Mistakes that Cost
As
new laws and regulations in California multiply, employers' risk of
losing hundreds of thousands of dollars in employment lawsuits,
fines and penalties continues to increase. Take a look at the
mistakes that have cost other companies:
- $45,000 fine for asking improper questions in applicant interviews
- $875,000 awarded for an employee who had been passed over for a promotion while living as a pre-operative male-to-female transsexual
- $787,000 fine for failure to properly accommodate disabled individuals
- $250,000 maximum fine per business for failure to file W-2 or 1099 form
- $105 Million fine for arbitrary hiring and promotion practices
- $100 in fines per day (per person) for lack of COBRA Rights Notification
- $500,000 awarded employees, court held CEO as personal liable for altered time sheets
- $161,000 awarded employee for discriminatory failure to promote and defamation
As New Laws and Regulations Multiply
Employers risk of losing hundreds of thousands of dollars in employment lawsuits, fines and penalties continue to increase.
LSH Consulting assists employers with implementing systems and taking measures to avoid litigation and other costly mistakes. Do you find your company out of compliance with any of the following laws and regulations?
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MANDATORY AB1825 SEXUAL & UNLAWFUL HARASSMENT TRAINING FOR ALL EMPLOYEES WITH SUPERVISORY AUTHORITY – AB1825 affects employers with a culmination of 50 employees nationwide. Effective 1/1/06 all supervisory staff is required 2 hours “annual” sexual & unlawful harassment training. Training must be updated every two years and provided to new managers within 6 months of their date of hire or promotion.
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MANDATORY Cal/OSHA SAFETY ORDERS – In California every employer has a legal obligation to provide and maintain a safe and healthful workplace for employees, according to the California Occupational Safety and Health Act of 1973. As of 1991, a written effective Injury and Illness (IIP) Program is required for every California employer.
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HIPAA COMPLIANCE – The penalty for general noncompliance with the HIPAA security, privacy and electronic Data Interchange (EDI) regulations is $100 per violation, up to $25,000 per person for all identical violations in a calendar year. Plus, one of the penalties for noncompliance with the privacy regulations is a $50,000 fine and imprisonment for one year if you knowingly obtain or disclose individually identifiable health information.
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LEGAL COMPLIANCE FOR YOUR COMPANY’S SIZE – Even a company with one employee has compliance requirements. Do you know which Federal & State laws apply to your company?
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CALIFORNIA’S MEAL & REST BREAK REQUIREMENTS – How far must an employer go to make sure employees are complying with meal and rest break laws? The law, as it currently stands, puts the onus on California employers to ensure employees take their meal breaks. Employers and their managers cannot impede, discourage or dissuade employees from taking meal and rest breaks, and must ensure they are taken.
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IWC WAGE ORDERS – All employers (regardless of size) must post their industry-specific Wage Order appropriate to their business.
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Violence in the workplace (homicide) tragically, is the “leading cause” of workplace fatalities for women and the “second leading” cause of workplace fatalities for men in the United States. There is no regulation that specifically requires a workplace violence prevention program for most employees, although California DOSH has issued an “Injury and Illness Prevention Model Program for Workplace Security”.
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WIRELESS TELEPHONE LAWS – Two new laws dealing with the use of wireless telephones while driving went into effect July 1, 2008. The first prohibits all drivers 18 and over from using a handheld wireless telephone while operating a motor vehicle. (Vehicle Code (VC) §23123). Drivers under the age of 18 may NOT use a wireless telephone or hands-free device while operating a motor vehicle. January 1, 2009, text-based communication while driving is prohibited as well -- Specifically, the law prohibits writing, sending or reading text-based communication including text messaging, instant messaging and e-mail, on a wireless device or cell phone while driving.
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New California Statute Enacted in 2011: AB569 Meal Period Exemptions – Excludes the following non-exempt employees from meal period requirements: construction employees, security officers in the security services industry, commercial truck drivers, employees of electrical and gas corporations and local publicly owned electric utilities…..
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New California Statute Enacted in 2011: SB 1304 Leave for Organ / Bone Marrow Donation – Up to 30 days of paid leave to donate an organ. Up to 5 days of paid leave to donate bone marrow. Leave does not run concurrently with FMLA/CFRA…
Employment Law Scene in 2011
Put together a slow economic recovery, major Supreme Court decisions, new federal and state labor legislation, a supportive president, and you had all of the ingredients that were needed for 2010's "perfect storm." And as we begin 2011, it appears that the storm continues. In this continuing unsettled climate employers need to hold on for what promises to be another tough year, and HR must be ready with the changes to policies and procedures that will help navigate these rough seas.
The changes only start with health care reform implementation and go from new ADA Amendments, Title VII, FMLA, GINA all the way to EEOC, FLSA and beyond!
And then there is increased enforcement. DOJ, EEOC, NLRB, IRS, and state agencies such as those charged with enforcing state civil rights and unemployment laws are all increasing their enforcement efforts. This will be a lot to handle this year, and HR has to start getting ready now.
NEW LAW! California is first state to offer paid leave for organ donation. The Michelle Maykin Memorial Donation Protection Act, SB 1304, is a new 2011 labor code provision requiring private employers with 15 or more employees to grant up to 30 days of paid leave per year for an organ donation in any one year period, and up to five days of paid leave per year for a bone marrow donation.
NEW LAW! Meal Period Exemption AB 569 (applies only to employees covered by a valid collective bargaining agreement) amends the California Labor Code §512 to make the following categories of employees exempt from the meal period provisions otherwise applicable to nonexempt employees:
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Construction workers
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Commercial drivers
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Security officers
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Gas and electrical corporation employees
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Publicly owned local electric utility
How will expected 2011 changes affect your current policies, such as your FMLA and EEO policies? Which policies will need to be rewritten?