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Pension Plans: Supreme Court Restores Employer Discretion Over Surplus Assets

Because of the huge stock market gains in recent years, many defined benefit pension plans contain more assets than are needed to pay out benefits. Since 1997, however, a ruling from the federal appeals court that covers California has sharply limited employers’ discretion in how to use that “extra” money. But in a recent unanimous […]

Americans With Disabilities Act: New Ruling Examines Standards For Refusing To Employ Workers Who May Be At Risk For Injury

An employee has a history of fainting spells, and you’re worried that during one of these episodes the person may injure herself or another worker. What are your options? Although the Americans with Disabilities Act allows you to fire or refuse to hire an employee who poses a “direct threat” to herself or others, a […]

Family And Medical Leave: The Top 8 Mistakes Employers Make

Figuring out how to administer family and medical leave can be tough. And one misstep-even if it seems minor-can lead to a lawsuit. Since the federal family leave law went into effect five years ago, the U.S. Department of Labor has processed thousands of employee complaints. Based on those charges, the department has pinpointed the […]

News Notes: New Ruling Clarifies ADA Light Duty Obligations

Several injured prison guards who lost their jobs after their doctors prohibited them from having direct contact with inmates were not discriminated against under the Americans with Disabilities Act, according to a new ruling by the federal appeals court that covers California. The King County Department of Adult Detention initially accommodated the guards’ injuries by […]

News Notes: Revised 401(k) Rules Reduce Need For Waiting Periods

A little-noticed law that goes into effect on January 1, 1999, may enable companies to eliminate or reduce waiting periods for new hires who want to participate in 401(k) plans. Many employers are reluctant to immediately allow new employees to join 401(k) plans. The primary reason is that their typically lower contributions can pull down […]

News Notes: EDD Rescinds New Pregnancy Disability Policy

Last month we reported that the California Employment Development Department announced it would pay maternity disability benefits only for the time period a woman is actually disabled from working rather than for the four weeks before childbirth and six weeks after (or eight for a cesarean). The agency has now abruptly reversed itself-and reinstated the […]

News Notes: Court Affirms Religious Employers Are Exempt From Bias Laws

The California Supreme Court has clarified that nonprofit, religious entities may be exempt from state anti-discrimination laws regardless of how they are incorporated. A nurse at Mercy Healthcare Sacramento sued the hospital for sex and race bias after she was passed up for a promotion. Mercy asked to have the case thrown out, relying on […]

ADA Accommodations: New Ruling Clarifies Employee And Employer Obligations, Protects Seniority Systems

Most employers know they need to seek a reasonable accommodation for disabled workers who are otherwise qualified to perform their jobs. But applying this rule to real-life situations can be complicated. What if an employee wants an accommodation that would require you to make an exception to your established seniority system? And how far do […]

Legislation Update: Governor Signs New Bills On Unemployment Claims And Health Coverage; What You Need To Know

Governor Wilson recently approved two laws, one of which will make it easier for smaller employers to offer health benefits to part-time workers, and the other which changes the unemployment insurance rules to allow benefits to employees who are victims of domestic violence. Both measures take effect on January 1, 1999. Here are the key […]

Independent Contractors: IRS Issues Employer-Friendly Rules For Resolving Classification Disputes

An IRS audit claiming you misclassified workers as independent contractors rather than employees can be frustrating and expensive to resolve. But recent changes in IRS procedures for handling independent contractor classification problems may take some of the sting out of dealing with the government. New Rules For Independent Contractor Disputes Under the prior rules, if […]