New Laws for 2012
Posted on 03-Jan-12 by The Timekeeper
With the start of a new year, let’s take a look at changes in wage and hour laws across the country. Starting with the easy stuff… here’s a roundup of state minimum wage changes, effective January 1, 2012:
Arizona — went to $7.65, $4.65 for tipped employees.
Colorado — went to $7.64, $4.62 for tipped employees.
Florida — went to $7.67, $4.65 for tipped employees.
Montana — went to $7.65.
Oregon — went to $8.80.
Vermont — went to $8.46, $4.10 for tipped employees.
Washington — went to $9.04.
Ohio — the minimum wage increased to $7.70. On the other hand, the minimum wage under the tip credit decreased to $3.70 (down from $3.85). However, note if the business’s annual gross revenue is $283,000 or less, you can choose to pay the federal minimum wage instead, to adults and minors aged 14-15.
New Poster Requirements
Now, for a few other changes you might want to make note of.
In the state of Connecticut, there’s a posting requirement for a new paid sick leave poster. If you’re a Connecticut employer, be sure you’ve got the new poster up.
There’s another new poster requirement in Georgia. Employers with over 500 workers now have to post E-Verify “Right to Work” posters. You’ll want to be sure you’re in compliance.
And while you’re at it, don’t forget the new NLRB organizing rights poster. It was supposed to be posted last year, but they delayed the posting requirement until April 30, 2012. I’ll let you know if there are any more changes in the meantime, but for now, you can download the poster for free from the NLRB website so you’ll be ready.
Jury Duty Changes in Oregon
There are also a few changes related to employees on jury duty in Oregon. Now, companies with more than 10 employees must give those employees the choice of continuing insurance coverage while they’re on jury duty. Further, employers cannot require employees to use accrued leave (such as vacation, paid time off or sick leave) to cover their jury service time.
If your employee chooses to continue insurance and doesn’t use paid leave, you can recoup the insurance premiums you paid on their behalf while they were on jury duty. deduct up to 10% of their gross pay in each pay period after the employee returns to work until the amount you paid for premiums to continue their coverage has been covered.
In case you’re thinking you’re small or insignificant enough you can get away with ignoring these rules, with little chance the state will come after you… the new law now allows employees to file a lawsuit for penalties and other damages.
Paid Sick Leave in Seattle
With a little more advance notice, starting September 1, 2012, the City of Seattle, Washington will require employers with at least five full-time employees to provide sick and safe leave to their employees. The law also explicitly prohibits employers from retaliating against employees who take advantage of this leave.
Employees who work more than 240 hours a year in Seattle must allow their employees to use paid sick leave for their own or a family members’ illness or preventive care. “Safe leave” refers to paid leave related to domestic violence, sexual assault or stalking. It also allows for paid time off when the business is closed by public officials or when the employee has to care for their child because the child’s school or daycare are closed by public officials, due to the presence of hazardous waste.
The amount of paid leave you have to provide varies according to how many employees your busines has. You’re exempt if your business is less than two years old. Employees are allowed to carry over unused hours; the amount of carryover likewise varies depending on the business size.
If you’re a Seattle employer, I strongly advise you to check with your employment law advisor, as this is a complicated law and you could find yourself on the hook for penalties if you’re not careful.
New Rules in California
Wage Theft Protection Act
Finally, turning to California. First, there’s a enw Wage Theft Protection Act that requires employers to provide a written notice to every new employee hired after January 1, 2012. The notice must include the employer’s name, physical address (and mailing address, if different) and telephone number, as well as the name, address and phone number of the employer’s workers comp insurance carrier. It must specify the employee’s rate of pay including their overtime rate(s), and whether they’re paid by the hour, shift, day, week, piece, on commission, etc, and note the regularly scheduled payday. The notice must also list any allowances the employer plans to take, such as meal or lodging. In addition, if you change any of the information included on this notice, you must inform employees who previously received the notice within seven calendar days, either in a separate document or on their paystub.
You may find helpful this FAQ page from the Division of Labor Standards Enforcement.
Employee Misclassification
And lest you think you can avoid the Wage Theft Act notification requirements by classifying new hires as independent contractors… effective January 1, the state of California will also be imposing significant additional penalties on businesses that willfully misclassify employees as independent contractors.
You should check with your wage and hour law advisor to make sure you’re in compliance with these new laws. Penalties for non-compliance with either of these statues can range from $5,000 to $25,000, depending on the severity of the infraction and whether the business has a history of non-compliance. Licensed contractors may also lose their licence if they’re guity of misclassification of employees. In addition, if you’re found guilty of violating the misclassification statute, you will be required to post a notice for a period of one year on your website or in your office advising your employees and the public about the violation. (Oh, the shame of it all!)
Wage Theft Prevention Act in New York
Similar to California, the state of New York has also passed a Wage Theft Prevention Act that requires notifications to employees. However, in New York, in addition to providing a notification to new hires, businesses must also provide an annual notice to all employees. The first of these annual notices must be provided before February 1, 2012.
You can find sample forms at the NYSDOL website.
New York employers should verify with your wage and hour advisor that you’re in compliance. Violations carry a penalty of $50 per employee per week that the violations occur, plus other possible penalties. For a large employer, this can really add up quickly!
No Comments
No comments yet.
Comments RSS TrackBack Identifier URI
Leave a comment
