New 2013 Laws affecting employers..................................2 5 Tips to start a new Business...............3 Proposed Rules on Health care act......4
ISSUE 01
VOLUME 46
January 2013
Business Today
the official publication of the pittsburg chamber of commerce
Happy New Year!
An Overview of New 2013 Laws Affecting California Employers
From the PittsburgChamber of Commerce
New employment laws could affect your California business' day-to-day operations and company policies in 2013. See the CalChamber's list "An Overview of New 2013 Laws Affecting California Employers" for an overview of the changes in the law and how each of these California laws could affect your business.
5 Tips to start a new business in the new year
See Page 2 & 3
Old Pittsburg High bricks find new life as keepsakes Old Pittsburg High School bricks being sold to provide former students with a tangible memory of the place, while making a contribution to the Eddie Hart All in One Foundation. See Page 2 Olympic Gold Medalist Eddie Hart, of Pittsburg, sits next to one of his commemorative bricks...
2012 Pittsburg Chamber President’s Club:
It happens every January. A huge surge of traffic inundates entrepreneurial websites, fueled by would-be entrepreneurs scouring our 200,000+ pages of content for advice on how to start a business. By March, though, traffic drops back to normal as the New Year resolutions lose their shine. One-by-one, millions of startup dreams give way to life as usual. With the right tactics and tenacity, though, you can go beyond life as usual and enjoy the passionate, creative and fulfilling life of an entrepreneur. To make sure you succeed in starting up in the year ahead, follow 5 recommendations… See Page 3
U.S. Agency Releases Proposed Rules on Implementing Health Care Act The U.S. Department of Health and Human Services (HHS) has released proposed rules outlining how three aspects of the Affordable Care Act will work: the essential benefits that must be offered; prohibitions on discriminating against individuals with pre-existing conditions; and an expansion of employer-offered wellness programs. See Page 4
2012 Partners:
Old Pittsburg High bricks find new life as keepsakes Students probably didn't give them a second look when they attended the old Pittsburg High School before it was torn down after the shiny new Pittsburg High opened in 2010. Now, those dusty old red bricks left behind have found new life. They are being sold to provide former students with a tangible memory of the place, while making a contribution to the Eddie Hart All in One Foundation. The nonprofit, which provides athletic, educational and social activities for local youth, was founded in 2003 by Hart, the city's Olympic gold medallist. "It's a little piece of history, and at the same time it allows people to be a participant in the fundraising as well," said Hart, 63, who was on the track team that prevailed in the 4x100 relay race at the 1972 Summer Olympics. The bricks are being sold for $100 each and are encased in a professional display case with a plaque that shows the school's seal and reads "Pittsburg High School Artifact" and "Home of the Orange and Black Pittsburg Pirates." A personalized phrase can be added for an additional $25. After hearing of other schools and ball parks selling commemorative artifacts left behind from demolished structures, Hart figured there could be a market for the old bricks of Pittsburg High. But first he had to obtain permission from the Pittsburg Unified School District. Once he got approval from the school board, he took away about 250 of the bricks knocked down by the wrecking ball. Several bricks have been sold in the past month since the fundraising effort began. Vince Ferrante, who graduated from Pittsburg High in 1983 and is now a district trustee, purchased a brick that now sits in his home office. "There are several reasons to own a piece of history, of Pittsburg schools in general. There is a lot of history, pride and tradition," said Ferrante, whose mother, brothers, sisters, uncles and cousins also attended Pittsburg High. "The other is to support a nonprofit that's done a lot of good for the kids in the community. “
An Overview of New 2013 Laws Affecting California Employers New Laws for 2013: Several new employment laws will affect California employers’ day-to-day operations and policies in 2013. The following list identifies some of the noteworthy new laws from the California Legislature. There have been significant changes in key areas, such as anti-discrimination protections, employee access to personnel records and employer access to personal social media accounts. Other laws relate to specific industries, such as farm labor contractors and temporary services employers. Unless specified, all new legislation goes into effect on January 1, 2013. Keep an eye on the HR Watchdog blog and HR Watchdog on Twitter for frequent updates on employment related laws, regulations and cases.
