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New CA Laws and Regulations Compliance Overview


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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

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New CA Laws and Regulations Compliance Overview

  1. 1. California  Legisla@ve  Update      2013  Employment  Law   Changes   Thursday, January 10, 2012 Presented by: Rebecca McDonough, SPHR-CA Human Resources Account Manager800  Corporate  Drive,  Ste  600    Ft.  Lauderdale,  FL  33334    |    888.335.9545  Toll-­‐Free    |  
  2. 2. AGENDA   • Introductions   • Discussion   • Q&A   • CloseSimplifying business. Benefiting people.
  3. 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. 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. 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. 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. 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. 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 individuals weekly "disposable earnings" or the amount by which the individuals 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 individuals earnings that remains after deducting all amounts required to be withheld by law.•  The bill limits the amount of an individuals weekly disposable earnings subject to garnishment to the lesser of 25% of the individuals weekly disposable earnings or the amount by which the individuals disposable earnings for the week exceeds 40 times the state minimum hourly wage (currently, $8.00 per hour). Simplifying business. Benefiting people. 8  
  9. 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. 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. 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. 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. 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, or3.  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. 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. 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. 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. 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. 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. 19. Other  Noteworthy  Changes  Simplifying business. Benefiting people.
  20. 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 employees dependent that is made by the employers 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. 21. Other  Noteworthy  Changes,  con;nued    2013 Meals & Lodging Cash ValuesFor 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 EmployeesComputer 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. 22. Other  Noteworthy  Changes  
  23. 23. Contact  Us  !   •  .       Email     or   888-­‐335-­‐9545  (Op?on  8)     Simplifying business. Benefiting people.
  24. 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     Simplifying business. Benefiting people. 24  
  25. 25. Thank  you  for  joining  us  !!!  Simplifying business. Benefiting people. 25