Attention Employers - Your OSHA Form 300a Annual Summary Must be Posted by February 1, 2012

By:       Lizbeth V. West, Esq.

The employment lawyers at Weintraub Genshlea Chediak Tobin & Tobin (WGCT&T) want to remind all employers that their OSHA 300a Annual Summary Report must be posted in the workplace by February 1, 2012 and remain posted until April 30, 2012. Pursuant to OSHA's recordkeeping requirements, the 300a Annual Summary Report must contain the appropriate information from the employer’s OSHA 300 Logs for workplace injuries and illnesses during 2011.

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NLRB Delays Deadline for Employers To Post its Notice to Employees Re: Rights to Unionize

By:       Lizbeth (“Beth”) West, Esq. 

As I wrote in my November 16, 2011 post entitled “Non-Union Employers Beware: You Are Likely Required to Post the NLRB’s New “Employee Rights” Poster,” on August 30, 2011, the National Labor Relations Board (“NLRB”) adopted a rule that would require certain employers, including non-union employers to post a notice to employees explaining their rights under the National Labor Relations Act (“NLRA”). The implementation date was originally set for November 14, 2011. However, due to a number of lawsuits challenging the rule, the implementation date was delayed and the NLRB announced that the rule would not go into effect until January 31, 2012

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California's Department of Labor Standards Enforcement (DLSE) Has Issued Its Model Notice to Employees Under AB 469

By:      Lizbeth (“Beth”) V. West, Esq.

In October 2011, Governor Brown signed AB 469 - the “California Wage Theft Prevention Act of 2011” (the “Act”). The Act created Labor Code section 2810.5(a) which, as of January 1, 2012, requires employers to provide some new employees at the time of hire with a written notice that details their rate of pay, employer name and address, workers’ compensation carrier, and other information specified in the Act. The Act also instructed the DLSE to create a model notice that employers can use.

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San Francisco: Incubator for Bad Employment Laws

By: Alden J. Parker

Driving across the San Francisco Bay Bridge still provides one of the most beautiful views of any City I have seen in the United States. However, once off the bridge, you witness business owners besieged by a Frankenstein type laboratory of unfriendly employment laws. There is little doubt in my mind that, but for the view from the bridge, San Francisco would be Barstow, with nary a business in sight due to anti-employer laws. While these awful employment laws are good news for surrounding employer friendly counties, such as San Mateo, Santa Clara, Marin, and Contra Costa, we must remain vigilant to ensure these toxins do not get dumped in the Bay to spread like the plaque they are.

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Non-Union Employers Beware - You Are Likely Required To Post The NLRB's New "Employee Rights" Poster

By:       Lizbeth V. West, Esq.

On August 30, 2011, the National Labor Relations Board (“NLRB”) adopted a rule that would require certain employers, including non-union employers to post a notice to employees explaining their rights under the National Labor Relations Act (“NLRA”). The implementation date was originally set for November 14, 2011. However, due to a number of lawsuits challenging the rule, the implementation date was delayed and the NLRB announced that the rule would not go into effect until January 31, 2012

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2012 Brings A Whole New Set Of Obligations And Challenges For California Employers - Failure To Comply Could Be Devastating

By:       Lizbeth (“Beth”) West, Esq.

Governor Brown signed a significant number of bills into law during the 2011/12 legislative term, many of which will have a direct impact on almost every California employer, regardless of size. Many laws impose new obligations on employers and prevent employers from engaging in what they may otherwise thought was previously permissible. Below is a summary of the employment-related legislation that goes into effect on January 1, 2012 (except where noted).

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Governor Signs Bill Limiting Credit Checks of Employees and Applicants

By: Brendan J. Begley

Making California the seventh state in the country to enact such a law, Gov. Jerry Brown signed Assembly Bill 22 on October 9, 2011. As reported here in a post dated August 18, 2011, this law bars most employers (except certain financial institutions) from using pre-employment credit checks in the hiring process. It remains to be seen if Occupy Sacramento or Occupy Wall Street protesters will decry the exemption in this law as yet another example of government showing undue favoritism to the financial sector. Either way, prudent employers who wish to perform or commission credit checks of employees or job applicants should consult legal counsel so as to avoid costly lawsuits.
 