Religion and Reasonable Accommodation AB 1964 clarifies that FEHA’s discrimination protections and reasonable accommodation requirements cover religious dress practices and religious grooming practices. It also specifies that segregating an individual from other employees or the public is not a reasonable accommodation of religious beliefs or observances.
Sex Discrimination and Breastfeeding AB 2386 changes the definition of “sex” under FEHA for purposes of discrimination protections to include breastfeeding and related medical conditions. There is a mandatory update to the Discrimination and Harassment Notice. CalChamber offers an all-in-one California and Federal Employment Notice Poster which contains this updated notice.
Social Media and Personal Passwords
AB 1844 prohibits employers from requiring or requesting employees or job applicants to provide user names or passwords for personal social media accounts and from requesting an employee or
applicant to divulge personal social media. There are limited exceptions, including an exception relating to employer investigations.
Inspection of Personnel Records AB 2674 amends Labor Code section 1198.5, relating to inspection and retention of personnel records. The new law makes several significant changes, including in the following areas: (1) who has the right to inspect or request copies of personnel files; (2) any deadlines for providing access to files; (3) where and how records must be made available; (4) an employer’s obligations to retain files; and (5) penalties for failure to comply. If an employee asks for an employer-provided form to make the inspection request, the employer must provide the employee with such a form. By January 1, 2013, HRCalifornia members will have access to a form created for this purpose.
Itemized Wage Statements/Temporary Service Employers AB 1744 is effective July 1, 2013. It amends Labor Code section 226 relating to itemized wage statement and wage notice requirements and requires specified information from temporary service employers.
Penalties for Wage Statement Violations SB 1255 amends Labor Code section 226 to specifically define an "injury" for purposes of violating the itemized wage statement statute. Employers are required to provide specified information to employees on a wage statement each time wages are paid. An employee who “suffers an injury” as a result of an employer knowingly or intentionally failing to comply with the statute is entitled to recover damages against the employer.
Commission Agreements AB 2675 amends the written commission agreement law (which takes effect on January 1, 2013) to exempt certain types of wage payments from the written agreement requirement.
Bricks can be purchased at www.eddiehartaiof.org or by calling 925-518-9983 By: Eve Mitchell, Contra Cost Times For advertising opportunities contact
Pittsburg Chamber of Commerce (925) 432-7301 Chamber@pittsburgchamber.org
Business Today
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Coffee & Commerce
New Laws that may affect you
Intellectual Disabilities
Wage Garnishment
AB 2370 and SB 1381 substitute the term "intellectual disability" for the outdated term mental retardation in many statutes and regulations.
AB 1775 is a new law that increases the amount of wages that are exempt from garnishment. This amendment is effective July 1, 2013.
Human Trafficking Posting SB 1193 requires specified businesses to post an 8.5" x 11" notice, on or before April 1, 2013, that contains information about organizations that provide services to eliminate slavery and human trafficking. The Department of Justice will develop a model notice that complies with the requirements of SB 1193 and make the model notice available. This notice will also be made available on HRCalifornia after the Department of Justice has created it.
Workers Compensation Reform SB 863 is workers’ compensation reform legislation supported by the California Chamber of Commerce. The legislation offsets necessary increases in permanent disability benefits and potentially lowers system costs for employers. Some of the legislative reforms take effect January 1, 2013, but many of the new laws require administrative/regulatory action before implementation.
Accessibility Reform SB 1186 limits frivolous litigation regarding technical violations concerning disability access by reducing statutory damages, putting into place new provisions to prevent "stacking" of multiple claims to increase statutory damages and banning letters making demands for money before litigation.
FEHC Eliminated, Duties Transferred to the DFEH SB 1038 eliminates the California Fair Employment and Housing Commission (FEHC). The biggest change is the manner in which charges of discrimination or harassment are handled. The administrative hearing process before the FEHC is eliminated. Instead, the DFEH will be able to bring civil actions on behalf of a complainant directly in court and require mandatory dispute resolution.
