Legal-2In my last blog I talked about the change in the minimum salary requirement for exempt employees that goes into effect in December. Here are some other HR-related legal updates that may also affect you.

State Disability Insurance eligibility waiting period. The waiting period for State Disability Insurance eligibility has changed for individuals who file a second disability claim for the same condition or a condition related to the initial claim. SB 667, which went into effect July 1, waives the 7-day waiting period for the second claim if it is filed within 60 days after the initial disability benefit period. The bill also extends to 60 days (from 14 days) the time between claims for the same or related cause or condition to be considered one disability benefit period.

Wage garnishment. SB 501, effective July 1, reduces the prohibited amount of an individual judgment debtor’s weekly disposable earnings that may be garnished based on a withholding order.

Electronic Unemployment Insurance reporting. Starting January 1, 2017, employers with 10 or more employees will be required to electronically submit their unemployment insurance reports to the Employment Development Department. Under the new requirements, employers must also remit contributions for unemployment insurance premiums by electronic funds transfer. The requirement will apply to all employers beginning January 1, 2018.

California minimum wage. SB 3, signed by Governor Brown in April, will increase California’s minimum wage annually, reaching $15/hour by January 1, 2022. For employers with 26 or more employees the minimum wage will increase per the following schedule:
January 1, 2017 – $10.50/hour
January 1, 2018 – $11/hour
January 1, 2019 – $12/hour
January 1, 2020 – $13/hour
January 1, 2021 – $14/hour
January 1, 2022 – $15/hour

Employers with 25 or fewer employees will be on a schedule one year behind the above schedule, reaching $15/hour on January 1, 2023.

In my next blog I’ll talk about changes at the county and city level. It’s important to keep your Employee Handbook up to date to ensure you are in compliance as requirements change. Please contact me if you are interested in a mid-year review of your manual.