More Employment Law Changes 2012

More Changes To Employment Law

There are a two more I thought were noteworthy.  These changes are geared toward employee electronic verifications and worker's compensation.  Also cancer now qualifies as worker's compensation if obtained during the course of employment due to exposure for active firefighters.

First let's look at AB 1236.  This refers to the E-Verify program in accordance with US Homeland Security partnership.  This enables participating employers to use the program, on a voluntary basis, to verify that the employees they hire are authorized to work in the United States.  However, it is prohibited to require an employer except for government entities to be required an electronic employment verification system except when required by federal law or as a condition of receiving federal funds.

AB 1168
Changes have been made to vocational expert fees in relation to workers' comp.
While there are already workers' compensation systems in place, current law now requires the 'administrative director, after public hearings, to adopt and revise periodically official fee schedules that establish reasonable maximum fees paid for, among other things, medical services, medicines, and medical supplies. Existing law authorizes the Workers' Compensation Appeals Board to determine and allow certain expenses as liens against any award of compensation'.  On or after January 1, 2013, after public hearings,  the administrative director would have to adopt a fee schedule that establishes reasonable hourly fees paid for services provided by vocational experts.  That means a vocational expert would no longer be allowed to be paid anything in excess of fees that are reasonable and necessary. The appeals board would be prevented from allowing these expert fees.

AB 585 Workers' compensation: cancer presumption.
Firefighters or peace officers who develop cancer or manifest such during the period when the firefighter or peace officer demonstrates that he/she was exposed to a known carcinogen during public service are eligible for compensation. This bill would extend this presumption to active firefighting members of a fire department serving a National Aeronautics and Space Administration installation who adhere to specified training standards.

These are a few more changes that I have noted concerning California employment law. Small business owners and employees alike should make sure they know their rights in every case.  Seeking advice from an general counsel attorney would be best to ensure full compliance and to get proper direction, updating forms and to get sound legal answers for all of your business concerns.

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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.

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At Will Employment -What Does It Mean?

 Who Does At-Will Apply To?

At-will employment is applied to any employee who does not have a clearly defined contractual employment agreement. Essentially it means that an employer can dismiss an employee at any time, without cause.

For employers, this can be a sense of relief because the employer does not have to deal with a difficult or troubled employee, should the situation present itself in the workplace. Employers and employees often misunderstand the implications of this law.

What is California at-will employment law exactly? It's defined as any employment arrangement where there is no contract and either party - that is, the employee or employer - can terminate the employment any time with proper notice.

How Can California At Will Employment Help Employers

Having at-will employees does not protect you from lawsuits or any other attempts that can be made by a disgruntled employee to get their job back or receive compensation. There are a good number of measures that a company can take to protect the company to mitigate the number of lawsuits sustained by former employees.

Here are some quick tips to keep note of:

-Know the do's & don'ts of the at-will employment law.

Remember that employer's rights refers less of what the law allows the employer to do, and more to what they should avoid doing.

-Have a clear agreement which spells out the statutes for the employee and have him/her sign.

This will ensure that the employee understands the at-will agreement and minimizes this being raised later should you be brought in to court by a former employee.

-California at-will employment is just that - at-will. 

Unless there is a contract spelling out why and how an employee can be terminated, there is no agreement to that effect. You can let an employee go at any time.

-Educate your managers about California at-will employment. 

Your business depends on this. Their understanding that at no time should they ever make any promises about employment to any employees will also lessen the chances of lawsuits.

Any signed agreement with any employee should also be sure to include their at-will status under the California at-will employment law, and should not guarantee future employment with the company. You must be sure that the employee understands that they are not protected from at-will firings.  The employment agreement should also state this clearly.

  

 Knowing your rights as a California employer will lessen the number of legal disputes that may occur from a disgruntled employee.  It is best to contact a general counsel attorney or one well versed in employment law for further questions or questions not covered in this article.

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