State Law Changes

January 31, 2007 Update

Unemployment Insurance Law

For 2007, all positive-balance employers, except those earning the minimum 0.02% rate and new employers, will receive decreases in the basic rates. Rates for positive-balance employers will range from 0.02% to 2.10%. Negative-balance employers are not entitled to rate decreases, and will continue to pay the basic rates assigned to them. These rates range from 2.85% to 5.40%. An employer whose reserve ratio is zero will pay 2.18%, and new employers will pay 2.0% in 2007. Note that the 0.1% Job Training Assessment tax remains in effect this year (AZ ¶3-1700).

Family, Medical and Parental Leaves Law

The San Francisco sick leave ordinance approved by voters as Measure F on November 7, 2006, takes effect February 5, 2007 (CA ¶5-7000).

Minimum Wage Law

The Cities of Petaluma (Ordinance No. 2256 N.C.S., at CA ¶5-1000) and Emeryville (Ordinance No. 06-019, at CA ¶5-1000) have enacted living wage ordinances.

Recordkeeping/Posters Law

The San Francisco sick leave poster has been added (CA ¶5-9900).

Unemployment Insurance Law

The UI rate schedule in effect for 2007 will continue to be Schedule F+. This is Schedule F plus a 15% emergency surcharge, rounded to the nearest tenth. Schedule F+ provides for UI contribution rates ranging from 1.5% to 6.2%. The taxable wage base for 2007 for UI purposes remains at $7,000. The new employer rate will be 3.4%, and the Employment Training Tax rate remains at 0.1% for 2007. The voluntary UI payment program is not in effect in 2007.

For 2007, the state disability withholding rate is 0.6% (CA ¶5-1700).

Anti-Bias Rules: Department of Personnel-State Employment

Rules issued by Colorado's Department of Personnel pertaining to discrimination in state employment on the basis of race, creed, color, gender (including sexual harassment), sexual orientation, national origin, age, political or religious affiliation, organizational membership, veteran's status, disability, or other non-job factor were amended. 4 CCR 801-1, Chapter 8, Sections 8-19B, 8-23B, 8-25B through 8-30B, 8-43B, 8-50B, 8-53B, and 8-64B, as amended effective Jan. 1, 2007. ¶6-20,075, ¶6-20,075.19, ¶6-20,075.23, ¶6-20,075.25 through ¶6-20,075.30, ¶6-20,075.43, ¶6-20,075.50, ¶6-20,075.53, and ¶6-20,075.64.

The rule pertaining to the Director’s review process was amended. 4 CCR 801-1, Chapter 8, Section 8-102, as amended effective Feb. 1, 2007. ¶6-20,075.25.

Minimum Wage Law

The state has issued an emergency minimum wage order that supersedes Minimum Wage Order Number 22 (CO ¶6-1000).

Recordkeeping/Posters Law

The state has updated the English version of its minimum wage poster (CO ¶6-9900).

Unemployment Insurance Law

For 2007, the “396 to 450 million” rate schedule of the tax table applies, the fund balance having been between those figures as of July 1, 2006. Rates range from 0.0% to 2.1% for positive-balance employers, and from 2.8% to 5.4% for negative-balance employers, with unrated employers paying 1.7%. The surcharge for benefits not effectively charged remains at 0.22%.

The solvency tax surcharge remains in effect for 2007 as well. The tax varies by employer, but is charged against all ratable employer accounts with less than 20 percent of excess, excluding government agencies, political subdivisions and nonprofit organizations that are reimbursable employers. Generally, employers with an increased percent of excess pay at a lower rate, while those with a decreased percent of excess pay at a higher one. The tax will increase each year for as long as it is required, but may not go past the limit set by law in 1990 (CO ¶6-1700).

