HOT TOPICS AND ACTION ITEMS FOR 2013

1. HOT TOPICS AND ACTION ITEMS FOR 2013

2. What Will We Cover? • New laws and regulations • Religious dress; social media; pregnancy; disability • Old laws that take effect this year • Health care • Trends and developments • National Labor Relations Board • Discrimination

3. Action Items!

4. CALIFORNIA – New Laws and Regulations

5. New in CA: Religious Dress, Grooming • Protected by FEHA • Religious clothing • Jewelry • Facial hair • Segregation prohibited • Do not isolate protected employees from customers, public or coworkers

6. Personal Social Media Protected • Cannot require: • Disclosure of user names, passwords • Personal social media access in front of manager • Exceptions • Request to current employee as part of investigation; reasonable belief access will result in relevant information • Electronic device issued by employer

7. Pregnancy Disability Leave New regulations as of Dec. 30, 2012 Increased Eligibility • 4 months of PDLper pregnancy, not year • No discrimination against “perceived” pregnancy • Examples of pregnancy-related disabilities • Bed rest, gestational diabetes, loss of pregnancy …continued

8. PDL Regulations (continued) Reinstatement • In past, denial if holding job would undermine business • Now, refusal to reinstate ok only if employee would not have been employed in same position for legit business reason unrelated to pregnancy (e.g. layoff) • If job eliminated, provide notice of available jobs • “available” = open within 60 days of scheduled return

9. Sex Discrimination and Breastfeeding • “Sex” under FEHA includes breastfeeding and related medical conditions • Post updated Workplace Discrimination and Harassment poster (mandatory)

10. Production of Personnel Records • Previously, employee could inspect most personnel records and obtain copies of signed documents • Now, employeeor the employee’s representative (with written authorization from employee) can obtain copies of personnel records

11. Production of Personnel Records (continued) • All requests to inspect/receive personnel records must now be in writing • Employer has 30 calendar days from date of receipt of written request; can be extended to 35 days by agreement • Employees under CBA that has provisions for inspection of personnel records cannot make 1198.5 requests • Penalty for noncompliance: $750

12. Itemized Wage Statements • Must retain exact copies of itemized statements provided to employees, or computer-generated records of all the same info, for at least 3 years • Penalty of up to $4,000 for incomplete or inaccurate wage statements

13. FEDERAL –New Laws and Regulations

14. Health Care for Employees

15. Patient Protection Affordable Care Act • January 1, 2013– Employers filing 250 or more W-2 forms must report the total cost of their group health benefit plan coverage on the W-2 forms • January 1, 2013 – $2,500 cap/employee on Flexible Spending Accounts (regardless of the number of individuals covered)

16. PPACA (continued) • March 1, 2013 – Newly hired employees must be provided the Notice of Exchange, including: • existence of an Exchange + description of the services provided + how to contact the Exchange • if employer plan’s share of total benefit cost is less than 60%, employee may be eligible for a premium tax credit or a cost-sharing reduction through the Exchange • employee may lose any employer contribution toward the cost of coverage and all or a portion of employer contributions to coverage may be excluded from federal income tax

17. Health Care Action Items • Ensure your 2012 W-2s include the total cost of their group health benefit plan coverage, if applicable • Ensure your Flexible Spending Accounts have a $2,500 cap per employee • Start preparing your Notice of Exchange information to be provided to employees hired on or after March 1, 2013 (be on the lookout for model notices) • Plan on attending the “Healthcare Reform Update” on February 21, 2013

18. National Labor Relations Board Activity

19. National Labor Relations Act • “Concerted activity”: Two or more employees acting together to improve their terms and conditionsof employment • Applies to both union and non-union employees

20. NLRB and Social Media • Social media websites = modern-day water coolers • Complaints about boss, wages, safety issues, etc. are protected • Ensure social media policy does not discourage protected concerted activity

21. NLRB and At-Will Policies • “I agree that the at-will relationship cannot be amended, modified, or altered in any way.” • Problem: Union contract might change at-will status • Solution: Employer can modify status • Review and revise at-will policy (handbook, offer letter, forms) regarding modification of at-will status, if necessary

22. NLRB and Internal Investigations • Right to self-organize includes right to discuss discipline or disciplinary investigations • Need “legitimate and substantial business justification” for requiring confidentiality: • Witness needs protection • Evidence is in danger of being destroyed • Testimony may be fabricated • Need to prevent a cover up • Case by case

23. Investigation Action Items • Review and modify practices and policies regarding confidentiality instructions

24. Discrimination: Trends and Developments

25. Trend: Unemployment Discrimination Laws • In 2011, the EEOC considered unemployment discrimination but did not issue an opinion • No Federal law or California law (Governor vetoed bill) • In 2012, 17 states considered bills prohibiting discrimination against the unemployed • NJ, OR, and the District of Columbia passed laws

26. U.S. Supreme Court Shake Up? • Four U.S. Supreme Court Justices (Scalia, Kennedy, Ginsburg, and Breyer) are in their seventies