New Legislation for 2005
Question: What new laws are going into effect that will impact my business in 2005?
1. Sexual Harassment Training for Supervisors – AB 1825
All employers with 50 or more employees must provide comprehensive sexual harassment training to all supervisory employees. This training must be completed by January 1, 2006 for all current supervisory employees. Any employees promoted into supervisory positions or hired into supervisory positions after January 1, 2006, must complete the training within six months of taking the supervisory position. The training must then be given to all supervisory employees every two years.
In order to be compliant the training must:
(a) be at least two hours in length;
(b) be interactive (this is not defined and therefore we advise employers to utilize classroom training as opposed to resorting only to video training, which may not be considered interactive);
(c) be conducted by individuals with knowledge and experience with sexual harassment law;
(d) include practical examples of sexual harassment aimed at instructing attendees in the prevention of sexual harassment; and
(e) include information and practical guidance regarding federal and state laws concerning sexual harassment, including what type of conduct is prohibited, how to prevent and correct sexual harassment if it occurs, and what remedies are available to victims of sexual harassment.
2. SB 2 Defeated/Repealed – Proposition 72
Because Proposition 72 was narrowly defeated by the voters, SB 2 (mandatory healthcare) will not go into effect in 2006 and the Legislature will have to find another method to reform healthcare then on the backs of California employers.
3. Bounty Hunter Laws Weakened – SB 1809 and Proposition 64
By enacting Proposition 64, California voters limited the ability of unscrupulous plaintiff lawyers to bring shakedown lawsuits against California businesses. Under Proposition 64, private sector plaintiffs suing under section 17200 of the California Business and Professions Code, now must (1) prove that they suffered actual harm to have standing to sue, and (2) must meet all the requirements of class action litigation before bringing a representative action on behalf of the general public.
By enacting SB 1809 in conjunction with the state budget, the California Legislature has limited the effectiveness of the previously enacted Bounty Hunter legislation enacted under Governor Davis. The Bounty Hunter Law allowed individuals to sue for penalties for any violation of the California Labor Code. Pursuant to the reform legislation the following changes are now in effect:
a. No lawsuit may be brought for posting, notice or other similar trivial requirements set forth in the Labor Code, with some very limited exceptions;
b. Employees must first provide notice to employers before filing a lawsuit;
c. Employees must first give the state the opportunity to investigate the alleged violation before filing a lawsuit;
d. Penalties are no longer mandatory and the courts have the discretion to reduce penalties; and
e. Courts must approve all settlements for lawsuits under this provision.
4. Posting Social Security Numbers on Employee Payroll Documents – SB 1618
Under this legislation, California employers have until January 1, 2008, to remove employee social security numbers from the itemized portion of an employee's pay stub. Employers have the option of either including just the last four digits of the employee's social security number or another employee identification number.
5. COBRA Modifications – DOL Regulations
Pursuant to recent DOL regulations, COBRA notice requirements have now changed. Employers should contact their attorneys and/or health insurance brokers/providers to ensure that they comply with the new notices and notice provisions. In addition, in California COBRA and Cal COBRA eligible employees are now eligible for 36 months of COBRA coverage.
6. Same-sex Domestic Partner Health Coverage – AB 205
Employers that provide dependent coverage health insurance must offer such coverage to same-sex domestic partners registered with the state. This applies to any health insurance policy that is issued or renewed after January 1, 2005. Employers can require proof of registration as a condition of providing coverage.
7. San Francisco Minimum Wage
Effective January 1, 2005, the minimum wage for all employers with 10 or more employees working in the City and County of San Francisco increases to $8.62 an hour ($7.75 for non-profits).