Legislation Alert: Governor Signs Employee Misclassification Bill

By: James Kachmar

Last month, we told you about a bill, SB 459, that was awaiting the Governor’s signature. SB 459 would penalize employers who willfully misclassify employees as independent contractors. See alert at http://www.thelelawblog.com/2011/09/articles/new-legislation-and-regulation/legislative-alert-employee-misclassification-bill-sent-to-governor/.

On Sunday, October 9, 2011, Governor Brown signed SB 459 into law. As we advised last month, employers are encouraged to review their classifications of employee/independent contractors and consult legal counsel, if necessary, to avoid incurring civil penalties and/or costly litigation as a result of the enactment of SB 459.

Bits and Bytes

By: Alden J. Parker

Steve Jobs has passed away, leaving many iMourners beside themselves today. His legacy has touched many aspects of everyone’s lives, from the way they now conduct business on a tablet, to the way they remember what groceries to get, to the amount of overtime people are owed ....WHAT!?! How did that last bit get in there?

Our blog is not just satisfied mentioning Jobs passing, finding a candle app on our iPad and holding it above our heads. We must look at the lasting impact the iphone, ipad, and other electronic devices have on wage & hour law in the workplace.

As a harsh reminder of the impact technology is having on wage & hour law, recently Chicago police Sgt. Jeffrey Allen filed a class action against the City of Chicago claiming iOT. Allen is suing the City of Chicago on behalf of himself and others, seeking pay for time spent dealing with work-related phone calls, voice mails, emails, text messages and work orders via BlackBerry devices and similar "personal digital assistants." The officer alleges these activities entitle the group to overtime compensation under the federal Fair Labor Standards Act (FLSA).
 

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OSHA Issues New Directive Focused On Preventing Workplace Violence;Employers Are Advised to Evaluate Their Workplace to Ensure Compliance

By: Lizbeth (“Beth”) West, Esq.

Given the state of the economy and the desperation felt by many employees regarding the security of their job (and the anger felt by disgruntled former employees regarding the loss of their job), violence remains a real and serious threat in the workplace. Recognizing this fact, on September 8, 2011, the Department of Labor - OSHA Division - issued a new Directive aimed at providing compliance officers guidance for investigating and responding to allegations and incidents of workplace violence.  OSHA has also launched a new webpage focused on preventing workplace violence.   

In the Directive, OSHA points out the alarming statistics from the Bureau of Labor Statistics’ (BLS) Census of Fatal Occupational Injuries (CFOI) show that an average of 590 homicides occurred each year during the years 2000 through 2009. In fact, homicides remain one of the four most frequent work-related fatal injuries, and remained the number one cause of workplace death for women in 2009. Several studies have shown that prevention programs can reduce incidents of workplace violence.  According to OSHA, by assessing their worksites, employers can identify methods for reducing the likelihood of incidents occurring.  OSHA believes that a well written and implemented Workplace Violence Prevention Program, combined with engineering controls, administrative controls and training can reduce the incidence of workplace violence in both the private sector and in governmental workplaces.

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Government Agencies Joining Together to Attack Misclassified Independent Contractors

By: Meagan Christiansen

Just this week, the Department of Labor (DOL) and the Internal Revenue Service (IRS) announced they are joining together to prevent employers from misclassifying employees as independent contractors. On September 19, 2011, Secretary of Labor Hilda L. Solis hosted a ceremony at the DOL headquarters in Washington to sign a memorandum of understanding with the IRS, which allows the agencies to share information and coordinate enforcement of employers thought to be misclassifying independent contractors. Seven states also signed similar agreements, including Connecticut, Maryland, Massachusetts, Minnesota, Missouri, Utah, and Washington.  Hawaii, Illinois, Montana, and New York are expected to follow shortly. California is likely to sign on at some point in the not too distant future.

The reasons behind the increased scrutiny are two-fold. For one, independent contractors are ineligible for minimum wage and overtime pay, unemployment insurance, workers’ compensation and social security benefits.  Second, the government does not collect employment taxes on compensation paid to independent contractors.  Therefore, where misclassification occurs, federal and state governments lose out on much needed tax revenues.

What does this mean for you? It is becoming increasingly apparent that both federal and state government agencies are cracking down on the misclassification of independent contractors. Employers who contract with independent contractors should carefully examine those classifications to ensure misclassifications are not occurring. Doing so will allow employers to avoid costly consequences due to increased federal and state scrutiny. 

