JorgensenHR Journal Winter 2009

As we enter 2009, companies are faced with many difficult economic challenges. Businesses are looking for ways to weather the storm, many are faced with having to experience downsizing and cutbacks. JorgensenHR can assist with your human resources needs from outplacement to exit strategies, as well as training, and assisting remaining employees with recommitting to your workplace.

Along with our wishes of health, happiness and prosperity to you and your family, we also want to share 2009 legislative and regulatory changes. And don't forget: if you have any questions about the information contained here, call JorgensenHR at (661) 600-2070.

HANDS-FREE CELL PHONE LAW

On July 1, 2008, California's hands-free cell phone law went into effect prohibiting drivers from using handheld wireless telephones while driving, unless the device allows for hands-free listening and talking.

Effective January 1, 2009, text-based communication while driving is prohibited as well, with the same penalties - $20 for the first offense and $50 for subsequent offenses. This law will be expanded to make it illegal to drive a motor vehicle while using an electronic wireless communications device such as a Blackberry or cell phone to write, send or read a text message, e-mail or instant message.

It is important to note that a driver will not be deemed to be "writing, reading or sending a text-based communication" in violation of the law where the driver is simply reading, selecting or entering a phone number or name in a device in order to make or receive a phone call.

Employers should implement a written policy that not only prohibits this conduct, but makes the employee, not the employer, responsible for any citations for violating the new law.

Contact JorgensenHR offices at (661) 600-2070 and ask for Linda Thibodeaux to create a policy for your employee handbook on the hands free cell law.

Source: BRGS Compliance Matters, November 2008

INVALID WAIVERS

Effective January 1, 2009, employers cannot require a release on account of wages due. New language added to Labor Code 206.5 states:"For purposes of this section, 'execution of a release' includes requiring an employee, as a condition of being paid; to execute a statement of the hours he or she worked during a pay period, which the employer knows to be false."

The importance of this development for employers that require employees to certify their hours worked before receiving their paychecks is that they must ensure the reported hours are accurate and that employees have the opportunity to correct their time when appropriate, but the employer should not permit employees to sign time sheets that the employer knows to be false.

This means you need to follow legal requirements pertaining to payroll practices, maintain accurate time records, don't force employees to work off the clock or miss meal and rest breaks, and pay employees on time. Employers who violate this law are guilty of a misdemeanor.

It is important to review your timesheet policy and practices, JorgensenHR can assist with revisions and guidance as needed. Call us at (661) 600-2070 and ask for Susan Lawrence-Munger.

Source: HR California, December 2008

CHANGES IN I-9 PROCESSES AND DOCUMENTS

A revised 1-9 form will be available on February 2, 2009. The revised I-9 form is mandatory. Employers must fill out for every new hire to verify identity and eligibility for employment in the United States under the Immigration Reform and Control Act of 1986 (IRCA). The revised form will improve the security of the employment authorization verification process.

The revisions include that employers may no longer accept expired documents to verify employment eligibility, and also reduces the number of acceptable documents employers can use to verify work authorization.

The following documents have been added or removed:

ADDED - Two documents have been added to List A (establishes both identity and employment authorization):

A temporary I-551 printed notation on a machine-readable immigrant visa in addition to the foreign passport with a temporary I-551 stamp; and
A passport from the Federated States of Micronesia (FSM) or the Republic of the Marshall Islands (RMI) with a valid Form I-94 or Form I-94A indicating nonimmigrant admission under the Compact of Free Association Between the United States and the FSM or RMI.

A new passport card issued by the Departments of State and Homeland Security may be used as a "List A" document to verify employment in accordance with the I-9 form. While the passport card is more limited in its uses for international travel it is a valid passport that attests to the U.S. citizenship and identity of the bearer.

REMOVED - Three documents were removed from List A of Acceptable Documents:

Form I-688, Temporary Resident Card;
Form I-688A, Employment Authorization Card; and
Form I-688B, Employment Authorization Card.

As an employer make sure you understand all acceptable documents for proof of eligibility to work in the United States and never specify the forms an employee must provide as their proof. Failure to comply with these new Form I-9 requirements may result in hefty legal and financial consequences in the case of an audit, the risk of which has increased greatly due to the government's renewed emphasis on illegal immigration.

Always maintain I-9 Forms in a secure file separate from the employee's personnel file. The I-9 form is available in English and Spanish, and can be downloaded from the USCIS.gov website or JorgensenHR can provide you with the most recent copy. If you have questions regarding I-9's and the verification process contact JorgensenHR at (661) 600-2070 and ask for Linda Thibodeaux.

Source: Office of Communications, U.S. Citizenship and Immigration Services, December 2008

MINIMUM PAY FOR 'EXEMPT' COMPUTER PROFESSIONALS

On January 1, 2009, payment to exempt computer professionals may be made as a monthly or annual salary. Previously, computer professionals had to earn a minimum hourly rate. The hourly rate for 2009 is increased from $36.00 to $37.94. The minimum monthly salary exemption is $6,587.50, while the minimum annual salary exemption is $79,050.00. These salaries are based on a 40 hour work week. There is no adjustment for part-time or other workweek hours which are less than a full 40 hours workweek.

Employers should make sure to review job descriptions for all employees classified as computer professionals to ensure they earn at least the minimum wage or salary and meet the job duties exemption requirements.

If you are interested, JorgensenHR can review your Employee Classification status, please contact us at (661) 600-2070.

Source: California Chamber of Commerce, December 2008

FMLA UPDATE

The U.S. Department of Labor (DOL) has finally published the final version of the new Family and Medical Leave (FMLA) regulations which will become effective on January 16, 2009. In addition, the regulations create new poster and notice requirements. The notice requirements are for both the employee and employer.

Don't forget the FMLA regulations were amended last January 2008 to add qualifying events and provide employees additional leave relating to military service and caring for service members. These are significant changes to how an employer must administer their FMLA policy and practices. A thorough review is strongly recommended, JorgensenHR can assist you with the review, contact us at (661) 600-2070 and ask for Marie Toma.

Source: California Chamber of Commerce, December 2008

MILEAGE RATE

WASHINGTON - The Internal Revenue Service issued the 2009 optional standard mileage rates used to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.

Beginning on Jan. 1, 2009, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

55 cents per mile for business miles driven

24 cents per mile driven for medical or moving purposes

14 cents per mile driven in service of charitable organizations