Action Required:

1)      Employers may take down the poster until court proceedings are finalized.

If you have any questions or concerns about this update, please click here to contact us or email info@yourvos.com.  The information provided is for informational purposes only and shall not be construed as legal advice.

On January 1, 2012, the Wage Theft Protection Act of 2011 mandated all private employers including non-profits to provide a notice to their employees of their rate(s) of pay, designated pay day, the employer’s intent to claim allowances (meal or lodging allowances) as part of the minimum wage, and the basis of wage payment (whether paying by hour, shift, day, week, piece, commissions, etc.), including any applicable rates for overtime.

The law requires that the notice contain the employer’s “doing business as” names, and that it be provided at the time of hiring and within 7 days of a change if the change is not listed on the employee’s pay stub for the following pay period. The notice must be provided in the language the employer normally uses to communicate employment-related information to the employee, through translated notices provided by the Department of Labor.

DOL has provided employers with frequently asked questions for further clarification. The notice is not required for an employee: directly employed by the state or any political subdivision, including any city, county, city and county, or special district; an employee who is exempt from the payment of overtime wages by statute or the wage orders of the Industrial Welfare Commission; or for an employee who is covered by a valid collective bargaining agreement if it meets specified conditions.

Action Required:  Add the Notice to Employees to your new hire package and insure it is provided to new hires no later than the day the employee starts and to regular employees within 7 days of a change if the change is not listed on the pay stub.  Older versions of the form shall no longer be used. 

If you have any questions or concerns about this article, please click here to contact us or email info@yourvos.com.  The information provided is for informational purposes only and shall not be construed as legal advice.

Meal Periods:

As stated in the Superior Court ruling page 2, 1st paragraph “an employer’s obligation is to relieve its employee of all duty, with the employee thereafter at liberty to use the meal period for whatever purpose he or she desires, but the employer need not ensure that no work is done.”

An employer is obligated to provide the first meal period after no more than five hours worked and a second meal period after no more than 10 hours of work. An employer meets the meal period requirements if the following guidelines are met:

• The employer permits the employee a reasonable opportunity to take an uninterrupted 30-minute meal period.
• The first 30 minute meal period must be taken before the fifth hour.
• The employer must relieve the employee of all duty.
• The employer relinquishes control over their activities.
• The employer does not impede or discourage them from do so.

Failure to do so will result in a payment of premium pay equaling one hour of pay at the employee’s regular rate of pay. Premium pay shall be tracked separately on payroll from the employee’s regular hours.

Employers are not required to police meal periods nor ensure the meal period is taken. If the employee decides to shorten his/their lunch, the employee must clock in from their meal period and be paid for such time. This may effect overtime if by shortening their meal period it would cause the employee to work over 8 hours for the day. For this circumstance, an employee would not receive premium pay since the employer made the meal period available to the employee. The employee made the decision to not take the full period.

Meal Period Waivers:

A Meal Period Waiver may be authorized by mutual consent of the employer and employee. The waiver allows the employee to waive their meal period if the employee works more than five hours per day but no more than six hours. The written waiver shall include a statement notifying the employee that the employee may revoke the waiver at any time.

On Duty Meal Periods:

On-duty meal periods are authorized in limited circumstances. It is recommended that you seek legal advice before allowing on-duty meal periods.

Rest Breaks:

Employers shall authorize rest break time based on the total hours worked daily at the rate of ten (10) minutes net rest time per four (4) hours or major fraction thereof. Employers shall divide the hours worked by (4) rounding to the highest number. Rest breaks shall fall in the middle of work periods “insofar as practicable.” The first rest break shall be taken prior to the meal break. The court hinted that a normal eight-hour shift: “[a]s a general matter, one rest break should fall on either side of the meal break.” Employees are entitled to the following rest break:

• No rest break is required for total daily work time of less than 3.5 hours,
• (1) 10-minute rest breaks for shifts from 3.5 – 6 hours worked,
• (2) 10-minute rest breaks for shifts of more than 6 – 10 hours worked,
• (3) 10-minute rest breaks for shifts of more than 10 hours up to 14 hours, and so on.

IWO do not allow for the waiver of rest breaks. Failure to authorize a rest period will result in (1) hour of premium pay at the employee’s regular rate of pay.

