Employer's Report: Employers Report Post

Posted by Eli Nuñez, HR Director on August 1, 2024

Tags: Employers Report

Ever since Cal/OSHA’s Standard Board adopted a new Indoor Heat Illness Prevention regulation (8 C.C.R. section 3396) on June 20, California employers have been eagerly waiting for more guidance, as well as an effective date. Both of these concerns are now addressed. The Office of Administrative Law (OAL) issued its final approval on July 20, 2024, and the standard took effect on July 23, 2024. Cal/OSHA updated its Frequently Asked Questions page to reflect this change.

While speculation was that the standard would not go into effect until sometime between August and October of this year, Cal/OSHA asked the OAL to expedite approval so the new rules would be effective as soon as possible.

Join CEA and Cal/OSHA for a free virtual Q&A on August 20, where Cal/OSHA Consultation will provide key insight into this new standard and the new Workplace Violence Prevention requirements. Register here now!

And, for more information on indoor heat illness requirements, keep reading:

Who Does the Indoor Heat Illness Standard Apply To?

To recap, the standard applies to all indoor work areas where the temperature equals or exceeds 82° Fahrenheit when employees are present. This regulation is aimed at workplaces like warehouses, restaurant kitchens, and manufacturing plants. Indoor workspaces where the temperature never exceeds 82° F, like office environments with functioning air conditioning, will not need to worry about this if the temperature never exceeds 82° F when employees are present.

Are There Any Exceptions?

The new standard does not apply to outdoor working conditions since these are already regulated by their own Heat Illness Prevention Standard. The new regulation did name some narrow exceptions including:

• Prisons, local detention facilities and juvenile facilities
• Teleworking employees where the location is not under the control of the employer
• Emergency operations directly involved in the protection of life or property
• Incidental heat exposure where a worker is exposed to temperatures between 82 and 95° F for less than 15 minutes in any 60-minute period. This exception does not apply to vehicles without working air conditions or shipping or intermodal containers during loading, unloading or related work.

What Must Employers do to Comply?

Employers must develop, document (put in writing) and implement procedures for complying with the requirements of this standard. In order to be complaint a Heat Illness Prevention Plan (HIPP) must include:

• Water: Procedures for providing sufficient drinking water.
• Cool-Down Areas & Breaks: Procedures for providing access to cool-down areas and breaks.
• Emergency Response Procedures: Including effective communication and first aid response.
• Acclimatization Methods: Including closely observing new employees and newly assigned employees working in hot areas during a 14-day acclimatization period.

And, when additional risk factors are present, such as when the temperature reaches or exceeds 82° F when employees are wearing restrictive clothing or working in high radiant areas (ovens, fire, etc.), or anytime the temperature reaches or exceeds 87° F, employers must also implement:

• Monitoring & Controls: Procedures for measuring the temperature and heat index and recording whichever is greater, identifying and evaluating environmental risks factors for heat illness, and implementing control measures.

What Else Will Employers Need To Do?

Covered employers must also train their staff on heat illness prevention and treatment, and the employer’s written heat illness prevention plan. For supervisors, employers must provide additional training on monitoring and responding to weather reports indicating excessive heat.

More information is available on Cal/OSHA’s Heat Illness Prevention and Guidance Resources page including educational materials and a model Written Heat Illness Prevention Plan employers can use to craft their own.

CEA members may call us with questions at 800.399.5331 or email us at CEAinfo@employers.org.

Posted by Giuliana Gabriel, J.D., Vice President of Human Resources on August 1, 2024

Tags: Employers Report

In many areas, this summer has broken temperature records, creating raging fires in California, and hurricanes in other parts of the nation. From a human resource compliance perspective, there are employee rights that California businesses should consider, as well as options to assist employees when a natural disaster hits your community and impacts your staff.

Refusal to Report to Work

First, California employers should be aware of a relatively new law that went into effect last year, known as SB 1044, which allows an employee to refuse to report to work during an emergency condition.

More specifically, the law prohibits an employer from taking or threatening adverse action (e.g., discipline) against any employee for refusing to report to work or leaving the worksite when the employee has a reasonable belief it is unsafe due to an emergency condition.

