Employment Laws And Regulations: What's New For 2012

As most California employers have learned by now, it is getting more and more difficult to own a business in California due to the ever-increasing employee-friendly laws that make "extortion" lawsuits convenient and perfunctory, even with the most justified of terminations. To minimize exposure, it is important for employers to understand and comply with what, for most, is a complicated area of law. A large part of this strategy requires that employers stay up to date on new legislation and case authority in the realm of labor and employment law. The following is non-exhaustive summary of new laws and cases that will affect most employers. An employer in need of guidance as to which new laws affect it and/or whether its current polices, procedures and structure are in compliance with the law, should contact a qualified labor and employment attorney for additional information.

NEWLY ENACTED LEGISLATION

The Governor has signed several employment-related bills into law this year. Most will go into effect on January 1, 2012. They include:

Credit Information About Applicants or Employees: Assembly Bill 22 prohibits employers or prospective employers from obtaining credit information about applicants or employees, unless the information contained in the report is substantially job-related and the position sought such as in one of the following circumstances: (1) a managerial position; (2) a position in the State Department of Justice; (3) a sworn peace officer or other law enforcement position; (4) a position for which the information contained in the report is required by law to be disclosed; (5) 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; (6) 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; (7) a position that involves access to confidential or proprietary information; or (8) a position that involves regular access to $10,000 or more of cash. The law requires written notice by the employer informing the person for whom a consumer credit report is sought along with the specific reason for obtaining the report.

Family Medical leave: Assembly Bill 592 adds language to the California Family Rights Act and the Pregnancy Disability Leave law bringing...