What 2012 Brings To Employment Law

So today I just read a post published from a couple of months ago that the San Francisco Chronicle did on the changes being made to employment law in California.  I also noted some other employment law changes you can read more about below.  Employment law is something all employers and employees should thoroughly familiarize themselves with.  The law seems pretty basic looking at it from the a wide scope lens but, it is important to look a little closer into what these law actually mean for both sides.  

At any rate, the article I mentioned above pointed out a couple of points employers may want to keep abreast of.   I've aded a few more employment law changes that the post didn't.  I'll summarize a few employers and employees will want to take special note of here: AB 469,  AB 22, SB 299, and SB 459.

At-Will
For the most part, the at will employment law has not changed much.  The exception is that is it now mandatory for employers to ensure that the employee thoroughly understands what an 'at-will' agreement means.  Many employers have already begun outlining this at the initial process of hiring and require your signature acknowledging such at the start of employment as standard practice. For those who have not included this information in the offer/hire agreements, it is no longer an option, it is a must.

AB 469
This refers to the option of employee overtime.  What does it say? In brief, it states that employers must give workers who are 'not exempt from overtime a "notice of such at the time of hire that includes certain pay details including their rate of pay and whether it's hourly, salary, commission-based or otherwise; any allowances claimed as part of the minimum wage including meal and lodging allowances; the regular payday; and name, address and phone number of the employer and of the employer's workers' comp insurance".  This particular law should not worry any employers already stating this information in their hire/offer letters, which is pretty much standard practice today.  Just make sure you properly phrase your hiring documents so that you comply with this law.  This will also help you, the employer, in the long run should there be any future problems with an employee.

AB 22
This refers to your use of credit checks on potential employees.  California employers are NO longer allowed to use credit reports to screen applicants or employers.  Also, employers must understand the difference between a credit report,  a background check and a credit check are which are very different things. There a few exceptions where this is allowed.  Employers may use a credit report only under these circumstances:

a)if the position is in management
b) if job requires regular access to bank, credit card info, social security numbers, and/or dates of birth [not required if job involves solicitation and processing of credit card applications]
c) if job requires regular access to employer's or client's cash, at least $10k or
d) if position is in law enforcement, a sworn peace officer or State Department of Justice

Get to know these and the other changes to the 2012 employment law. There are penalties for non-compliance of any of these rules so it's important to check them out and maybe re-evaluate your company/employee policies in this matter.  Don't forget to update your authorization forms to comply with these new laws.

SB 299
This has to do with the health coverage you provide.  SB 299 requires that any employer with five or more employees provide health coverage under a group health plan for eligible female employees who take pregnancy disability leave for up to four months.  It should not be any different than the typ of insurance that was provided prior to the leave period.


SB 459

Here's one you really want to pay attention to.  I have seen this happen to many employers and employees ignorant to this law.  SB 459 says that there is joint liability for both sides if anyone "knowingly advises an employer to treat an individual as an independent contractor to avoid employee status".  This of course doesn't apply to attorneys authorized to practice law in California.  There are some pretty steep penalties for those found in violation.  A person or employer found in violation could be hit with penalties from $5k to $15k for each violation.  An established pattern of these practices could ring up a $25k violation per violation.


See dir.ca.gov or read my next post on the others here


In summary employers in 2012 must comply to these California employment law changes:

-State if employee is eligible for overtime at time of hire and include pay details (ie hourly; salary; commission or other)

-Maintain  health coverage under a group health plan for eligible female employees who take pregnancy leave up to four months which must be at same level attained prior to leave for business with  five employees or more

-Do not classify employees as 'independent contractors' if they are not! Be ready to pay up to $25k in fines if you do

-Employers not allowed to do credit checks on employees at whim. Background checks are fine such as criminal etc, but obtaining one's credit report must have good reason other than simply for hire.

-Employees and Employers not allowed to enter an employee as an independent contractor just to escape employee status.

-Employers with five employees or more must provide health coverage for eligible female employees who take pregnancy leave up to four months.

Posted in: california employment law, employment law, general counsel attorney