Employer's Report: Employers Report Post

Posted by Eli Nunez, HR Director on April 1, 2024

Tags: Employers Report

Ever since the Governor signed SB 553 in September 2023, employers have been eagerly awaiting guidance from Cal/OSHA, including a template Workplace Violence Prevention Plan (WVPP). Good news: Cal/OSHA published a model WVPP for general industry employers, and other resources, well before the July 1 deadline.

On March 1, Cal/OSHA and the DIR released the following resources:

• Fact Sheet for Employers
• Fact Sheet for Employees
• Fact Sheet for Employers in Agricultural Operations
• Fact Sheet for Employees in Agricultural Operations

And the long-awaited:

• Model Workplace Violence Prevention Plan

Who Does SB 553 Apply To?

The WVPP requirement applies to all California employers unless they are specifically exempted. The exemptions include:

• Employers already covered by the WVPP in Healthcare standard (or employers that already comply with that standard);
• Facilities operated by the California Department of Corrections and Rehabilitation and law enforcement agencies;
• Employees teleworking from a location of their choice that is not under the control of the employer;
• Places of employment that are not accessible to the public and have less than 10 employees working at any given time, so long as they have a compliant IIPP.

Important Deadlines

The law takes effect on July 1, 2024. At that point, employers must have taken all steps necessary to create, implement, and maintain a WVPP. Employers should not wait until the last minute because there are some potentially time-consuming requirements, including:

• Getting input from employees (and union representatives) when creating the plan
• Developing procedures to respond to and maintain records of workplace violence incidents
• Training all employees and supervisors

Employers should also be aware that Cal/OSHA has until December 31, 2025 to propose a general industry workplace violence prevention standard, and until December 31, 2026 for their Standards Board to adopt said standard. This does not mean that employers should wait for more clarification-Cal/OSHA will begin enforcing the requirements as of July 1 of this year!

If you would like additional information, CEA has developed a WVPP Fact Sheet and a sample Violent Incident Log to help comply with SB 553’s record-keeping requirements.

More questions? Members call us or email us at no charge: 800.399.5331 or CEAinfo@employers.org

Posted by California Employers Association on April 1, 2024

Tags: Employers Report

On July 10, 2023, California adopted Senate Bill (SB) 131 to update requirements for employers to notify their employees that they may be eligible for the earned income tax credit (EITC). Employers must comply with these new notification requirements beginning Jan. 1, 2024. Be sure to speak with your payroll provider, controller, tax professional, or the Employment Development Department. 

EITC Notification Requirement

Under the law, employers must notify all employees that they may be eligible for the federal and the California EITC. Existing law provides the form and manner of notification by employers and state agencies. The requirement applies to any California employer that is subject to and is required to provide, unemployment insurance to their employees, under the state’s Unemployment Insurance Code.

Notification Updates

SB 131 requires employers to notify all their employees that they may be eligible for VITA, CalFile, and other state and federal antipoverty tax credits, including the federal and the California EITC. This notification must take place within one week of when employers provide an annual wage summary, including, but not limited to, a Form W-2 or a Form 1099, to any worker.

Employers will also need to send a second notification to all employees during March of the same year.

Notification Delivery

Employers may provide these notifications by handing them directly to their employees, mailing them to their employee’s last known address, or electronically. Under the law, employers cannot comply with notification requirements by posting a notice on an employee bulletin board or sending it through office mail. However, these notification methods are encouraged to help inform all employees of VITA, CalFile, and state and federal antipoverty tax credit eligibility, including the federal and the California EITC.

You can download a EITC notification template. For more forms and fact sheets, visit our HR Forms page.

More questions? Members can contact us at 800.399.5331 or CEAinfo@employers.org

Posted by Kim Gusman, President & CEO on April 1, 2024

Tags: Employers Report

March was an interesting month for me. I kicked it off with a visit to a local emergency room and about 15 hours later had emergency gallbladder surgery. For those of you reading this who’ve had a similar experience, I salute you-it’s not fun. But the initial agony eventually turned into a gift after the gallbladder was gone. My oldest daughter flew in from Austin, TX to help me recuperate and to give my primary caretaker (my hubby) a break. And, I was overwhelmed with the amount of well wishes, homemade soups, and flowers I received from family, friends and coworkers.

