WORKPLACE LAW -
2008 California Employment Laws

Question:

I know that there are a bunch of new employment laws in California for 2008.  Could you provide some kind of summary of what employers need to do to comply with those laws?  I’m not sure what changes, if any, I need to make for my business.

Answer:

You’re correct that there are some important changes for California employers in 2008. The legislature has enacted several new laws, and there have also been a handful of important court decisions that will impact employers in various areas of employment law. While the following list is not exhaustive of all the new laws for 2008, it does include some of the more major changes that employers such as yourself will want to consider when assessing your business’ current policies:

  • Paying the correct minimum wage rate. The minimum wage in California went up to $8.00/hour on January 1 st. In addition to paying your non-exempt employees the proper rate, you should also review the salaries of any exempt employees you might have so as to ensure that their salaries meet the minimum required threshold (which is currently $33,280/year). You will also need to put up a poster in your workplace showing the new minimum wage rate.
  • Enforce your meal and rest period policy. You should have a written policy that sets forth the meal and rest period requirements for your non-exempt employees. Those individuals are entitled to a 10-minute rest period every 4 hours worked, as well as a 30-minute meal period that begins within the first 5 hours of work for any shift in excess of 6 hours. If any non-exempt employee does not receive their required meal or rest period, he/she is entitled to be compensated for those missed breaks. Employers can face stiff fines for failing to provide their employees with the required meal and rest periods, so it’s important that your employees and managers are aware of the law and that your non-exempt employees’ breaks are properly documented.
  • Make sure your wage statements are in compliance with the law. Due to privacy concerns, paystubs should now only include the last four digits of an employee’s Social Security number (or other employee identification number if a Social Security number is not used).
  • Update your cell phone policy. As of July 1, 2008, California drivers may no longer use a cellular phone while driving unless the phone is equipped for hands-free use. You should therefore have a written policy explaining the law regarding cell phone use, and informing your employees that they are required to comply with that law while operating a motor vehicle on company business. If your employees are regularly called upon to use their cell phones in the course of their employment, your policy should also explain the proper procedures for doing so (e.g., only using hands-free devices, pulling over to a safe spot before placing/accepting a call, etc.).
  • Update your leave policies to incorporate the new leave for military spouses if you have 25 or more employees. Employees who have a spouse or registered domestic partner are entitled to up to 10 days of unpaid time off if their spouse or partner is on leave from active deployment in a combat zone. You can require your employees to provide advance notice of their need for this type of leave, as well as documentation of their spouse/partner’s leave.
  • Make sure you’re using the current I-9 form. The IRS Form I-9 is used to verify that your employees are legally entitled to work in the United States. The form has recently been updated, so you will want to be sure that you’re using the most current version. The new Form I-9 and instructions regarding its use can be found at the following address: http://www.uscis.gov/files/form/i-9.pdf
  • Revise your Family and Medical Leave Act policy if you have 50 or more employees. In January, President Bush signed into law the National Defense Authorization Act (NDAA). The NDAA amends the FMLA to permit leave to care for a family member who is in the military, and who has suffered a related illness or injury. The NDAA also permits an employee to take FMLA leave for “any qualifying exigency” arising out of a family member’s service in the Armed Forces. If your business employs 50 or more individuals, then you are subject to the FMLA requirements and will need to update your FMLA policy accordingly.
As you can see, there are many important changes that employers need to be aware of this year. You may need to seek the advice of a professional when evaluating your business’ existing written policies, and especially when making changes to those policies, so that you can be sure you are in compliance with the law.
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