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Legislative Updates
HR Manager information is NOT legal advice. Consult an attorney
for all legal questions.
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EFFECTIVE IMMEDATELY
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AB76
Employer liability for Harassment by Third Parties
This bill revises the California Fair Employment and Housing
Act to address sexual harassment liability to employers for acts
committed by non-employees where the employer knew or should have
known of the incident and failed to take corrective action.
View this law at
http://www.leginfo.ca.gov/pub/03-04/bill/asm/ab_0051-0100/ab_76_bill_20031003_chaptered.html
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AB254
Post COBRA Coverage – Employees Age 60+
Under current California law, employees who are age 60 or older
at the time of an Initial Qualifying Event (i.e. termination or
reduction of hours), and who have worked for an employer for at
least five (5) years, are entitled to continue coverage with the
employer’s insurance carrier after COBRA coverage ends. This
bill would limit this offer to employees meeting eligibility requirements
prior to January 1, 2005.
View this law at
http://www.leginfo.ca.gov/pub/03-04/bill/asm/ab_0251-0300/ab_254_bill_20040624_chaptered.html
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AB1127
Whistleblower Law Poster
Existing law requires employers to prominently display a whistleblower
law poster. The lettering on that poster must be larger than size
14 pica type where it contains a list of employees' rights and
responsibilities under the whistleblower laws. This bill instead
would require that the lettering of the list be larger than size
14 point type.
View this law at
http://www.leginfo.ca.gov/pub/03-04/bill/asm/ab_1101-1150/ab_1127_bill_20040927_chaptered.html
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AB2412
Employer Misrepresentations – Unemployment Claims
Existing law forbids employers, employees, and agents of the
employer from making a false statement or representation concerning
an employee’s unemployment eligibility. Employers are also
forbidden from failing to report a material fact concerning a
termination. Employers found in violation of this law may be accessed
a penalty by the Employment Development Department in an amount
of not less than two but not more than ten times the weekly benefit
of the claimant’s compensation.
This amendment will extend the penalty to employers who willfully
make a false statement or representation concerning a claimant’s
re-employment.
In accordance with the current law, it is extremely important
that employers be able to prove the nature of a termination. Employers
should obtain a resignation letter from all employees who voluntarily
terminate in order to prove the nature of the termination. Similarly,
employers should avoid the desire to misrepresent a voluntary
termination in order to allow an employee the opportunity to collect
unemployment
View this law at
http://www.leginfo.ca.gov/pub/03-04/bill/asm/ab_2401-2450/ab_2412_bill_20040927_chaptered.html
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AB2866
Workers’ Compensation Fraud – Internet Posting of Convictions
The Department of Insurance will begin posting on its Internet
site information for each person, association or business convicted
of insurance fraud involving workers’ compensation. The information
will be posted for a period of five years from the date of conviction
or until such time as the department is notified that the conviction
has been reversed or expunged.
View this law at
http://www.leginfo.ca.gov/pub/03-04/bill/asm/ab_2851-2900/ab_2866_bill_20040823_chaptered.html
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SB873
Criminal History Disclosure – Working with Minors
Employers who have employees that work with minors may obtain
information from the Department of Justice concerning the federal
criminal history and juvenile arrest information of potential
employees or volunteers who will work with minors.
View this law at
http://www.leginfo.ca.gov/pub/03-04/bill/sen/sb_0851-0900/sb_873_bill_20030724_chaptered.html
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SB 899
Workers’ Compensation Amendments
Some portions of this law are retroactively effective –
others have a future effective date as shown below.
View a summary of this law.
View this law at
http://www.leginfo.ca.gov/pub/03-04/bill/sen/sb_0851-0900/sb_899_bill_20040419_chaptered.html
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SB 1465
Labor Union – Subpoena for Employee Documents
If a subpoena for documents relating to a current or former members
employment is sent to a labor union, a notice must be sent to
the union member. Current law only requires notification to the
employee if a subpoena for information is sent to an employer.