An Emergency Condition is defined as either:

1. Conditions of disaster or extreme peril to the safety of persons or property caused by natural forces or a criminal act; or
2. An order to evacuate a workplace, worksite, or worker’s home, or the school of a worker’s child due to a natural disaster or a criminal act.

Of course, natural disasters may include events such as wildfires, flooding, earthquakes, etc. Criminal acts may encompass events such as bomb threats and active shooters.

Note that the law also prohibits an employer from preventing any employee access to their mobile device for seeking emergency assistance, assessing the safety of the situation, or communicating with a person to confirm their safety. As such, make sure that if you do restrict cellphone use in your workplace, your policies carves out emergency circumstances.

The law does not apply to specific groups, such as first responders and certain health care workers.

Reporting Time Pay

Employers may also wonder whether reporting time pay is owed if an employee shows up for work, but is sent home early due to a natural disaster. This would actually qualify as an exception to normal reporting time pay requirements, however, it’s not recommended to deny reporting time pay just based on “bad weather.”

As a refresher, in California, employers must generally pay a non-exempt employee “reporting time pay,” when the employee reports for their regular shift and works less than half of their scheduled shift. In this case, they must be paid at least half of their scheduled hours-never less than 2 hours, nor is it required to pay more than 4 hours.

Additional exceptions to reporting time pay requirements occur when:

1. Operations cannot commence or continue due to threats to employees or property; or when recommended by civil authorities (e.g., bomb threat);
2. Public utilities fail to supply electricity, water, or gas, or there is a failure in the public utilities, or sewer system (e.g., power goes out during a storm); or
3. The interruption of work is caused by an Act of God or other cause not within the employer’s control (e.g., an earthquake, wildfire, etc.).

Employers should be cautious not to interpret these exceptions too broadly. For example, if there is a heavy rain storm, but the business still has functioning utilities, electricity, etc., guidance from the Labor Commissioner suggests employers should monitor the weather and anticipate scheduling issues. If you turn away employees because it is raining and it prevents them from doing work (e.g., harvesting produce), but it does not rise to the level of a natural disaster, reporting time pay is likely owed.

Leaves of Absence

Finally, beyond compliance, employers should consider the “human” side of natural disasters. For example, if an employee just lost their home and belongings in a wildfire, they will need time to recover, both from a practical standpoint and an emotional one.

Even if an employee does not have a protected leave of absence available, consider any optional leave policies, such as offering a personal leave of absence. Depending on your policy, a personal leave may be paid or unpaid, and you may choose whether to continue healthcare benefits during the leave.

For employers that offer Employee Assistance Programs (EAPs), make sure you communicate what services are available to employees, such as counseling.

For additional questions on employee rights and employer policy options, CEA members may call us at 800.399.5331 or email us at CEAinfo@employers.org.

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

Tags: Employers Report

Last year I had a meeting at my credit union and instead of saying “thank you” when the meeting came to end, the person said, “appreciate you,” as we shook hands. That was the first time I’d heard that sentiment, and I liked it. Now I hear it all the time.

August is Membership Appreciation Month and we want to make sure you hear how much we appreciate you! We are pulling out all the stops to thank you for trusting your HR business needs to CEA! This month we are showering members with four free webinars, opportunities to win delicious gifts, and a grand prize trip to Lake Tahoe.

In 1937, a small group of business leaders founded the California Employers Association. Today we are proud to provide resources and services to hundreds of thousands of employers across the State. Formed in San Francisco by employers on the ports who initially needed support to comply with labor laws and work with unions, 87 years later we’ve developed a multitude of other services and training materials to help businesses thrive. From HR phone support and on-site assistance to employee relations and leadership training, our mission remains the same: Providing Employers With Peace of Mind. 

Join in on the fun and freebies we’re offering our members this month:

Register for our Complimentary Virtual Events:

Sign up for any or all of our complimentary August virtual events. One lucky attendee per webinar will receive a $50 gift card to See’s Candies.