My parents were frequent visitors; happy to see their granddaughter and learn more about her life and adventures. My daughter and her husband have embraced the music scene in Austin and love to camp, hike and travel the world. They are in their 30s and are genuinely concerned about the planet and politics and giving back to others. Having three generations of family together, it was great to share stories and know that my daughter is living her life to the fullest. At one point my Dad said to his granddaughter, “hang on to that Brass Ring as long as you can sweetie.” A puzzled look crossed her face, but she just smiled and hugged him.

Later on my daughter asked me, “Mom, what was Papa talking about when he said hold on to the brass ring?” I gave her a quick explanation about how I thought the quote means that you’ve reached the top or you’ve got the prize.  She remarked she’d never heard that comment, so looked it up to see where that quote came from.

Per the internet, Grabbing the brass ring means striving for the highest prize (especially a championship ring in sports), or living life to the fullest. Apparently carousels once had a small arm that extended toward riders which dispensed iron and brass rings. If someone was able to grab a brass ring-he or she won a prize. Hence, “going for the brass ring” means going for an outstanding, once-in-a-lifetime opportunity that suddenly comes up. It is not clear when the phrase came into wide use but has been found in dictionaries as far back as the late nineteenth century.

During my two week recovery I was forced to slow down my normally hectic pace in order to heal. As I rested, I had more time to reflect on my life. I am a self-acknowledged workaholic, but I am passionate about what I do. My work gives me purpose and lots of wonderful opportunities to meet incredible people. But I also realized during my time off, as I received phone calls and visits, and gifts how many friends and relationships I have formed and nurtured over the years. I think I will call my daughter and let her know, that I am feeling very grateful because I’ve grabbed a brass ring, too!

Here’s to a Healthy and Happy Spring!

Posted by [Add the Author Here] on March 1, 2024

Tags: Employers Report

This month we’d like to introduce you to two members of California Employers Association’s marketing team that work to keep you informed of what’s happening at CEA! Meet Sara Curtis, Creative Marketing Specialist, and Ana Manzano, Digital Media & Event Strategist.

Sara Curtis, Creative Marketing Specialist, CEA

1.What was your first job?

I was a nanny for my cousin’s two boys during my first few years in college. I loved getting to spend so much time with them while they were toddlers. My first graphic design job was a paid internship with The Federal Technology Center. It was such an amazing experience and really showed me that a small team of people can make a huge impact.

2. Where did you grow up?

I was born and raised in Redwood City, California.

3. What has been your favorite project at CEA so far?

Each project has a different need and I enjoy the challenge of creating something that helps get the word out about our services in a beautiful and easily understood way. I also really like working with the hotlines to create their marketing materials.

4. What, if anything, are your currently binge watching or reading?

I am inspired by the creativity of other people in all it’s forms-so I really love competition shows that are centered around creative outlets. Shows like Blown Away, The Great Pottery Throw Down, and Full Bloom are so much fun to watch. I also love cooking shows, especially Tournament of Champions.

5. What’s one thing on your bucket list?

I would love to take a family history trip to Italy and Germany. I’ve been working on learning more about those branches of my family tree and it would be so rewarding to get to walk around the same places my ancestors did.

Ana Manzano, Digital Media & Events Strategist, CEA

1. What has been your favorite project at CEA so far?

Redesigning our extensive collection of compliance and essential skills trainings. It’s been rewarding to see our HR Experts’ work delivered to our members and network of employers in a fresh way. Looking forward to producing our upcoming video series!

2. What was your first job?

My first (and second, and third) jobs were in restaurants! I worked as a server and bartender for many years, which quickly taught me conflict management, effective multi-tasking, quality control, and clear communication. I learned that overall, people just want to be heard. And that eye contact and a genuine compliment can make someone’s day.

3. What’s one thing on your bucket list?

I’m first generation Filipino-American, and my goal is to return to the Philippines with my family to explore the humble, beautiful country my grandparents spoke so fondly of. I got a little taste of it in 2010, but it’s time to return!

