New California Laws Covering Credit Reports, Pay Notices and Independent Contractors

On October 7 and 9, 2011, California Governor Jerry Brown signed several employment-related bills into law which will take effect January 1, 2012, including:

A.B. 22, prohibiting employers from using consumer credit reports for employment purposes except in limited, specific circumstances.

A.B. 1396, requiring employers to have written contracts with any employee paid by commission.

S.B. 459, creating penalties for “willful” misclassification of individuals as independent contractors.

A.B. 469, requiring employers to provide a notice to every employee at the time of hire specifying certain wage information including the pay rate and basis, overtime rate and any allowances claimed as part of the minimum wage.
For questions or more information about how these bills will affect your business, please contact Jason D’Cruz or Brian Harris.

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Save the Date: On May 2 – 4, 2012, the MSEC will host its Ninth Annual Conference at The Sea Pines Resort in Hilton Head Island, South Carolina. Join other employers to network, address recent critical developments in employment law, and explore best practices for addressing significant human resources concerns. For more information, contact Allison Graham at agraham@mmmlaw.com.