The following is a sampling of new laws affecting employers in 2004:

Wage and Hour
SB 796: Private Right of Action, "Bounty Hunting" Bill
• Permits "aggrieved employee" to sue employer for civil penalties, attorney's fees, costs for any violation of CA Labor Code.
• Employee not required to prove he/she has suffered any harm and can sue on own behalf or on behalf of other current or former employees.
• Civil penalties:$100 per employee per pay period for initial violations and $200 for subsequent violatons.

AB 223: Fee Awards
• Allows employees who are success at a Labor Commissioner appeal to recover attorneys' fees and costs.
• Defines "successful" as having received any award greater than zero.

AB 276: Wage Penalties Penalties increase for failure to pay wages or unlawfully withholding from wages:
• for first violation: from $50 to $100;
• for subsequent, willful, or intentional violations: from $100 to $200,
• for failure to pay minimum wage: from $50 to $100.

Leaves and Benefits
SB 2: Mandatory Health Coverage Requires employers to provide health care coverage to employees and dependents by purchasing such coverage privately or by paying a fee to the State Health Purchasing Program.
• For companies of 200+ employees, effective 1/1/2006.
• For companies of 20 to 199 employees, effective 1/1/2007.
• Employers of 20-49 employees will not be required to comply unless a tax credit is enacted that equals 20% of the net cost of the fee.

SB 478: Crime Victims
• Requires employers to allow employees who are victims of crimes or related to a crime victim (families, domestic partners) to be absent from work to attend to judicial proceedings.
• Employer is specifically prohibited from discharging or discriminating against an employee who exercises these rights.

SB 727: Paid Family Leave (created by SB 1661 in 2002)
• Establishes regulations concerning Paid Family Leave program (formerly referred to as "FTDI").
• New payroll tax takes effect on 1/1/2004.
• Benefits available 7/1/2004.
• Part of State Disability Insurance (SDI) program.
• Does not create any new rights to leave of absence, but provides pay for up to 6 weeks during any 12-month period for an employee who is off work for a covered reason.
• Covered reasons include the serious illness of an employee's child, child of a domestic partner, parent, spouse, or domestic partner; birth of an employee's or domestic partner's child, or placement of a child in connection with adoption or foster care.
• New pamphlet must be distributed to all new hires and employees taking a leave and new poster must be displayed.

Discrimination and Harassment
AB 196: Gender/Transgender
• Expands definition of sex to include actual or perceived gender.
• Reasonable dress standards are still permissible, but a transgendered employee must be allowed to dress in accordance with his/her perceived gender.

AB 76: Sexual Harassment by Non-Employees Prohibits sexual harassment by non-employees if employer knows or should have known of the problem and fails to take corrective action.

SB 777: Whistleblowers
• Extends whistleblower protection to employees who report violation of state or federal rule or refuse to participate in activity that violates state or federal statute.
• Specifically prohibits employer from retaliation against an employee who exercises these rights
• Adds civil penalties for violations.
• Requires new poster to be displayed describing rights and giving phone number of new hotline.

AB 179: Domestic Partners – State Contractors Prohibits state agency from entering into contract for acquisition of goods or services over $100,000 with contractor who discriminates against employees w/ regards to benefits and domestic partners vs. spouses.

AB 205: Domestic Partners – Legal Rights Extends legal rights to domestic partners equal to those of spouses.

Workers' Compensation
Several new laws targeted as workers' comp. reform which include:
• Requires employers or their insurance companies to create utilization review programs.
• Defines fraud and increases penalties for violations.
• Amends penalties for late benefits payments.
• Increases opportunities for alternative dispute resolution programs.
• Replaces vocational rehabilitation program with training vouchers.
• Expands opportunities for manufacturers to participate in cooperative purchase programs.

