THE ABs!

AB25: Domestic Partners.
Allows an employee to collect unemployment if he/she has to leave a job in order to follow a domestic partner who has to relocate. Allows an employee to use half of his/her sick time to care for a domestic partner or his/her children under California's "kin care" law.

AB 800: English in the Workplace.
Places significant restrictions on an employer's ability to enforce an "English-only" policy in the workplace.

AB 1025: Nursing Mothers.
Requires employers to provide reasonable accommodation, in the form of increased unpaid break time and privacy, to breast-feeding mothers who need to pump milk during the workday.

AB 1426: Child Support Garnishments
Provides for new penalties for failure to comply with a court-ordered child support garnishment and allows electronic transfer of payments.

AB 1643: Temporary Nursing Staff.
Mandates employment agencies that provide temporary certified nurse assistants or licensed nursing staff for long-term health care facilities to meet new requirements including pre-employment background checks.

THE SBs!

SB 20: At-Will.
Prohibits "at-will" termination of janitors and building maintenance personnel in certain limited circumstances.

SB 40: Unemployment.
Increases unemployment benefits by 95% over the next 4 years. In 2002, the maximum weekly benefit increases from $230 in 2001 to $330. Allows part-time workers to collect benefits. Changes base period calculation. Prevents WARN Act payments from affecting eligibility.

SB 975: Prevailing Wage.
Makes private commercial and residential projects subject to prevailing wage if they receive funds from state or federal government.

SB 1208: Exempt Doctors.
Creates an overtime exemption for doctors paid on an hourly basis at a rate of at least $55/hour.

SB 871: Drug Testing.
Provides for new requirements and penalties for employers covered by federal Department of Transportation drug and alcohol testing requirements.

PAYROLL ISSUES!

Social Security
Effective January 1, 2002, the Social Security base wage increased from $80,400 to $84,900. Employers need to withhold 6.2% for a maximum contribution of $5,263.80. Medicare tax remains at 1.45 and is uncapped.

Minimum Wage
As of January 1st, 2002 the minimum wage in California is $6.75.

Mileage
The IRS has increased the standard mileage rate used to reimburse employees for business use of their personal automobile from 34.5 cents to 36.5 cents per mile.

W-4
Remember to ask employees if they want to fill out a new W-4 for payroll tax withholding in 2002. With last year's reductions in tax withholding rates, employees in the 28% and higher tax brackets will have less withheld from each paycheck.

State Payroll Tax Contribution Rates
Sometime during 2001, you should have received a notice from the EDD with your 2002 UI, ETT, and SDI tax rates and unemployment reserve account information (DE 2088). It is essential that your payroll company, CPA, or internal employee who processes your payroll receives a copy of this notice. If you want to protest any information, you must do so in writing within 60 days of the mail date on the notice. If you do not have your notice, call the EDD's Contribution Rate Group at (916) 653-7795, or their new toll-free number for payroll tax help: 1-888-745-3886.

EXEMPT AND NON-EXEMPT EMPLOYEES!

Salary Deductions for Exempt Employees, New Rules or Old Rules?
In May, the Labor Commissioner released a much debated opinion letter that attempted to require that exempt employees be paid a full month's salary for any month in which they performed as little as one hour of work. After several meetings and extensive testimony, the IWC finally voted to amend Wage Order 5 to add language clearly stating that California will continue to follow federal Fair Labor Standards Act rules, which only require exempt employees to be paid their full weekly salary for any week in which they perform some work. Additionally, the IWC voted to conduct hearings to explore the option of amending all the other wage orders. For more details and to revisit the federal rules on this subject, see Lauraine's article at: http://www.nawbo-oc.com/articles/ExemptRules.html

If unsure of which wage order applies to your company or if you need a copy of your wage order, please contact Christel in our office at CBendel@Vantaggiohr.com or (949) 425-1262 ext. 2.

Minimum Monthly Salary
California Law requires that exempt employees be paid a monthly salary of at least twice the minimum wage. With minimum wage now at $6.75/hr, the required salary is $2,340.

IN THE COURTS!

A California Court of Appeal (November 2001) upheld an award totaling $1.26 million that was granted to an employee who refused to sign a non-compete agreement. Aetna U.S. Healthcare required that the employee execute an agreement barring her from working for any competitor in California for 6 months after leaving the company. Not only did the court find the agreement in violation of public policy, but Aetna's subsequent termination of the employee was ruled to warrant punitive damages.

The lesson employers should learn is to exercise extreme caution with such agreements. There are legal and enforceable ways to limit the possibilities that former employees will harm your company by revealing confidential information to a subsequent employer. If you would like our assistance with the preparation of an employee confidentiality and non-solicitation agreement, we can draft a customized one page document for you for a flat fee of $300. Our price includes the cost of a one-half hour review by an attorney well-versed in this area, Mark Klein, of Klein & Hapeman, LLP. For additional information about this subject, refer to an article Lauraine published at: http://www.nawbo-oc.com/articles/Noncompete.html or you can contact Mark Klein directly at khlawllp@Pacbell.net

VANTAGGIO HR'S LOBBYING EFFORTS!

As a member of various legislative action groups, Vantaggio HR continues to represent its clients, most of whom are small to mid-size California employers, with regards to legislative issues that will have an impact on labor concerns.

Sexual Harassment: We lost!
Despite our phone calls, emails, and letter writing, both directly and through PIHRA and the California Chamber of Commerce, Governor Davis vetoed SB208. This bill would have allowed an HR professional without a PI license to conduct sexual harassment investigations. We will continue our efforts to get this issue presented again.

Workers Comp: We are Winning, for now.
SB 71, vetoed by Governor Davis, would have increased workers comp. benefits by $3.6 billion without introducing any system reforms. The issue, however, is far from dead. As a member of the California Small Business Advisory Council Labor Committee, Lauraine will be actively involved this year in efforts to spearhead workers comp. legislation that will include much-needed system reform. On January 11th she attended a meeting hosted by Senator Bill Morrow, with a follow-up conference call scheduled for January 23rd. Please contact her for more information or if you would like to offer your advice or assistance.

DO YOU NEED HELP?

In the light of the new changes in labor law compliance requirements at the beginning of this year, now would be an appropriate time to conduct an audit of your company's human resources practices and a review of your employee handbook.

While Vantaggio HR still offers top-of-the-line, customized, employee handbooks, we are very happy to announce that we now offer a shorter format handbook designed for smaller employers with simpler organizational needs. While still customized for each client, our short format handbooks are perfect for companies with less than 25 employees who have less complex legal requirements and who do not need lengthy, detailed procedures or policies. The great news is that these handbooks are very user-friendly (usually only about 15 pages), provide the essential protections to the employer, and can be done at a reduced cost. If you are interested in either our short format or fully-customized employee handbooks, give us a call at (949) 425-1262.

EMPLOYMENT POSTERS

Do not be out of compliance
Effective January 1, 2002, the following new posters must be displayed in the workplace :
o Harassment or Discrimination in Employment is Prohibited by Law has been updated to deal with English Only policies;
o California Minimum Wage must reflect $6.75/hour;
o Safety and Health Protection on the Job has updated Cal/OSHA addresses and phone numbers;
o Beck poster informs non-union employees of federal contractors of their right to withhold a portion of their union dues.

DO YOU NEED POSTERS?
Clients on our monthly or annual retainer program can get up to 2 sets of posters from us at no charge. For others who are interested, we have poster sets available at a reduced price due to our volume discount. Please contact Magali in our offices at MMorfin@Vantaggiohr.com or (949) 425-1262 ext. 4 to place your order.