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Rick Rossignol

City Ordinances changing minimum wage in California!

Posted by & filed under BLOG, Fair Labor Standards Act, Human Resources, Wage and Hour Compliance.

California ranks 4th in the US, for minimum wage laws. However, four city ordinances have increased minimum wages in there city. Employers have to make sure they are in compliance with the minimum wages and benefits required by the city.

In San Francisco, the City will gradually raise its minimum wage from its current rate of $10.74 per hour. Under the new law, wages will rise to $12.25 per hour in May 2015 and, thereafter, will increase every year until the minimum wage rate reaches $15.00 per hour in July 2018. After that, annual increases will be tied to a cost-of-living calculation.

Oakland, the city’s minimum wage rate will be increased from ,its current hourly rate of $9.00 to $12.25 per hour in March 2015. Oakland’s minimum wage rate then will increase each year after 2015 based on cost-of-living increases. Oakland’s measure also includes provisions requiring employers in the city to offer a minimum of at least five days of sick leave to all employees. Joining workers in San Francisco and other cities across the country, employees in Oakland now will accrue one hour of paid sick leave for every 30 hours they work. Employers may cap paid sick leave earned by an employee at 40 hours for employees of “small businesses” (employers who normally have fewer than 10 workers) and 72 hours for employees of other employers.

San Jose Minimum Wage will increase from $10.15 to $10.30 per hour effective January 1, 2015. The minimum wage requirement set forth in the San Jose Minimum Wage Ordinance applies to adult and minor employees who work two (2) or more hours per week (tips not included). Each year, the City will adjust the minimum wage based on the US
Department of Labor’s Regional Consumer Price Index. Under the Ordinance, employees who assert their rights to receive the City’s minimum wage are protected from retaliation. Employees may file a civil lawsuit against their employers for any violation of the Ordinance or may file a complaint with the City’s
Office of Equality Assurance. The City will investigate possible violations, will have access to payroll records, and will enforce violations of the minimum wage
requirements by ordering reinstatement of employees, payment of back wages unlawfully withheld, and penalties.

Berkeley City Council adopted a Minimum Wage Ordinance. Beginning October 1, 2014, all employers must pay to each employee who performs work within the geographic boundaries of Berkeley, wages not less than ten dollars ($10.00) per hour; not less than eleven dollars ($11.00) per hour effective October 1, 2015; and not less than twelve dollars and fifty-three cents ($12.53) effective October 1, 2016.

IRS increases the limits of 401k

Posted by & filed under Benefits, BLOG, Human Resources.

Limits That Increase for 2015 Are As Follows:

–The annual Salary Deferral Limit for 401(k), 403(b), and most 457 plans, currently $17,500, increases $500 to $18,000.

–The age 50 and up catch-up limit also increases $500, to $6,000 total. This means that the maximum plan deferral an individual aged 50 or older in 2015 may make is $24,000.

–Maximum total annual contributions to a 401(k) or other “defined contribution” plans under 415(c) increased from $52,000 to $53,000 ($59,000 for employees aged 50 and older).

–Maximum amount of compensation on which contributions may be based under 401(a)(17) increased from $260,000 to $265,000.

–The compensation threshold for determining a “highly compensated employee” increased from $115,000 to $120,000.

–The compensation threshold for SEP participation increased from $550 to $600.

–The SIMPLE 401(k) and IRA contribution limit increased $500 to $12,500.

–The Social Security Taxable Wage Base for 2015 is projected to increase from $117,000 to $119,100. (This is not yet official.)

Limits That Stayed The Same for 2015 Are As Follows:

–Traditional and Roth IRA contributions and catch-up amounts remain unchanged at $5,500 and $1,000, respectively.

–The compensation dollar limit used to determine key employees in a top-heavy plan remains unchanged at $170,000.

–The maximum annual benefit under a defined benefit plan remained at $210,000.

Doing Business in California is Complicated!

Posted by & filed under BLOG, Fair Labor Standards Act, Wage and Hour Compliance.