• Thursday, August 8 – The Stay Interview Advantage
• Thursday, August 15 – Navigating Leaves of Absence in the Workplace *Presented by Duggan McHugh
• Wednesday, August 21 – Top 10 Mistakes Employers Make that Invite Wage and Hour Class and PAGA Actions *Presented by Ogletree Deakins
• Tuesday, August 27 – How to Spot a Workplace Bully

Member Engagement Survey

Penny for your thoughts! In August, all members will receive an email from SurveyMonkey with our Annual Member Engagement Survey (check your spam filter). Provide your feedback and be entered for a chance to win a $100 Visa gift card!

Tag-You’re It!

Show off your business! We love getting to know our members, so give us a glimpse into your daily operations. Show off your products, employees, or some of your favorite CEA items on your social media. Tag CEA or use #CAemployers and be entered in our Grand Prize Drawing with every post.

Show Your CEA Pride!

We are proud to have you as a CEA Member and hope the feeling is mutual. In August, members will receive an email about Member Appreciation Month with two member badge designs. Choose one to download and place on your website, then send us a screenshot to marketing@employers.org to gain another entry in our Grand Prize Drawing.

Grand Prize Drawing

The lucky winner of our Grand Prize Drawing will enjoy a one-night stay and round of golf at the Everline Resort & Spa in Lake Tahoe!

4 Opportunities to Enter the Grand Prize Drawing

• Attend any of our free webinars
• Complete the member engagement survey
• Add the CEA Member badge to your website
• (Hash)tag us on social media using #CAemployers

Thank you for being a CEA Member-there is strength in numbers!

We hope you enjoy the rest of your summer and know how much we appreciate you,

---

We want to feature you in an upcoming Employers Report!

Each August, we celebrate our valued members with prizes and free webinars during Member Appreciation Month; but we want to do more to put our members in the spotlight year round! If you are interested in having your company featured in our Monthly Member’s Spotlight, email Marketing@employers.org for details!

Membership Appreciation Month Official rules: California Employers Association is the sole sponsor of this contest. There are four (4) methods of entry: 1. Attend any of our four (4) free webinars. Must be in attendance to win. 2. Share your social media photo and tag CEA or use #CAemployer. Earn one (1) entry for each tagged post. CEA retains rights of all entries to use across marketing collateral. 3. Complete the member engagement survey. 4. Add the CEA member badge provided in the Member Appreciation Month email to the company’s website and send a screenshot to marketing@employers.org. Limit one (1) entry per person. Entries must be received between August 1, 2024 – August 31, 2024. The grand prize is eligible to active CEA members. Winners will be selected at random. CEA will reach out to the winner after random selection. The winner will have three (3) business days to reply back and claim the prize. CEA reserves all rights. 

Posted by California Employers Association on July 1, 2024

Tags: Employers Report

Our valued members are the reason that the California Employers Association was founded in 1937! As a thank you for being a member, we dedicate every August to YOU! Yes, we realize it’s only July but now is the time to sign up for next month’s exciting events.

Here’s How to Join the Fun!

4 FREE Virtual Events Just for Members!

Register TODAY for any or all of our complimentary August virtual events: One attendee will be selected out of each webinar to receive a $50 gift card.

• Thursday, August 8 – The Stay Interview Advantage:  Retaining top talent is crucial for organizational success. Stay interviews are part of a healthy, transparent and positive work culture. Whether you’re an HR professional, or a team leader, mastering the art of the stay interview can significantly impact your organization’s ability to retain top talent and foster a culture of continuous improvement and employee engagement.
• Thursday, August 15 – Navigating Leaves of Absence in the Workplace *Presented by Duggan McHugh: Delve into the intricacies of managing leaves of absence in the workplace. From understanding legal requirements to implementing best practices, this session will equip you with the knowledge and tools necessary to navigate through employee absences effectively.
• Wednesday, August 21 – The Top 10 Mistakes CA Employers Make that Invite Wage and Hour Class and PAGA Actions *Presented by Ogletree Deakins: The filing of wage and hour class and PAGA actions are on the rise. Join Mike Nader, a Shareholder in the Sacramento office of Ogletree Deakins to review the Top 10 mistakes that California employers make that cause significant liability in this crippling litigation, and how to avoid them.
• Tuesday, August 27 – How to Spot a Workplace Bully: Join CEA’s subject matter experts as they provide tools for recognizing common bullying patterns and tendencies, and inspire confidence in how to respond, through specific strategies.