Monthly Q&A Technology Tips
Unemployment Insurance: Overpayment and Penalties AB 1845 provides that the Employment Development Department (EDD) can deny reimbursement to an employer for any overpayments made to its unemployment insurance reserve accounts if the EDD determines that the overpayment resulted from an employer’s failure to respond to or provide adequate information to the EDD. This new law POWs onestablished the Bataan Death applies to benefit overpayments on orMarch. after October 22, 2013. (U.S. Air Force photo)
Prevailing Wage Under AB 2677, increased employer payment contributions that result in a lower hourly straight time or overtime wage do not constitute a violation of the applicable prevailing wage determination as long as certain specified conditions are met.
Farm Labor Contractors AB 1675 changes the penalties for failing to license farm labor contractors. Existing law requires farm labor contractors to be licensed by the Labor Commissioner and to comply with specified employment laws applicable to farm labor contractors. Under existing law, a person who violates farm labor contractor requirements is guilty of a misdemeanor punishable by specified fines, or imprisonment in the county jail for not more than six months, or both. This new law would, in addition, subject a person who violates the licensing requirement to citations issued by the Labor Commissioner and civil penalties that increase as the number of citations for violations increase.
Warehouse Workers AB 1855 adds warehouse workers to the list of specified contractors subject to sufficient funds requirements. Specifically, existing law prohibits a person or entity from entering into an agreement for labor or services from specified contractors (construction, farm labor, garment, janitorial or security guard) where the person or entity knows, or should have known, that the contract or agreement does not include funds sufficient to comply with applicable laws or regulations. AB 1855 adds warehouse workers to this list.
how to get the best from your technology... "It's January - a great time to look at the new year and get off to a strong start. My suggestion? Clear our your email inbox! Many of us use emails as a measure of productivity. That is, the more emails I have in my inbox, the more I have to do! But even more of us tend to leave unimportant emails unread, causing the "unread email count" in our inboxes to bloat. Spend a couple hours clearing your inbox and get it as close to "0 unread" as possible. You'll think more clearly, and you can also start using emails as a "to do" list as well. Happy New Year!" P.J. Quesada, Pittsburg chamber President Elect
Business Today
5 Tips to Start a New Business in the New Year Know what you’re after. For a dream to be realized, it has to be built on reality – your reality. Define what you love doing, what you’re good at doing and where you have experience. Also, get clear on what resources are available to you, what you’re willing to risk and what you ultimately want to gain from starting a business. Put your answers in writing to use as a compass for all decision-making going forward. This should help you avoid a situation where you end up working for your business instead of your business working for you.
Research quickly but extensively. Search the internet, conduct a brief survey, read industry studies, attend trade shows – do everything you can to become smart about your business niche. Apply that learning to your specific concept to make sure all of your operational, financial and customer assumptions are on target.
Test drive your assumptions. As quickly as possible, test out your idea on customers. This means actually selling what you offer. Your first handful of customers will teach you more about your business opportunity than anything else. Just be prepared to go back to the drawing board - initial feedback may require you to change key assumptions in your plan. Monitor progress through milestones. Tracking your progress against a timeline is crucial. Create a chart that shows dates by which you plan to achieve major milestones. Include things like “launch website,” “win tenth customer,” “break even,” etc. Hitting the milestones is important, but even more critical is adjusting your course when you don’t.
Use the buddy system. You can always been more focused and effective when you have someone to talk to about your business. For some people this can be a mentor, for others, a paid coach. However, simply having a buddy who is smart and supportive and who holds you accountable to your wide-eyed entrepreneurial ambitions can do the trick. Knowing you have to report in, adds a level of discipline to work and may be just what you need to help you realize your startup dreams.
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January 2013 Calendar of events
Harry’s Corner We here at the Pittsburg Chamber of Commerce are looking forward to an exciting and prosperous 2013.
December 31 Chamber Offices Closed
Your Chamber leadership has a few great things planned for 2013; all geared to promote the Pittsburg economy and local businesses.