As a Human Resources consultant, I get asked a lot of wage and hour related questions to employment. Before I answer I usually have to ask a series of questions to make sure I give them the right answer. Wage and Hour laws are complicated. You have federal, state and city laws to contend with, the rules that are most favorable to the employee is the rules that the company must follow. California normally has enacted employment laws more favorable to employees. There is a new trend taking place “Cities, and Mayors” are enacting employment laws within the state that are more favorable to the employees in their city. What does that mean for employers? Confusion! It means employers are going to make wage and hour mistakes. The current set of rules do not really encourage business to expand into more than one city. It is very easy for the employer to not be in compliance and penalties are expensive. Doing business across the state just got very complicated. Example The city enacts a higher minimum wage increases the employer’s hourly rate. To be exempt from the FLSA the state of California requires a minimum salary of 2 times minimum wage to meet the salary test.  The employer has to use both the local rules and go back to the state rules for their exempt employees. If the employer does not adjust the salary to be in compliance with the rules the positions get classified as non-exempt and the employer is not in compliance with FLSA.  If the employer does business in two or more cites he could have the same position doing the same work making more or less depending on the city. It gets more complicated, the state poster for minimum wage says $9.00… it does not list the cites covered at $9.00. The poster does say that to be exempt you must make 2 times the minimum wage. But San Francisco has enacted a $10.55 per hour minimum wage. Applying the state rule of must make 2 time minimum wage to exempt means an employee has to earn $844.00 per week. In Los Angeles, the same job the weekly amount to be salaried is $720.00 per week. Employer must pay close attention to city ordinances.
Employers should hire an HR Consultant or Employment attorney as they expand their business. Having an Employment Attorney, or HR consultant audit your employment practices annually can prevent costly mistakes.

Wage and Hour laws in California!

Posted by & filed under BLOG, Fair Labor Standards Act, Human Resources.

Wage and Hour laws are complicated. You have federal, state and city laws the rules that are most favorable to the employee is the rules that the company must follow.  What makes a little more difficult is the minimum wage might be higher at the local level, but the rule for employee classification of exempt goes back to the state level. The rules in California are very different from the rest of the US. Employers could have 3 sets of rules to be in compliance. Running a business is very complex, if your business is in multiply Cites, you have a different rule to follow. San Francisco and San Jose have higher minimum wages, which in turns increase the salary test of an exempt employee. San Diego has passed legislation to increase the minimum wage in April of 2015.  Instead of the state setting the rules the Mayors and City Supervisors enacting local laws are dictating employment law changes.

I-9 Audits on the rise.

Posted by & filed under BLOG, Fair Labor Standards Act, Human Resources, Immigration, Wage and Hour Compliance.

We are seeing a sharp uptick in I-9 audits. Fines resulting from I-9 audits have exploded in recent years, and employers should put a high priority on making sure their policies and paperwork are in compliance. Failure to be in compliance with form I-9 leads to fines.

Employer need to develop a program that enables them to be in compliance with ICRA. Employers need to review the Department of Homeland Security handbook for ensuring all employees have the right to work in the US. Employer have to develop a written procedure that explains their process for checking I-9.

Tips for Running HR

Posted by & filed under BLOG, Human Resources.

HUMAN RESOURCE TIPS

As a business owner, you know your product, service, market, and customers. But sometimes one of the most challenging aspects of operating a business is employees. What keeps most employers up at night is employees. How do I keep them, how do I get them to perform, how do I terminate the bad hire? Can I hire them as independent contractors and not have to worry about the employment relationship?
What the employer needs to do is develop HR infrastructure. Most employers start hiring without having a strategy for Human Resources. They are focused on developing their business. Developing your talent management strategy before hiring the first employee protects the employer. Here are some suggestions for your talent management.

  1. Strong Human Resource Management is crucial for growing companies studies show that HR issues are those most likely to keep CEOs up at night. Companies are always struggling with the question of when to consider outsourcing the many functions of an HR department. Mishandling such a strategic decision can prove costly.
    The cost of not getting Human Resources right can bankrupt your business. Getting expert human resources advice is critical to developing your organization. Your organization needs an employment brand… You need a strategy for attracting and retaining your talent. The strategy connects the performance and engagement of the company. Your employees are your competitive advantage. They represent how you compete in your market. Your talent strategy is critical to your ability to grow and execute your business plan.
    “ You need HR Expertise to navigate, the challenges of managing employees, being in compliance, and developing the HR programs that will keep your talent.”
  2. Pay Employees Properly: Not getting employee’s paycheck right leads to employee lawsuits and the Fair Labor Standards Act violation. Knowing which pay practices apply to your organization is critical to compliance. It is very common for employers to go to the department of labor and follow laws that do not apply to them. For example, California’s employment law is more employee-friendly and this law is the rule employers have to follow. It is also becoming a trend for cities to pass strict employment laws that are more favorable to employees. San Francisco has a minimum wage of $10.75 mandatory medical coverage, sick pay, and just added transportation subsidy.
  3. Recordkeeping: The employer is the keeper of the record. Collecting and maintaining records is essential for employers. There are many agencies that enforce employment law, FEHA, FSLA, OSHA, ADEA, IRCA, & EEOC. Employers need to have records that show hours worked, meal breaks, overtime paid. Usually, employers not having accurate records results in employers losing lawsuits.
  4. Developing Employer Strategy for Talent: Talent is the face of the business, and the employer’s success is being able to attract talent and keep talent. This requires knowing where your critical talent is and who you compete with for talent. Why does someone want to work for you? How are you going to help them with their career?
  5. Worker Misclassification: Employee or independent contractor? On the surface, the question seems rather simple, but it represents one of the “stickiest issues” for business owners. “Employers who improperly classify workers can run into serious penalties with regards to taxes, withholdings and overtime wages.” A common mistake is the misclassification of workers as exempt from the FSLA and not paying them overtime and keeping records. To be exempt the worker must meet strict rules of the exemption. There is a salary test, as well as duties tests.
  6. Handbooks: From a Human Resources point of view are necessary regardless of size. The Handbook provides the employer with a set of rules and policies that all employees need to follow. It tells employees that the company does not tolerate discrimination or harassment. It provides an open-door policy for employees to resolve differences. It clearly explains that employment is at will! This is an important reference for different situations that may arise. The handbook should be updated as the number of employees increases and the rules changes based on the number of employees.
  7. Awesome Culture: Providing awesome culture is a good way to start! Tech companies have changed the traditional workplace. Employees spend a lot of time at work and want to have a campus type environment. Work-life balance includes providing employees with perks such as fully stocked kitchens, game rooms, lunches, training, the opportunity to work from home, and flexible working hours. Developing an awesome culture helps employers attract and retain talent. Employees do not want to be thought of as an expense… Treat them like an asset!