Legislative Alert: Employee Misclassification Bill Sent to Governor

By: James Kachmar

On September 14, 2011, the California Legislature enrolled Senate Bill 459 and presented it to Governor Jerry Brown for signature. (As of the time of this post, the Governor has still not acted on SB 459.)

SB 459 was introduced by Senator Ellen Corbett to address the issue of misclassification of employees as independent contractors. Under California law, there is extensive statutory provisions that address the employee/employer relationship and provide numerous protections to employees in areas such as minimum wage, overtime and working conditions. SB 459 was introduced to prevent the misclassification of employees as independent contractors so that “true” employees could receive the protections of these statutes. SB 459 would subject employers to civil penalties of up to $25,000 per violation in the event that an employer willfully misclassifies an employee as an independent contractor. SB 459 also provides employees with a private cause of action if they suffer actual harm.

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Weintraub's L&E Law Blog is in the Top 25

By: Chuck Post

Over the last year, Weintraub Genshlea Chediak Tobin & Tobin has tripled the size of its employment law department. In addition to enhancing the services we can provide to our clients, this growth has allowed us to continue presenting our quality seminars and maintaining our Labor and Employment Law Blog. Our results have paid off. We are pleased to announce that LexisNexis has ranked our blog as one of the Top 25 employment and labor law blogs in the nation for 2011. We are honored and proud to receive this recognition given the number of other high quality labor and employment law blogs out in the blogosphere.

Voting is now under way to determine the nation’s top (#1) employment and labor law blog for 2011. If you have enjoyed reading the commentary and information we regularly provide on our blog, please take the time to vote for “The Labor and Employment Law Blog” as the Top Blog of 2011 by clicking here.

We look forward to continuing to provide you with commentary and information about developing employment and labor issues in the years to come. Thank you.
 

Join Weintraub attorney and SEAC Board Chair, Beth West, at the SEAC's full-day fall seminar "From Twitter to Facebook: Avoiding the Risks of Today's High-Tech Workplace"

Beth West, Board Chair of the Sacramento Employer's Advisory Council, invites you to attend the SEAC's all-day seminar, "From Twitter to Facebook: Avoiding The Risks of Today's High-Tech Workplace," at the Holiday Inn Capitol Plaza on October 24th, 2011.

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The Cost of a Night on The Town is About to Increase

By: Scott M. Plamondon

[UPDATE: Since this article was posted, the Senate Appropriations Committee suspended AB 889. We will continue to monitor the progress of this bill.]

For many couples in California, a night on the town is a welcomed break from parenting responsibilities, and an opportunity to become reacquainted with one another.  The routine of preparing for a night on the town generally involves making dinner reservations, purchasing movie tickets, and arranging for a babysitter to come to the family home for the evening. As a result of a bill currently before the California legislature, however, this simple routine may become far more complicated, and fraught with danger.

Assembly Bill 889 recently cleared the state assembly, and is expected to pass with the overwhelming support of the legislature. Under AB 889, by hiring a babysitter for your night on the town you may be considered an “employer,” and thereby obligated to pay the babysitter at least minimum wage and provide workers’ compensation benefits. As an employer, you also would be required to provide meal and rest breaks, so you may need to hire a second babysitter to watch the kids while the first sitter is on a mandatory thirty- minute meal break. Should your night on the town run long, you may even be liable to the babysitter for overtime compensation. Apparently, your night on the town is about to become a lot more complicated and expensive.

Although much of the discussion surrounding AB 889 relates to its impact on the ability to hire a babysitter, the effect of this legislation is potentially more broad. If passed, the legislation would apply to all domestic work employees, and cover “people performing services related to the care of persons in private households or maintenance of private households or their premises.” Accordingly, the reach of this legislation may go far beyond personal caregivers such as babysitters, and likely also will apply to individuals such as your gardener, handyman, or that friend who stays at your house and feeds your cat while you are on vacation. 

Failure to comply with AB 889’s requirements may result in civil liability as the legislation gives rise to a private cause of action by any domestic work employee who believes he or she has not been afforded the rights granted to him or her under this legislation. Further, because the failure to secure workers’ compensation insurance is a misdemeanor, violation of AB 889 could result in criminal prosecution. Graciously, AB 889 does not apply to domestic work employees under the age of 18, so hiring the neighborhood kids to mow your lawn appears to remain a viable option, and thus far, has not been deemed exploitative child labor.

