February 09, 2012
/24-7PressRelease/ -- With each year, new laws come into effect, and 2012 is no different. Employers in California must now adhere to a number of changes affecting independent contractors, employees seeking leave due to pregnancy, as well as those who have been discriminated against due to their sexual orientation. This article will highlight a few of the new laws that became effective on January 1st.
Notice of Pay Details (Assembly Bill 469) - This new law requires employers to notify non-exempt employees of several details regarding their pay when they are hired, including whether they will be paid hourly, by commission, or on a salary basis. Any allowances, such as meal and lodging allowances must be detailed in writing. Employers must also set forth an employee's the regular payday, and the name, address and phone number of the employer's workers' comp insurer.
AB 469 also increases the monetary penalties for wage violations and lengthens the statute of limitations for such violations.
Pregnancy Disability Leave (Senate Bill 299) - Under this new law, employers with five or more employees must continue to maintain health coverage under a group health plan for an eligible female employee who takes Pregnancy Disability Leave (PDL). Pregnant employees may take up to four months of leave in a 12-month period. The law requires that medical benefits remain at the same level as if the employee had continued working during the leave period.
Prior to this change, employers only needed to treat pregnancy leave as they would for other temporary disability leaves. If the employer was covered by the Family and Medical Leave Act, it only had to provide continuing coverage during the twelve weeks of FMLA leave.
Bans on Credit Checks (Assembly Bill 22) - Employers may not obtain or use consumer credit ratings to evaluate prospective employees. However, there are several exceptions applicable to exempt managerial positions, some law enforcement jobs, positions that require access to personal financial information, as well as jobs where the employee would act on the employer's behalf in entering into business contracts.
Willful Misclassification of Independent Contractors (Senate Bill 459) - The Labor Commission may now levy significant penalties for voluntarily and knowingly misclassifying workers as independent contractors. Willful misclassification is often used to avoid paying taxes and unemployment benefits, and to conceal a company's income. Penalties will range between $5,000 and $25,000 for "willful misclassification" infractions.
New laws are invariably subject to different interpretations. If you have questions about whether your employer is complying with new regulations, or if you believe rights have been violated, an experienced employment law attorney can advise you.
Article provided by Law Offices of Rheuban & Gresen
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