www.sdchamber.org

New Legislation For 2008 Will Impact Your Business

Six New Laws and How They Will Affect You

We rang in the New Year with a slew of new laws of which all San Diegans should be aware. Read on to learn more about six of these new laws for 2008, and how they will affect your business:

Employers Required To Notify Employees About Earned Income Tax Credit

Effective January 1, 2008, all California employers must comply with AB 650. This law requires businesses that provide unemployment insurance to notify all employees that they may be eligible for the federal Earned Income Tax Credit (EITC) within one week before or after, or at the same time, the employer provides an annual wage summary including but not limited to a Form W-2 or Form 1099.  Notifications must be handed or mailed directly to employees, rather than simply posting it in the workplace or sending via office mail.  To ensure compliance with federal and state tax laws, employers should consult with their accountant, payroll service or legal counsel, as well as maintain copies of the notification form and check to make sure all employee addresses on file are current.  Employers can read more about this law, or create their own notification letters using sample language provided at: http://www.calchamber.com/HRC/BusinessResources/ThisMonth/2008NewLaws/AB650.htm

Military Spouse Unpaid Leave

Employers with 25 or more employees are now required to give qualified employees as many as 10 unpaid days off when their spouse is on leave because of military deployment.  According to AB 392, a qualified employees is one who works for more than 20 hours a week, whose spouse is a member of the Armed Forces, National Guard or Reserves who is deployed during a period of military conflict.  Employees must notify their employer with written documentation of deployment and that they wish to take leave within two business days of receiving official notice of deployment. Leave request forms, as well as more information on AB 392, are available at:

http://www.calchamber.com/HRC/BusinessResources/ThisMonth/2008NewLaws/AB392.htm

Computer Professional Hourly Rate Lowered

This law, SB 929, lowers the hourly minimum rate for computer professionals from $41 to $36, and exempts employees from overtime requirements if they are engaged primarily in intellectual or creative work.  SB 292 is effective January 1, 2008.  To comply with this law, employers should check http://www.calchamber.com/HRC/BusinessResources/ThisMonth/2008NewLaws/SB929.htm for more information and updates on the 2009 computer professional hourly rate, which will be set by October 1, 2008, by the Department of Industrial Relations.

Employers' Use of Social Security Numbers Restricted

Effective January 1, 2008, AB 3082 prohibits employers from the following usage of an employee’s social security number:

• Public posting or displaying of an individual's Social Security number.
• Printing an individual's Social Security number on any card required for the individual to access products or services provided by the person or entity.
• Requiring an individual to transmit his/her Social Security number on the Internet unless the connection is secure or the Social Security number is encrypted.
• Requiring an individual to use his/her Social Security number to access a Web site, unless a password, unique identification device, or unique personal identification number also is required to access the site. This may require a change in systems used to access or transmit personal, business, human resources or payroll information on the Internet.
• Printing an individual's Social Security number on any materials that are mailed to the individual, unless state or federal law requires the Social Security number to be on the document mailed.

An employer that has used an individual's Social Security number in any of these ways may continue using that individual's Social Security number if the use is continuous (if use of the Social Security number is stopped for any reason, the new requirements apply), and if the individual is provided an annual disclosure informing the individual that he or she has the right to stop the use of his or her Social Security number in a manner prohibited by the new requirements.

Learn more about this new requirement:

http://www.calchamber.com/HRC/BusinessResources/ThisMonth/2008NewLaws/AB3082.htm

Attention Drivers: No Talking on Hand-Held Cell Phones While Driving

SB 1613 prohibits talking on a hand-held cell phone while driving, effective July 1, 2008.  Drivers caught talking on hand-held cell phones will be fined up to $50 per incident. Hands-free devices are still permitted, and the law does not apply to individuals using a cell phone to contact a law enforcement or public safety agency for emergency purposes, or to emergency services professionals while operating an authorized emergency vehicle.  Businesses should update policies to reflect this new law, and consider providing hands-free devices to employees as well if you provide cell phones.  Visit: http://www.calchamber.com/HRC/BusinessResources/ThisMonth/2008NewLaws/SB1613.htm to learn more about this new policy.

Changes Made To Temporary Disability Payments

As of January 1, 2008, AB 338 will remove the requirement that temporary disability requirements be collected within two years of the first date that it is paid.  Injured workers are instead eligible for 104 weeks of temporary disability, as long as benefits are paid within five years of the date of injury.  Past law stated that an injured worker can receive 104 weeks of temporary disability benefits, but those benefits had to be paid within 104 weeks of the first date the benefit is paid.  Learn more about this change to the requirement: http://www.calchamber.com/HRC/BusinessResources/ThisMonth/2008NewLaws/AB338.htm

This information was provided by the California Chamber of Commerce. Read more about these and other new laws for 2008 at:

http://www.calchamber.com/HRC/BusinessResources/ThisMonth/2008NewLaws/NewYearNewLaws.htm