4. What’s your favorite quote, motto, or words you live by?

Long term goal = Short term habits. I’m a big believer in small, consistent action over time. Deciding to run an ultra-marathon tomorrow on a whim is intimidating (and unsafe); but jogging a quarter mile further each day for a year allows you to push yourself just beyond your comfort zone, track your progress, and confidently build up your endurance.

5. What advice would you give to someone who is just starting their career?

Never stop learning! Whether it’s professional development courses, independent reading, or linking up with an accountability group, there is always opportunity to grow. Also: Take care of YOU first. Pursuing a career milestone shouldn’t mean putting yourself at the bottom of the list. This is a big part of why I love being a part of the CEA team. Our overall wellness is a priority, and we show employers how to implement the same ethos into their own companies.

Posted by Giuliana Gabriel, J.D., HR Compliance Director on March 1, 2024

Tags: Employers Report

As a reminder, fast food chains must prepare for the new minimum wage of $20/hour, effective April 1, 2024. That is just one month away!

The new law (AB 1228) applies to all limited-service restaurants that are part of chains with over 60 locations nationally. Limited-service restaurants are those primarily engaged in providing food and beverages for immediate consumption on or off premises, where patrons generally order or select items and pay before consuming, with limited or no table service. A limited-service restaurant includes, but is not limited to, an establishment with the North American Industry Classification System Code 722513. There are exceptions for qualifying bakeries and grocery stores.

Read more about AB 1228 in our previous blog article.

If This Change Applies to You

Make sure you take the following steps to ensure compliance:

• Update your payroll system
• Notify your affected employees. Employers may do this by updating the Wage Theft Form, and retaining a copy for the employee’s personnel file
• Ensure your wage statements reflect the correct pay rates, including overtime rates
• If the change impacts your pay scales, including for job postings, be sure to update those as well
• Consider any personnel restructuring and/or shift adjustments as needed

Unanswered Questions

Unfortunately, the bill leaves some important, unanswered questions. If you are unsure of coverage, we recommend erring on the side of caution, or consulting legal counsel. For example, AB 1228 is silent on:

• What is meant by the term primarily engaged?
• For restaurants that operate within a different business (e.g., a Starbucks inside a Target, or a Subway inside a gas station), how does the fast food minimum wage apply to workers at those businesses?
• For covered employers, is the exempt salary threshold two times the fast food minimum wage ($83,200/year), or two times the regular State minimum wage ($66,560/year)?

Exemptions Ahead?

In a new proposed bill, AB 610, there would be carve outs for certain businesses, particularly those that operate within other larger spaces, including restaurants in airports, hotels, event centers, theme parks, museums, gambling establishments, and other locations. This bill has an urgency clause, meaning it would take effect immediately if enacted. Stay tuned.

Posted by Vicki Simpson, HR Business Partner on March 1, 2024

Tags: Employers Report

Question: I have a new sales position open in our office. Are there any legal requirements around the information that I have to include in a job description?

Answer: There are no legal requirements for what to include in a job description. However, it is advisable that job descriptions are as specific as possible.

A well-written job description is key in the staffing process. It aids in identifying candidates who are qualified to perform the essential functions of the position and who have the education and experience required.

• For the employee, the job description defines what is expected of him or her. A well-written job description is also an important tool in employee retention, performance management, and training. It provides both the employee and supervisor with clear and documented job expectations.
• For the employer, the job description provides quantitative standards against which objective performance appraisals can be conducted and sound decisions can be made regarding retention, training, promotions, and changes in compensation.
• For both the employee and the employer, the job description defines the essential job functions that are necessary to the job, with or without reasonable accommodation.

For employers with 5 or more employees, your job description must comply with the California Fair Employment and Housing Act (FEHA). If you have 15 or more employees, your job description must be compliant with the federal Americans with Disabilities Act (ADA) which plays a key role in determining an individual’s ability to physically perform the essential functions of the position. It can also be the basis for objective consideration of reasonable accommodations.

Creating a sound job description takes some work and will typically involve a job analysis. It is a good idea for employers to review existing job descriptions to ensure accuracy regularly.

CEA is here to help! CEA University has a terrific job description builder in the Compliance Campus section.