We will continue to monitor the progress of this legislation, and post additional updates and analysis as it makes its way through the state legislature.

Vote for Weintraub's L&E Law Blog!

Big news! Weintraub’s L&E Law Blog is one of the nominated candidates for the LexisNexis Top 25 Labor and Employment Law Blogs of 2011.

We need your help! Click here, log onto the Labor and Employment Law Community and then leave a comment at the bottom of the page saying “I vote for The Labor & Employment Law Blog.” Voting ends September 12th.

 

Feel free to share this with others (via social media or other avenues) to get out the vote.

 

Thanks for the support, and don't forget to vote!

NLRB Issues New Employer Posting Requirements Effective November 14, 2011

By: Chelcey E. Lieber

On August 25, 2011, the National Labor Relations Board (the “NLRB”) issued a new rule which requires all private-sector employers (including labor unions) subject to the National Labor Relations Act (the “Act”) to post a notice informing employees of their rights under the Act. The required notice will include information about employees’ rights to act together to improve wages and working conditions, to form, join, and assist a union, to bargain collectively with their employer, and to refrain from any of these activities. The final rule takes effect on November 14, 2011.

The notice must be at least 11 inches by 17 inches in size and posted in a conspicuous place where it can be readily seen by employees. In addition to the physical posting, the notice must be posted to any intranet or internet site maintained by the employer which contains other personnel rules and policies.

The NLRB will make an acceptable notice available starting on November 1, 2011. Employers can either download a free copy of the notice from the NLRB’s website or request a free copy by contacting the NLRB at its headquarters or its regional, sub-regional, or resident offices. Alternatively, employers can satisfy the rule by purchasing a set of workplace posters from a commercial supplier. 

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Governor Brown Signed Bill To Amend Organ and Bone Marrow Donation Leave Law

By: Lizbeth V. West, Esq.

Last September, California’s previous governor (the “Governator;” oops I mean Governor Schwarzenegger) signed into law a new statutory leave entitlement for certain employees who are going to donate their bone marrow or an organ to another.

The law was codified in Labor Code section 1510 and provided that an employer must grant a paid leave of absence to an employee who is an organ donor or a bone marrow donor. The leave of absence to an organ donor is up to 30 days in a one-year period. The leave of absence for a bone marrow donor is up to 5 days in a one-year period. The leave of absence for either donor is not a break in his or her continuous service for the purpose of his or her right to salary adjustments, sick leave, vacation, annual leave, or seniority. As a condition of an employee's initial receipt of the leave of absence, an employer may require the employee to take a specified number of days of earned but unused sick or vacation leave, unless that would violate provisions of an applicable collective bargaining agreement.

California’s current Governor Brown signed Senate Bill 272 on August 1, 2011 in order to clarify certain provisions in Labor Code section 1510.
 

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New Rules Considered for Employment-Related Credit Checks in California

By: Brendan J. Begley

As the California Legislature reconvenes this week from its summer recess, it will be poised to advance bills that could, if enacted, impact the workplace.  Among them is AB 22, which would prohibit employers, except certain financial institutions, from obtaining a consumer credit report for employment purposes.  If AB 22 becomes law, employers would be able to obtain such reports only if the information sought is substantially job-related and pertains to a managerial or other sensitive position.

Under AB 22, information would be substantially job-related if the person for whom the report is sought would have access to the employer’s confidential information, money, or assets.  Likewise, the position would be a sensitive one if the information contained in the report is required by law to be disclosed or to be obtained by the employer. 

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LAW ALERT: Proposed Amendments to the California Food Handler Card Law

by Lizbeth V. West, Esq.

The original California Food Handler Card Law (“Food Handler Law”) was enacted by the passage of SB 602 in 2010 and codified in California’s Health and Safety Code 113790 et seq.  The law as passed raised a number of concerns by those in the food industry, as well as those who provide food safety training. One main concern was the July 1, 2011 deadline for compliance. As a result, a number of industry associations and organizations have been active in advocating for new legislation to amend the Food Handler Law to provide both clarification and hopefully more guidance on how to comply. 