Member Engagement Survey

Penny for your thoughts! In August, members will receive an email from SurveyMonkey with our Annual Member Engagement Survey (check your spam filter). Give us your feedback and be entered for a chance to win a $100 gift card!

Tag-You’re It!

Show off your business! We love getting to know our members, so give us a glimpse into your daily operations. Show off your products, employees, or some of your favorite CEA items on your social media. Tag CEA or use #CAemployers and be entered in our Grand Prize Drawing with every post.

Grand Prize Drawing

The lucky winner of our Grand Prize Drawing will enjoy a one-night stay and round of golf at the Everline Resort & Spa in Lake Tahoe!

3 Opportunities to Enter the Grand Prize Drawing

• Attend any of our free webinars
• (Hash)tag us on social media using #CAemployers
• Complete the member engagement survey

Thank you for being a CEA Member-there is strength in numbers!

Official rules: California Employers Association is the sole sponsor of this contest. There are three (3) methods of entry: 1. Attend any of our four (4) free webinars. Must be in attendance to win. 2. Share your social media photo and tag CEA or use #CAemployer. Earn one (1) entry for each tagged post. CEA retains rights of all entries to use across marketing collateral. 3. Complete the member engagement survey. Limit one (1) entry per person. Entries must be received between August 1, 2024 – August 31, 2024. The grand prize is eligible to active CEA members. Winners will be selected at random. CEA will reach out to the winner after random selection. The winner will have three (3) business days to reply back and claim the prize. CEA reserves all rights. 

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

Tags: Employers Report

At CEA, our focus is on providing employers peace of mind with Human Resource compliance solutions. However, we also want to alert members to a new regulatory law which impacts how California businesses can advertise goods and services. This is a watershed rule with a broad impact for many businesses.

On July 1, 2024, the new “Hidden Fees” or “Junk Fees” law (SB 478) will take effect. Put simply by California’s enforcement agency, “the price a Californian sees should be the price they pay.” This law is aimed at businesses like short-term rentals and ticket vendors, to name a couple, but it has broad application to many other businesses.

As an example, have you ever booked a short-term rental advertised at a low price, only to get to the end of the payment process to realize that with cleaning fees and surcharges it’s way more expensive than advertised? This is the type of situation the new law is trying to curb.

This law amends the California Consumers Legal Remedies Act (CLRA). The California Attorney General’s Office published FAQs to help employers comply, which we have summarized below. It’s worth noting that there are similar initiatives happening on a federal level.

What Does This Law Prohibit?

The law prohibits advertising a price that is less than the actual price that a consumer will have to pay for a good or service. This means that businesses are prohibited from advertising, displaying, or offering a price for a good or service that does not include all mandatory fees and charges accounted for in the total price listed.

Are There Any Exceptions?

Exceptions include government imposed taxes and reasonable shipping costs. All other fees must be calculated into the total price displayed or advertised to the consumer. Fees for optional services or features do not need to be included in the advertised price.

Additionally, at the last minute, the legislature passed SB 1524, which creates a carve out from the law for restaurants, bars, and food service providers. However, given other laws in this area, it is still recommended for these businesses to consult legal counsel regarding appropriate steps forward.

What Businesses Are Covered?

This law applies to the sale or lease of most goods and services that are for a consumer’s personal use. Examples include event tickets, short-term rentals, hotels, delivery applications, etc.

The law does NOT apply to the purchase or lease of goods or services for commercial use, or to certain other specified transactions and industries that are already subject to other laws governing pricing.

What About Additional Fees or Percentage-Based Fees?

Under this law, a business is not permitted to advertise one price and separately state that an additional fee or percentage fee will apply. The price listed or advertised must be the full price the consumer is required to pay, accounting for all fees and surcharges.

However, fees that are contingent on certain later conduct by a consumer, such as a fee for returning rented equipment after the deadline (e.g., “late fee”), or charges for smoking in a non-smoking hotel room, are not mandatory and do not need to be included in the advertised price.

Can Businesses Break Down the Total Price Further?

Yes, so long as the business advertises the total price, it may separately note or break down fees and charges so a consumer understands what the fees are allocated towards.

Can a Business Offer Discounts?

