California Minimum Wage - More to Think About

On January 1, 2017, the California minimum wage increased to $10.50 an hour, up from the current $10.00 an hour. Employers should review any pay practices that could be affected by the minimum wage increase.

Did you know that employers with under 25 employees have 1 additional year to implement state minimum wage increases? See the chart below:

Hourly Rate	26 Employees or More	25 Employees or Less
$10.50/hour	January 1, 2017	January 1, 2018
$11/hour	January 1,  2018	January 1, 2019
$12/hour	January 1, 2019	January 1, 2020
$13/hour	January 1, 2020	January 1, 2021
$14/hour	January 1, 2021	January 1, 2022
$15/hour	January 1, 2022	January 1, 2023

The City and County of Los Angeles, City of San Diego and City of Santa Monica have passed minimum wage ordinances that differ from the state requirements. We recommend you contact those cities directly for their current minimum wage requirements.

These special city ordinances apply not just to employers who are based in the cities, but also employees who work in the city. This can include salespeople who have accounts with the cities, technicians or repair people who visit an area within the city, attendance of work meetings at a site with the cities.

Do you have employees who are required to use their own tools? If so, the tool rate in California is now two (2) times the minimum wage rate, or $21.00 an hour. If you have employees using their own tools, make sure they are signing an acknowledgment to that effect. See Industrial Welfare Commission Order No. 8-2001

California Wage Reminders:

• The minimum threshold for salary exemption is now $43,680 annually

• The minimum wage for inside sales exemption rises to $15.76 per hour.

• Remember that the state minimum wage rate, not any city of county minimum age, governs exempt salary, inside sales and tool rate requirements.

• Employers should also review and ensure that they employment posters are up to date and reflect the new minimum wage.

• Remember that California employers must pay employees no less than the state minimum wage per hour for all hours worked.

• Even though the Federal minimum wage is lower, most California employers must abide by the higher California rate.

The obligation to pay the minimum wage can’t be waived by any agreement, including collective bargaining agreements.

Lauren Sims is the author and a Principal HR Consultant with eqHR Solutions.

Whenever you require Human Resources or Payroll advice or help to navigate the ever-changing landscape of California and Federal Employment Laws & Regulations, call us for a no obligation consultation.

eqHR Solutions provides tactical and strategic HR support, ADP payroll product training and payroll processing to all size businesses in Southern California.

Is your Management Team aware of the recent amendment to the California’s Fair Pay Act (CFPA?

California Assembly Bill 1676

Governor Jerry Brown recently signed California Assembly Bill 1676 into law. The new employment law bill prohibits employers from solely using an applicant’s salary history to justify wage disparity.

California AB 1676 amends California’s Fair Pay Act (CFPA) and says that salary history cannot justify a gender pay gap. There are a few limited exceptions, such as a seniority or a merit system, but otherwise, it states that a gender-related pay gap is presumed to be discriminatory. AB 1676 also significantly increases the criminal penalties for illegal pay scales.

The law stops short of prohibiting employers from asking about salary history during the hiring process, however, employers still need to tread carefully when making offers to candidates.  When prior salary is known, employers should ensure that the pay offered is equal to others in the same or similar position.

As a reminder, CFPA differs from the Federal Equal Pay Act in the following ways:

• Broadens the bands of comparison of positions:
• Federal: Pay must be equal among employees in the same position
• California: Pay must be equal among “substantially similar” employees when viewed as a composite of skill, effort, and responsibility
• Broadens the geography:
• Federal: Pay must be equal among employees in the same position in the same location
• California: Compares employees across locations
• Employers in California must explain “entire wage differentials,” meaning total compensation, not just base pay.
• Employers in California will also be on the hook for attorneys’ fees for prevailing plaintiffs.

Employers should develop the following best practices:

• Require supervisors and managers, who make decisions about compensation, to document the reasons employees are paid what they are paid
• Create job descriptions, detail the skill required and responsibility given
• Document seniority, merit, quantity and/or quality of work
• Train supervisors and managers about the new law.

Lauren Sims is the author and a Principal HR Consultant with eqHR Solutions.

Whenever you require Human Resources or Payroll advice or help to navigate the ever-changing landscape of California and Federal Employment Laws & Regulations, call us for a no obligation consultation.

eqHR Solutions provides tactical and strategic HR support, ADP payroll product training and payroll processing to all size businesses in Southern California.

Complying with the Requirements of CA AB 2337

Employee Notifications Required for Domestic Violence Leave

The current law requires employers with 25 or more employees to provide protected leave for domestic violence, sexual assault or stalking and employees are entitled to mandatory paid sick days, and unpaid “leaves of absences” for this reason.

