REMINDER:

Mandatory Sexual Harassment Training

Don't forget that California employers with 50 or more employees, including temporary employees, contract employees and employees outside the state, are required to provide supervisors within the state of California with two hours of sexual harassment training every two years. If your company began this program in 2005 when it was first introduced, you will need to retrain your staff in 2011 to stay in compliance.

Employers Given Option on Reporting Requirement

On October 12, the IRS said it will postpone the new requirement for employers to report the cost of coverage under an employer-sponsored group health plan. The new reporting requirement, part of the federal health care reform law, will now be optional for employers in 2011. This postponement is necessary to provide employers the time they need to make changes to their payroll systems or procedures in preparation for compliance with the new reporting requirement.

IRS Mileage Rate for 2011

WASHINGTON - The Internal Revenue Service today issued the 2011 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, 2011, the standard mileage rates for the use of a car (also vans, pickups or panel trucks) will be:

• 51 cents per mile for business miles driven

• 19 cents per mile driven for medical or moving purposes

• 14 cents per mile driven in service of charitable organizations

Changes to Workers' Compensation Requirements for 2011

Posting and Notice Requirements: Is your new workers' compensation posting up to date? If not, it can result in fines up to $7,000 in civil penalties. California employers must also distribute a new "Your Rights to Workers" Compensation Benefits" pamphlet to new hires. The posting and notice requirements were amended in 2010. Employers with Medical Professional Networks (MPNs) that provide treatment for workers' compensation claims must display the required workers' compensation poster as well as additional information about the MPN(s) the employer uses. The workers' compensation pamphlet must also include information about MPNs.

Health and Safety Updates for 2011

Organ and Bone Marrow Donor Leave of Absence: For California employers with 15 or more employees, there are new leave of absence requirements effective January 1, 2011. Organ donors must be provided a 30-day (work days) leave of absence in any one-year period and bone marrow donors must be provided a leave of absence up to five workdays in any one-year period. Be sure to state clearly in your handbook if you require employees to use their accrued sick leave or vacation for this purpose. And be sure not to discipline, terminate or retaliate against anyone using this leave.The leave would be provided in addition to, and not concurrent with, leave provided under the Family and Medical Leave Act (FMLA) or the California Family Rights Act (CFRA).

Heat Illness Regulations Revised: As of November 4, 2010, there were new standards regarding heat illness. These included changes to supervisory and non-supervisory training. Employers are now required to provide employees with the appropriate training prior to beginning work that "should reasonably be anticipated to result in exposure to the risk of heat illness." When the temperature exceeds 95 degrees Fahrenheit, new high heat procedures apply for employers in certain industries including agriculture, construction and landscaping.

Genetic Information Nondiscrimination Act of 2008 (GINA): Effective January 10, 2011, employers are prohibited from using genetic information to make decisions about health insurance and employment. In addition GINA restricts the acquisition and disclosure of genetic information. GINA applies to private employers with 15 or more employees and generally prohibits employers from requesting an applicant's or an employee's genetic information, even if the employer never uses that information.

Investigation of Serious Safety Violations: A revision to the California Labor Code which establishes new procedures and standards for an investigation of a serious safety violation in the workplace is already in effect. Previously a serious violation was "deemed to exist if there was a substantial probability that death or serious physical harm could result from a violation." The change creates a "rebuttable presumption that a serious violation exists if Cal/OSHA demonstrates that there is a realistic possibility that death or serious physical harm could result from the actual hazard created by the violation."

Defibrillators at Health Clubs: Amends the Health & Safety Code to extend indefinitely the requirement of an automatic external defibrillator as well as required training and maintenance. Owners, managers, employees or others previously were not liable for civil damages resulting from an act of omission in the course of rendering emergency care/treatment. This exemption is eliminated if club members have access to the facility during hours that trained employees are not in the facility. For facilities larger than 6,000 square feet, members must be denied access to the facility if a trained employee is not present.

Tax Percentage Change

January is always a time for change and this year is no exception.  The Making Work Pay Credit (2009-2010) expired December 31st causing a revision in the 2011 tax withholding tables.  But as the government taketh away the government giveth... Effective January 1, 2011 the Social Security tax rate will change from 6.2% to 4.2%.  This rate reduction only applies to the employee's portion of the Social Security tax.  Employer's tax rate will continue at their current rate of 6.2%.  Also, the 2011 Social Security taxable wage base will remain unchanged at $106,800. 

Other Changes Already in Effect or Pending 2011

Death Benefits for Minor Children: Already in effect. Permits continuation of death benefits to children of an active member of a police or fire department killed in the line of duty. Death benefits may continue until the youngest child reaches 19 years of age if the child is still attending high school.

More Protection for Domestic Violence Victims: Effective in January 2011, there has been a revision to the Unemployment Insurance Code which broadens eligibility for unemployment benefits to employees who leave their job to protect their family from domestic violence abuse.

Wage Claim Appeal: Already in effect. Any employer filing an unpaid wage claim appeal must post a bond with the court, in the amount of the judgment rendered in the administrative hearing. In addition, employers must provide written notification to the other parties and the Labor Commissioner of the bond posting.

Certain Employees Exempt from Meal Breaks: Effective January 1, 2011, construction workers, commercial drivers, certain security officers and employees of electrical and gas corporations or local publicly owned electric utilities are exempt from California's meal break requirements if those employees are covered by a valid collective bargaining agreement containing specified terms, including meal period provisions.

ADA Regulations Revised: Revisions include changes to the ADA Standards for Accessible Design as well as issues related to wheelchairs and mobility devices, service animals and sales of accessible seating tickets. The final rules take effect on March 15, 2011.