Business Gets More Complicated!

Posted by & filed under BLOG, Rights in the Workplace.

Employers have to review their employment practices for 2015 and change some of there practices to be in compliance with the new laws taking effect in 2015.

AB 2751, This bill prohibits an employer from discharging or in any manner discriminating, retaliating, or taking any adverse action against an employee because of the employee updates or attempts to update personal information based on a lawful change of name, social security number, or federal employment authorization document. The bill would prohibit an employer’s compliance with these provisions from serving as the basis for a claim of discrimination, including any disparate treatment claim. Lastly, AB 2751 clarifies that a $10,000 penalty (per employee) for each violation will be awarded to the employee or employees who faced the illegal retaliation.

AB 263 and SB 666 were enacted last year to protect immigrant workers against unlawful retaliation. These two bills have since operated in conjunction to prohibit employers from engaging in various “immigration-related practices” against employees who had exercised certain rights protected under state labor and employment laws. These “unfair immigration-related practices” included threatening to file or filing a false police report or threatening to contact or contacting immigration authorities in retaliation for some protected activity engaged in by the employee.

AB 1443 Harassment: unpaid interns. This bill would provide that discrimination against any person in the selection, termination, training, or other terms or treatment of that person in an unpaid internship, or another limited duration program to provide unpaid work experience for that person, or the harassment of an unpaid intern or volunteer, on account of the factors described above is an unlawful employment practice.

AB 2053  Existing law requires every employer to act to ensure a workplace free of sexual harassment by implementing certain minimum requirements, including posting sexual harassment information posters at the workplace and obtaining and making available an information sheet on sexual harassment. Existing law also requires employers, as defined, with 50 or more employees to provide at least 2 hours of training and education regarding
sexual harassment to all supervisory employees, as specified. Existing law requires each employer to provide that training and education to each supervisory employee once every 2 years. This law adds the requirement that the above-described training and education include as a component of the training and education, prevention of abusive conduct, as defined.

AB 1522 Paid Sick Leave. Healthy Workplaces, Healthy Families Act of 2014 provides that an employee who, on or after July 1, 2015, works in California for 30 or more days within a year from the commencement of employment is entitled to paid sick days for prescribed purposes, to be accrued at a rate of no less than one hour for every 30 hours worked. An employee would be entitled to use accrued sick days beginning on the 90th day of employment. The law would authorize an employer to limit an employee’s use of paid sick days to 24 hours or 3 days in each year of employment. The law would prohibit an employer from discriminating or retaliating against an employee who requests paid sick days. Employees would be entitled to use paid sick time for preventive care for themselves or a family member, as well as for the diagnosis, care, or treatment of their or their family member’s existing health condition. For purposes of this bill, “family member” means a (1) child (as defined), (2) parent (as defined), (3) spouse, (4) registered domestic partner, (5) grandparent, (6) grandchild, or (7) sibling. The employer shall also provide paid sick days for an employee who is a victim of domestic violence, sexual assault, or stalking, as discussed in Labor Code sections 230 and 230.1.  The law would require employers to satisfy specified posting and notice and recordkeeping requirements.  The law would require the Labor Commissioner to enforce these requirements, including the investigation, mitigation, and relief of violations of these requirements. The bill would authorize the Labor Commissioner to impose specified administrative fines for violations and would authorize the commissioner or the Attorney General to recover specified civil penalties against an offender who violated these provisions on behalf of the aggrieved, as well as attorney’s fees, costs, and interest.

