From HRCaliforniaExtra, California Chamber of Commerce, Oct. 29, 2009
The 2009 legislative agenda was focused on California's budget, economy and water issues. However, there are some new employment laws for 2010, and a large number of cases that may impact your business and your policies, going forward. These changes include:
- New Form I-9
- E-Verify Required for Federal Contractors
- Increase of State Withholding Tax
- Alternative Workweek Schedules
- FMLA Amendments
- Civil Air Patrol Leave
- Safety
- Out-of-state marriages
- Workers' compensation update
New Form I-9
Revised August 7, 2009, the new Form I-9 contains an updated list of acceptable documents that employees must present upon hiring. The new form also bears a note that all documents presented to establish identity and/or ability to work in the U.S. must not be expired.
E-Verify Required for Federal Contractors
Federal contractors and subcontractors must use the E-Verify system when hiring employees. Other employers may use the verification system if they wish to do so. E-Verify compares Form I-9 document information against federal government databases to verify employment eligibility.
Increase in State Withholding
State withholding increased on November 1, 2009. There is a 10 percent mandatory increase on employee withholdings, a 0.6 percent increase in supplemental wage withholding and a 1.20 percent increase on wage stock options and bonus payments.
Alternative Workweek Schedules
The law regarding alternative workweek schedules was amended to permit an eight hour day as a valid alternative schedule.
Additionally, the Division of Labor Standards Enforcement issued an opinion letter stating that under some circumstances, an alternative workweek schedule may be in place for less than a full year - for example during the summer months only.
FMLA Amendments
Federal legislation changed the definition of which servicemembers are covered for leave under the "qualifying exigency" category.
For regular Armed Forces members, "covered active duty" means duty during the deployment with the Armed Forces to a foreign country. Reservists are covered when they are on duty during deployment with the Armed Forces to a foreign country or notified of an impending call to active duty.
Civil Air Patrol Leave
Employers with more than 15 employees are subject to a new leave for employees who are volunteer members of the Civil Air Patrol.
Safety
AB 1083 adds requirements to Health and Safety Code requiring all licensed hospitals to annually conduct a safety and security assessment.
SB 188 amends the Code of Civil Procedure to permit postsecondary educational institutions to seek temporary restraining orders and an injunction on behalf of a student or students. This requires written consent of the student(s).
Out of State Marriages
California recognizes out-of state marriages as legal in California if they are legal in the state where marriage occurred. SB 54 provides a same-sex couple's marriage, valid in the state in which it was contracted, will receive the same rights in California as spouses, with the exception of the designation of "marriage."
Workers' Compensation Cannot Be Denied
Workers' compensation cannot be denied because an employee was killed by a third party in the course of the employee's work, no personal relationship existed between them and the injury/death was because of third party's personal belief relating to the employee's race, religion, color, national origin, age, gender, disability, sex or sexual orientation.
CA Supreme Court: Restricted Stock Options Not "Earned but Unpaid Wages"
An incentive compensation requiring employees to forfeit shares of stock upon termination may not violate California laws. In a decision earlier this month, the California Supreme Court held that shares of restricted stock granted to an employee - but not yet vested at the time of termination - do not constitute "earned but unpaid" wages, and the employer may require the employee to forfeit them. Schachter v. Citigroup, Inc., 2009 Cal. LEXIS 11056 (Cal. Nov. 2, 2009)
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