CEA members can also download our Job Description Toolkit on the Employer Toolkits page, and as always, your HR advisors are standing by Monday – Friday 8am-5pm to answer your questions.

Posted by Margaret Oglesby, Compensation Consultant, Cascade Employers Association on March 1, 2024

Tags: Employers Report

As of January 1, 2024, seven states, including Maryland, New Jersey, Washington D.C., Massachusetts, Connecticut, Washington, California, and most of New York now have a minimum wage of $15 or more. Compare this to just four states and Washington DC in 2023.

There are also big sector-specific wage hikes forthcoming in some states. Starting in April, California’s fast-food employers must compensate their employees at least $20 an hour and on June 1,2024, health care workers will earn between $18.00 – $23.00 an hour, depending on the role, size and type of employer.

Understandably, organizations face challenges when these mandated wage increases occur. Cost-effectiveness can become difficult, pay compression can impact pay equity, and employers who once had higher starting wages may suddenly lose their competitive edge. As employers attempt to remain compliant and competitive, success relies on creating or maintaining a strong compensation philosophy and strategy.

The strategies below can assist you with compensation management:

Organizational Design Review

Analyze your organization’s structure. This process can lead to revised or enhanced roles and this aids in the identification of gaps, overlapping roles and/or the creation of career paths. This may help identify operational efficiencies to better leverage your current workforce and may offset some of the costs associated with mandated higher salaries.

Create or Update Job Descriptions

Job descriptions act as the cornerstone for employee performance and expectations in addition to justifying exemption status and compensation. After analyzing job duties you may be able to adjust your roles to help counteract minimum wage increases by restructuring roles.

Review or Establish a Salary Structure. Ensure Pay Equity

Review or establish a current compensation salary structure. Ensure roles are competitive in the market and employees are compensated in an equitable fashion against their counterparts by conducting a pay equity analysis. Often minimum wage increases result in pay compression within the salary structure. It is important to see how these wage increases impact other relatable jobs and career hierarchies. Modeling out and analyzing how to integrate minimum wage increases into your full compensation structure is imperative. It is also important to look at these increases through a pay equity lens to see how these increases impact other comparable roles.

Are you struggling with any of these compensation issues? CEA and our sister association Cascade have a Compensation Team ready to assist you with CEA member discounts. Email us at ceainfo@employers.org for more info.

Posted by Giuliana Gabriel, J.D., HR Compliance Director on March 1, 2024

Tags: Employers Report

As many California businesses are now aware, almost all employers will be required to maintain a written Workplace Violence Prevention Plan (WVPP) starting July 1, 2024. Employers still have many questions about how they should execute their WVPP because, as of yet, Cal/OSHA has not published a sample template for general industry employers. Cal/OSHA representatives have said that they will have a website with FAQs, templates, and resources for employers by spring. (Note: There is a Sample WVPP for Healthcare employers, who have already been required to maintain one for several years now.)

For general industry employers, we recommend waiting for Cal/OSHA’s general industry resources or working with a safety expert or legal counsel to draft your WVPP. Hopefully, Cal/OSHA will publish their resources on their website well before the July deadline approaches.

For CEA members, we have resources available to get you started! Download our WVPP Fact Sheet for detailed information on the requirements, as well as a Sample Violent Incident Log on our HR Forms page. We will keep you informed of any updates on our blog, including if Cal/OSHA releases a sample WVPP template! Get our blog sent right to your inbox by signing up for our Weekly Updates.

Below is an Overview of Key Requirements:

• Written WVPP: The WVPP must be in writing and available to employees and authorized employee representatives. It must include specific information and categories, similar to an IIPP.
• Employee Training: The employer must provide employees training on the WVPP when is first established, upon identification of new hazards/plan changes, as well as on an annual basis. The required employee training must be customized to the specific workplace and job duties. The trainer must be someone that is knowledgeable in the employer’s specific WVPP. It must be interactive and allow for employee questions and answers. It must cover specific definitions and content.
• Violent Incident Log: Every time there is a workplace violent incident, the employer must investigate it, engage in hazard correction/update the WVPP, and record the incident on the violent incident log with specific required information, excluding personal identifying information. The log must be made available to employees and their representatives, upon request and without cost, for examination and copying within 15 calendar days of a request.
• Record-Keeping Requirements: Violent incident logs and other WVPP records must be maintained for a minimum of five years. Employee training records must be maintained for a minimum of one year.

