www.vantaggiohr.com

April 2002 Vantaggio HR, ltd. is a full-service human resource and management consulting firm located in Aliso Viejo, CA. If this newsletter has been forwarded to you by one of our affiliates or clients and you would like more information about our company and the services we provide, please call us at (949) 425-1262.


LEGAL UPDATES...

New W-2 Forms
The IRS has announced that changes have been made to the 2002 Form W-2. It is always a good idea to get employees to update their W-2's each year. Make sure you are using the form with a revision date of February 2002.

Organ and Bone Marrow Leave
And we thought California was always the first! Effective July 1, 2002 state employees in Utah and Indiana will be entitled to paid leave in order to serve as a bone marrow (up to 7 days) or organ donor (up to 30 days).

Genetic Testing
Effective July 1, 2002 employers in Virginia will be prohibited from taking any adverse employment action against an employee or applicant solely on the basis of a genetic characteristic. Many believe similar laws will be passed in other states and on the federal level.

Suspension of 5500 Filing Requirement
On April 4, 2002, the IRS announced that the filing of Form 5500 and accompanying Schedule F were suspended for the following types of plans: flexible spending plans under Section 125, educational assistance plans under Section 127, and adoption assistance plans under Section 137. The notice does not relieve employers of the responsibility for filing 5500's on most other welfare benefit plans. For information about 5500 filing responsibilities or any other tax-related questions, call Dave Jorgensen of Kramer & Olsen at 714-558-3236 or email at davidj@kramerolsen.com










RECRUITING CORNER...

Current Openings:

Customer Service Reps:
Non-profit organization in Hollywood seeks individuals for 2 front desk/customer service part-time positions. Excellent phone skills and some experience in the publishing/magazine industry is helpful. $10/hr.

Summer Intern - Office Administration:
Assist with marketing, public relations, administration, and clerical functions for small Orange County consulting firm. 10-15 hours/week. $9/hr.

Benefits Administrator/Claims Processor:
Newly formed Third Party Administrator in So. Orange County seeks part-time or full-time person with strong bookkeeping skills, experience with medical insurance plan administration, preferably claims processing, strong analytical skills, and attention to detail. Salary: $15+/hr, depending upon experience.

Are you interested in any of these positions?
Do you know someone else who might be a good fit?
Are you an employer with a staffing need?


If so, please give us a call at (949) 425-1262 or e-mail us at recruiting@VantaggioHR.com



IN THE COURTS...

Workers' Comp. Stress Claims
In a recent California appellate case (March, 2002), the court reversed the Workers' Compensation Appeals Board's (WCAB) previous interpretation of California Labor Code and ruled that "psychiatric" injuries following a physical industrial injury are covered by workers' compensation only when it can be shown that the psychiatric injury is more than 50% attributable to the physical injury. This represents a clear victory for employers and all those who wish to see abuses of the system curtailed.

No Backpay for Undocumented Aliens
In March, 2002, the United States Supreme Court ruled that the National Labor Relations Board cannot order employers to award backpay to an employee who was never legally authorized to work in the U.S. In their ruling, the majority noted that awarding such backpay would encourage the evasion of immigration laws, condone prior violations, and encourage future violations. Since 1999, the EEOC has held the position that undocumented aliens were entitled to the same legal remedies as other workers. It is still unclear as to whether or not the EEOC will modify its position as a result of this ruling.

Health Insurance for Employees on Workers' Compensation Leave
Employees who have suffered a work-related accident or illness have traditionally had special protection under code section 132(a) of the CA labor code which prohibits an employer from "discharging, threatening, or discriminating in any way" against an employee who has filed or intends to file a workers' comp. claim. The Workers' Compensation Appeals Board (WCAB) has interpreted that section to mean that an employer is prohibited from terminating the health insurance coverage of an employee who is out on workers' comp. leave.

Employers have wrestled with the problem of establishing company policy that limits the amount of time that an employee who is out on leave can remain covered at the company's expense under their group benefit plans. Often times, for fear of Section 132(a) discrimination claims, employers end up treating an employee on a work-related leave in a more generous manner than employees on other disability leaves.

Following a federal lawsuit on the subject, the WCAB announced in February a unanimous opinion reversing its previous position and stating that federal ERISA law (that governs the administration of employee benefit plans) preempts California's labor code.

This decision will now allow employers to establish and follow policies regarding terminating health benefits that are the same for all employees. In addition, it will put them in a position to adhere to ERISA regulations and to family and medical leave laws which allow for placing an employee on COBRA after the exhaustion of a 12 week leave.

For help in reviewing, establishing, or revising your company's leave policies, please give us a call to discuss our employee handbook services.

VANTAGGIO NEWS...

Human Resource Management Service

Have you ever needed detailed advice on a personnel matter but didn't know whom to call?
Have you ever failed to get the advice you needed because of the cost?
Have you ever wished that you had checked the regulations before an employee problem arose?


Our Monthly Retainer Program includes the following services:

*Unlimited telephone and email consultation in all areas of HR and personnel administration:
Corporate policies
Wage and Hour regulations
Sexual harassment
Employee issues
Hiring and Termination process
Benefit and Pension plans
Personnel records
Compensation
ADA, FLSA, COBRA, HIPAA, ERISA, INS, EEO/AAP, FMLA, etc.


*Employment Posters
up to 2 complete sets of all federal and state required employment posters.

*Seminars
free attendance at our annual Labor Law Update seminar.

*Annual audit
of your personnel/payroll files, benefit plans, and current HR procedures followed up with a written recommendation report. (Performed at end of first year of service for non-contract clients - during initial month of service for clients who sign a 1-year contract.)

$200.00 per month * No contract required

If you need more information, please call us at (949)-425-1262. The information presented in this document is intended to be accurate and authoritative information on the subject matter covered at the time submitted for mailing. It is distributed with the understanding that Vantaggio HR, Ltd. is not rendering legal advice and assumes no liability whatsoever in connection with its use.
Copyright, Vantaggio HR, Ltd., 2002.
info@VantaggioHR.com •  Vantaggio HR, ltd.