Disability Accomodation
The EEOC recently released a guidance memo on how the Americans with Disabilities Act (ADA) protects job applicants with disabilities, making much more clear what an employer can and cannot do in hiring process:
• Disabled applicant can request accommodations in interview and application procedure if request is reasonable under circumstances.
• The employer decides which accommodation to use.
• Employer generally cannot ask if applicant would need reasonable accommodation to do job. However, if employer knows applicant has disability because it's obvious or the applicant says so, employer may ask if reasonable accommodation is needed.
• Employer can also ask applicant to demonstrate or describe how he/she would perform with or without reasonable accommodation.
Call us with questions or to get a complete copy of the guidance memo, go to: www.eeoc.gov/facts/jobapplicant.html

PAYROLL ISSUES...
W-4's: Make sure employees are given the opportunity to complete new W-4's to update their withholding allowances. NOTE: If an employee claims more than 10 allowances, or if he/she claims exempt status and earnings will be more than $200, you MUST send the IRS a copy of the W-4. When made aware of this, many employees change their minds about how they want to complete the form.

TAX RATES FOR 2004:
State Disability Insurance (SDI): 1.18% (includes 0.08% for new Paid Family Leave program), paid by employee on first $68,829 of wages.
State Unemployment Insurance (SUI): Depends upon employer, ranges from 1.5% to 6.2%, paid by employer on first $7000 of wages.
Employer Training Tax (ETT): 0.1%, paid by employer on first $7000 of wages.
Federal Unemployment Insurance (FUTA): 0.8%, paid by employer on first $7000 of wages.
Social Security (FICA): 6.2% on first $87,900 in wages, paid both by employer and employee.
Social Security (Medicare): 1.45% on all wages without limit, paid both by employer and employee.

STATE MINIMUM WAGE: will not increase in 2004 and remains at $6.75 per hour.

IRS MILEAGE RATE: increases in 2004 from $0.36 to $0.375.

Current Openings:

Chief Administrative Officer
For mid-sized, LA-based accounting firm.Responsibilities include managing IT, training, HR, marketing and administrative support departments. Must have BA in business with 10 plus years experience in an executive position in similar size firm. Email resume and mention "SLGG/CAO" in subject line mblack@VantaggioHR.com

HR Manager
LA firm with 150 ee's in 3 So. Cal. locations. Responsible for employee relations, recruiting, new hires, terminations, and administration of benefits/compensation plan. Requires BA in business or equivalent, 10 years HR experience in fast paced environment, strong professional knowledge of federal and California HR practices. Email resume and mention "SLGG/HR" in subject line cbendel@VantaggioHR.com

Construction Quality Control
Inspect and document QC workmanship on residential projects in CA for fast growing company of real estate experts. Requires a General Contractors license & 10 years experience as a superintendent in Type V, Non-Related residential. Computer literate. Email resume and mention "LaJ/QC" in subject line cbendel@VantaggioHR.com

Project Architect
Orange County. Duties include inspecting and documenting QC workmanship on residential projects & assisting w/ plan review, drafting, and scopes of work and bids. BA in Architecture, Construction Management or Building Technician, licensed in California and 10 years experience in Type V, Non-Rated residential. Contractor's license is a plus. Email resume and mention "LaJ/PA" in subject line cbendel@VantaggioHR.com

Receptionist
Foothill Ranch transportation company. Moderate phones, filing, numerical sorting, processing of mail. Problem resolution skills, attention to detail, MS Word, data entry experience required. Email resume and mention "BEL/REC" in subject line mblack@VantaggioHR.com

Billing Associate
Foothill Ranch transportation company. Supervises billing process. Position requires ability to process mass quantities of paperwork from incoming mail to outgoing invoices. Research, problem resolution skills, attention to detail, MS Word, Excel, data entry experience req'd. Prior billing experience a plus. Email resume and mention "BEL/BIL" in subject line mblack@VantaggioHR.com

Vantaggio's Recruiting Services:

Retained Search - We invoice our clients on an hourly basis for the actual time spent developing a candidate profile and conducting a search based upon that profile. Costs of advertising are extra. Often the least expensive way to fill a position.