Yes! This law does not impact a business’s ability to offer discounts. A business that offers discounts or otherwise charges a customer a price that is less than the advertised price has not violated this law. The law just prohibits advertising a price that is less than what the customer will have to pay for a good or service.

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

Tags: Employers Report

You may have blinked and realized that half of 2024 is already behind us. However, July 1 is an important date this year, as it marks many new compliance deadlines for California employers. This includes the brand new Workplace Violence Prevention Plan requirements, a new ban on hidden fees, and also local minimum wage increases.

Several jurisdictions throughout the state have implemented mid-year minimum wage increases, beyond the State’s required rate ($16/hour), which was last updated on January 1, 2024.

Do You Know Where Your Remote Workers Reside?

When determining if a local minimum wage applies to your business, remember to consider your non-exempt (hourly) remote and hybrid workers who may be living/working in a geographic location different from your main office location or headquarters. Local minimum wage ordinances are based on where your worker is physically working. Also, any hourly employees who are sent to visit a client or do any work in a city or county with a higher minimum wage, may be entitled to a higher pay rate during those working hours if they are there for 2 hours or more.

Mid Year Wage Increases Taking Effect on July 1 Include:

Northern California	Southern California
Alameda: $17.00	Los Angeles City: $17.28
Berkeley: $18.67	Los Angeles County (unincorporated areas): $17.27
Emeryville: $19.36	Malibu: $17.27
Fremont: $17.70	Pasadena: $17.50
Milpitas: $17.70	Santa Monica: $17.27
San Francisco (city): $18.67	West Hollywood Hotels: $19.61

Don’t forget that when a wage increase comes into effect, employers must ensure that wage statements are updated and issue non-exempt employees a revised Wage Theft Protection Act Notice (under Labor Code section 2810.5). This notice should reflect the new rate of pay and overtime rates, and must be issued within seven calendar days after the time of the changes. Local government websites also provide required minimum wage postings.

For a list of all current local minimum wages in effect, CEA members may refer to our Local Minimum Wage Fact Sheet on our HR forms page.

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

Tags: Employers Report

It’s getting Hot in HR this summer. As many California employers scramble to comply with the new Workplace Violence Prevention Plan requirements, another required safety plan is on the horizon: the Indoor Heat Illness Prevention Plan.

On June 20, 2024, Cal/OSHA’s Standard Board adopted a new regulation (8 C.C.R. section 3396), creating a mandatory heat illness prevention standard for indoor places of employment that exceed 82 degrees Fahrenheit. While outdoor places of employment have already been required to maintain heat illness plans for years, what does this mean for California employers?

Who Does the Indoor Heat Illness Standard Apply To?

The standard covers all indoor work areas where it gets hot, which to Cal/OSHA means the temperature equals or exceeds 82 degrees Fahrenheit when employees are present. This regulation is aimed at places that can get warm, like warehouses, restaurant kitchens, and manufacturing plants. Indoor work spaces with functioning air conditioning, like an average office, will not need to worry about this if the temperature never exceeds 82 degrees when employees are present.

There is an exception for teleworking employees that are at a location not under control of the employer (e.g., a remote employee working from home). Additionally, requirements do not apply to emergency operations directly involved in the protection of life or property. Another exception applies to incidental heat exposures that last less than 15 minutes in any 60-minute period.

When Will the New Requirements Go Into Effect?

To officially go into effect, the regulation must first be approved by the Office of Administrative Law (OAL). OAL has 30 working days to approve or disapprove a regulation. Cal/OSHA requested that OAL fast track the process so the regulation could go into effect as early as August 2024; however, it could also be as late as October 2024. We’ll keep you updated!

What Are the New Requirements?

Essential requirements include:

• Water: Providing access to portable drinking water that is fresh, pure, suitably cool, and free of charge.
• Cool-Down Areas: Providing at least one cool-down area on site, as well as allowing and encouraging employees to take cool-down breaks as needed, which must be at least 5 minutes in duration.
• Emergency Response Procedures: Ensuring effective communication methods for emergencies and processes to respond to signs/symptoms of heat illness.
• Acclimatization: Under certain circumstances, supervisors need to observe employees within their first 14 days of assignment, and all employees during a heat wave.
• Higher Heat Requirements: When the temperature or heat index exceeds 87 degrees Fahrenheit OR when the temperature exceeds 82 degrees and employees wear restrictive clothing that prevents heat removal or when working in high radiant heat areas, employers have additional requirements, such as keeping accurate temperature and heat index records, implementing controls, and monitoring environmental risk factors for heat illness.