View this law at
http://www.leginfo.ca.gov/pub/03-04/bill/sen/sb_1451-1500/sb_1465_bill_20040706_chaptered.html
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SB 1809
Labor Code Private Attorneys General Act of 2004
This controversial bill was introduced last year and became known
as the “Sue Your Boss” bill. The bill allowed individual
employees and their attorneys to sue for alleged violations to
any labor law – no matter now minor. There was no requirement
to appeal first to an enforcing agency. The bill created monetary
penalties for laws that did not have monetary penalties. The awarding
of attorney fees was allowed under this bill and the result was
an abundance of trivial lawsuits – in the first six months
of 2004 there were $556,000,000 in lawsuits filed.
The revised law went into effect on August 12, 2004. Two provisions
were retroactive to 1/1/04.
View a summary of this law.
View this law at
http://www.leginfo.ca.gov/pub/03-04/bill/sen/sb_1801-1850/sb_1809_bill_20040811_chaptered.html
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Judicial Decision
Temporary Employee – Definition of “Discharge”
A recent California Court of Appeals decision can help employers
with the definition of “discharge” for temporary employees
who are employed for a fixed time period.
View a summary of this decision.
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Department of Industrial Relations Emergency Regulations
Meal Period
The DIR has just released proposed emergency regulations to clarify
the law regarding an employer’s duty as it relates to employees
taking a meal period. Currently, employers are required to ensure
that employees to take a meal period no later than the fifth hour
of work. The clarification now requires that employers make a
meal period “available”. While this is less burdensome,
employers who deny a meal period to an employee are still liable
for fines and penalties in the amount of one hour of pay.
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EFFECTIVE JANUARY 1, 2005
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AB205
Domestic Partner Rights
Employers are required to extend benefits and rights to registered
domestic partners in the same manner that such rights and benefits
are offered to employees and their spouses. Therefore registered
domestic partners will have the right to insurance benefits on
the same basis as any rights extended to married employees.
View a summary of this law.
View this law at
http://www.leginfo.ca.gov/pub/03-04/bill/asm/ab_0201-0250/ab_205_bill_20030922_chaptered.html
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AB2208
Domestic Partner Benefits
This bill enacts the California Insurance Equity for All Families
Act. Under current law, group health plans are required to offer
health coverage for registered domestic partners that is equal
to coverage offered to dependents of employees. This bill changes
the terminology slightly – now requiring that the coverage
offered to registered domestic partners be equal to coverage offered
to “spouses”.
In most cases, health insurance plans offer the same level of
benefits to “spouses” and dependent children. So this
revision would most likely affect only life insurance plans that
may contain a higher benefit for a spouse as opposed to a dependent
child. Such plans must offer the same benefit available to a “spouse”
to a registered domestic partner beginning 1/1/05. If the employer
contributes a portion of the cost of coverage for spouses, the
employer must contribute the same amount towards the cost of coverage
for a domestic partner.
The plan may require proof of domestic partner registration (or
dissolution) only if the plan requires proof of marriage or divorce.
Self-funded plans are exempted from this requirement as they
are governed by federal law which does not recognize domestic
partner relationships.
One important point for consideration – premiums paid for
domestic partner coverage are not “qualified” under
the federal tax code and therefore may only be deducted on a post-tax
basis. Therefore, such costs may not be paid through a Section
125 Salary Reduction Plan. Furthermore, if the employer contributes
towards the costs of dependent coverage, any such contribution
would be considered taxable income to the employee since federal
law does not recognize domestic partner relationships.
View more information about this law at
http://www.leginfo.ca.gov/pub/03-04/bill/asm/ab_2201-2250/ab_2208_bill_20040913_chaptered.html
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SB1314
Criminal Background Checks Permitted - Employees and Volunteers
at Parks, Playgrounds, Recreation Centers and Beaches
Each California county, city or special district must conduct
a criminal history check on all employees and volunteers if the
job position has supervisory or disciplinary authority over any
minor. If a job applicant or volunteer has been convicted of specified
offenses, such individual may not be hired for the job position.