Action required:

• Review your Industrial Wage Order to determine meal period and rest break requirements.
• Train Supervisors and Managers on company policies and procedures regarding meal periods and rest breaks.
• Pay premium pay when it is due.
• Update your Employee handbook to include the following policy:  Working “Off the Clock”: It is your responsibility to clock in and clock out for every shift you work including meal periods. You may not begin working until you have clocked in. Working “off the clock” for any reason is considered a violation of Company policy. If you forget to clock in or out, or if you believe your time records are not recorded accurately, you must notify a Supervisor immediately, so the time can be accurately recorded for payroll purposes.
• Implement written Meal Period Waivers, based on your IWO
• Consult legal counsel with any questions.

Should you have any questions or concerns about this article, please click here to contact us or email info@yourvos.com.  The information provided is for informational purposes only and shall not be construed as legal advice.

Most private sector employers will be required to post the 11-by-17-inch notice on the new implementation date of April 30.  You may print the poster on 2 – 8.5 x 11 sheets of paper by clicking here: NLRB Poster.

View original September 29th, 2011 blog post about this mandate by clicking here.

The House Committee on Veteran Affairs recently reported that “veterans between the ages of 35 and 64, the group with the highest financial obligations and the fewest available VA education and training options, continue to make up nearly two-thirds of all unemployed veterans. Overall, nearly one in twelve of our nation’s heroes can’t find a job to support their family, don’t have an income that provides stability, and don’t have work that provides them with the confidence and pride that is so critical to their transition home.”

In an attempt to address the staggering unemployment rates among U.S. Veterans, the United States government passed the “VOW to Hire Heroes Act” in October 2011. The Act is designed to aggressively attack the high level of veteran unemployment by expanding education and training benefits, improving the Transition Assistance Program, facilitating seamless transitions from military employed to civil service jobs, as well as tax credits for employers who hire qualified veterans (called the “Work Opportunity Tax Credit”, or WOTC).

Recent changes to the Act have expanded upon the WOTC guidelines. Not only have two new categories been added to the existing qualified veteran targeted group, but in addition, the WOTC is now available to certain tax-exempt employers as a credit against the employer’s share of social security tax. The Act allows employers to claim the WOTC for veterans certified as qualified veterans and who begin work before January 1, 2013.

According to the IRS, the credit can be as high as $9,600 per qualified veteran for for-profit employers or up to $6,240 for qualified tax-exempt organizations, but the amount of the credit will also depend on a number of factors, including the length of the veteran’s unemployment before hire, the number of hours the veteran works, and the veteran’s first-year wages. The amount of the credit for qualified tax-exempt organizations may not exceed the organization’s employer social security tax for the period for which the credit is claimed.

To receive certification that a new employee qualifies the Department of Labor WOTC Employer Participation Guide states the employer must:

1. Complete page one of IRS Form 8850 (pdf) by the day the job offer is made.
2. Complete page 2 of IRS IRS Form 8850 (pdf) after the individual is hired.
3. Complete either the one page ETA Form 9061 (pdf) or Form 9062 as appropriate.For example:
   • If the new employee has already been conditionally certified as belonging to a WOTC target group by a state workforce agency (SWA) or participating agency, complete the bottom part of ETA Form 9062, sign and date it, or
   • If the new employee has not been conditionally certified, the employer and the new employee must complete, sign and date ETA Form 9061.
4. Mail the completed and signed English versions of IRS and ETA forms to the employer’s state workforce agency (SWA) within 28 calendar days after the employee’s employment-start date for all individuals who begin work for an employer.

Employers who are interested in learning more about the WOTC are encouraged to understand the process and the time restrictions prior to the hiring process by visiting the WOTC http://www.doleta.gov/business/incentives/opptax/ website or contacting the WOTC Center at (866) 593-0173 (toll-free).

In addition, employers can assist the process of finding job-seeking veterans by registering with the National Resource Directory Veteran’s Job Bank (www.nationalresourcedirectory.gov). There are (9) other categories besides veterans that qualify for WOTC for 2012.  The EDD developed Basic Facts about Work Opportunity Tax Credit (http://www.edd.ca.gov/Jobs_and_Training/WOTC_Basic_Facts.htm) to educate employers on the various WOTC available to them.

The EDD has also implemented CalWorks/GAIN Employment & Volunteer Services Program.  This program provides employers located in Riverside County with free recruitment assistance by locating and screening applicants currently utilizing social services.  Many of the individuals hired through this service qualify for WOTC.  Please email Joni Caposey, the Community Service Liaison, to learn more (jcaposey@riversidedpss.org).