Also, employees that are victims of domestic violence, sexual assault or stalking can use accrued mandatory paid sick leave when they require time off to appear in legal proceedings or for medical treatment.

On September 14, 2016, Governor Jerry Brown signed AB 2337 into law which expands the employer notice requirements regarding domestic violence employee.

Despite the protections under current law, many employees remain uninformed about their employment-related rights when it comes to domestic violence.

This new bill is effective July 1, 2017, and requires employers of 25 or more to provide written notice to employees of their rights to take protected leave for domestic violence, sexual assault or stalking.

Employers must inform each employee of his or her rights upon hire and at any time upon request.

We recommend employers review their handbook policies and ensure that employees’ existing rights to take time off for domestic violence, sexual assault or stalking are detailed in the domestic violence leave policy.

The notification policy must specifically state that: Employees that are victims of domestic violence, sexual assault, or stalking may take time off from work to:

1. Seek medical attention for injuries;
2. Obtain services from a domestic violence shelter, program, or rape crisis center;
3. Obtain psychological counseling;
4. Participate in safety planning and take other actions to increase safety, including temporary or permanent relocation.

Employers are prohibited from discharging, discriminating, or retaliating against an employee because of the employee’s known status as a victim of domestic violence, sexual assault, or stalking or for taking domestic violence leave.

Lauren Sims is the author and a Principal HR Consultant with eqHR Solutions.

Whenever you require Human Resources or Payroll advice or help to navigate the ever-changing landscape of California and Federal Employment Laws & Regulations, call us for a no obligation consultation.

eqHR Solutions provides tactical and strategic HR support, ADP payroll product training and payroll processing to all size businesses in Southern California.

Considering Abolishing Employees Performance Review?

There is a new trend among employers to abolish the performance review in their organization. Both managers and employees complain about the annual ritual and many employers have said “enough!”

Managers complain about the time it takes to complete reviews, despite the implementation of technology and other efforts to make the process more efficient.

A problem we often see is that most managers don’t like being honest with employees about their shortcomings or areas where they may need improvement!

Employees often find the process awkward, being summoned to the bosses office to review their last year of work. The problem can become compounded when the manager cannot facilitate a meaningful conversation about the employee’s performance and productivity over the year.

As we begin the new year, here are some reasons why you should keep the performance review:

Employees Have the Opportunity to:

1. Have a clear picture of what is expected of them

1. Discuss priorities
2. Receive feedback on their performance
3. Be heard and respected
4. Be offered constructive guidance on attaining agreed upon goals
5. Receive help in constructing personal development plans and targets
6. Take ownership for their performance.

Managers will use the Employee Review Discussion as an Opportunity to:

1. Learn at first hand about the way the employee works and performs

1. Get a better understanding of the employee's potential and needs
2. Motivate the employee
3. Develop a consistent approach to guidance and encouragement
4. Tackle problems more effectively
5. Improve the communication process

Reviews are often the basis for determining compensation, justifying terminations, formalizing career development plans, and identifying top talent for succession planning. When done right, the review provides a consistent and objective method of evaluating all these areas.

Reviews provide an opportunity not only for managers to look backward to the performance of the prior year, but also to look forward to developmental opportunities in the coming year.

Employers should continue to provide this opportunity to both the managers and employees to not only reflect upon the prior year but to plan for the new year.

Lauren Sims is the author and a Principal HR Consultant with eqHR Solutions.

Whenever you require Human Resources or Payroll advice or help to navigate the ever-changing landscape of California and Federal Employment Laws & Regulations, call us for a no obligation consultation.

eqHR Solutions provides tactical and strategic human resources support; management training;  ADP payroll product training. Services are provided for all size businesses in Southern California.

Don’t Rule out Unpaid Leave as an ADA Accommodation

Under the Americans with Disabilities Act (ADA), an employer must consider granting unpaid leave as a reasonable accommodation if the employee requests the accommodation.

Many employers will only provide leaves that they are required to provide under the Family Medical Leave Act (FMLA) or the California Family Rights Act (CFRA) without considering that they may have to require additional leave under the ADA.

An unpaid leave of some limited duration, however, may be considered a reasonable accommodation in most cases.

When granting such a leave as an accommodation, have a conversation with the employee and prepare to be flexible. What is reasonable will depend on the nature of your business and how the employee’s position fits into your organization. A job description will be helpful in determining how the need for leave is the best accommodation you can provide for an employee who cannot perform the essential functions of their position.