Military and Emergency Services Leave Law

The district has amended, on an emergency basis, due to Congressional review, the District of Columbia Government Comprehensive Merit Personnel Act of 1978, to allow district government employees who serve in the reserve units of the U.S. Armed Forces and who have been called or will be called to active duty as a result of Operation Enduring Freedom, or in preparation for or as a result of Operation Iraqi Freedom, to receive a pay differential (Emergency Act 2 (B. 3), L. 2007, at DC ¶9-7200).

Unemployment Insurance Law

For 2007, the minimum rate is 0.12%, and the maximum rate is 5.4%, except that employers participating in the short-time compensation program will be subject to a maximum rate of 6.4%. New employers pay 2.7% in 2007. The noncharge adjustment ratio is .0026, the excess payment ratio is .0016, the fund size ratio is .0000, the gross benefit ratio is .0115, the multiplier is .3652, and the final adjustment ratio is .0012 (FL ¶10-1700).

Criminal Background Checks Rules

Individuals who provide care or services for children and vulnerable adults are required to undergo a criminal history check. The chapter was rewritten to provide clearer requirements for applicants, employers, contractors, and providers on how the results of these checks may be used and distributed. IDAPA 16, Title 05, Chapter 06, Sections 000 through 350, as amended temporary, effective Jan. 1, 2007. ¶13-23,650.51 through ¶13-23,650.164.

Employment of Aliens in State Employment E.O. 2006-40—Topic added

Idaho Governor James E. Risch has signed an executive order establishing a policy for all state agencies concerning illegal immigrants. Under the order, the Division of Human Resources shall develop and implement procedures to verify and ensure that all new employees with any agency of the state are eligible for employment under federal and state law. Executive Order 2006-40, as signed Dec. 13, 2006. ¶13-24,050.01.

Fair Employment Practices Law

Idaho Governor James E. Risch has signed an executive order establishing a policy for all state agencies concerning illegal immigrants. Under the order, the Division of Human Resources shall develop and implement procedures to verify and ensure that all new employees with any agency of the state are eligible for employment under federal and state law (Executive Order No. 2006-40, at ID ¶13-2500). 

Employee Blood Donation Leave Act

Illinois has amended its Employee Blood Donation Leave Act to provide that an employee may use up to one hour, or more if authorized by the employer or a collective bargaining agreement, to donate blood every 56 days in accordance with appropriate medical standards established by the American Red Cross, America's Blood Centers, the American Association of Blood Banks, or other nationally recognized standards. Chapter 820, Section 149/10, as amended by P.A. 94-1084 (S. 1269), L. 2005, effective Jan. 1, 2008. ¶14-22,951.04.

Family, Medical and Parental Leaves Law

The state has amended its Employee Blood Donation Leave Act to provide that an employee may use up to one hour, or more if authorized by the employer or a collective bargaining agreement, to donate blood every 56 days in accordance with appropriate medical standards established by the American Red Cross, America's Blood Centers, the American Association of Blood Banks, or other nationally recognized standards (P.A. 94-1084 (S. 1269), L. 2005, enacted January 19, 2007, at IL ¶14-7000).

Health Insurance Benefits Coverage Law

Illinois has enacted a law requiring group health insurers and HMOs to provide coverage for medically necessary preventative physical therapy for insureds diagnosed with multiple sclerosis (S. 2917, L. 2005, enacted December 29, 2006, at IL ¶14-4000).

Illinois Department of Human Rights Rules of Practice and Procedure

The protected categories of sexual orientation, citizenship status and military status were added to the Department’s equal employment opportunity clause. Title 44, Chapter X, Part 750, Appendix A, as amended effective Nov. 20, 2006. ¶14-20,126.750.

Minimum Wage Law

Effective April 1, 2007, Iowa’s minimum wage will increase to $6.20 per hour. The minimum wage will then increase to $7.25 per hour on January 1, 2008 (H. 1, L. 2007, enacted January 25, 2007, at IA ¶16-1000).

