Sacramento lawmakers are debating a host of proposals that would impact employers. We’ll look at some of the key legislation that’s on the table.
Pending Measures
- Age bias. A.B. 1599 would reverse a recent court ruling that state anti-bias law doesn’t bar discrimination against older workers in the selection for or discharge from a training program or in the terms, conditions or privileges of employment.
- Arbitration. S.B. 1538 invalidates pre-dispute arbitration agreements regarding employment discrimination disputes. A.B. 3029 allows employees to choose an alternative arbitrator when an employer designates its favored arbitration organization in a pre-dispute arbitration agreement.
- Background investigations. A.B. 1068 and A.B. 2868 clarify controversial investigative consumer report rules that took effect earlier this year requiring employers to disclose to an employee any background or reference check information obtained by the employer. A key change would require employers only to disclose public records, including those relating to arrest, indictment, conviction, civil judicial action, tax liens, or outstanding judgments.
- Ergonomics. A.B. 2845 requires the state Occupational Safety and Health Standards Board to revise state ergonomics rules by July 1, 2003. The bill is a response to criticism that the current state ergonomics standard is difficult to enforce.
- Failure to pay wages. A.B. 2987 boosts penalties for not paying wages.
- Family and medical leave. S.B. 1661 levies additional disability insurance taxes on employers and employees to fund a new temporary disability insurance program for families. Workers who take time off work to care for a seriously ill family member or to bond with a new child would receive replacement wages for 12 weeks.
- Health care. S.B. 1414 levies a payroll tax to fund universal health care coverage. A.B. 1826 and A.B. 2884 require employer-provided health benefits to cover costs for in-vitro fertilization and hearing aids. Under A.B. 2448, health care service plans must offer coverage to employers with two to 200 employees, rather than the current two to 50 employees. Employers with between two and 200 employees could participate in the state’s small employer health plan purchasing pool.
- Labor agency. S.B. 1236 consolidates the Department of Industrial Relations, the Employment Development Department, the Agricultural Labor Relations Board and the Workforce Investment Board into one labor agency.
- Layoffs. A.B. 2957 establishes notice requirements similar to those in the federal WARN Act, but lowers the notice threshold to mass layoffs of either 50 or more employees (as opposed to 100 employees under federal law) or one-third of the workforce in a facility employing 50 or more employees.
- Leave for sexual assault victims. A.B. 2195 extends to sexual assault victims the workplace protections for domestic violence victims who take time off from work.
- Local labor laws. A.B. 2509 allows local governments to enact labor law standards and fines in addition to state requirements.
- Military service. A.B. 1862 creates a 100% business tax credit for private employers for pay and benefits provided to employees called to active duty because of the events of Sept. 11, 2001.
- Minimum wage. A.B. 2242 provides for the minimum wage to be adjusted each January to match the inflation rate and increases penalties for minimum wage violations.
- Payroll records. Under A.B. 2412, employers must permit employees to inspect or copy payroll records within five business days of the employee’s written or oral request.
- Safety. A.B. 2837 increases penalties for employers who fail to timely report workplace injuries. A.B. 2752 strengthens protections for employees who complain about safety conditions..
- Severance pay. A.B. 2989 requires employers who close industrial or commercial facilities employing 100 or more workers, or have a mass layoff at such a facility, to provide severance pay to longtime employees if the employer has provided severance pay or bonuses to any exempt workers during the preceding year.
- Sick leave. Under S.B. 1471, employers cannot maintain an absence control policy that counts sick leave used to attend to the illness of a child, parent, spouse or domestic partner as a basis for discipline.
- Undocumented workers. S.B. 1881 would permit undocumented workers to recover back pay for unfair labor practices. The legislation was introduced in response to a recent U.S. Supreme Court ruling that undocumented workers aren’t entitled to back pay even if they have been aggrieved by unfair labor practices.
- Unemployment insurance. Under A.B. 2771, a temporary worker’s most recent employer while working for a staffing or temporary agency would be responsible for unemployment insurance costs instead of the agency.
- Wage disclosure. Existing law bars discrimination in job advancement against employees for disclosing how much they earn. A.B. 2895 expands the law to cover any employment discrimination based on wage disclosure.
- Workers’ compensation. A.B. 1810 revises the workers’ compensation notice that must be posted in the workplace and the workers’ compensation notice employers have to give all new employees.
Legislative Schedule
We’ll keep you informed about the progress of these and other bills of interest to employers. The Assembly and Senate have until Aug. 31, 2002, to pass measures, and Governor Davis must then sign or veto them by Sep. 30, 2002.
Join us this fall in San Francisco for the California Employment Law Update conference, a 3-day event that will teach you everything you need to know about new laws and regulations, and your compliance obligations, for the year ahead—it’s one-stop shopping at its best.