Small business owners and executives need to keep abreast of labor laws. Make sure you assemble a team of professionals that you can rely on for changes. There are a number of bills that small business bills that will take effect on January 1, 2012. Here are some of them.
AB 469–Labor Code Section 2810.5
Effective 1/1/12, AB 469 becomes law and will require employers to comply with
Labor Code Section 2810.5 for non-exempt employees. A lot of this information should already be stated on employee pay stubs. This law requires employers to provide new hires with a written notice of various items of information:
(A) The rate or rates of pay and basis thereof ( hour, shift, day, week,
salary, piece, commission, or otherwise), including any rates for overtime, as
applicable.
(B) Allowances, if any, claimed as part of the minimum wage, including meal or lodging allowances.
(C) The regular payday designated by the employer in accordance with the requirements of this code.
(D) The name of the employer, including any “dba” names used by the
employer.
(E) The physical address of the employer’s main office or principal place of business, and a mailing address, if different.
(F) The telephone number of the employer.
(G) The name, address, and telephone number of the employer’s workers’ compensation insurance carrier.
(H) Any other information the Labor Commissioner deems material and necessary.
Labor Commission has stated that they will prepare a template to help businesses.
AB 29 Employee Credit Reports
There are many laws, both federal (FCRA) and state laws that govern the use of employee’s credit reports when making an employment decision. AB 22, too severely limits employers use of credit reports when making employment decisions. Make sure you understand the list of guidelines before requesting a credit report.
SB 459 Independent Contractor Misclassification
I have warned employers about misclassifying employees as independent contractors verbally, and in articles. Now, SB 459 raises the penalties to the roof. Civil penalties could be imposed up to $25,000 PER VIOLATION if the employer did a “willful misclassification.” It is imperative that each small business examine the tasks of each independent contractor.
Labor law changes constantly . Contact your labor attorney about these and other changes that may affect small business.
______________________________________________________________________________
IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the U.S. Department of the Treasury and Internal Revenue Service, we inform you that any tax advice contained in this e-mail (including any attachments) is not intended or written to be used, and may not be used, for the purpose of (a) avoiding penalties under the Internal Revenue Code or state tax authority, or (b) promoting, marketing, or recommending to another party any transaction or matter addressed herein.