HR Watchdog

FACTA Red Flag Update

The deadline for the FACTA red flag compliance has been extended once again - the compliance deadline has been changed from August 1, 2009 to November 1, 2009 per the Federal Trade Commission's announcement today.

CalChamber members can get more information on our Web site. If you are not a member yet, sign up for a free trial so you can access this valuable information.

Hands free talking and no texting while driving

It's been a little over a year since the hands free cell phone law went into effect and more than six months since no texting while driving has been the law of the land in California.

Have employers had any issues with employees violating these laws and your policies? How did you handle these issues?

Gov. Schwarzenegger signs budget addressing $24 billion deficit

The state Department of Finance has issued a report analyzing the budget measure. The primary change for the employment community relates to independent contractors or, as the bill states, non retailers who do not have a sales tax liability – are now required to register with the Board of Equalization (BOE).

The law change will require qualified purchasers to register with the BOE and submit a return that details purchases made during the year that were subject to the use tax yet for which no use tax was paid. In general, a qualified purchaser would be a person required to hold a business license but not a seller’s permit and who receives at least $100,000 in annual gross receipts.

There is no fee for the registration. Companies hiring independent contractors, or individuals or entities that fall within the definition above, should add to their "preengagement checklist" a step to verify that the independent contractor has registered with the BOE. If your company falls under this definition, be sure to consult legal counsel to ensure you are complying with all applicable legal requirements.

Stay tuned to this blog for further analysis!

New Fed Minimum Wage Poster

The U. S. Department of Labor has updated its minimum wage poster to update criminal fine information regarding child labor and to delete the federal minimum wage amounts from 2007 and 2008. The DOL has indicated that the use of either this poster or the previous poster is acceptable. However, because the poster has been updated with new information, we strongly recommend posting the updated poster link to below in a conspicuous place in all of your establishments so as to permit employees to readily read it.

We spoke with the DOL today, which verified that the posting of the new poster is currently optional and the poster that is on CalChamber's all in one is still compliant.

Follow me on twitter: http://twitter.com/HRWatchdog  to stay up to date on issues like these! 

Black and white and color versions of the poster are available on the Cal Chamber Web site. 

Severance and Release of Claims Documents - EEOC releases guidance

The federal Equal Employment Opportunity Commission has issued guidance relating to the use of severance agreements or agreements from former employees that they release all known and unknown claims agains the employer in exchange for some form of consideration - usually money.

According to the EEOC: Employee reductions and terminations have been an unfortunate result of the current economic downturn.  Even in good economic times, however, businesses of every size carefully assess their operational structures and may sometimes decide to reduce their workforce.  Often, employers terminate older employees who are eligible for retirement, or nearly so, because they generally have been with the company the longest and are paid the highest salaries.  Other employers evaluate individual employees on criteria such as performance or experience, or decide to lay off all employees in a particular position, division, or department. An employer’s decision to terminate or lay off certain employees, while retaining others, may lead discharged workers to believe that they were discriminated against based on their age, race, sex, national origin, religion, or disability.

To minimize the risk of potential litigation, many employers offer departing employees money or benefits in exchange for a release (or “waiver”) of liability for all claims connected with the employment relationship, including discrimination claims under the civil rights laws enforced by the Equal Employment Opportunity Commission (EEOC) -- the Age Discrimination in Employment Act (ADEA), Title VII, the Americans with Disabilities Act (ADA), and the Equal Pay Act (EPA). While it is common for senior-level executives to negotiate severance provisions when initially hired, other employees typically are offered severance agreements and asked to sign a waiver at the time of termination. When presented with a severance agreement, many employees wonder: Is this legal? Should I sign it?

Read the guidance on the EEOC Web site. Remember - always consult with legal counsel before having a departing employee sign such a document. These documents should never be "boiler plate." Make sure you do not rely on a document downloaded from the Internet - it may be from another state or contain illegal provisions.

Furloughs, Pay cuts - avoid Wage and Hour Danger!

During these economic times, many companies are exploring ways to cut costs while still maintaining their workforce. Furlough days - or forced days off/office closure - is one option California employers are exploring. However, employment and labor law puts strict restriction on the ability of California employers to cut exempt employee pay. 

If you attended our free Web seminar this morning, we talked about pay deductions from exempt salaries. If you are a CalChamber member, you will be able to listen to this Web seminar on demand soon (stay tuned).

If you did not, or you want more information, you should attend our Web seminar on August 20 for a more detailed analysis of exempt employee pay and benefit accruals.

In the meantime, CalChamber members can read our Flexible Alternatives to Layoffs article. 

Telephone Conference with Cal/OSHA on Heat Illness July 20

FROM Cal/OSHA:

Telephone Conference Call to Update Heat Illness Prevention Network Members Scheduled for July 20
EVERYONE IS INVITED

WHO:       Department of Industrial Relations Director John Duncan
                Division of Occupational Safety & Health Chief Len Welsh
WHAT:     Telephone Conference Call to Members of the Heat Illness Prevention Network
WHEN:     Monday, July 20, 1:30 p.m.
WHERE:    From DIR headquarters in San Francisco
WHY:       To update HIP members on the status of the Heat Illness Prevention program
HOW:       Dial In:  1-877-602-6975                  Participants Pass Code: 606-6081 and #               

The Heat Illness Prevention Network (The HIP Network)

The HIP Network is a voluntary public/private partnership established to increase awareness of both employers and employees of the hazard of heat illness and the importance of heat illness prevention measures to prevent fatalities and serious illnesses in California workplaces.  HIP Network members work together to help prevent heat illness in workplaces throughout California in partnership with the Division of Occupational Safety and Health (Cal/OSHA) by providing timely information to employers and employees. 

Members of the Heat Illness Prevention Network (HIP Network) are joining together with other private organizations and Cal/OSHA to put vital information in the hands of California’s employees to help prevent heat illness.

To join the network, send  your contact information to  heat@dir.ca.gov.

Employment Verification No-Match Rule Status

The Department of Homeland Security Announced yesterday that it will be proposing a new regulation rescinding the 2007 No-Match Rule, which was blocked by court order shortly after issuance and has never taken effect. 

The No-Match rule established procedures that employers could follow if they receive Social Security Administration No-Match letters or notices from DHS that question work eligibility information provided by employees. These notices most often inform an employer many months or even a year later that an employee’s name and Social Security Number provided for a W-2 earnings report do not match SSA records—often due to typographical errors or unreported name changes. 

According to the DHS, E-Verify addresses data inaccuracies that can result in No-Match letters in a more timely manner and provides a more robust tool for identifying unauthorized individuals and combating illegal employment.

In light of increased enforcement of employment eligibility verification by Immigration and Custom Enforcement, employers are encouraged to create a clear policy and procedure for employment verification and timely completion of the Form I-9.

This is a good reminder to always verify your employees information.

Federal Minimum Wage Increase Friday, July 24, 2009

The federal Minimum Wage will increase to $7.25 on July 24, 2009. California employers must pay the higher state minimum wage of $8.00 per hour. However, California employers must post both the "Employee Rights Under the Fair Labor Standards Act" federal minimum wage poster and the "California Minimum Wage MW-2007" required posting.

If you buy CalChamber's all-in-one Employment Notices poster, the 2009 poster has both the federal and state minimum wage posters. There is no mid-year update to the federal minimum wage poster because the poster, when revised in June 2007, included all three federal minimum wage increase amounts.

If you do not have CalChamber's poster, you can order it now in English or in Spanish. Or order our Required Notices Kit, which has the poster and the required pamphlets you must give to employees.