CA EMPLOYMENT ESSENTIALS (CEE) is a 6 module training series of employment essentials focusing on regulatory compliance and HR best practices. Hiring to Separation: What Management and HR MUST KNOW!

LEADERSHIP EXCELLENCE SERIES (LES) is an 8 module training series focusing on practical leadership and communication skills to help managers DEVELOP OR REFINE THEIR EFFECTIVENESS AS LEADERS!

Dates of Upcoming Series:

CEE Begins: August 6

LES Begins: September 9

TPO's popular prescheduled three-hour (9am - noon) workshops are presented on a wide range of important regulatory and leadership topics. Many are available to attend via webinar.

Dates of Upcoming Workshops:

Up To & Including Termination: August 11

Cyber Security: September 10

Dealing with Difficult People: October 21

Excelling As a Manager/Supervisor: December 10

TPO brings you periodic briefings presented by knowledgeable subject matter experts on a variety of timely employment topics.

Dates of Upcoming Briefings:

Giving & Receiving Feedback: September 22

External HR Support Briefing: October 1

TPO's H&D prevention training goes above and beyond to address all forms of harassment and discrimination (age, race, religion, disability, etc.) that today's managers must be prepared to prevent and address.

Dates of Upcoming H & D:

Harassment & Discrimination Prevention:  August 25, Ocotber 6 & December 10

Spanish Language Harassment & Discrimination Prevention: 
October 13

IN THIS ISSUE

1. LEGISLATIVE UPDATE - California & Federal
      by Melissa Irwin, SPHR-CA, SHRM-SCP, TPO

2. HR Q&A - Paid Sick Leave
      by Kathrine Parsons, SPHR-CA, TPO

3. CA WAGE & HOUR QUICK TIP - Managerial Exemption
      by Melissa Irwin, SPHR-CA, SHRM-SCP, TPO

 

Califonia and Federal HR Legislation

by Melissa Irwin, SPHR-CA, SHRM-SCP, TPO

If bills did not advance to the floor of their house of origin by June, they were suspended and could not move forward in the legislative process.:

Moving Forward in the Legislative Process:

  • Minimum Wage - Senate Bill (SB 3) if passed would increase the minimum wage by $3.00 over the next two and a half years and imposes future automatic increases tied to inflation.  Location: Passed to Assembly Committee
  • CA Family & Medical Leave Act (CFRA) - Senate Bill (SB 406) if passed would modify the current company eligibility requirement from 50 or more employees to 5 or more employees. Location: Passed to Assembly
  • Paid Sick Leave “clean up” - Assembly Bill (AB 304) if passed would clarify many components of the new law, including that an employer is not required to reinstate accrued paid time off to an employee, rehired within one year of separation from employment, that was paid out at the time of termination, resignation, or separation.  Location: Assembly
  • Waivers – Assembly Bill (AB 465) if passed would prevent agreements that include any waiver as a condition of employment of labor protections.  Location: Assembly
  • Paid Sick Leave to Include In-Home Workers - Assembly Bill (AB 1522) if passed would reverse the exemption of in-home workers from current PSL requirements.   Location: Passed to Senate
  • Expansion to Paid Family Leave Insurance - Assembly Bill (AB 908) if passed would expand from the current 6 weeks, up to 10 weeks of wage replacement benefits.  Location: Passed to Senate

Suspended/Stalled:

  • Double Pay on the Holiday Act - Assembly Bill (AB 67) if passed would have required an employer to pay at least two times the regular rate of pay to an employee for work on Thanksgiving or Christmas. Status: Suspended 
  • $100,000+ Salary Exemption - Assembly Bill (AB 1470) if passed would have exempted from overtime pay an employee with a total gross annual compensation of at least $100,000 if that employee also regularly performs any of the exempt duties or responsibilities of an executive, administrative, or professional employee as set forth in the Industrial Welfare Commission Wage Orders.  Status: Suspended
  • Scheduling Restrictions (retail and food establishments) - Assembly Bill (AB 357) if passed would have penalized major retailers (amount yet decided) for changing a worker’s schedule without two weeks of warning. Applicable to employers with 500 employees and 10 stores.    Status: Suspended
  • Flexible Work Schedules - Assembly Bill (AB 1038) if passed would have allowed employees to choose a workday up to 10 hour a day within a 40 hour week with no daily overtime.  Status: Suspended
CA’s CFRA Rule Change Amendments to the California Family Rights Act (CFRA) regulations have been approved and will take effect July 1. The changes align CFRA more closely with the federal FMLA, provides guidance on definitions of terms, and other clarifications of interpretation.
  • The changes should have revised "Notice B" Family Care and Medical Leave and Pregnancy Disability Leave” which can be found at http://www.dfeh.ca.gov/Publications_Publications.htm , however, the Department instead created a new document found at http://www.dfeh.ca.gov/res/docs/Publications/Brochures/2015/DFEH-100-210-rev072015.pdfThe Department is aware of this discrepancy and will not penalize a CFRA employer for failure to post, so long as either "Notice B" or new document is posted.   The Fair Employment and Housing Council is currently reconciling these notices with a rulemaking action to discontinue use of a joint notice, which will result in the publication of one notice for CFRA Leave and a separate notice for Pregnancy Disability Leave after the rulemaking action is approved and becomes effective. Stay tuned!

