Governor Jerry Brown of California signed into law a number of bills that went into effect on January 1, 2012 that have a significant impact on employers in California. Many employers may not be aware of the magnitude of penalties, and many of these laws apply to companies with as few as one employee.

Following is a list of the major laws as provided by PIHRA, the Professionals In Human Resources Management:

Labor & Employment

• Limits on the use of credit reports, and new notice requirements when they are requested (AB 22)
• Increased damages for certain claims brought before the Labor Commissioner (AB 240)
• Enactment of the Wage Theft Prevention Act of 2011, which increases the consequences if an employer pays less than minimum wage, and adds a new notice requirement for newly hired employees (AB 469)
• An expansion of the enumerated characteristics that could give rise to a discrimination claim (AB 887)
• Limitations on the use of E-Verify if otherwise required by local governments (AB 1236)
• A requirement that employers enter into written contracts with employees who are paid commissions, effective January 1, 2013 (AB 1396)
• New prohibitions on discrimination based on genetic information (SB 559)
• New prohibitions on discrimination in public contracts (SB 117)
• New rules relating to the certification of the exclusive bargaining representative by the Agricultural Labor Relations Board (SB 126)
• Increases in the penalties and consequences for those who willfully misclassify individuals as independent contractors, and potential liability for those who advise employers on the classification of independent contracts (SB 459)
• Limits on the award of strike-preparation expenses as damages (SB 857)

Leaves of Absence

• A new requirement that employers must maintain and pay for group health coverage for employees on pregnancy disability leave (SB 299)
• Clarification of the law requiring employers to grant employees leave for organ or bone marrow donations (SB 272)

Mandated Health Insurance/HMO Benefits

• Mandatory coverage in group health insurance policies of maternity services effective July 1, 2012 (AB 210 & SB 222)
• Mandatory coverage in group health insurance policies and HMO contracts of behavioral health treatment for pervasive developmental disorder or autism effective July 1, 2012 (SB 946)

Insurance & Health Benefits

• Increase to 26 the limiting age for dependent coverage under a group life policy (SB 220)
• Prohibitions on discrimination on the basis of domestic partner status in insurance policies and HMO contracts issued to out-of-state employers (SB 757)

Workers' Compensation

New notice requirement for workers' compensation carriers who want to include a dispute resolution provision in their contracts ( SB 684 )

Give us a call to learn how these new laws might impact your business and how you can comply with these new requirements in a cost-effective manner.

Call (800) 797-2125 x101 for Lori Burzminski