View this law at
http://www.leginfo.ca.gov/pub/03-04/bill/sen/sb_1301-1350/sb_1314_bill_20040723_chaptered.html
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AB1825
Mandatory Sexual Harassment Training
Beginning 1/1/05, California employers with 50* or more employees
are required to provide 2 hours of sexual harassment training
to supervisors within one year of the effective date of the law.
Beginning 1/1/06, employers must provide sexual harassment training
to supervisors once every two years.
View a summary of this law.
View this law at
http://www.leginfo.ca.gov/pub/03-04/bill/asm/ab_1801-1850/ab_1825_bill_20040930_chaptered.html
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SB 1618
Employee Social Security Number on Pay Stubs
Existing law requires that employers display the name and social
security number of employees on the pay stub.
This bill would require employers to remove employee social security
numbers from the itemized portion of an employee's pay stub. Employers
have the option of either including just the last four digits
of the employee's social security number or an existing employee
identification number. Employers may implement the change before
January 1, 2008 but must have the removal process completed by
1/1/08.
View this law at
http://www.leginfo.ca.gov/pub/03-04/bill/sen/sb_1601-1650/sb_1618_bill_20040929_chaptered.html
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Working Families Tax Relief Act of 2004
This federal law now makes taxable some types of benefits that
were previously tax-exempt. Other types of benefits will be considered
unavailable. Effective date of this legislation is 1/1/05.
View a summary of this law.
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Minimum Wage Increase
SAN FRANCISCO CITY AND COUNTY EMPLOYERS
The minimum wage for San Francisco city/county employers will
increase to $8.62 per hour effective January 1, 2005. The required
rate for small businesses with less than ten employees and non-profit
organizations will be $7.75 per hour.
EXEMPT EMPLOYEE MINIMUM WAGE INCREASE
Computer software employees who qualify as exempt employees must
be paid a minimum of $45.84 per hour effective 1/1/05 or lose
their exempt status.
Licensed physicians and surgeons who qualify as exempt employees
must be paid a minimum of $59.11 per hour effective 1/1/05 or
lose their exempt status.
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PENDING
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Military Leave - Proposed New Rules
The Uniformed Services Employment and Reemployment Rights Act
(USERRA) is considering some revisions to this law. USERRA applies
to all employers – regardless of size. USERRA forbids employers
from refusing to hire or promote an employee on the basis of the
employee’s military obligations. Employees generally must
give written or oral notice to employers before taking military
leave, but need not obtain an employer's permission.
View a summary of the proposed rules.
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EFFECTIVE JANUARY 1, 2006
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SB2
Mandatory Health Insurance – Employers with 200+ Employees
If an employer does not provide health care coverage to all eligible
employees, this bill would require specified health benefits to
be provided directly by employer-purchased health insurance programs
or through the State Health Purchasing program. The required fee
contribution to the state managed plan would be shared between
the employer (minimum 80%) and the employee (maximum 20%).
View a summary of this law.
View more information at the following website:
http://www.leginfo.ca.gov/pub/bill/sen/sb_0001-0050/sb_2_bill_20030913_enrolled.html
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EFFECTIVE JANUARY 1, 2007
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SB2
Mandatory Health Insurance – Employers with 50 - 199 Employees
If an employer does not provide health care coverage to all eligible
employees, this bill would require specified health benefits to
be provided directly by employer-purchased health insurance programs
or through the State Health Purchasing program. The required fee
contribution to the state managed plan would be shared between
the employer (minimum 80%) and the employee (maximum 20%).
View a summary of this law.
View more information at the following website:
http://www.leginfo.ca.gov/pub/bill/sen/sb_0001-0050/sb_2_bill_20030913_enrolled.html
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AB17
State Contractor Requirement/Domestic Partner Benefits
This bill would prohibit a state agency from entering into a contract
for the acquisition of goods or services in the amount of $100,000
or more (cumulative in a fiscal year) with a contractor who, in
the provision of group health benefits, discriminates between
employees with spouses and employees with domestic partners, or
discriminates between the domestic partners and spouses of those
employees.
View a summary of this law.
View more information at the following website:
http://www.leginfo.ca.gov/pub/bill/asm/ab_0001-0050/ab_17_bill_20031011_chaptered.html
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