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LAW ALERT: EEOC Publishes New Regulations Governing Federal Disability Laws

by Brendan J. Begley

Taking the next step to implement the federal Americans with Disabilities Amendments Act of 2008 (“ADAAA”), the U.S. Equal Employment Opportunity Commission (“EEOC”) published its long-awaited final regulations on March 24, 2011.  However, it is widely believed that the ADAAA and the recently published regulations will not greatly impact employers in California who are already covered by the state’s Fair Employment and Housing Act.

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Mandatory Medicare Reporting Requirements - How Will They Impact The Settlement of Employment-Related Claims

by Alden J. Parker

On January 1, 2011, certain employers and insurers began being required to report settlements, judgments or awards, where medical expenses were paid to a Medicare-eligible claimant. As a result many employers and insurers are left wondering how this will affect settlements of employment related litigation cases. Below are some brief answers to some of the questions raised by these new reporting requirements.

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New Year: Same Old Anti-Employer Ideas

by Alden J. Parker

A new year with the California legislature has just begun. Is the budget on the top of legislator’s mind? Is their first priority creating an environment conducive to putting out of work Californian’s back to work? Unfortunately, the answer to both these questions is a resounding NO. Instead, legislators are focused on allowing people to come to work after smoking pot. 

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LAW ALERT: Attention Food-Service Employers:Your Employees May Be Required To Have a Food Handlers Card By July 1, 2011

by Lizbeth V. West

Before leaving office, Governor Schwarzenegger signed Senate Bill 602 which amended California’s Health and Safety Code to provide that, except in certain circumstances, all "food handlers" must obtain a food handler card on or before July 1, 2011. Before Senate Bill 602, the law generally required an owner or designated employee of a food establishment to successfully pass an approved and accredited food safety certification examination from an accredited certification organization.

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LAW ALERT: NLRB Trying to Ring in the New Year with Pro Union Activism

by Alden J. Parker

The National Labor Relations Board continues its lurch toward a more pro-union stance. Just in time for the New Year, the NLRB has proposed a rule that would make all employers under the NLRB's jurisdiction, both union and non-union, notify employees of their rights under the National Labor Relations Act through a uniform workplace posting.  The public will have 60 days to comment on the proposed rule once it is published in the Federal Register

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LAW ALERT: Governor Signs Expedited Jury Trials Act

by James Kachmar

California Governor Arnold Schwarzenegger recently signed the Expedited Jury Trials Act (the “Act”) which is intended to streamline some lawsuits. Under this Act, parties to a lawsuit can agree to an expedited one-day jury trial. The parties may agree to proceed as follows:

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Don't Miss the October 8, 2010 Deadline to Post Your New "Notice to Employees - Injuries Caused By Work"

by Lizbeth V. West

Pursuant to California Division of Workers’ Compensation (DWC) regulations, employers must post the new DWC 7 Notice adopted effective June 2010, no later than October 8, 2010. The DWC 7 form is the “Notice to Employees – Injuries Caused by Work.” This Notice provides employees with information on workers' compensation coverage and where to get medical care for work injuries. The Notice must be posted in English and Spanish at each California work site in a conspicuous location frequented by employees during the hours of the work day.

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LAW ALERT: Cobra Subsidy Extended Yet Again

by Lizbeth V. West

President Obama signed H.R. 4851 into law on April 15, 2010. The new law amends the American Recovery and Reinvestment Act of 2009 (“ARRA”) yet again to extend the 65% COBRA premium assistance through May 31, 2010.

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LAW ALERT: COBRA Subsidy is Extended Again

By Lizbeth V. West

On March 2, 2010, President Obama signed the Temporary Extension Act of 2010 (H.R. 4691) that, among other things, extends the eligibility period for the COBRA subsidy provided in the American Recovery and Reinvestment Act (ARRA) for an additional 30 days. 

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LAW ALERT: Employers Should Take Advantage Of Sacramento County's "Job Opportunities Program"

by Lizbeth V. West

Sacramento County’s Department of Human Assistance (DHA) is implementing a new subsidized employment program called the “Job Opportunity Program.” The Job Opportunity Program is a new job stimulus program funded by the American Recovery and Reinvestment Act (ARRA) of 2009 and authorized under the federal TANF Emergency Contingency Fund (ECF).   Through this funding the County will reimburse participating employers 80% of the employer’s subsidized employment program, which could include 100% of the employee’s wages for up to six months. Participants are men and women who have marketable skills but are currently unemployed or underemployed. Participants placed with an employer will closely match the established minimum requirements. 

