2006 Legislative Updates

CALIFORNIA EMPLOYER ADIVSORY COUNCIL
LEGISLATIVE UPDATE
June 5, 2006

Following is the latest Legislative Update for 2006. If you want information on any of these bills or copies of the bill language, go to www.leginfo.ca.gov.

Minimum Wage Issues

Two Democratic bills have passed their respective houses. AB 1835 and SB 1162 would increase the minimum wage $1.00 an hour over 2 years and then provide for automatic increases based on inflation. The Governor has just filled 4 vacancies on the Industrial Welfare Commission that has been dormant since 2000. He has asked the IWC to consider an increase without an escalator. The IWC has until October 31st to make a decision. This would possibly allow the Governor to veto the Democratic bills and still take credit for an increase, or if the IWC approves an escalator tell his supporters it is not his fault.

AB 1840, Health Insurance: Identical to vetoed bill from last year. This bill will require State agencies to notify the legislature of employees who apply for health services such as Healthy Families because the employer does not provide health insurance to employees. This applies to employers with more than 25 employees. Passed Assembly, in Senate.

SB1414, Health Insurance: Mandates that employers with more than 10,000 employees allocate at least 8 percent of payroll to employee healthcare. Passed Senate, in Assembly.

AB 1884, Locked Out Employees: Vetoed last year. Under current law, employees who strike, or are locked out by their employer during a labor dispute, cannot receive unemployment insurance benefits. This bill would allow locked out employees to receive unemployment insurance benefits. Passed Assembly, in Senate.

AB 805, Heat Illness: Would require the OSHA Standards Board to develop standards to protect employees from heat illness. Held over from last year. Still in Senate Appropriations.

SB 46, Worker’s Compensation Rates: Would establish a Commission on Worker’s Compensation Rate Regulation. The Commission would be responsible for setting premium rates. Would exempt State Compensation Insurance Fund from the Commission’s jurisdiction. In Assembly Insurance Committee. No action since 1/30/06.

SB 300, California Family Rights Act: Would allow leaves for child of any age, grandparents, siblings, and domestic partners. In Assembly Appropriations, no action since August, 2005.

SB 840, State Health Insurance Plan: Would set up California Health Insurance System available to all California residents. In Assembly, no action since July, 2005.

AB 1209, Remove Limits on Worker’s Comp Care: Current law limits chiropractic, physical therapy and occupational therapy to 24 visits per injury. This bill would eliminate those limits. This bill originally was written to regulate the rental of snowmobiles. In Senate Labor and Industrial Relations Committee, Author asked that the bill be held without action.

AB 1883, Worker’s Compensation Insurance: Would, among other provisions, set up a web site, where the public could determine if an employer has Worker’s Comp insurance. Passed Assembly, in Senate.

SB 538, Medical Provider Networks: Would set up a system for certification of MPN’s. No action since July, 2005.

SB 778 and SB 1188, Charges For Cashing Paychecks: Would clarify that a bank may not charge for cashing paychecks of a business that are written on an account at that bank. In Assembly Bank and Finance Committee, hearing 6/19/06.

AB 2371, Arbitration of FEHA Complaints: Would void existing employee agreements that require arbitration of disputes that fall within the jurisdiction of Fair Employment and Housing Act. Would prohibit employers from requiring employees to enter into future agreements as a condition of employment, after 1/1/08.
Did not pass Assembly Floor, 5/31/06.

SB 1281, Jury Duty Pay: Would require State contractors to pay an undetermined amount of jury duty pay. Passed Senate in Assembly.

AB 2217 and SB 1254, Alternative Work Schedules: Would allow individual employees to agree with employers to work up to 4-10 hour days without overtime.
Labor and Employment. Both Failed Passage.

AB 2277 Review of Workplace Posters: Would require establishment of a working group composed of labor and management to review and rewrite workplace posters.
Assembly Labor and Employment, Failed Passage 4/19.