Saturday, December 31, 2011

New California Laws - Effective Janary 1, 2012

California Laws that will affect your business, effective January 1, 2012;
(the following appeared at our December Special Edition of the JuNcTion)

1. The CA AB 469  - New Hire Pay Rate Notice
      This amends the California Labor Code by adding “that employers are required to provide each new hire with a written pay notice at hiring in English or the new hire’s primary language”.  The notice provides rate, methods, scheduling of pay, and employer’s pertinent information. The AB 469 will take effect January 1, 2012. This notice is not required for those who are exempt from overtime, for public employees, or for employees covered by valid collective bargaining agreements if they make more than 30 percent of the minimum wage.

2. The CA AB 22 - Credit Report Use
      This will take effect in January 1, 2012. California now joins Connecticut, Hawaii, Illinois,       Maryland, Oregon and Washington as U.S. States that limit the use of credit checks by employers. The CA AB 22 amends California Labor Code and State’s Consumer Credit Reporting Agencies Act to restrict the discretion that private and public sector employers have to use “consumer credit    reports” for hiring / personnel decisions, unless the purpose of usage meets the exceptions allowed by the law.
      AB 22 bans the use of pre-employment credit checks for many employers. The bill prohibits employers or prospective employers from obtaining a consumer credit reports for employment  purposes unless the position of the person for whom the report is sought is one of the following:
A managerial position;
A position in the state Department of Justice;
A sworn peace officer or other law enforcement position;
A position for which the information contained in the report is required by law to be disclosed or obtained;
A position that involves regular access to specified personal information for any purpose other than the routine solicitation and processing of credit card applications in a retail establishment;
A position in which the person is or would be a named signatory on the employer's bank or credit card account, or authorized to transfer money or enter into financial contracts on the employer's behalf;
A position that involves access to confidential or proprietary information; or
A position that involves regular access to $10,000 or more of cash.

It will be a great practice to apply necessary changes within your workplace. If you are not sure how these changes can impact your organization. Secure the guidance and assistance of an experienced consultant who might be able to help you. 

"Managing organizational risks are essential to avoid greater penalties and consequences"
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