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LAW ALERT: Department Of Labor Issues Model Notices For The Extended COBRA Subsidy

by Lizbeth V. West

On January 19, 2010, the Department of Labor (“DOL”) issued model notices to help plan administrators and employers comply with COBRA notice requirements as dictated by the American Recovery and Reinvestment Act (“ARRA”), as amended by the Department of Defense Appropriation Act, 2010 (“2010 DOD Act”).

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LAW ALERT: COBRA Subsidy Is Extended By President Obama

by Lizbeth V. West

President Obama signed the “Fiscal Year 2010 Defense Appropriations Act” (“DAA”) on December 21, 2009. The DAA provides two important changes to the COBRA subsidy that was established under the “American Recovery and Reinvestment Act of 2009” (“ARRA”) earlier this year. 

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LAW ALERT: The COBRA Subsidy Will End November 30, 2009 For Some Beneficiaries

by Lizbeth V. West

The sixty-five percent (65%) COBRA premium subsidy provided for in the American Recovery and Reinvestment Act of 2009 (ARRA) will come to an end on November 30, 2009 for some qualified beneficiaries. 

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Is Your Company Ready for the November 21, 2009 Deadline under GINA?

by Lizbeth V. West

The Genetic Information Nondiscrimination Act (GINA) takes effect November 21, 2009. Among other things, GINA requires that employers post a notice informing employees that the employer does not discriminate on the basis of genetic information.

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FTC Extends Enforcement Deadline for the "Red Flags" (Identity Theft) Rule Again

by Lizbeth V. West

The FTC issued a news release on October 30, 2009 advising that at the request of Members of Congress, the Federal Trade Commission is delaying enforcement of the “Red Flags” Rule until June 1, 2010, for financial institutions and creditors subject to enforcement by the FTC.

The Rule was promulgated under the Fair and Accurate Credit Transactions Act, in which Congress directed the Commission and other agencies to develop regulations requiring “creditors” and “financial institutions” to address the risk of identity theft. The resulting Red Flags Rule requires all such entities that have “covered accounts” to develop and implement written identity theft prevention programs to help identify, detect, and respond to patterns, practices, or specific activities – known as “red flags” – that could indicate identity theft.

A copy of the news release is available at http://www.ftc.gov/opa/2009/10/redflags.shtm

UPDATING CALIFORNIA'S DISCOVERY RULES WITH THE ELECTRONIC DISCOVERY ACT

by Dale Campbell and Emily Hirsekorn

State rules concerning electronic discovery just got clearer. On June 29, 2009, Governor Schwarzenegger signed the Electronic Discovery Act (the “Act”), which became effective immediately. Just last year, the Governor vetoed an almost identical version of the Act in order to focus more attention on the budget crisis. Of course, we see how well that plan worked. The Act is modeled after the 2006 amendments to the Federal Rules of Civil Procedure. The new rules govern the discovery procedure for electronically stored information (“ESI”) in California civil actions.

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DEPARTMENT OF LABOR ISSUES AN OPINION LETTER CLARIFYING AN EMPLOYER'S RIGHT TO ENFORCE ITS CALL-IN POLICIES UNDER THE FMLA

On January 6, 2009 the Department of Labor (DOL) issued Opinion Letter FMLA2009-1-A to respond to a request for clarification regarding employee notification procedures under the Family and Medical Leave Act (FMLA) as discussed in the DOL’s previous Wage and Hour Opinion Letter FMLA-101 (January 15, 1999).  The DOL indicated that it was brought to its attention that some employers had interpreted Opinion Letter FMLA-101 to stand for the proposition that under the FMLA, employers were not permitted to apply their internal call-in policies or discipline employees under their no call/no show policies, provided the employees provide notice within two (2) business days that the leave was FMLA-qualifying, regardless of whether the employee could have practicably provided notice sooner.

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FEDERAL TRADE COMMISSION EXTENDS DEADLINE TO COMPLY WITH THE "RED FLAGS" IDENTITY THEFT PREVENTION RULE

The Federal Trade Commission (FTC) has just announced that it will delay enforcement of the identity theft "Red Flags Rule" (Rule) until August 1, 2009.   The Rule was discussed previously in Weintraub Genshlea Chediak Tobin & Tobin’s Law Alert Article: Deadline to Have Identity Theft Prevention program Prepared and Implemented is May 1, dated April 15, 2009.

