation arising out of a civil, and not
religious, contract.
SB 1177 – When an employer is convicted of a crime against an employee, any
payment to the employee or the employee's dependent that is made by the
employer's workers' compensation insurance carrier may NOT being used to
offset the restitution owed unless the court finds that the defendant substantially
met the obligation to pay premiums for that insurance coverage.
SB 1186 - Reduces statutory damages and litigation protections for defendants who
correct physical access violations to buildings by disabled persons and provides
other limitations for damages.
AB 2188 – Provides that second/subsequent convictions for texting while driving are
a serious traffic violation, and disqualifies a driver from operating a commercial
motor vehicle for a specified time period.
AB 1536 – Permits drivers to verbally dictate, send or listen to text-based messages
while driving only if using voice-activated, hands-free devices.
Simplifying business. Benefiting people. 20

21. Other
Noteworthy
Changes,
con;nued
2013 Meals & Lodging Cash Values
For calendar year 2013, the cash value of meals and lodging for tax purposes: 3
meals per day: $10.90 (breakfast: $2.35; lunch: $3.30; dinner: $5.20—Note that
these amounts add up to $10.85, not $10.90); a meal not identifiable as either
breakfast, lunch or dinner: $3.80.
2013 Minimum Pay Requirements for Exempt Employees
Computer Professionals: a $1.01 increase in the hourly rate from $38.89 to $39.90
per hour.
Licensed Physicians and Surgeons: $1.84 increase in the hourly rate from $70.86 to
$72.70 per hour.
Simplifying business. Benefiting people. 21

22. Other
Noteworthy
Changes

23. Contact
Us
!
• .
Email
RMcDonough@alphastaff.com
or
hrsc@alphstaff.com
888-­‐335-­‐9545
(Op?on
8)
Simplifying business. Benefiting people.

24. Upcoming
AlphaStaff
Webinar
Please
mark
your
calendars
!!!
Date:
Thursday,
Janaury
17,
2012
Topic:
Controlling
Unemployment
Cost
Date:
Wednesday,
Janaury
30,
2012
Topic:
Healthcare
Reform:
The
State
of
the
Union
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24

25. Thank
you
for
joining
us
!!!
Simplifying business. Benefiting people.
25