VOS recommends that employers revisit their hiring practices to determine if they are maximizing their capabilities when hiring smarter.  Please contact VOS for a review of your hiring practices at info@yourvos.com.

The content provided in this article is designed for informational purposes and shall not be construed as legal advice.  Employers shall consult with their accountant for further clarification.

If you have any questions about this notice, please feel free to contact our office.

The primary partners of the LETF include DIR, the Employment Development Department, Contractor’s State License Board, Board of Equalization, and the Bureau of Automotive Repair. LETF will also collaborate with the Department of Insurance, the Attorney General and Local District Attorneys, and others in affected communities.  LETF will help ensure that workers’ rights are protected and that hard-working, compliant business owners have an opportunity for healthy competition in California.

“The goal of LETF is to ensure fair and safe working conditions in all workplaces and promote a level playing field for employers through education and enforcement of state laws,” said Labor and Workforce Agency Secretary Marty Morgenstern. “Labor law violators endanger workers and have an unfair market advantage over law-abiding businesses. We cannot tolerate businesses that skirt the law.”

LETF’s focus on collaboration, wider information-sharing and use of new technology for enforcement will ensure more effective targeting of businesses in the underground economy.  This will help eliminate the worst violations of workers’ rights and protections. The task force will also conduct outreach and education efforts to inform businesses of their rights and responsibilities under the law.

“This effort is using state resources judiciously in a time of limited funding to allow key agencies to collaborate and direct their best efforts to fight the menace of the underground economy,” said DIR Director Christine Baker. “Legitimate businesses grow California’s economy; they are our economic backbone. It is the mission of LETF to see that those businesses are protected.”

The goals of the workforce will be to:

• Ensure workers receive proper payment of wages and are provided a safe work environment.
• Ensure California receives all employment taxes, fees, and penalties due from employers.
• Eliminate unfair business competition by leveling the playing field.
• Make efficient use of the state and federal resources in carrying out the mission of the Labor Enforcement Task Force.

“By joining forces with other agencies conducting inspections, we can have a greater impact on stopping labor violations and the underground economy,” said Christine Baker. “Collaboration will also save time and money by avoiding overlapping inspections and focusing our efforts on the egregious violators.”

Businesses operating underground typically violate many laws designed to protect workers and our state’s economy. These include: not paying income taxes, unemployment insurance or disability insurance; not carrying workers’ compensation coverage; not paying proper wages; and not registering for required licenses or permits. These underground operations subsequently pay lower overhead costs which give them an unfair competitive advantage over legitimate, law-abiding businesses.

For more information on employer and employee rights and responsibilities, please contact Lmarruffo@yourvos.com or click here to complete our contact form.

But what happens when employees operate without being informed of the long-term vision?  Can they continue to act as a superior company representative if they haven’t a clue about the plans for growth in the future? A company that invests in creating a short and long-term vision should also invest in communicating said vision to their employees. Often times, this is accomplished through an annual company address or meeting where everyone gets together to not only review the mission and goals of the previous year, but to lay the foundation for the upcoming year as well.

What are some of the benefits of sharing a company vision in this manner? Employees in today’s economy appreciate the stability and comfort that may result in knowing they are part of a “bigger picture”- a long-term plan for growth and expansion. When they feel confident in their position and their purpose, they will have a more beneficial impact on the morale of the company as a whole. This sort of energy shift can lead to increased productivity and a sense of personal commitment to see the outlined goals accomplished.

Some of the things that management or ownership might address at an annual meeting are:

• New service offerings or products that the company is planning on introducing.
• A Review of the previous year’s goals and accomplishments.
• The projections for the upcoming year and solidifying corresponding goals and expectations.
• Voicing concerns about issues such as overtime, expenses, etc.
• An action plan to address red flag issues and concerns as well as an assignment of accountability for implementing the action plan.
• An outline of how each department is expected to contribute to the goals of the long-term vision and why individual performance is crucial to staying on track.

It is important for employers to create an atmosphere of teamwork, loyalty and appreciation. While implementing employee recognition awards and contests are one way of fostering a friendly yet productive workplace, such is also accomplished by fostering personal investments in the company’s vision or mission. Just as a sports team plays their best when the coach has taught them a strategic game plan, a company will have a better chance obtaining their goals if all of the employees are made privy to the plan and given the responsibility to help achieve it.