Minimum Wage, Ordinances passed by city that are more favorable to employees must be followed by employers in those cites. California’s minimum wage is $9.00 an hour however San Francisco has a minimum wage of $1074, San Jose is at $10.15. Employers in these cities have to ensure that their Exempt employee are in compliance with the requirements for the salary test.

RTR Consulting The Human Resources Experts is a Human Resources consulting company with more than 20 years of experience devoted to developing effective and efficient Human Resources policies, procedures and best practices for start-ups and small to medium-size businesses. Contact us today to see how we can help you and your business.

Employment Law changes for 2015

Posted by & filed under BLOG, Rights in the Workplace.

Employers have to review their employment practices for 2015 and change some of there practices to be in compliance with the new laws taking effect in 2015.

AB 2751, This bill prohibits an employer from discharging or in any manner discriminating, retaliating, or taking any adverse action against an employee because of the employee updates or attempts to update personal information based on a lawful change of name, social security number, or federal employment authorization document. The bill would prohibit an employer’s compliance with these provisions from serving as the basis for a claim of discrimination, including any disparate treatment claim. Lastly, AB 2751 clarifies that a $10,000 penalty (per employee) for each violation will be awarded to the employee or employees who faced the illegal retaliation.

AB 263 and SB 666 were enacted last year to protect immigrant workers against unlawful retaliation. These two bills have since operated in conjunction to prohibit employers from engaging in various “immigration-related practices” against employees who had exercised certain rights protected under state labor and employment laws. These “unfair immigration-related practices” included threatening to file or filing a false police report or threatening to contact or contacting immigration authorities in retaliation for some protected activity engaged in by the employee.

AB 1443 Harassment: unpaid interns. This bill would provide that discrimination against any person in the selection, termination, training, or other terms or treatment of that person in an unpaid internship, or another limited duration program to provide unpaid work experience for that person, or the harassment of an unpaid intern or volunteer, on account of the factors described above is an unlawful employment practice.

AB 2053  Existing law requires every employer to act to ensure a workplace free of sexual harassment by implementing certain minimum requirements, including posting sexual harassment information posters at the workplace and obtaining and making available an information sheet on sexual harassment. Existing law also requires employers, as defined, with 50 or more employees to provide at least 2 hours of training and education regarding
sexual harassment to all supervisory employees, as specified. Existing law requires each employer to provide that training and education to each supervisory employee once every 2 years. This law adds the requirement that the above-described training and education include as a component of the training and education, prevention of abusive conduct, as defined.

AB 1522 Paid Sick Leave. Healthy Workplaces, Healthy Families Act of 2014 provides that an employee who, on or after July 1, 2015, works in California for 30 or more days within a year from the commencement of employment is entitled to paid sick days for prescribed purposes, to be accrued at a rate of no less than one hour for every 30 hours worked. An employee would be entitled to use accrued sick days beginning on the 90th day of employment. The law would authorize an employer to limit an employee’s use of paid sick days to 24 hours or 3 days in each year of employment. The law would prohibit an employer from discriminating or retaliating against an employee who requests paid sick days. Employees would be entitled to use paid sick time for preventive care for themselves or a family member, as well as for the diagnosis, care, or treatment of their or their family member’s existing health condition. For purposes of this bill, “family member” means a (1) child (as defined), (2) parent (as defined), (3) spouse, (4) registered domestic partner, (5) grandparent, (6) grandchild, or (7) sibling. The employer shall also provide paid sick days for an employee who is a victim of domestic violence, sexual assault, or stalking, as discussed in Labor Code sections 230 and 230.1.  The law would require employers to satisfy specified posting and notice and recordkeeping requirements.  The law would require the Labor Commissioner to enforce these requirements, including the investigation, mitigation, and relief of violations of these requirements. The bill would authorize the Labor Commissioner to impose specified administrative fines for violations and would authorize the commissioner or the Attorney General to recover specified civil penalties against an offender who violated these provisions on behalf of the aggrieved, as well as attorney’s fees, costs, and interest.

Minimum Wage, Ordinances passed by city that are more favorable to employees must be followed by employers in those cites. California’s minimum wage is $9.00 an hour however San Francisco has a minimum wage of $1074, San Jose is at $10.15. Employers in these cities have to ensure that their Exempt employee are in compliance with the requirements for the salary test.

RTR Consulting The Human Resources Experts is a Human Resources consulting company with more than 20 years of experience devoted to developing effective and efficient Human Resources policies, procedures and best practices for start-ups and small to medium-size businesses. Visit www.experthrconsulting.com