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WILL YOU HAVE YOUR IDENTITY THEFT PREVENTION PROGRAM (aka "RED FLAGS" PROGRAM) PREPARED AND IMPLEMENTED BY THE MAY 1, 2009 DEADLINE?

Pursuant to the Federal Trade Commission’s (“FTC”) Identity Theft Prevention Red Flags Rule (16 .C.F.R. § 681.2) which went into effect on January 1, 2008, all financial institutions and creditors must prepare and implement a written “Red Flags” Program by May 1, 2009. The determination of whether a business or organization is covered by the Red Flags Rule is not based on a particular industry or sector, but rather on whether the activities of the business or organization fall within the relevant definitions.

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THE IRS PROVIDES GUIDANCE ON THE NEW 65% COBRA SUBSIDY OBLIGATIONS

The IRS has issued Notice 2009-27 which provides a thorough interpretation of Section 2001 of the American Recovery and Reinvestment Act of 2009 (“ARRA”) relating to premium assistance for COBRA continuation coverage.

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THE DOL ISSUES ITS MODEL COBRA SUBSIDY NOTICES

On March 19, 2009, the DOL released the following model notices in connection with the COBRA subsidy outlined in the American Recovery and Reinvestment Act of 2009 (“ARRA”):

1. General Notice (Full Version). This General Notice is to be sent to all qualified beneficiaries who experienced a qualifying event at any time from September 1, 2008 through December 31, 2009, regardless of the type of qualifying event. This full version includes information on the COBRA subsidy (or premium reduction) as well as information required in a standard COBRA election form.

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THE AMERICAN RECOVERY AND REINVESTMENT ACT OF 2009 AND ITS IMPACT ON THE WORKPLACE

On February 17, 2009 President Obama signed the American Recovery and Reinvestment Act of 2009 (“ARRA” or “Recovery Act”) which contains a number of entitlements and obligations affecting the workplace. In order to comply with their new obligations and understand the benefits available to employees or former employees, employers should familiarize themselves with the ARRA promptly. Below is a summary of some of the various employment-related provisions from the ARRA

1.      COBRA Subsidy.

 

 a.     What is it?

The ARRA provides for a 65% COBRA premium subsidy for certain “assistance eligible individuals.” An “assistance eligible individual” is a COBRA “qualified beneficiary” who meets all of the following requirements:

a.      Is eligible for COBRA continuation coverage at any time during the period between September 1, 2008 and December 31, 2009;

b.      Elects COBRA coverage (when first offered or during the additional election period provided for under the ARRA); and

c.      Has a qualifying event for COBRA coverage that is the employee’s involuntary termination during the period of September 1, 2008 and December 31, 2009.

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Congress and President Obama Trump the Supreme Court: Ledbetter Fair Pay Act Signed Into Law

In his first significant act as President in the labor and employment arena, President Obama effectively overturned the United States Supreme Court’s decision in Ledbetter v. Goodyear Tire & Rubber Co. by signing the Lilly Ledbetter Fair Pay Act ("Ledbetter Act") into law this Thursday. The main thrust of the Ledbetter Act is that it “resets” the statute of limitations for wage claims based on discrimination each time an employee receives a paycheck affected by the alleged discriminatory practice.


Background
 

Lilly Ledbetter worked for her employer, Goodyear, for 19 years. She accused Goodyear of gender discrimination under Title VII on the grounds that, throughout her almost 20 career, she was consistently paid less than male employees who were similarly situated. The Supreme Court found that Ledbetter’s Title VII action was time-barred; holding that the statute of limitations starts running under Title VII when the employer makes the original discriminatory pay decision. The Court rejected Ledbetter’s argument that her claim was “refreshed” each time she received a paycheck affected by Goodyear’s discrimination.

The Ledbetter Act

The Ledbetter Act “resets” the statute of limitations for wage claims based on discrimination (in any form recognized by federal law) each time an employee receives a paycheck affected by the alleged discriminatory practice. Moreover, the Act defines “unlawful employment practices” broadly to encompass any practice that affects an employee’s compensation.

