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  November, 2016

 4th Quarter Update 

I hope this update finds you with plenty to look forward to in 2017. I wish you robust health, a thriving business, and plenty of love and joy in your life.

This is the first of several updates we'll be sending out in next few months to keep you posted on changes for 2017.  
 Updates, News and Information

INJUNCTION HALTS 12/1 FLSA CHANGES!
A federal judge in Texas has blocked the Department of Labor's new federal overtime rule which was to go into effect on December 1, 2016.  Agreeing with arguments posed by business groups, the judge issued a preliminary injunction preventing the rules from being implemented on a nationwide basis.

The new rule would have increased the minimum salary employees are required to earn in order to qualify for the overtime exemption to $913 per week or $47,476 annually.  

The fate of the overtime rules is now uncertain. The Trump administration has repeatedly indicated that it wants to eliminate regulations hampering the business community. Unless an appeals court reverses course and breathes new life into the rules, it is possible that the rules will be further delayed, completely overhauled, or scrapped once President Trump takes office. For now, and until a final decision is reached, employers may continue to follow the existing overtime regulations.

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Upcoming Laws and Changes
 
Each new year brings with it changes to various employment laws, ordinances and requirements which will, in turn, change some of your handbook policies. We will be issuing an additional newsletter toward the end of 2016 with specifics on the upcoming law changes and ordinances for 2017.

1.  There is more bad news from our delightful Board of Supervisors... Paid Parental Leave.
 
What it is: Supplemental Compensation paid by the employer in an amount such that the California Paid Family Leave compensation plus the Supplemental Compensation equals 100% of the employee's gross weekly wage. Based on the current 55% wage replacement rate under State law, the ordinance requires employers to pay the remaining 45% of the employee's weekly wages during the 6-week leave period.
 
When is it effective?
  • Employers with 50+ employees comply on January 1, 2017.
  • Employers with 35+ employees comply on July 1, 2017. 
  • Employers with 20+ employees comply on January 1, 2018. 
Who is Covered?
A "Covered Employee" entitled to Supplemental Compensation under the PPLO is an employee:
  1. Employed with the Covered Employer at least 180 days prior to the start of the leave; 
  2. Works at least eight hours per week for an employer in San Francisco;
  3. At least 40% of the total weekly hours worked are in San Francisco; and
  4. Who is eligible to receive paid family leave compensation under the California Paid Family Leave law to bond with a new child.
In cases where an employee has multiple Covered Employers, the Supplemental Compensation amount is apportioned between the Employers based on the percentage of the employee's total gross weekly wages received from each employer. In cases where an employee works for a Covered Employer and a non-Covered Employer, the Covered Employer is responsible only for its percentage of the employee's total gross weekly wages.

Maximum Weekly Benefit Limitation: The current California Paid Family Leave program places a cap on the weekly benefit amount for higher-earning workers. The current "maximum weekly benefit amount" is $1,129, which represents 55% of a person's weekly wages based on an annual salary of approximately $106,740.  
 
An employer's Supplemental Contribution obligation under the ordinance is proportionally related to the State maximum weekly benefit amount. Therefore, an employer's maximum weekly Supplemental Compensation amount under the ordinance would be $924 per week. 

TO PROTEST THIS NEW ORDINANCE: 
  • The OLSE is soliciting public comments on the draft PPLO Rules.  Comments may be submitted either by:
    • Sending written comments via email to [email protected] by Friday, December 2, 2016 at 5:00 p.m PST.; or
    • Appearing in person and testifying at the public hearing, to be held at SF City Hall on Friday, December 2, 2016 at 1:00 p.m., Room 416, 1 Dr. Carlton B. Goodlett Pl., San Francisco, CA 94102

2. Health Care Security Ordinance (HCSO) has concluded the three-year phase-out of revocable accounts known as Health Reimbursement Arrangements (HRAs);  these are the self-funded HRA plans many of you were using to help meet the ordinance's spending requirements. 
 
Effective January 1, 2017, 100% of employer expenditures for hours payable to the employee must be irrevocable. This means all money designated to each individual HSCO-eligible employee must remain with the employee and cannot at any time be recovered by or returned to the Covered Employer.

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SF Health Care (HCSO) Expenditure Rates Increasing for 2017

The 2017 health care expenditure rate for large employers (100+ employees) is increasing  to $2.64/hr.  For mid-size employers with 20-99 employees, the rate is increasing to $1.76.   More information on HCSO can be found here.  http://sfgsa.org/index.aspx?page=418 .  

