| "Heads Up"
A few highlights you should know...
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The new IRS mileage reimbursement rate will change to 58.5 cents per mile effective July 1, 2008. Employers are not required to pay the IRS rate; however, employees may legally challenge the adequacy of a lesser reimbursement rate.
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An updated "Report of New Employee(s)" form (DE34) has recently been issued by EDD. This Report must be filed within 20 days of each new hire. Click here for a copy of the updated DE 34. |
Our Upcoming Management Workshops
Everyone's a Winner - or They're Outta Here (Managing Performance)
July 9, 2008
in Elk Grove, CA
Preventing Discrimination Charges in CA Workers' Compensation Claims
July 23, 2008
in Sacramento, CA
Weaving through the Employee Leave of Absence Maze
August 27, 2008
in Sacramento, CA |
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Paid Sick Days May be Mandated in California - Don't Wait!
California legislators are working on a new bill that will seriously impact many small businesses - take note, this is one we cannot afford to watch without action. AB 2716 (also known as the "Healthy Families, Healthy Workplaces Act of 2008") mandates that all California employers give employees who work seven or more days per calendar year paid sick leave. The new law would mandate paid sick leave accrual at one hour for every 30 hours worked. Employees would be entitled to use the accrued paid sick days beginning on the 90th calendar day of employment.
Employers with more than 10 employees may limit the use of paid sick days to 72 hours or 9 days per calendar year. Small business (those with 10 or fewer employer during 20 or more calendar weeks in the current or preceding year) may limit each employee's use to 40 hours or five days per calendar year.
The bill does not require pay out of accrued sick days at separation of employment. It also does not apply to employees covered by a collective bargaining agreement if the agreement meets stated criteria, including paid sick days.
We encourage you to phone, email or write your state legislators to weigh in on this bill. A similar law was passed in San Francisco last year. We're all for benefits to protect our employees, but we prefer that each employer determine the appropriate mix of benefits, not have them legislated. Call your state legislator today!
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What Must You Give Employees Leaving Your Company?
Employees who are separating employment in California must receive specific documents on their way out the door. Make sure yours are up to date.
At minimum, an employee leaving voluntarily or involuntarily must receive:
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A Notice of Change in Employment Relationship form. This is usually for the employee to take to the Employment Development Department (EDD) to begin the unemployment insurance process. Click here for a sample Change in Relationship form.
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A "For Your Benefits" brochure published by the CA EDD outlining an employee's rights to several state benefit programs. The most recent publication (DE2320) is dated November 2006. You may order these from our office or download the lengthy EDD DE form 2320 here.
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The California Health Insurance Premium Payment (HIPP) Program also requires that employers give separating employees notice of their rights under the HIPP laws for assistance in paying medical premiums. You may download a sample HIPP Notice here.
All of the above forms and more are available to our clients at our website library. Contact us for the password.
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An employee or his/her dependents losing group health coverage may be eligible for COBRA continuation of coverage and must receive a COBRA Continuation Coverage Election Notice outlining all the rights under this extensive law. This Notice does not have to be delivered to the employee on the final work day. However, timing and proof of delivery are very important under this law. The employer must notify the plan administrator within 30 days of the employee's loss of coverage. The plan administrator must send to the employee (and covered dependents) the Notice within 14 days. COBRA Notices will vary. We suggest you contact your insurance carrier first, and we can certainly advise as well.
Employers with 20 or fewer employees will be covered by Cal-COBRA and will have these notification services completed by the insurance carrier. Larger employers will have to administer this notification process internally or hire a third party to do so. Penalties for delaying this Notice are significant, ranging from $100/day for each day of non-compliance to $500,000 or 10% of the health plan costs (whichever is less) for major violations.
Employees who also have profit sharing, retirement funds, 401k, etc. should also receive notice of the options of the disbursement of these funds, although this does not have to be done by the last day of work. Each plan should have a notice period set out in the plan documents.
By the way, an employee whose employment is separated may request a W-2 prior to the normal January cycle. If requested, the W-2 must be sent for all wages paid during the current calendar year. The form must be sent within 30 days of the request or, if later, within 30 days of your last payment of wages to the employee.
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