HRI eBULLETIN :: JANUARY 2012

New Requirement for New Hires

Are you ready for the 2012 changes? Employers are now required to give each non-exempt new hire a Notice of Pay Detail. This notice includes rate of pay, company pay date, workers' compensation carrier, etc. We've developed a form that you can easily use for all of your new hires. You'll also need to distribute this form to all non-exempt employees when any of the information required on the form changes and you must do this within seven (7) calendar days of the change.

NLRA Posting

The National Labor Relations board has postponed the implementation date for its new notice-posting rule by another 3 months. The federal court in Washington, DC, is in the process of hearing a legal challenge regarding the rule. The new effective date for posting the notice is April 30, 2012. Most private sector employers will be required to post the 11 x 17 notice and it is available at no cost from our website.

San Francisco Employers: HCSO Changes — Effective 01.01.12

OLSE Notice

All "Covered Employers" (i.e. businesses with 20 or more employees) must post an Official OLSE Notice regarding the HCSO at every workplace.

Health Care Expenditure Rate

2012 Health Care Expenditure rate for large employers (100+ employees) is $2.20/hour. For medium-sized employers (20-99 employees), the rate is $1.46/hour.

Annual Salary Exemption

The 2012 Annual Salary Exemption Figure (for managers, supervisors, or confidential employees) is $84,051 (or $40.41/hour).

HCSO Spending Requirement

The following new provisions apply only to businesses that utilize reimbursement accounts to satisfy, in whole or in part, the HCSO spending requirement. In order for reimbursement account contributions to qualify as health care expenditures, all of the following criteria must be met:

1. The contributions must be reasonably calculated to benefit the employee;
2. The contributions must remain available to the employee for a minimum of twenty-four months from the date of the contribution;;
3. The employee must receive a written summary of each contribution within 15 days of the date of the contribution;
4. Any reimbursement account funds available at the end of 2011 must roll-over to 2012; and
5. Upon separation, employees must be provided with a written summary of their account within 3 days and the funds must remain available for a minimum of 90 days.

Employers that Impose a Surcharge on Customers

The following new provisions apply only to employers that impose a surcharge on customers to cover, in whole or in part, the costs of the HCSO spending requirement.

1. You will be required to report two new pieces of data to the OLSE on the Annual Reporting Form (instructions will be mailed to businesses in March 2012): the amount of money collected from the surcharge for employee health care and the amount of money spent on employee health care.
2. If the amount collected from the surcharge for employee health care is greater than the amount spent on employee health care, the Covered Employer must irrevocably pay or designate an amount equal to that difference for employee health care.

Information provided by SFGO.ORG

Contact your HRI Specialist for more information at 925.556.4404.