Note: Heat index takes into account other factors, such as humidity. Employers need to purchase tools that measure heat index (not just temperature) to comply.

What Else Will Employers Need To Do?

Covered employers will be required to create a written Heat Illness Prevention Plan (HIPP). If you already have one for outdoor conditions, include these indoor requirements. The HIPP must contain procedures to comply with the requirements above, as well as procedures for taking heat measurements and recordkeeping in certain circumstances.

Covered employers must also train their staff on heat illness prevention and treatment, and the employer’s HIPP. For supervisors, employers must provide additional training on monitoring and responding to weather reports indicating excessive heat.

For some good news-Cal/OSHA already has a number of resources to help employers comply, including a Model Plan, FAQs, and a Fact Sheet for Employers. These resources can be accessed on Cal/OSHA’s website. CEA members may call us with questions at 800.399.5331 or email us at CEAinfo@employers.org.

Posted by Mari Bradford, HR Director on July 1, 2024

Tags: Employers Report

For many people, summer means exciting outdoor activities and fun with friends and family; for others, summer can be a difficult time to manage all of their responsibilities. There are usually high expectations of fun in the sun, but the summer months can also leave many feeling burnt out or overwhelmed. With school out during the summer, many working parents face additional pressures as they juggle their work and home responsibilities. Add these factors up, and it is evident why managing and supporting your mental health and your employee’s mental health in the summer can be difficult.

Share These Tips to Support Everyone’s Mental Health and Wellbeing This Summer:

• Use vacation time. Vacations give us something to look forward to, naturally releasing dopamine to fight summertime blues. Vacations don’t have to be expensive or last several days. A quick getaway, road trip or staycation can help boost your mood and recharge your mind. Be sure to read our article on best practices and requirements for vacation and PTO use in California in this month’s newsletter.
• Plan your day. By having a plan and when needed, a backup plan, you can feel more in control of the day and be ready for unexpected summertime business interruptions like the weather or customer demand changes.
• Get outside and stay physically active. The good thing about summer is it is often easier to get outside and soak in vitamin D. Spending time in nature can help improve your mood by reducing stress, combating anxiety and depression, and enhancing cognitive function. Remind your employees about your rest and meal break policy and audit your timecards to ensure employees are getting the breaks they are entitled to take.
• Be realistic. It is important to control-and potentially lower-your expectations and be realistic about what you will be able to do during the summer. Business needs can shift rapidly during the summer months, so being flexible is key. It’s OK to readjust your outlook, embrace downtime, and schedule time for self-care, vacation, or “me time.”

Taking care of yourself, and encouraging your employees to take care of themselves, can help everyone have a more enjoyable summer season.

Posted by California Employers Association on July 1, 2024

Tags: Employers Report

On June 5, 2024, the U.S. Equal Employment Opportunity Commission (EEOC) announced that it had entered the Failure to File phase for EEO-1 reporting, as described in the agency’s recently updated EEO-1 Reporting Instruction Booklet. The EEOC offers a fact sheet regarding the failure to file deadline.

This announcement means that if an employer failed to submit a required 2023 EEO-1 Report by the “Published Due Date” of June 4, 2024, the EEOC will send it a Notice of Failure to File letter requesting that it complete the submission as soon as possible but no later than July 9, 2024.

After this date, which is deemed the Failure to File deadline, no additional 2023 EEO-1 Component 1 Reports will be accepted, and employers that remain out of compliance with EEO-1 reporting requirements may expect to face EEOC lawsuits in federal District Court to compel them to file. In fact, the EEOC recently filed lawsuits against 15 employers for failing to submit their mandatory workforce demographic reports.

EEO-1 Background

The EEO-1 Report is a federally mandated survey that collects workforce data categorized by race, ethnicity, sex and job category. Under Title VII of the Civil Rights Act, certain employers must usually submit EEO-1 Reports by March 31 each year. For 2023 EEO-1 Reports, however, the EEOC had extended the portal’s opening date until April 30, 2024.