Contingency Search - We bear the cost for any time or expenses invested in conducting a search and charge our clients a flat 10% referral fee (minimum of $2,000). A great bargain compared to other search firms that charge 20 - 30% or more.

Web-Based Employment Ads
Call us now for this limited time low or no cost online advertising opportunity. If interested, please give us a call at (949) 425-1262 or e-mail us at abukow@VantaggioHR.com


IN THE COURTS...
CA Employers MUST train on Sexual Harassment...
In a landmark decision, the California Supreme Court ruled last month in a decision that helps make clear what an employer's responsibilites are with regards to sexual harassment. While reaffirming that an employer is strictly liable for any illegal harassment that is committed by a supervisor or manager, the Court ruled that an employer may limit the employee's damages if the employee failed to take reasonable measures to avoid the harassment. In order to avail itself of this defense, the employer must show that the employer took reasonable steps to prevent and correct illegal harassment AND that the employee unreasonably failed to use these steps AND that had the employee reasonably followed the employer's procedures, some of the damages would have been avoided.It is now more important than ever for companies to have well-drafted policies and procedures and to train all employees, especially supervisory staff, on this topic. For information on Vantaggio's training sessions, please contact us at info@VantaggioHR.com

Non-Solicitation Agreements may be unlawful...
In a mid-December ruling, a Calfornia court of appeal ruled that an employer's non-solicitation agreement violated California law because it contained a blanket prohibition against an employee soliciting its employer's clients. Unless the agreement stipulates that the employee cannot solicit the employer's clients through use of the company's confidential, propriety trade secrets, the court deemed that such an agreement would be a violation of CA Business and Professions Code section 16600 which makes non-compete agreements illegal. Taking disciplinary action against an employee who refuses to sign such an agreement can cause the employer to be exposed to potential litigation and damages. Whether Vantaggio HR or another entity drafted your current confidentiality agreements, it's imperative that it be reviewed in light of this new case.


SAFETY UPDATE
Federal law requires that the OSHA Log 300 be filled out during the course of each year to record all workplace injuries, illnesses, and accidents. The log must then be posted, even if there are no events to report, from February 1 through April 30 of the following year.
If you do not have a copy of the Log 300 form or are not sure if your company must complete it, contact us immediately at info@VantaggioHR.com


EMPLOYER ACTION ITEMS...
2004 Employment Posters
Don't delay! A recent federal district court case held that an employer's failure to post the required employment notices extends the amount of time an employee has to file a lawsuit!
Clients on our monthly or annual retainer program can get up to 2 sets of posters from us at no charge. For others, we have poster sets available at a reduced price ($25 includes tax, shipping, and handling) due to our volume discount. Please contact Amy in our offices at abukow@VantaggioHR.com or (949) 425-1262 ext. 6 to place your order. DEADLINE is 1/9/04.

Handbook Updates
There are major legal changes that take effect on 1/1/2004. Contact us to do an annual review/update of your employee handbook to make sure it's in compliance with all of the new laws and regulations.

Lauraine Bifulco to Co-Chair Labor Committee for the California Small Business Association
Lauraine was recently asked again for 2004 to co-chair one of the 12 state-wide committees for the California Small Business Association ( www.csba.com), a volunteer, non-profit organization whose mission is to provide small businesses with a meaningful voice in state and federal government. Lauraine's labor issues committee will be responsible for reviewing and making recommendations on labor related legislation in 2004. If you are a small business owner and interested in becoming a member of CSBA or serving on this committee, please contact Lauraine at LBifulco@VantaggioHR.com.


WANT MORE INFORMATION?
Join us for Vantaggio HR's
Annual Labor Law Update Seminar
Thursday, January 22rd
7:45 am - 10:00 am.
Center Club, Costa Mesa.
Cost: Free to all clients on our monthly or annual HRMS retainer program. All other guests: $50.
Guest speakers: Lauraine Bifulco, and attorney Mike Sullivan of Paul, Plevin, Sullivan & Connaughton.
CPE credits available.
Look for an invitation coming soon or RSVP to abukow@VantaggioHR.com