New Year Brings New Regulations
The new year is ringing in new insurance regulations and laws that may affect California employers in the agricultural industry. In the spirit of preparedness, ag employers should be aware of a host of new legal requirements for 2012, including the following changes:
Coverage of California Domestic Partners Under Health Insurance Plans Issues to Out-of-State Employers (California Senate Bill 757)
Senate Bill 757 mandates that employers are prohibited from discriminating between spouses or domestic partners of a different sex and those in same-sex marriages or same-sex domestic partnerships in regards to health care coverage.
The new law amends the Health and Safety and Insurance codes, Notwithstanding the general exception for policies issued outside of California to employers whose principal place of business and majority of employees are located out of state, no policy or certificate of health insurance marketed, issued or delivered to a California resident shall discriminate in coverage between spouses or domestic partners of a different sex and spouses or domestic partners of the same sex.
Discrimination Based on Genetic Information (California Senate Bill 559)
Senate Bill 559 expands the prohibited bases of discrimination under the Unruh Civil Rights Act and the California Fair Employment and Housing Act to include genetic information. Genetic information is broadly defined and includes information relating to an individual employee’s genetic tests, the genetic tests of the employee’s family members, and the manifestation of a disease or disorder in the employee’s family members. Under the new law, discrimination in hiring or employment based on any of these characteristics is unlawful.
California’s Organ Donation Leave Law Clarified (Senate Bill 272)
California law already required that employers with 15 or more employees permit employees to take a protected, paid leave for the purposes of bone marrow or organ donation. Various questions had arisen about the law’s interpretation, prompting the California Legislature to amend its provisions. Senate Bill 272 clarifies the current leave rules for organ and bone marrow donation by amending California Labor Code Section 1510 to make clear that both the 30-day leave it provides for organ donation and the five-day leave it provides for bone marrow donation are measured in terms of business days, not calendar days. In addition, the new law further clarifies the one-year period within which the leave is guaranteed is a rolling 12-month period that runs from the first day of the employee’s leave.
Employers May Not Discriminate Based on ‘Gender Identity’ and ‘Gender Expression’ (California Assembly Bill 887)
Assembly Bill 887 amends the Fair Employment and Housing Act to define the word “gender” as encompassing both gender identity and gender expression. Gender expression, under the statute, is a person’s “gender-related appearance and behavior,” “whether or not stereotypically associated” with the sex assigned to the person at birth. Under the new law, an employee must be permitted to dress in a manner consistent with his or her gender identity and expression. In light of this new law, trainings, updates to employee handbooks and newly issued handbooks should state explicitly that California law does not tolerate any type of gender discrimination, including discrimination based on gender identity and gender expression.
Medical Debts Exempt from Wage Garnishment (California Assembly Bill 1388)
Current law provides that an employer must withhold from an employee’s wages the amount stated on an earnings withholding order, up to the portion of the earnings the debtor proves is necessary to support himself or his family. Assembly Bill 1388 adds an exemption from wage garnishment for debt that is incurred “for the common necessaries of life furnished to the judgment debtor” or his or her family, including, e.g., hospital services and other medical debts.
Commission Plans Must be in Writing by 2013 (Assembly Bill 1396)
As of Jan. 1, 2013, all commission agreements with California employees must be in writing, signed by the employee, and must set forth how commissions are calculated and paid. The employer must also obtain a signed confirmation of receipt of the agreement. Bonus and profit sharing plans are not covered by the new law unless “there has been an offer by the employer to pay a fixed percentage of sales or profits as compensation for work to be performed.”
Upon expiration of a written commission plan, the terms are presumed to remain in effect until a new written plan is executed. California employers should review their employment agreements with all employees who are compensated on a commission basis to ensure the required level of detail is included. Additionally, employers must be sure to keep a signed confirmation of all such commission agreements in their employees’ personnel files.
Western Growers Insurance Services’ in-house legal team is ahead of the curve when it comes to health care reform and other insurance-related legislation to ensure you are kept up to date with changes that affect your business. If you would like more information, please contact us.