Covered Employers

The following entities are subject to EEO-1 reporting:

• A private employer that has 100 or more employees (with limited exceptions for schools and other organizations)
• A private employer with between 15 and 99 employees if it is part of a group of employers that legally constitutes a single enterprise that employs a total of 100 or more employees
• A federal contractor that has 50 or more employees; is either a prime contractor or first-tier subcontractor; and has a contract, subcontract or purchase order amounting to $50,000 or more

Although the EEOC sends notification letters to employers it knows to be subject to EEO-1 requirements, all covered employers are responsible for obtaining and submitting the necessary information prior to the appropriate deadline.

Employers filing EEO-1 Reports for the first time must register to receive login information, a password and further instructions for filing from the EEOC.

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

Tags: Employers Report

Employees in the healthcare industry have been waiting for minimum wage increases, which were originally due to take effect in June. Then, the Legislature pushed that deadline to July 1 to align with the State’s budget. Now, they’ve been delayed yet again.

The health care minimum wage raises may now take effect as of October 15, 2024, but that is only if California’s revenues are at least 3% higher than what officials have estimated for the period of July through September. Otherwise, the raises will get pushed to January 1, 2025.

For additional details on the law, keep reading:

Who Does This Law Impact?

SB 525 applies to virtually every medical employer, except:

• hospitals under the State Department of State Hospitals
• tribal clinics exempt from licensure
• outpatient settings operated by tribal organizations

Some examples of covered businesses include facilities or work sites part of an integrated health care facility system, licensed general acute care hospitals, special hospitals, clinics, physician groups and many more!

(Note that most dental offices would not be included, unless they fall under one of the covered groups, such as an integrated health care system.)

A variety of employees working for covered employers qualify, including nurses, doctors, technicians, janitors, housekeeping staff, groundskeepers, guards, clerical workers, billers, and more. There are limited exceptions for outside salespeople, and certain public sector employees and medical transportation service workers.

Does the Law Impact Salaried Exempt Employees?

Actually, yes! To remain classified as exempt, covered health care employees must earn a monthly salary of 1.5 times the applicable healthcare minimum wage, or 2 times California’s minimum wage, whichever is greater. This means that covered employers must continue to recalculate the minimum exempt salaries as the health care and California’s minimum wages continue to increase.

Initial Deadlines: To Be Determined

Type of Employer	Deadlines
Large Employers & Integrated Health Care Systems To determine if you qualify, refer here.	October 15, 2024 OR January 1, 2025: $23/hour
Hospitals To determine if you qualify, refer here.	October 15, 2024 OR January 1, 2025: $18/hour
Clinics	October 15, 2024 OR January 1, 2025: $21/hour
All Other Health Care Facilities	October 15, 2024 OR January 1, 2025: $21/hour

NOTE: Covered health care employers who are county-owned, affiliated, or operated are not required to comply until 2025.

What Do We Do Next?

• On the effective date, update your payroll system.
• Notify your non-exempt (hourly) employees within seven calendar days of the change (or earlier). 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.
• For questions regarding waivers, it is advised to consult legal counsel.

Wage-and-Hour Compliance on the Mind?

CEA members can consult with our HR advisors by calling 800.399.5331!

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

Tags: Employers Report

What are the dog days of summer? The Almanac explains that the Dog Days of Summer, which generally occur between July and August in the Northern Hemisphere, are when heat and humidity are at their highest. According to Greek mythology this was a time of year that would drive dogs and men mad! This period of sweltering weather coincides with the year’s heliacal (meaning “at sunrise”) rising of Sirius, the Dog Star. Sirius is the brightest star in the sky, not including our own Sun. Today, however, this phrase is more often associated with hot days where everyone, including the dogs, just want to lay around to beat the heat.

With so many new laws taking effect on July 1 including Workplace Violence Prevention Plans, EEO-1 Reporting, and Minimum Wage increases, this is a tough month for businesses in California. So our team wanted to have a little fun with this common phrase and bring a smile to your face with photos of their furry friends during these Dog Days of Summer.