How will the new labor laws effect you?

Robin Noah

As most California employers have learned by now, it is getting more and more difficult to operate a business in California; labor laws continue to be challenging and complicated. This year alone some 21 new laws were introduced. Employers need to ensure compliance with what, for most part, is a complicated area of law. They need to become knowledgeable of labor laws that affect their individual operations as well as maintaining their policies, procedures and support data current. Policy/Employee handbooks need to be updated as soon as possible.

Of all the laws becoming effective January 2013 the ones that affect most employers, be they nonprofits or for profit employers, are briefly overviewed below. Additional information is available at the Department of California Industrial Relations at

1. The Wage Theft Prevention Act – New Notice Requirements for all Newly-Hired Non-Exempt Employees. This act requires employers provide all newly-hired, non-exempt employees with a written notice at the time of hiring that lists more than 7 items of specific information and other information the Labor Commissioner deems material and necessary.

2. Commission Agreements Must Be in Writing: Effective January 1, 2013 all California employers are required to use written commission agreements that set forth the method by which commissions are computed and paid. In addition, employees are entitled to receive a signed copy of the agreement and must provide employers with a signed acknowledgment of receipt.

Employers are Required Pa Casino Blue, den spesialiserte delen for norske spilleautomater , er det et utvalg pa rundt 70 spill. to Provide Health Coverage during Pregnancy Leave: An explicit requirement to maintain health coverage now applies for the benefit of employees who take pregnancy leave. This bill requires an employer with five or more employees to maintain and pay for an employee’s group health coverage while that employee is on leave for pregnancy, childbirth, or related medical condition for a period of up to four months under the same terms and conditions as active employees.

New Penalties for Wrongful Misclassification of Independent Contractors: Employers who use independent contractors face stiff new penalties and potential litigation exposure for the “willful” failure to properly classify such people as employees. Willful misclassification is defined as “voluntarily and knowingly misclassifying an individual as an independent contractor.” Employers that violate the bill are subject to a civil penalty of no less than $5,000 and no more than $15,000 for single violations. They may also be subject to civil penalties of up to $25,000 if found to have engaged in a pattern or practice of willful misclassification and any employer found to have violated the new law may have to post a notice of such violation on the employer’s Internet website or in an area accessible to all employees and the general public.

This is just the tip of the iceberg. Take some time to research the new labor laws so that you may proactively minimize your exposure to labor law problems. Compliance requires risk management..

Author:  Robin Noah, Executive Coaches of Orange County, www.ECofOC.org