You cannot make this determination without talking to the employee, gathering medical information, and making an informed decision about what works best for your company. The bottom line is to work with the employee and the medical caregiver to determine how long an employee needs to be off work, and make the best efforts, within reason, to accommodate the necessary leave for employees who qualify for protection under the ADA.

An indefinite leave of absence, one from which neither the employee nor his or her doctor can provide a date upon which the employee can return to performing the essential functions of the position, will probably be considered an unreasonable accommodation under the ADA.

There have been lawsuits recently against employers who did not consider unpaid leave as an accommodation and the EEOC ruled in favor of the employee, so employers should be mindful when considering these requests, and not violate the ADA.

Lauren Sims is the author and a Principal HR Consultant with eqHR Solutions.

When you require Human Resources or Payroll advice call us for a no obligation consultation.

eqHR Solutions provides tactical and strategic human resources support; management training, and ADP payroll product training. Services are provided for all size businesses in Southern California.

Are You doing Business within the City of Los Angeles?

Understanding the Fair Chance Process

Employers that are located or doing business in the City of Los Angeles and have 10 or more employees will need to take immediate steps to comply with the requirements of a new ordinance.

The “Fair Chance Initiative” ordinance imposes strict conditions on how and when employers can obtain criminal history information and also mandates a new poster for Los Angeles employers.

The ordinance is effective January 22, 2017.

Under the ordinance, employers in Los Angeles are prohibited from asking about criminal history on job applications. An employer is also prohibited from asking about or requiring disclosure of an applicant’s criminal history until a conditional offer of employment has been made.

After a conditional offer of employment is made, the employer can ask about criminal history information. However, the employer cannot take any adverse action, such as withdrawing the job offer, against the applicant because of the applicant’s criminal history unless procedures, known as the “Fair Chance Process,” are followed.

The City of Los Angeles ”Fair Chance Process” includes:

1. The employer must complete a written assessment that links the specific criminal history with risks inherent in the duties of the position sought by the applicant.
2. The employer must allow the applicant the opportunity to provide information or documentation to the employer about the accuracy of the applicant’s criminal history. Also, the applicant must be allowed to provide information or documentation, such as rehabilitation or other mitigating factors, which should be considered in the employer’s written assessment.

The employer must provide the applicant with written notification of the intent to withdraw the offer and a copy of the written assessment the employer prepared. The applicant must then be given at least five business days to complete the process and to provide any additional information or documentation to the employer.

The ordinance also requires employers to state, in all job solicitations, postings, and advertisements, that the employer will consider applicants in a manner consistent with the requirements of the Fair Chance Initiative.

Employers must post a notice in every workplace, job site or other location in the City of Los Angeles that is visited by applicants, informing applicants of their rights under the ordinance.

Actions for Employers who Have Employees in the city of Los Angeles

• Update all job postings and advertisements to include the required statement of compliance.
• Ensure your employment applications do not request criminal history.
• Do not ask applicants about criminal history during the application or interview process, and do not try to obtain such information through any other means.
• Post required notification in all Los Angeles locations where applicants will see it.

Lauren Sims is the author and a Principal HR Consultant with eqHR Solutions.

Whenever you require Human Resources or Payroll advice or help to navigate the ever-changing landscape of California and Federal Employment Laws & Regulations, call us for a no obligation consultation.

eqHR Solutions provides tactical and strategic human resources support and ADP payroll product training. Services are provided for all size businesses in Southern California.

Now I have to worry about My Company's Toilet!

Are you ready for Assembly Bill 1732?

The California bill, which goes into effect March 1, 2017, requires all single-user toilet facilities in any business establishment, place of public accommodation, or government agency to be identified as all-gender toilet facilities.

What should employers do?

Ensure that any single-use toilet facilities are identified as all-gender toilet facilities, and designated for use by no more than one occupant at a time or for family or assisted use.

Single-user toilet facility is defined as a toilet facility with no more than one water closet and one urinal with a locking mechanism controlled by the user.

There has been an ongoing conversation, both within the LGBT community and without, on how best to include all people under the ADA guidelines for accessible bathrooms. California schools and other government agencies have already been using gender neutral wording and symbols on restroom signs.

California, in passing this legislation, is taking a stand in the national debate and now employers must ensure they are in compliance.

Lauren Sims is the author and principal HR Consultant with eqHR Solutions.

Whenever you require Human Resources or Payroll advice or help to navigate the ever-changing landscape of California and Federal Employment Laws & Regulations, call us for a no obligation consultation.

eqHR Solutions is a leading human resources and payroll consulting firm, providing tactical and strategic human resources employment support and ADP payroll product training. Services are provided for all size businesses in Southern California and the San Francisco / Bay area.