Bottom Line

Given the speed of which this new administration was able to push through this fairly substantial legislation, employers should anticipate continued robust efforts from Washington to further bolster employee protections in the coming months.

What Steps Should Employers Take?

While it will likely take some time for the courts to interpret the new law and provide guidance for employers to take steps to avoid litigation, there are a few initial steps employers should consider taking now:
 

  • Examine compensation policies to ensure they do not discriminate on the basis of a protected class or protected activity.
  • Work with employment counsel to structure and conduct a self-audit of compensation practices and discuss best practices for retention and destruction of compensation records.
  • Train supervisors and managers regarding proper and improper considerations when making discretionary compensation decisions.

 

The Employee Free Choice Act

According to Union proponents, the biggest obstacle to a modern organizing campaign is management delay tactics. In a traditional organizing campaign, union representatives meet with bargaining unit employees (i.e. all the mechanics at a car dealership) and talk with them about union representation. The union then attempts to secure signed authorization cards from the employees. If the union can show that a majority of the employees in the bargaining unit favor union recognition, the employer may voluntarily forego an election and recognize the union. If, however, the employer refuses or the card-check process generates at least 30%, but not majority, employee support, the union may petition the NLRB for a secret ballot election administered by the NLRB. Unions plead for majority card-check rules because they claim that employees suffer at the hands of underhanded management tactics during traditional Board elections. “These delays make it too easy for employers to intimidate and coerce workers, including by dismissing them for organizing. And this in turn diminishes employee interest in unions and thus undercuts the right to collective bargaining they are supposed to enjoy.” However, unions still have the same success rate in traditional elections (approximately 60%) as they did in 1965.

Organized Labor’s pleas were answered when the Employee Free Choice Act (EFCA), which was co-sponsored by then Senator Barack Obama, was introduced. Under the EFCA, unions would no longer have to go through the NLRB traditional election process to gain recognition. Instead, a union must obtain signed authorization cards from a majority of employees in the bargaining unit. Additionally, the EFCA would invoke binding interest arbitration if labor and management cannot agree upon the first contract within nine months. Once in arbitration, a government appointed arbitrator would decide the parties’ obligations in the first contract. Because of the results of the November 2008 national elections, we are likely to see some sort of change in 2009. Barack Obama promised to sign EFCA. Should the EFCA pass, unions estimate that they will be able to organize millions of new workers. Below are some of the more notable features of the EFCA in detail:
 

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New Wage Requirements for Employers of Temporary Service Employees (SB 940)

Effective January 1, 2009, Senate Bill 940 creates new wage and hour requirements for temporary service employers. Along with adding section 210.3 to the California Labor Code, SB 940 also amends sections 203, 203.1, 204, 210, 215, 220, and 2699.5 of the Labor Code. Existing law requires that employers pay their employees twice during each calendar month. SB 940 creates a special set of requirements for temporary service employers with employees' working week-to-week or day-to-day. Employees on week-to-week assignments are now required to be paid weekly, while employees working day-to-day must be paid daily. Further, employees assigned to clients engaged in a trade dispute must be paid daily. These new requirements do not apply to employees who are assigned to a client for more than 90 consecutive calendar days.
 

Because existing law imposes civil and criminal penalties for wage violations, SB 940 also creates state-mandated local programs to enforce these existing civil and criminal penalties for violations of the new temporary employee wage requirements.
 

Blackberry Alert: California Bans Texting While Driving (SB 28)

California passed SB 28 which makes it illegal to read or send text messages while driving in California. The law goes into affect on January 1, 2009. The bill imposes a $20 fine for a first offense and $50 for repeat offenders using any electronic devices to read or send messages. California motorists using cell phones have been required to use hands-free devices since July 2008 when speaking on the phone, and drivers under age 18 can't use any electronic devices.  Employers should conform their workplace policies accordingly.

California Clarifies Compensation Requirements for Computer Software Professional Overtime Exemption (AB 10)

AB 10 was passed and clarifies that computer professionals who meet the computer professional exemption requirements outlined in Labor Code section 515.5, are exempt if they are paid no less than $36 per hour if paid on an hourly basis, and if no less than $75,000 per year for full-time employment if paid on a salary basis. Such salary must be paid at least once a month at a monthly rate of no less than $6,250.