Doing Business in California in 2012: Do You Know These New Laws?

For your reference, here’s an overview of new laws on the books for 2012 affecting companies doing business in California:

California’s New Minimum Pay Requirements for Computer Professional Employees Take Effect January 1, 2012 (Morgan Lewis)

“Effective January 1, 2012, the required minimum pay/salary for those employees exempt from overtime under the California computer professional exemption is increasing. According to the California Department of Industrial Relations, which announced the increase on November 4, to qualify for the exemption an employee must be paid a salary of at least $81,026.25 annually ($6,752.19 monthly) or a minimum hourly rate of $38.89, an increase of 2.5%.” Read more»

California Expands Wage Disclosure Requirements for All Employers and Contract Requirements for Employees Paid on Commission (Sedgwick LLP)

“Assembly Bill (AB) 496, effective on January 1, 2012, expands an employer’s disclosure obligations regarding wage-related issues… Pursuant to the new statute, the Labor Commissioner will develop a template form for use by employers. Employers must also notify each employee in writing of any changes to the disclosed information set within seven calendar days of the change unless the change is otherwise reflected on a timely wage statement or legally required written statement.” Read more»

New California Laws Increase Penalties for Employee Misclassification and Wage Theft (Epstein Becker & Green, P.C.)

“California Governor Jerry Brown has signed two employment related bills into law, raising the stakes for employers doing business in California. The two laws, which increase the penalties for employers that wrongly classify employees as independent contractors or engage in “wage theft,” both go into effect on January 1, 2012.” Read more»

California Businesses Cannot Let Guard Down (Constangy, Brooks & Smith, LLP)

“California has followed the growing trend in other states by barring employers from obtaining credit reports during the application process for many job positions. Currently, California employers are required to inform applicants that a credit check might be performed, and get written consent. But starting January 1, thanks to AB 22, employers cannot obtain or use the credit reports of prospective employees for many positions.” Read more»

California Employment Laws: What’s on the Horizon (Epstein Becker & Green, P.C.)

“While everyone awaits the California Supreme Court’s ruling in Brinker Restaurant Corp. v. Superior Court (Hohnbaum) – which is expected sometime in early 2012 and will determine the scope of an employer’s meal and rest period obligations – employers must not lose sight of other important developments in California employment law. Unless otherwise noted, these laws will take effect on January 1, 2012.” Read more»

New Wave of California Employment Laws Requires Prompt Action (Morgan Lewis)

“A new tidal wave of employment laws is about to flood the shores of California. On January 1, 2012, multiple new laws will take effect in California, and they will have a significant impact on the employment practices of companies with California operations. California employers will need to take prompt action to ensure compliance, including revising employment policies and practices such as hiring and compensation practices, employee handbooks, posters, leave of absence administration, and healthcare coverage.” Read more»

A Wave of New Changes to California Employment Laws for 2012 (Allen Matkins Leck Gamble Mallory & Natsis LLP)

“The passage of SB 459 adds two new Labor Code sections, 226.8 and 2753 effective January 1, 2012. The new law prohibits the willful misclassification of individuals as independent contractors. The new law affects all industries and will have a significant impact on construction and transportation companies as well as employers using seasonal, short-term, and direct salespersons.” Read more»

2012 California Construction Law Update (Farella Braun + Martel LLP)

“… SB 189 and SB 190 were passed as part of an effort to modernize and simplify California’s mechanics lien laws spearheaded by the California Law Revision Commission. The majority of the changes brought by SB 189 and 190 are minor and are intended to be non-substantive, but a few key changes warrant discussion. These changes take effect on July 1, 2012.” Read more»

California Enacts New Statute Requiring Interconnected VoIP Providers to Contribute to the State’s Universal Service Fund (Davis Wright Tremaine LLP)

“A recently enacted California statute authorizes the California PUC to require interconnected voice over Internet protocol (VoIP) service providers to begin collecting and remitting fees to support the state’s universal service fund. The measure is intended to capture lost revenue arising from the continued migration from traditional wireline telephony to VoIP services, and the estimated two and a half million VoIP consumers in California.” Read more»

California Department of Toxic Substances Control Issues Draft Regulations for Safer Consumer Products (Allen Matkins Leck Gamble Mallory & Natsis LLP)

“… the California Department of Toxic Substances Control (‘DTSC’) issued what the Agency is calling its “Informal Draft Regulations for Safer Consumer Products” as part of its Green Chemistry Initiative. The regulations require DTSC to develop a list of Chemicals of Concern. DTSC will prepare the initial list by reviewing chemicals that have hazard traits identified by several State, federal, Canadian, or European agencies, and estimates that the initial list will have about 3,000 chemicals. The regulations provide a mechanism for adding chemicals.” Read more»


See Also:

Ninth Circuit Affirms That Employees Who Work Outside California Cannot Use the California Unfair Competition Law to Vindicate Their Federal Overtime Rights (Sheppard Mullin Richter & Hampton LLP)

California Courts Cannot Force Out-of-Town Employees to Travel to California Depositions (Sedgwick LLP)

Arbitration in California Construction Defect Cases – After AT&T Mobility v. Concepcion (Snell & Wilmer L.L.P.)


And Don’t Forget the California Transparency in Supply Chains Act:

California Supply Chain Law Affects Large Retailers and Manufacturers Doing Business in California (Littler)

What You Need to Know About the California Transparency Supply Chains Act (Sedgwick LLP)

• California Transparency in Supply Chains Act – Your Checklist as the January 1st Deadline Approaches (Manatt, Phelps & Phillips, LLP)

California Transparency in Supply Chains Act Takes Effect January 1, 2012


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