Questions? CEA members may call our HR experts at 800.399.5331.

Posted by Giuliana Gabriel, J.D., HR Compliance Director on March 1, 2024

Tags: Employers Report

Many California employers are aware that the Fair Employment and Housing Act (FEHA) requires a timely, thorough and objective workplace investigation when there is an allegation of discrimination, harassment, or retaliation. Now, California employers must prepare for a new workplace investigation requirement when there is an allegation of workplace violence or a threat of violence. This is part of SB 553’s requirement for almost all employers to implement an effective, written Workplace Violence Prevention Plan (WVPP) by July 1, 2024.

SB 553 has a number of requirements that even safety experts are just beginning to grapple with, including annual employee training, hazard assessment and correction, record retention, and employee (and union) participation in the plan, just to name a few. CEA members can learn more about these requirements by downloading our Workplace Violence Prevention Plan Fact Sheet on the HR forms page. The new investigation requirement is just one component of a comprehensive WVPP. However, it is an important one that employers must be prepared to handle in the coming year. Below are some key highlights.

SB 553’s Investigation Requirement

For each workplace violence incident and/or employee concern of workplace violence, employers must investigate and record specific information on a violent incident log. In conducting an investigation, employers should solicit information from employees who experienced the workplace violence, obtain witness statements, and assess any other relevant evidence or documentation. For each incident, the log must include detailed information. CEA members can download our Violent Incident Log Sample on our HR forms page.

This log must be maintained for a minimum of five years. Employers are instructed to omit personal identifying information sufficient to allow identification of any person involved in a violent incident from the log. This is because the log must be made available to all employees and their representatives upon request.

Examples of Violent Incidents

Employers should be mindful that the definition of workplace violence is broad. Examples include:

• Physical attack without a weapon (e.g., biting, scratching, hair pulling, spitting, etc.)
• Attack with a weapon or object (e.g., a knife or firearm)
• Threat of physical force or threat of the use of a weapon or other object
• Sexual assault or threat, including unwanted verbal or physical contact
• Animal attack

Some examples that may come up in the workplace include threats and acts not only from coworkers, but from disgruntled customers, former employees, or an employee’s family member or significant other (this often occurs when intimate partner violence trickles into the workplace). There may also be random acts or threats by strangers with no connection to the workplace, including when you send employees to different locations or job sites. Employers should also proactively prepare for threats of violence in connection with retail theft and active shooter situations, which unfortunately have become increasingly common. Moreover, whenever an employer receives a complaint of harassment or bullying, they should assess whether it involves sexual harassment for purposes of recording on the violent incident log.

Steps to Investigate Workplace Violence

While SB 553 does not outline specific employer requirements beyond investigating, recording on the log, and correcting workplace violent hazards, employers should likely treat workplace violence investigations similarly to FEHA harassment investigations. This includes conducting the investigation promptly and objectively, documenting findings, determining what more likely than not occurred, maintaining confidentiality to the extent possible, assessing whether there were any policy violations, and engaging in prompt corrective action, as appropriate.

CEA is available to assist employers with workplace investigations and provide peace of mind. Contact us at 800.399.5331.

Posted by Giuliana Gabriel, J.D., HR Compliance Director on March 1, 2024

Tags: Employers Report

It may surprise many California employers to learn there is an exception to minimum wage, overtime, and meal/rest requirements for certain salespeople. Yes, you read that correctly. While this may seem upside down, for those properly classified as an outside salesperson, the employer doesn’t have to worry about minimum wage and other requirements. Instead, the employee just earns their commission per your agreement. However, it is important to proceed with caution, because this is a very narrow exemption. Moreover, there is a separate category for inside sales subject to their own rules.

So, let’s clear up the sales exemptions:

Outside Sales

To be properly classified as an outside salesperson the employee must be 18 years or older, and customarily and regularly work more than half of their working time away from the employer’s place of business selling items or obtaining orders/contracts for products, services, or use of facilities. (See 8 CCR Section 11010(2)(J).)

