California Employer Advisory Council

Labor Law Legislation Update - September 14, 2007

October 1, 2007

By Bruce Matlock - CEAC Legislative Chair

The Legislature has finished its' work for 2007. Several of the bills we have been following have been sent to the Governor. When that happens the bill is Enrolled. A number of those bills may have significant impact on employers. The Governor has until October 14, 2007 to veto or sign these bills. I will issue a final update shortly after that. If you want information on any of these bills or copies of the bill language, go to www.leginfo.ca.gov. Of course, you can also give me a call if you have any questions. Please let me know of any bills I may have missed.

Health Insurance
The Legislature has passed AB8, a major health insurance proposal. The Governor has stated he will veto that bill, but has called the Legislature back into special session to reconsider that bill and his proposals on health care. Apparently his proposal would require approval by the voters next year. Since this issue is changing so fast, your best venue for up to date information on this complicated topic is probably the daily newspaper. Enrolled.

Pay Discrimination
AB437 would have provided that in California, the statue of limitations on pay discrimination cases runs from each payment that is allegedly discriminatory. Inactive.

Worker's Compensation Discrimination
SB942 it would require an employer to reinstate an employee returning from a worker's comp leave within 5 days or be faced with back pay and $100 a day penalties. Enrolled.

Employer Penalties for Independent Contractor and Exempt Employee Violations
SB622 would result in significant liability to employers. It would add a section to the Labor Code making it unlawful for "Willful misclassification of an employee as an independent contractor" and "Willful payment of a nonexempt employee at a fixed salary rate where the employer knew or should have known that payment at that rate would result in the employee receiving less wages than he or she would, had he or she been paid based on regular hours and overtime hours worked."

Initial penalties would be $5,000 to $15,000 per person per violation. For a pattern of violations the penalty would increase to $10,000 to $25,000 per violation. The penalties are in addition to any other penalties or fines. Enrolled.

Discrimination Based On Familial Status SB836
This bill would add "familial status" to the list of prohibited reasons for discrimination under the Fair Employment and Housing Act. The bill defines "familial status" an individual who is or will be caring for or supporting a family member.

Providing care includes: providing supervision or transportation; psychological or emotional comfort and support; addressing medical, nutritional, hygiene and safety needs; attending to illness, injury, mental or physical disability.

The bill would cover parent, child, spouse, domestic partner, sibling, parent-in-law, grandparent and grandchild. Enrolled.

Unemployment Insurance: SB 116 allows employees unable to work due to the January freeze to receive UIB. Enrolled.

Domestic Partnership: Currently opposite sex couples may register as domestic partners, only if one is over 62. SB11 would delete the age requirement for opposite sex couples. Not sent to the Governor.

Discrimination: AB14 expands definitions of unlawful discrimination in providing services under the Unruh Civil Rights Act to the same standards as DFEH. Enrolled.

Farm Labor Contractors: AB377 would require that the name and address of the employer who is using contract labor be placed on the paycheck stub. Enrolled.

Wage Records: AB 435 would require that wage and classification records be kept for 5 years and extends the statute of limitations for filing suit on gender discrimination in wages to 5 years for willful misconduct. Enrolled.

Family Leave: Ab537 would expand coverage under the Family Rights Act, which covers employers with more than 50 employees. The changes would allow an employee to take protected leave for: the illness of an independent child of any age; parents-in-law; grandparents; grandchildren and domestic partners. Enrolled.

Jurisdiction of Employment Disputes: AB1043 would make it illegal to require disputes over terms in an employment contract for employees working in California be heard in other states. Enrolled.

Indoor Heat Standards: AB 1045 would require Cal-Osha to formulate regulations regarding excessive indoor heat in a work place. Enrolled, but no deadline for compliance.

Non-Smoking Rules: AB 1467 makes many changes in the laws covering smoking in work areas. The intent is to prohibit smoking in almost all enclosed areas of employment.
Exceptions apply for bars and similar establishments. Enrolled.

Personnel Files: AB 1707 would require that an employer furnish personnel files to a current or past employee or the their representative within 21 days of the request and keep such files for 3 years after termination of employment. Copies of the personnel file must be kept at the employee's workplace. Penalty of $750 for failure to comply. Enrolled.

Bereavement Leave: SB549 would require that an employer grant up to 4 days of unpaid bereavement leave for the death of spouse, child or parent. Employer prohibited from disciplining an employee for inquiring, requesting or taking such leave. Only covers employees who have at least 60 days of employment. Enrolled.

Paid Family Leave: SB727 would add "grand-parents, grand-children, parents-in-laws, and siblings" to the list of ill relatives that an employee may take Paid Family Leave to assist. Enrolled.

Failure To Provide Workers Compensation Insurance
SB869 would require EDD to give information on all California employers to the Workers Compensation Insurance Rating Bureau. Employers who were discovered not to have comp insurance would be given the chance to purchase without penalty. If they fail to do so, they can be fined $1,000 per employee. Enrolled.

Locked Out Employees: AB504 would require employers convicted of fraud, misrepresentation, or misconduct to make restitution to locked out employees. Enrolled.