As Author Burt Nanus once said, “There is no more powerful engine driving an organization toward excellence and long-range success than an attractive, worthwhile, achievable vision for the future, widely shared.” Don’t keep your company’s long-term goals a secret from the people who will play an integral part in achieving it. What good is a game plan if it isn’t coached to the whole team?

Just as important, if your company currently works with independent contractors or commissioned sales people, pay attention to the updates of bill SB459 and ensure your current processes and procedures are updated to adhere to the new changes.

Also, we’d like to bring special attention to the Wage Theft Prevention Act of 2011, which will require wage statements be issued to all new hires describing the exact amount of offered hourly and OT pay. This will take effect by the first of the year as well, and we expect that the standardized form for this requirement will be issued by December 15, 2011.

Updates to Laws Affecting Discrimination Policies:

AB22: Prohibited Use of Credit Reports

In summary, the amended and added sections in AB22 prohibit the use of consumer credit reports by an employer or prospective employer for employment purposes unless the position of the person for whom the report is sought falls under any one of eight (8) specified types of employment positions. The bill excludes those businesses which are financial institutions subject to specified federal statutes (15 USC 6801 to 6809)

Click here to view bill

AB1236: Electronic Employment Verification

In summary, the added article in AB1236 Prohibits the state, city, county or special district from requiring an employer to use the federal electronic employment verification system (E-verify) except as required under federal law or as a condition of receiving federal funds.

Click here to view bill

Updates to Laws Affecting Wages, Hours and Working Conditions:

AB469: The Wage Theft Prevention Act of 2011

In summary, the additions and amendments to AB469 enact the Wage Theft Protection Act of 2011 which criminalizes willful violations for non-payment of wages after a court judgment or final administrative order. Requires that specified information be provided to employees at the time of hire and in wage claim proceedings and that employers update changes within specified periods.

Employers must provide the following information to employees upon hiring in a format to be determined by the Labor Commissioner:

• The rate or rates of pay and basis thereof, whether paid by the hour, shift, day, week, salary, piece, commission or otherwise, including any rates for overtime, as applicable.
• Allowances, if any, claimed as part of the minimum wage, including meal or lodging allowances.
• The regular payday designated by the employer in accordance with the requirements of this code.
• The name of the employer, including any “doing business as” names used by the employer.
• The physical address of the employer’s main office or principal place of business, and a mailing address, if different.
• The telephone number of the employer.
• The name, address and telephone number of the employer’s workers’ compensation insurance carrier.
• Any other information the Labor Commissioner deems material and necessary.

Employers also must provide notification of any changes in the above information within seven days either by information on the employees’ next pay statements or in a separate written form.

Click here to view bill

SB459: Misclassification of Independent Contractors

In summary, the additions to SB459 prohibit the willful misclassification of an individual as an independent contractor rather than as an employee. “Willful misclassification” means avoiding employee status for an individual by voluntarily and knowingly misclassifying that individual as an independent contractor.    The employer shall be subject to a civil penalty of not less than five thousand dollars ($5,000) and not more than fifteen thousand dollars ($15,000) for each violation, in addition to any other penalties or fines permitted by law.  Labor and Workforce Development Agency (LWDA) or a court shall order a violator to post a specified notice of violation following a determination that a person or employer has engaged in willful misclassification and shall notify the Contractors’ State License Board (CSLB) if the violator is a licensed contractor. The Labor Commissioner is expressly authorized to enforce this law.

Click here to view bill

AB592/SB299: Employee Pregnancy Leave

In summary, AB 592 and SB 299 make it unlawful for employers to interfere with, restrain or deny leave for eligible workers under the California Family Rights Act and the pregnancy disability leave law. In addition, the bill makes it unlawful under the state pregnancy disability leave law for employers to refuse to maintain and pay for group health coverage of a worker who takes leave because she is disabled by pregnancy, childbirth or a related medical condition.  The group health coverage is not to exceed 4 months over the course of a 12-month period.  An employer may recover from the employee the premiums paid for by the employer under limited circumstances such as the employee failing to return from leave.  The reasoning for this bill was to close a perceived loophole that did not specifically prohibit employers from making it difficult for employees to exercise their rights to leave.

Click here to view bill

These updates to California employment laws can have huge ramifications on your current HR practices. Should you have any confusion on how these changes affect your business specifically, please don’t hesitate to contact us.