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    CalChamber Releases List of New Laws Affecting Businesses in 2009

    The California Chamber of Commerce released a list of new laws scheduled to take effect in 2009 or earlier that will impact businesses in California.

    “California employers need to be aware of several new laws affecting their businesses,” said Allan Zaremberg, CalChamber President and CEO. “The CalChamber’s CalBizCentral compliance division is already a step ahead, offering training materials that will help businesses start off the new year in full compliance.”

    Among the training materials currently available is CalBizCentral’s HR 201: Labor Law Update seminar which is available at www.calbizcentral.com/hr201. In addition, the CalChamber is offering a new comprehensive resource for California-specific and employment law information. The 2009 California Labor Law Digest offers legal background information including legislation, court cases and regulatory requirements in plain language organized to make complex laws understandable for businesses.

    The following is a list of new laws that have recently gone into effect or will take effect in 2009:

    Family and Medical Leave Act
    The U.S. Department of Labor published the final version of the Family and Medical Leave Act (FMLA) regulations pertaining to military families and qualifying exigencies. Importantly, among numerous, significant changes, the regulations define what a “qualifying exigency” is for purposes of qualifying for up to 12 weeks of FMLA leave. 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.

    Cell Phone Use
    Since July 1, 2008, drivers have been required to use a hands-free device while talking on a cell phone and driving. Starting January 1, 2009, text-based communication while driving is prohibited as well, with the same penalties -- $20 for the first offense and $50 for subsequent offenses. Specifically, the law prohibits writing, sending or reading text-based communication including text messaging, instant messaging and e-mail, on a wireless device or cell phone while driving.

    Invalid Waivers
    A bill amended Labor Code 206.5 making null and void the execution of any release on account of wages due. Employers who violate this law are guilty of a misdemeanor. The new law -- effective January 1, 2009 -- adds the following language: "For purposes of this section, 'execution of a release' includes requiring an employee, as a condition of being paid, to execute a statement of the hours he or she worked during a pay period, which the employer knows to be false."

    Temporary Employees
    Wages for employees of temporary services employers shall 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.

    Minimum Pay for Exempt Computer Professionals
    Effective January 1, 2009, Labor Code 515.5 was amended to allow payment to computer professionals 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.

    Exemption for Physicians Paid on Hourly Basis
    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.

    Effective January 1, 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.

    Passport Cards for Identification on I-9
    The Departments of State and Homeland Security have begun to issue "passport cards" which may be used as a "List A" document to verify employment in accordance with the I-9 form.

    The passport card is more limited in its uses for international travel (e.g., it may not be used for international air travel), but it is a valid passport that attests to the U.S. citizenship and identity of the bearer. Accordingly, the card may be used for the Form I-9 process and can also be accepted by employers participating in the E-Verify program.

    The passport card is considered a List A document that may be presented by newly hired employees during the employment eligibility verification process to show work authorized status. List A documents are those used by employees to prove both identity and work authorization when completing the Form I-9.

    Political Speech
    In July 2008, the president of the National Labor Relations Board (NLRB) issued guidelines to employers concerning employee participation in political advocacy activities and providing guidance to employers as to when disciplinary actions for these activities may be appropriate.

    The memorandum provides that:

    • 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.

    Workers' Comp Injury Reporting
    Labor Code section 6409.1 was amended to change the reporting of work related injuries and illnesses. Currently, 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.

    The bill specifies that regulations must be created to implement these changes, which will not go into effect until the regulations are finalized.

    Nutritional Information for Chain Restaurants
    A new law requires chain restaurants with 20 or more facilities in California to post nutritional information. Beginning July 1, 2009, to December 31, 2010, each facility must disclose nutritional information or calorie count information about the food it serves. Nutritional information includes, but is not limited to, all of the following, per standard menu item, as that item is usually prepared and offered for sale:

    • Total number of calories;
    • Total number of grams of carbohydrates;
    • Total number of grams of saturated fat; and
    • Total number of milligrams of sodium.

    San Francisco Commuter Benefits
    Beginning 120 days after August 22, 2008, San Francisco employers with 20 or more employees are required to provide commuter benefits to employees who work at least 10 hours per workweek within the geographic boundaries of San Francisco. This includes offering employees at least one of the following transportation benefits:

    • A pre-tax election of a maximum of $110 per month, consistent with current federal law;
    • An employer-provided transportation pass (or reimbursement for one) equal in value to $45 (or more) per month;
    • Employer provided transportation at no cost to employees

    Additional rules and regulations will follow, 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.

    San Francisco Health Care Ordinance
    On September 30, 2008, the U.S. Ninth Circuit Court of Appeals issued a decision for small-business owners in San Francisco. In a highly watched health care case, the Court 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).

    San Francisco's Health Care Security Ordinance, enacted by the city in 2006, 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.


    CalChamber Offers Seminars on Labor/Employment Laws

    CalChamber employment law experts will travel throughout the state conducting seminars on human resources, labor and employment laws, regulations and court decisions that will affect how companies do business in 2009.

    Space is filling up fast for HR 201: Labor Law Update seminar offered by CalBizCentral, the source for California business and human resource compliance products, presented by the CalChamber.

    This seminar is designed for HR professionals or any employee responsible for HR duties. Each HR 201: Labor Law Update seminar will cover new federal and California legislation and regulations, and important case law about which employers should be aware.
    For more information visit, www.calbizcentral.com/hr201.

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