Insight & Commentary on California Workplace Law Issues & Developments
All the way back in 2016, California passed legislation that employers who do not sponsor an employee-retirement plan must participate in a state-run retirement program. This program became known as CalSavers.
While there have been legal challenges to CalSavers, the program persists. The pilot phase of CalSavers launched in 2018 and the phase-in…
The California Employment Development Department (EDD) has released the Voluntary Plan Employee Contribution and Benefit Rates for 2021.
Employers are required to withhold and send state disability contributions to the EDD. The 2021 rates are as follows:
| Employee Contribution Rate | 1.2% |
| Taxable Wage Ceiling (per employee per year) | $128,298.00 |
| Maximum Contribution (per employee per |
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Governor Newsom signed Senate Bill 1159 (“SB 1159”) on September 17, 2020, which could expand the definition of injury under the workers’ compensation system to include illness or death resulting from COVID-19. In May, the governor had issued an executive order which created a presumption that any COVID-19-related illness of an employee shall be presumed…
On September 11, 2020, Governor Newsom signed Assembly Bill 276 (“AB 276”), amending California’s tax law regarding the taxation of loans from qualified employer benefit plans to employees. The amendments track the provisions of the federal CARES Act on this issue, bringing much-needed uniformity between California and federal law governing this issue.
California and federal…
As California employers continue their efforts to weather this difficult and economically uncertain time, the state is also taking steps to assist California workers affected by the COVID-19 crisis. Governor Gavin Newsom recently announced several new initiatives to support California workers who have been affected by COVID-19.
Expansion of Call Center Hours at the Employment …
As the confirmed cases of Coronavirus (COVID-19) rises in the U.S., more states are issuing directives regarding employee cost-sharing for screening and testing for the virus. Testing for COVID-19 is free if performed by the Centers for Disease Control and Prevention, however, the testing is expected to be offered more broadly by commercial labs.
On…
In a closely watched decision, Intel Corporation Investment Policy Committee v. Sulyma, Slip Op. No. 18-1116 (U.S. S. Ct., Feb. 26, 2020), construing ERISA’s three-year statute of limitations, see ERISA § 413(2), 29 U.S.C. § 1113(2), the Supreme Court held unanimously (J. Alito) that “actual knowledge” means “. . . when a plaintiff actually…
Northrop Grumman has agreed to pay $12,375,000 to settle a class action brought under the Employee Retirement Income Security Act (“ERISA”) by participants in its 401(k) plan. The parties reached the initial terms of this settlement last year minutes before the start of the trial.
The plaintiffs alleged in their complaint that the company’s administration…
