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2003 California Legislation


This information is intended to be a summary of legislation currently being considered in the California State Legislature that can potentially impact employee management. It is offered for education purposes only and is subject to change without notice. It should not be construed as legal advice. If further information is needed, please contact competent legal counsel.

Data offered as of October 15, 2003. Subject to change without notice.

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Legislation Title

Description

Status

Arbitration

(AB 1715); Asby. Corbett

Bars use of binding arbitration in employment contracts when a claim is brought under the Fair Employment and Housing Act

Vetoed on 10/14/2003.

Attorney Fees in Employment Cases

(AB 223); Asby. Diaz

Provides new incentive to file frivolous lawsuits against employers by ordering employers to pay attorney fees and costs when a worker is awarded one penny or more by a court.

Signed by Governor Davis on 7/22/2003

Employment Discrimination

(AB 274); Asby. Koretz

Creates a new rebuttable presumption that retaliation occurred if any person discharges, demotes, suspends or reduces the hours of work or pay of an employee within 60 days after the employee exercises any right under the Labor Code. Shifts the burden of proof onto employers and managers.

Vetoed 10/14/2003.

Employment Discrimination

(AB 76); Assby. Corbett

Provides that an employer will be held liable, under the provisions of the Fair Employment and Housing Act (FEHA), for the sexual harassment of a worker by any person, such as clients or customers.

Signed by Governor Davis on 10/3/2003.

Employment Discrimination

(AB 196); Assby. Leno

Creates new basis for employment discrimination lawsuits for gender identity discrimination under the Fair Employment and Housing Act (FEHA). Permits employers to enforce dress code as long as employees are allowed to dress consistently with their gender identity.

Signed by Governor Davis on 8/2/2003.

Foreign Languages

(AB 309); Assby. Chu

Requires that business deliver to the other party a translation of any contract or other agreement not negotiated in English in the foreign language used during the negotiation. Becomes effective on July 1, 2004.

Signed by Governor Davis on 9/6/2003.

Gift Certificates

(AB 1092); Asby. Harman

Prohibits sale of retail gift certificates containing maintenance or service fees; clarifies that "gift certificate" includes a gift card.

Signed by Governor Davis on 7/23/2003.

E-Mail Advertising

(SB 186); Sen. Murray

Prohibits unsolicited commercial email advertisement originating in California or Terminating in California email addresses. Penalty is $1,000 per message up to $1,000,000 per incident.

Signed by Governor Davis on 9/23/2003.

Health Care

(SB 2); Sen. Burton & Speier

Requires employers of 20 or more workers to provide health care insurance coverage for each employee. In the alternative, a premium equivalent may be paid to the state agency managing this program. Employers of 20-49 workers will be responsible for providing coverage to their workers beginning in January 2007. Employers of 50-199 workers must cover 80% of the premium cost for the employee with the employee paying the other 20%. Employers of 200 or more will be responsible for providing health insurance coverage for BOTH the employee and dependents begining January 2006.

Signed by Governor Davis on 10/5/2003.

Life Insurance

(AB 226); Assby. Vargas

Prohibits the issuance of corporate-owned life insurance (COLI) on non-exempt employees.

Signed by Governor Davis on 9/6/2003.

Labor Code

(SB 796); Sen. Diaz

Provides that employees and their attorneys can file meritless lawsuits against employers for Labor Code violations under the Labor Code Private Attorney General Act of 2004, a new private right of action to enforce any and all Labor Code provisions and to keep a portion of assessed fines and penalties.

Signed by Governor Davis on 10/12/2003.

Labor Code

(AB 1719); Asby. Koretz

Allows some doctors to be non-exempt for overtime purposes. Requires certification of electricians as of 1/1/2005, but allows for that date to be rescheduled.

Signed by Governor Davis on 12/12/2003.

Leave Program

(SB 478); Sen. Dunn

Establishes new, unlimited right to workplace leave program for employees who are victims of a crime or related to crime victims.

Signed by Governor Davis on 9/30/2003.

State Contracting

(SB 578); Sen. Alarcon

Expands restrictions in all state procurement contracts by creating new state barriers that require all contractors and subcontractors to pay "living wages," and prohibits mandatory overtime, at-will employment, or verbal harassment or abuse of workers; among many other provisions.

Signed by Governor Davis on 10/9/2003.

State Contracting

(AB 1093); Assby. Lieber

Mandates all employers with 100 or more workers who enter into procurement contracts with the state pay minimum wage of at least $12 per hour if the company does not offer health insurance beginning in 2004. Costs would be indexed in following years.

Vetoed on 10/14/2003.

Unemployment Insurance Benefits

(AB 331); Asby. Kehoe

Provides immediate access to UI benefits to workers unemployed due to a trade dispute lockout by waiving the initial seven-day benefit waiting period. Will result in increased employer UI tax costs.

Vetoed on 10/14/2003.

Wage and Hour

(AB 1133); Asby. Koretz

Doubles fines and penalties for unpaid wages every six months for up to two years that a judgment remains unpaid.

Vetoed on 10/14/2003.

Whistle Blower

(SB 777); Sen. Escutia

Establishes a "Whistle Blower" Hotline and requires employers to post a notice telling employees their rights under state whistleblower laws.

Signed by Governor Davis on 9/22/2003.

Workers' Compensation

(SB 228); Sen. Alarcon

Contains changes to WC system including medical fee schedule and utilization control process, that have been verified by the WC Insurance Rating Bureau to reduce costs.

Signed by Governor Davis on 9/30/2003.

Workers' Compensation

(AB 227); Asby. Vargas

Eliminates vocational rehabilitation, among other changes that have been verified by WC Insurance Rating Bureau to reduce costs.

Signed by Governor Davis on 9/30/2003.

Workers' Compensation

(AB 1557); Assby. Vargas

Provides employers a safe harbor from outrageous penalties if the employer follows new utilization process.

Signed by Governor Davis on 9/30/2003.

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