2. The Buy Pittsburg/Buy Local program to focus on driving business to eight major local Pittsburg Shopping zones by creating a month long Advertising/marketing/event campaign designed to drive business to the targeted area. 3. The 29th Annual Pittsburg Seafood Festival to focus on bringing thousands of festival patrons to downtown Pittsburg for a 2 day event. 4. Developing a major partnership with local educators and youth in our community focused on business and entrepreneurship. Those are just some of the things your Chamber will be focusing on for the coming year. The staff is pumped up about implementing the 2013 programs and we look forward to working together to make our community THRIVE! Harry York
Harry York CEO
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08 Chamber Mixer SCORE Business 09 Small Business Counseling Opportunity-Junction 5:30pm-7:00pm By appointment only
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In addition, the proposed rule states that consumer-driven plans, such as highThe proposed rule calls for health plans in deductible plans linked to health savings accounts, can be acceptable if they meet the individual and small-group markets all the requirements of the law. (both inside and outside of the new HHS officials clarified that benefits don’t exchanges) to provide coverage in 10 categories of services, as required by the have to be exactly what the benchmark plan offers, but any substitutions must be health care law. made within the same kind of benefits. Essential health benefits have to equal those offered in a typical employer plan in Also released was an actuarial value a state, which serves as a benchmark plan. calculator.
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Location: 985 railroad ave. 8:00AM to 9:00AM
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Essential Health Benefits
As outlined in the federal law, the essential benefits include these categories: ambulatory patient services; emergency services; hospitalization; maternity and newborn care; mental health and substance use disorder services, including behavioral health treatment; prescription drugs; rehabilitative and habilitative services and devices; laboratory services; preventive and wellness services and chronic disease management; and pediatric services, including oral and vision care.
Pre-Existing Conditions The proposed rule covers numerous questions related to carrying out the health care law’s mandate that insurers cover any applicant who applies and allow policyholders to renew, regardless of pre-existing conditions. By law, only age, tobacco use, where someone lives and family composition may be taken into account. The price of premiums may vary only within a 3:1 ratio for adults based on age (an older person can’t pay more than three times as much as a young person).
The California Chamber of Commerce is reviewing the proposed federal rules for their impact on employers and how the Regulators have asked how to define proposed rules differ from the benchmark which family members may be included plan the state enacted in September. on the same policy or whether to leave Instead of merely requiring coverage for that question to states and insurers. at least one drug in each category and HHS also seeks information on the nature class, as noted in earlier HHS bulletins, the and magnitude of one-time fixed costs proposed rule requires coverage for at that insurers may incur in complying with least one drug in each class or the number the final insurance market rule, including of drugs that the benchmark plan offers, administrative and marketing costs. whichever is more. The health care law set up different levels of health plans and allowed catastrophiconly coverage for some people. The draft rule allows insurers in the small-group market to set higher deductibles to reach a certain coverage level.
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Agenda: Enterprise Zone Updates
Some of the upcoming programs will include: 1. The Discover Pittsburg Program to focus on the overall Pittsburg image and get the word out that Pittsburg is a great place to Live, Work, & Play! Pittsburg has it all... and we’d like everybody to know about it!
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Contact us for advertising at (925) 432-7301 or email
chamber@pittsburgchamber.org
Wellness Programs
The proposed regulation on wellness programs was released jointly by the secretaries of Labor, Health and Human Services, and Treasury. It increases the maximum permissible reward for meeting goals in an employer wellness program designed to promote good health or prevent disease among workers from 20% to 30% in 2014. The proposed regulation would further increase the maximum permissible reward to 50% for wellness programs designed to prevent or reduce tobacco use.
New Members Calpine Corp. 1200 Arcy Ln. Pittsburg, Ca. 94565 (925)7 57-3924
Monsam Enterprises Inc. 2685 Pittsburg Antioch Hwy. Antioch, Ca. 94509 (925)7 57-3924
Business Starts Here Pittsburg Chamber of Commerce 985 Railroad Ave. Pittsburg, CA. 94565 (925)432-7301
Newsletter
Monica Couture Pittsburg Chamber of Commerce
monica@pittsburgchamber.org
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