Up-To-Date Labor Law Posters Offer Protection Against Fines & Lawsuits

All employers with at least one employee are required to display the most up-to-date State and Federal labor law postings. To remain compliant companies must monitor Federal and State labor law changes. Recent federal and state administration has mandated numerous labor law posting changes for 2015. All California employers must have an updated poster as of July 1st 2015 with their Paid Sick Leave Policy clearly displayed. Failure to post up-to-date labor law postings can result in fines up to $17,000 per business location (29 USC Sec. 666(i) and 29 USC Sec. 2005). California Payroll now offers a monitoring and update service that will automatically notify you of mandatory changes and provide the most up-to-date postings for display.
Our Poster service options are:

  • E-Update Solution
    When a mandatory change occurs in State or Federal Labor Law posting requirements, we will automatically email you an updated ready-to-print posting. Receive an updated All-In-One State & Federal Labor Law Poster every year on the anniversary of your subscription.
  • Poster Replacement Solutions
    When a mandatory change occurs in State or Federal Labor Law posting requirements, we will automatically ship you an updated All-In-One State & Federal Labor Law Replacement Poster.

Call us today to find out the options to keep your posters updated and your business compliant.

ACA UPDATES

Supreme Court Rules in favor of ACA
In a 6-3 decision on June 25, the Supreme Court upheld the subsidies provision of the Affordable Care Act (ACA). With this ruling it is clear that ACA is here to stay in the foreseeable future.
The issue in the case, King v. Burwell, was whether a specific phrase in the ACA limited the availability of subsidies to help individuals pay for health insurance coverage to state-established exchanges. The majority of states have exchanges established by the federal government rather than by the state. If the Supreme Court had ruled that the ACA prohibits subsidies in federally-established exchanges, the insurance coverage mandated by the ACA would have become unaffordable for many people in these states. Most commentators agreed that without the availability of subsidies in all exchanges, the stability of the ACA, which is built on the assumption of widespread participation, would have been threatened.
Although it removes some uncertainty regarding the ACA’s standing, the ruling allowing subsidies to continue will have little immediate impact on employers, as it maintains the ACA as it has been. Employers will need to continue to ensure that they are complying with all of the ACA’s requirements. California Payroll is here to help you navigate your way through ACA reporting requirements.
IRS Issues Drafts of ACA FORMS FOR 2015
On August 7, 2015, the Internal Revenue Service (IRS) issued drafts of forms and instructions for 2015 Forms 1094-B and 1095-B; and Forms 1094-C and 1095-C. Employers will use the Forms 1094-C and 1095-C to report health insurance coverage offered under employer-sponsored plans in accordance with Section 6056 of the Internal Revenue Code (IRC). Although Forms 1094-C and 1095-C are similar to prior versions, the instructions included some noteworthy revisions.
Employers should keep in mind that the IRS will issue final versions of the 2015 Forms and Instructions in the upcoming months. In the meantime, employers should rely on the 2015 draft Forms and Instructions in planning how to comply with these new IRS reporting requirements.
California Payroll will file forms 1094-C and 1095-C under Section 6065 as part of our new ACA Reporting Services.
When you sign up with our ACA Reporting Services you will receive:

  • Forms 1094-C and 1095-C under Section 6065 prepared and filed
  • ALE status determining tool
  • ACA Eligibility Calculations and Reporting
  • ACA Affordability Calculations and Reporting

California Payroll recognizes that staying on top of employment law is a daunting task that is constantly evolving, such as the Affordable Care Act (ACA), which is why we are here to help.
At California Payroll, We Get It!

Paid Sick Leave Amendments: Effective Immediately

California’s Paid Sick Leave Law was written with several ambiguities, resulting in confusion regarding compliance. Governor Brown signed a bill designated as ‘urgency legislation’ that addresses and attempts to clarify several of the obscurities within the still new law as well as providing some alternative methods of complying with particular provisions. The new bill, AB 304, amends several sections of the California Paid Sick Leave Law and is effective immediately. Some notable provisions are:

  • An alternative method of accrual can be used as long as it is on a regular basis and the employee will have 24 hours of Paid Sick Leave available by the 120th calendar day after hire.
    • E.g. 1.4 hours per week; 2.8 hours every other week; 4.8 hours semi-monthly; 8 hours per month (CAUTION; You end up needing to accrue more per period when using semi-monthly or monthly as the 120th day can fall before the end of a full fourth month. So you have to accrue it in 3 months for monthly or 5 semi-monthly periods in order to guarantee it will be there for use by the 120th day.)
  • Explicit allowance to use any 12-month period (calendar year, employment year, or other) as the “year” for purposes of accruing and using sick leave.
  • A Grandfather Clause for policies implemented prior to January 1, 2015, for employers that provided paid sick leave or paid time off/vacation using a different accrual method other than one hour per 30 hours worked. An employer’s policy will be grandfathered in provided that (a) the accrual is on a regular basis so an employee (including one hired after January 1, 2015) has no less than one day or eight hours of accrued sick leave or paid time off within three months of employment each calendar year or each 12-month period and (b) the employee was eligible to earn at least three days or 24 hours of sick leave or paid time off within nine months of employment. If an employer reduces the accrual amount or rate used in the policy that it had in place before January 1, 2015, the employer will need to comply with one of the accrual methods allowed by the original sick leave law or the amendment.. Note that even if an employer’s policy is grandfathered in for accrual purposes, the employer still needs to ensure it complies with other significant provisions of the law (e.g., pay calculation, broad definition of family member, notice, and record-keeping).
  • An allowance that if you provide unlimited sick or PTO, you can meet the notice requirements by stating “unlimited” on the pay stub or other written notice provided to employees.
    • Clarification that if an employee is rehired within one year, previously accrued but unused sick time must be reinstated UNLESS it was paid out upon separation.
    • Additional methods for calculating the pay rate. Employers may now use any of the following calculations:
      • Paid sick time for nonexempt employees shall be calculated in the same manner as the regular rate of pay for the workweek in which the employee uses sick time;
      • Paid sick time for nonexempt employees shall be calculated by dividing the employee’s total wages, not including overtime premium pay, by the employee’s total hours worked in the full pay periods in the prior 90 days of employment;
      • Paid sick time for exempt employees shall be calculated in the same manner as the employer calculates wages for other forms of paid leave time.
    • An exclusion for retired annuitants.

    If you need to create a new Sick Leave Policy we have a human resource expert waiting to help you with our HR On-Demand service. Plus, you also get unlimited access to the HR Support Center, an online database and encyclopedia of HR laws, policies, and resources.
    Call California Payroll today and let us help guide you towards compliance.

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