According to the California Chamber of Commerce, there are several new laws that will take effect in 2009 that will impact businesses in California. Accordingly, those laws that will affect any employer doing business in California include the following:

1. The Family and Medical Leave Act has been expanded by the U.S. Department of Labor to include military families and qualifying exigencies. "Qualifying Exigency" defines what criteria must be present for the military families to be eligible for 12 weeks of FMLA leave. Specifically, families with active military personnel may now be eligible if their situation meets one of the new qualifying exigencies: short notice deployment; attendance at official military events or activities; arranging or providing childcare; attending school or daycare meetings; handling financial and legal matters; and rest and recuperation visits when the soldier is on leave.

2. Cell Phone Use has required that drivers use a hand-free device while talking since July 1, 2008; however, beginning in January, this law will be expanded to include texting, with the same penalties. Specifically, the law prohibits writing, sending or reading text based communications including text messaging, instant messaging and e-mail on a wireless device or cell phone. Employers should change this current cell phone policy to comply with this new state regulation.

3. Invalid Waivers make employers guilty of misdemeanor laws if they ask an employee to provide a statement of hours worked that the employer knows to be false i.e. not paying over-time to an employee that has worked in excess of eight hours per day.

4. Wages for Temporary Employees must be paid weekly or daily if an employee is assigned to a client on a day-to-day basis or to a client engaged in a trade dispute. This requirement does not apply to employees who are assigned to a client for over 90 consecutive calendar days unless the employer pays the employee weekly. Failure to do so can result in civil and criminal penalties.

5. Minimum Pay for Exempt Computer Professionals has been an issue of ongoing confusion for both employers and employees for the past several years. Effective January 1, 2009 payment to computer professionals must be calculated as a monthly or annual salary. Before this change, computer professionals had to earn a minimum hourly rate, set by the Division of Labor Statistics and Research (DLSR) annually. The hourly rate for 2009 is increased from $36.00 to $37.94. For 2009, the minimum monthly salary exemption is $6,587.50, and the minimum annual salary exemption is $79,050.00.

6. Exemption for Physicians Paid on Hourly basis takes effect on January 1. Specifically, a licensed physician or surgeon who is primarily engaged in performing duties for which licensure is required is exempt from overtime if he/she is paid at least the minimum hourly rate set annually by the state. For 2009, the minimum hourly rate is $69.13. This exemption does not apply to employees in medical internships or resident programs, physician employees covered by collective bargaining agreements or veterinarians.

7. Passport Cards for Identification on I-9 are now being issued by the Department of Homeland Security which can be used as a document to verify employment in accordance with the I-9 procedure/law.

8. Political Speech became a hot topic during the elections in 2008; therefore, in July the NLRAB (National Labor Relations Board) issued guidelines to employers relevant to employee participation in political advocacy issues. Specifically, they provided guidance in terms of what activities should be allowed and when activities should be met with disciplinary actions. They include Non-disruptive political advocacy for or against a specific issue, related to a specifically identified employment concern that takes place during employees' own time and in non-work areas, is protected; On-duty political advocacy for or against a specific issue, related to a specifically identified employment concern is subject to restrictions imposed by lawful and neutrally applied work rules; Leaving or stopping work to engage in political advocacy for or against a specific issue, related to a specifically identified employment concern may also be subject to restrictions imposed by the employer.

9. Compensation Injury Reporting is amended (effective January 1) to change the reporting of work related injuries and illnesses. At present, form 5020 must be filed with the Division of Labor Statistics and Research (DLSR) within five days of an incident. Once the regulations are finalized, insured employers must file a form as prescribed by the Division of Workers' Compensation (DWC) with the DWC, and self-insured employers must use a new, yet to be created, electronic form within the time specified by the DWC. Amended reports following a death must now be filed with the DLSR instead of the DWC. Insurers must use a new, yet to be created, electronic form with the DWC.

10. Nutritional Information for Chain Restaurants goes into effect as of July 1, 2009 requiring chain restaurants with 20+ facilities in California to post nutritional information pertaining but not limited to: calorie count or total number of calories per menu item; the total number of carbohydrates; the total number of grams of saturated fat; and the total number of milligrams of sodium per menu item.

11. San Francisco Commuter Benefits take effect 120 days after August 22, 2008 (which is how the law was written) which equates roughly to December 22, 2008 (last week). Specifically, the law requires those employers with 20+ workers to provide commuter benefits to employees who work at least 10 hours per work week within the geographic boundaries of San Francisco by offering employees at least one of the following transportation benefits:

a.     A pre-tax election of a maximum of $110 per month, consistent with current federal law;
b.     An employer-provided transportation pass (or reimbursement for one) equal in value to $45 (or more) per month;
c.      Employer provided transportation at no cost to employees
d.     Additional rules and regulations will be rolled out later in 2009, so keep an eye on HR California. Failure to comply with this program will result in an "infraction" of monetary fines against your company. Consult with legal counsel immediately if you have employees working in San Francisco , so your company can prepare to comply.

12. San Francisco Health Care Ordinance went into effect on September 30, 2008 affecting small business owners in San Francisco . Specifically, the U.S. Ninth Circuit Court of Appeals ruled that the San Francisco Health Care Security Ordinance and the corresponding Health Access Plan were not preempted by the Employee Retirement Income Security Act (ERISA). Enacted in the city in 2006, the San Francisco’s Health Care Security Ordinance mandates that all private employers with more than 20 employees pay an assigned amount of money toward employee health care or pay the city a fee based on the number of employees and hours worked.

While some of these new regulations already went into effect and others will not be mandated until later in the year, suffice it to say that the myriad of laws and regulations impacting California employers is quite staggering. For that reason, it’s essential for employers to stay abreast of these changes and, in the case of small employers, it’s even more critical since they typically don’t have a senior level HR professional in-house to track these changes and ensure that the company remains compliant.

If you have any questions pertaining to any of these new laws, or just need assistance in making certain that your current HR policies and procedures meet the requirements outlined for employers doing business in California , please don’t hesitate to contact this Author and Consultant and the e-mail and/or phone number below.

Written and Posted By,

Mike Russell

Organizational Development Solutions, LLP

www.orgdev-solutions.com

e-mail: mike@orgdev-solutions.com

Phone: 619.307.1773