The place of business is the employee’s regular place of work. Many employers mess this rule up when they assume the exemption automatically applies to a remote sales worker. That is not the case. For an employee who works from home, their residence would be the place of business. In that case, they would have to spend more than half of their time engaged in selling items or obtaining orders away from their residence-not at home behind a computer screen.

The Labor Commissioner has increased scrutiny on outside salespeople since the rise of the internet and social media. The employee must actually be away from the regular work site at least 51% of the time to meet this exemption. However, for those who do have this arrangement, it can be a huge costs savings for the company!

Inside Sales

If you have an “inside salesperson” that works at the employer’s place of business (or remotely at home), you may still be able to avoid paying overtime if they satisfy certain requirements. However, these employees must still follow all other requirements for non-exempt employees, including clocking in and out, taking meal and rest breaks, etc. (unless, of course, you can classify the employee as exempt under the administrative, executive, or professional exemptions). As a non-exempt employee, you should always ensure they earning at least minimum wage for all hours worked.

And, while you may pay these employees in commissions, you must still ensure they are being compensated for their rest breaks and any non-productive time, so it is a good idea to establish a base hourly rate for all hours worked, in addition to their commissions.

Here is How the Overtime Exemption Works:

Under Wage Orders 4 (Professional, Technical, Clerical, Mechanical and Similar Occupations) and 7 (Mercantile Industry), inside salespeople are exempt from overtime if they earn at least 1.5 times the California minimum wage (1.5 X $16.00/hour for 2024 = $24/hour) for each hour they work, and at least 50% of their weekly income must come from commissions.

Step 1: In each workweek, the employee must earn more than 1.5 times the minimum wage for all hours worked. This pay may be in the form of wages, salary, commissions, or a guaranteed draw. You cannot count commission earnings from another workweek (i.e., you cannot allocate a large commission payment at the end of the month to previous workweeks in the month). If an inside salesperson has been paid at least 1.5 times the minimum wage for the workweek, proceed to step 2. If not, they are owed overtime.

Step 2: The second part of the test requires that more than half of the employee’s compensation is in the form of commissions (i.e., selling) for each workweek. If the test is satisfied, the employee is not owed overtime. If not, they are owed overtime.

What About Sales Employees Who Don’t Fit These Definitions?

For example, if you have a sales clerk on staff but they aren’t earning enough in commissions to meet the inside sales exemption, you should start with the assumption that they are treated as any other non-exempt employee. Again, this means they should be clocking in and out, taking meal and rest breaks, and paid overtime. While it is perfectly acceptable to pay them additional commissions per your agreement, remember that commissions affect the employee’s regular rate of pay for calculating overtime!

CEA members can refer to Salesperson Exemption Fact Sheet on our HR forms page for additional assistance, or give us a call at 800-399-5331 with your questions.

Posted by Kim Gusman, President & CEO on March 1, 2024

Tags: Employers Report

Can you imagine telling your employees how much they need to weigh, and then making them step onto a scale each month, in order to keep their job? How about requiring your employees to retire at a certain age or remain single and childless if they want to remain employed? Not so long ago these crazy scenarios were not only acceptable, but legal in the workplace.

I often recommend books to other leaders and HR professionals, but this month I’m recommending that you watch a film that not only moved and educated me, but that left me with my jaw on the floor. Fly With Me tells the story of the pioneering women who became flight attendants at a time when single women were unable to order a drink, eat alone in a restaurant or own a credit card. In the 1930s, becoming a “stewardess” offered opportunities for travel, adventure and independence, but it also required incredible conformity to ridiculous rules.

Today, businesses follow Title VII of the Civil Right Act of 1964, which protects employees and job applicants from employment discrimination based on race, color, religion, sex and national origin, but prior to this employees had no job protection. Fly With Me does a fabulous job of telling the origin story of many of the rules we have in the workplace today. The film also has great interviews with the women who were on the frontlines of the battle to assert gender equality and transform the workplace. If you want a great history lesson along with some amazing film footage, I highly recommend you check out Fly With Me.

We’ve come a long way when it comes to protections in the workplace-here’s to you and your continued efforts at creating great cultures!