Let us know if you need a referral to a competent and trusted broker. 

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Poster Requirements for California Employers 2017

Your posters have to be updated every year. The good news is they aren't expensive: $35. Call us for information or to order. 
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401(k) Contribution Limits for Retirement Accounts

The IRS announced that contribution limits for 2017 are unchanged from 2016 and are as follows:

Age 49 and under                                        $18,000
Age 50 and older (Additional Contribution):    $ 6,000

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The San Francisco Minimum Wage Increases in July of 2017  
  
From $13.00 (current rate) to $14.00 per hour as of July 1, 2017. The required poster can be downloaded at: 
http://sfgsa.org/modules/showdocument.aspx?documentid=12407
    
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  REQUIRED! Harassment Prevention Training!   

Employers with 50 or more employees  are required by AB1825 to offer Sexual Harassment Prevention training to management staff every two years. AB2053 requires a component of the prevention of "abusive conduct" as defined in the law. All new supervisory employees must be trained within six months of promotion or hire to ensure compliance. We have made this training as fast moving and entertaining as possible so please  keep us in mind when you're ready to schedule your mandated 2017 session. 

We can come onsite to your location and conduct this training for your entire management team or if you prefer, managers can attend our quarterly training at the NLS office. 
    
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Requirement Reminders 
 
Important reminders about previous year's legislation:
    
Pregnancy Disability Leave (PDL) - Employers must administer and provide specific timely pregnancy-related notifications, leaves, transfers and accommodations to their CA employees as of 12/30/12. 

Detailed Written Commission Plans are required as of 1/1/13 with certain stipulations and inclusions.
 
Written offers of employment for all Non-Exempt employees are required as of 1/1/12 also  with certain stipulations and inclusions
  
Let us know if you need more information or help with either of these requirements.  

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As always... call us if you have any questions or need assistance with policy development!
In This Issue
Updates, News and Information
Upcoming Workshops
Open Position Spotlight
Rent Our Space!


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Stay Ahead:  Check out Our Upcoming Workshops

Sexual Harassment Prevention Training: Tuesday, November 29, 2016, from 2:00 p.m. to 4:00 p.m. $125 per person including materials. Location: Tacolicious at 741 Valencia, San Francisco.
 

Workshops offered through Next Level Strategies, 1748 Clement Street, at 19th Avenue. (Free street parking or easy bus access.) 

HR 101:
Tuesday, January 24, 2017 from 10:00 - 12:30 p.m., This is a great training for new managers and overwhelmed entrepreneurs. Topics include: paperwork requirements, tip laws, defining exempt and non-exempt employees, defining independent contractors, a variety of wage and hour issues such as meal and rest breaks, what you can and can't ask during an interview, harassment prevention information, safety requirements, discrimination issues, final check and termination requirements, and much more!

Performance & Termination 101: Tuesday, January 24, 2017 from 1:00 - 3:30 p.m., Clients requested we create a training to assist in employee performance management and the termination process. Topics include:performance coaching, performance feedback, conflict resolution, proper termination techniques and beyond. 

You can take our, HR 101 workshop in the morning, stay for lunch, and take "Performance & Termination 101" in the afternoon (or take one or the other!). A discount will be offered if you take both. BRING YOUR QUESTIONS AND SCENARIOS!

You're welcome to Skype or call in to the training if you can't make it in person. 

$139 per session or $250 for both sessions, including materials. Snacks and beverages provided for those attending in person. Lunch included for those attending both sessions in person. 

RSVP to Taune Lima, 415.876.NEXT or [email protected] to reserve your space. Space is limited to 10 attendees per training!

We are open to offering weekend or evening workshops by popular demand or be onsite at your location if you have a group to train. Let us know what works for you! 

Open Positions We are Seeking to Fill


Recruiting for Architectural positions for a firm in San Francisco. Seeking Project Architects/Project Designers. 

Rent Our Deck or Conference Room!

We have a beautiful deck and conference room available for meetings or workshops.  Our space is a converted Victorian - very homey, peaceful and comfortable - in the Richmond District.  The conference room has a large table which seats eight easily around the table but there is plenty of additional room for participants within the room. There is a large white board and other tools available for your use.  The deck table seats six comfortably, with plenty of room for others, pretty plants and a view.

Call us for photos and rental details!
If any of this is news to you or you need support managing any of the changes, please call us - 415.876.NEXT.  Thank you for reading!

Julie Chendes, Taune Lima, Joy Vail, Cecilia Reynoso
 

This information is for general use only.  Please consult a licensed attorney for legal analysis and advice.