Healthy Families Act (H.R. 932 and S. 497) If passed, would allow most private-sector employees to earn up to seven days of paid sick leave per year. The law would apply to employers with 15 or more employees, and permit workers to accrue an hour of paid leave for every 30 hours worked, up to a maximum of 56 hours per year. Smaller employers would be required to provideunpaid leave.  Location: Congressional Committee

Employment Non-Discrimination Act (S. 815) If passed, would prohibit employment discrimination on the basis of sexual orientation or gender identity. Location: Congressional Committee

Paycheck Fairness Act (S. 862) If passed, would amend the Fair Labor Standards Act of 1938 to provide more effective remedies to victims of discrimination in the payment of wages on the basis of sex, and for other purposes. Location: Congressional Committee

Interested in reading more about the bills and process?

Federal legislation: http://www.govtrack.us/congress/legislation.xpd

California legislation: http://www.leginfo.ca.gov/bilinfo.html

 

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But is it the Most Cost Effective?

by Kathrine Parsons, SPHR-CA, TPO

When choosing between Paid Sick Leave’s (PSL’s) accrual method or the up-front (lump sum) method of distributing PSL, there are advantages and disadvantages.  Additionally, the work schedules, OT requirements, wage orders, and number of full-time, part-time, seasonal/temporary employees are unique to each employer.  So much to consider!  Here are a few simple considerations you might like to review.  Remember, you CAN change your distribution method – preferably with strategic planning, cost analysis, and advance notice.

Up-Front (Lump Sum) Method:
  • Easy to administer:  one lump sum distribution and no carry over.  If administration and tracking is easy, then it’s cost effective.
  • May not be fair to all employees:  employees who work only  a very few hours per week, or who don’t work a full year, will get an equal amount of PSL as those employees who work full-time (and OT).
    • Note:  You could give regular, full-time employees more than 3 days of PSL, and give part-time and seasonal/temporary employees the legal minimum of 3 days. This is allowed because you would give different benefits to different employee classifications.
Accrual Method:
  • This may be easier to administer if all of your other benefits are based on an accrual method.  The set-up is already established and there cost effective.
  • If you don’t have the accrual method already set up in your system, it may be burdensome and time consuming to set it up.  That’s expensive.
  • This method is fair to all employees because the amount of PSL they earn is directly correlated to how much time they work.
  • With no accrual cap, full-time employees can accrue almost 9 days of PSL – more when you count OT.  If you have lots of full-time employees and lots of OT, this could be expensive.
    • Note:  You can cap accruals and carry-over at 6 days.

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...be careful of "Working Managers"!

by Melissa Irwin, SPHR-CA, SHRM-SCP, TPO

One of the five ways to be exempt from Wage and Hour requirements such as breaks, meals and overtime is when the position qualifies for the Managerial (also called Executive) Exemption. To meet the "managerial" or executive exemption, the position must:

 

1. Earn a salary of at least two times the CA Minimum wage; currently $720 a week and will be $812 a week starting 1/2016.

    • Exempt positions are paid the same, pre‑determined amount for each week that he or she performs any work. The theory is that a "white collar" exempt position is paid for the work done, not for the number of hours worked. Paying a salary does not make the position exempt.

2. AND Supervise 2 or more full-time equivalents.

    • Exempt managers are able to hire, schedule, evaluate, discipline, terminate, or effectively recommend such actions

3. AND Do NO more than 50% of non-exempt work.

    • In CA this means doing no more than 50% of non-exempt work with the hands. For example, if a manager of a coffee shop supervises 10 staff members, however t the manager spends most of the time ringing sales, making coffee and sweeping floors, the position is likely a “working manager” and should be classified as non-exempt.

4. AND Regularly exercises discretion and independent judgment.

    • This involves evaluating possible courses of conduct, and acting or making a decision after considering various possibilities. It implies that the employee has the power to make an independent choice free from immediate supervision and with respect to matters of significance. The decision may be in the form of a recommendation for action subject to the final authority of a superior, but the employee must have sufficient authority for the recommendations to affect matters of consequence to the business or customers.
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