Yesterday I blogged about a new California law known as AB 469, which imposes an obligation on employers to provide notice of certain information to new hires, and supplement those notices as information changes. I wanted to add a few more thoughts. First, this new notice requirement does not apply to exempt employees. So, as long as an employee is classified correctly as exempt, employers need not worry about this new law for these employees. Of course, if an employee is misclassified as exempt, this new law adds yet another layer of legal problems for an employer who is found liable for such misclassification. Second, the Labor Commissioner will be promulgating a form that employers can use to provide this notice. That will be helpful, but it won’t go very far to blunt the administrative burden this new law creates for employers. Third, this new law increases the statute of limitations for the DLSE to collect penalties from 1 to 3 years (but it does not increase the 1-year limitations period for penalties in private enforcement actions). Fourth, this new law does not take effect until January 1, 2012. So, Employers have about 2½ months to get ready for compliance. Fifth, this new law increases the penalties (both civil and criminal) for violation of the wage laws (as if the existing penalties were not bad enough). In this time of high unemployment, is this new law — especially the new notice requirements contained in it — really what is needed in California? I mean, if an employer is on the fence about hiring a new employee, and could go either way, why does the state want to impose this difficult notice requirement that only kicks in upon hiring a new employee? We should be thinking about ways to create jobs in this state. But, if we can’t do that, at least we should not pass unnecessary laws to discourage job creation. –Adam K. Treiger
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I believe your comments are valid, but I don’t necessarily agree with your arguement which implies that the new requirements will negatively impact employers’ ability or interest in hiring. California has notoriusly imposed “under cover of darkness” legislation which have burdened employers for year, to wit the incredibly liberal and overlaying leaves of absence opportunities employees have. It is also not uncommon for there to be documentation requirements which are impending, but with no guidance on format. Of course, it leaves imployers with the need to create the simplest format possible, at least until they are presented with the inevitably complex form. Hopefully, these can be completed electronically. The old adage that you cannot legislate morality applies here. If employers simply complied with existing laws, paid their employees correctly, on time and accurately there would be no need for such heavy penalties. However, add to the mix the state’s well known need for spending money, it’s no wonder they are reaching into to pockets of violators so much. Who know, maybe such requirements will increase hiring – at least of HR staff to keep up with these laws.