Health Insurance Benefit Coverage Law

The Maryland Fair Share Health Care Fund Act, which was scheduled to take effect on January 1, 2007, is preempted by ERISA, the Fourth Circuit Court of Appeals has ruled. The court found the law conflicts with ERISA's goal of permitting uniform nationwide administration of employee health insurance plans. As such, the court affirmed the district court's decision, striking down the law (Retail Industry Leaders Association v. Fielder, Jr., CA-4, No. 06-1840, January 17, 2007, at MD ¶21-4000).

Child Labor Law

The law relating to the employment of persons under the age of 18 has been amended to prohibit the employment of minors in any job or occupation requiring the possession or use of a firearm. Child labor provisions have also been amended to allow minors to work later in certain occupations, to require supervision by an adult supervisor after 8:00 p.m., to provide for criminal penalties and increased fines for violations and allow for warnings and appeals at the discretion of the attorney general, to amend requirements regarding work permits for those ages 14 to 16, to amend recordkeeping requirements to require preservation of records until a child is 18 years of age, and to provide for certain educational requirements (Ch. 426 (H. 4638), L. 2005, enacted January 3, 2007, at MA ¶22-1500).

Criminal Background Checks Law

Teachers, administrators, substitute teachers, and other certain employees in public and private schools are required to undergo a criminal background check as a condition of employment. Chapter 380, Sections 380.1230 through 380.1230c, as amended by P.A. 680 (H.B. 6173), L. 2006, effective Jan. 8, 2007. ¶23-23,600.05 through ¶23-23,600.08.

Fair Employment Practices Law

The City of Lansing has enacted a human rights ordinance that prohibits employment discrimination based on “irrelevant characteristics,” which are defined as a person’s actual or perceived race, religion, ancestry, national origin, color, sex, age, height, weight, student status, marital status, familial status, housing status, veteran status, political affiliation or belief, sexual orientation, gender identity or expression, mental or physical limitation, and source of income (Ordinance #O1120, at MI ¶23-2500).

Health Insurance Benefit Coverage Law

The state has enacted a law requiring health insurers, HMOs, nonprofit health care corporations, managed care organizations, preferred provider organizations, self-funded health plans, and professional associations, trusts, pools, unions, or fraternal groups offering health coverage to report monthly information necessary to enable the determination of whether a health coverage recipient of those entities is also a medical assistance recipient (P.A. 593 (H. 6603), L. 2005, enacted and effective December 30, 2006, at MI ¶23-4000).

Recordkeeping/Posters Law

The state's new minimum wage poster has been added (MO ¶26-9900).

Rules and Regulations of Equal Rights Commission

The regulations were amended to augment and clarify the manner in which the Nevada Equal Rights Commission continues to achieve expeditious, high quality resolutions of employment discrimination charges and ensures efficient, effective and coordinated civil rights laws are enforced. Chapter 233, Sections 233.002, 233.070, 233.090, 233.105 and 233.220 as amended effective Nov. 16, 2006, and Sections 2 through 12, not yet codified as adopted effective Nov. 16, 2006. ¶29-20,125.02, ¶29-20,125.70, ¶29-20,125.90, ¶29-20,125.105, ¶29-20,125.220 and ¶29-20,125.230.

Affirmative Action on Public Contracts Law

The law was amended by adding "gender identity or expression" to the list of protected classes. Title 10, Chapter 5, Sections 10:5-31 through 10:5-34, as amended by S.B. 362, L. 2006, effective June 17, 2007. ¶31-23,402.01 through ¶31-23,402.04.

Discrimination on Public Works Contracts Law

The law was amended by adding "gender identity or expression" to the list of protected classes. Title 10, Chapter 2, Section 10:2-1, as amended by S.B. 362, L. 2006, effective June 17, 2007. ¶31-23,300.01.

Family Leave Law

Family leave benefits will apply to civil union couples in like manner as they apply to spouses. Title 34, Chapter 11B, Section 34:11B-3, as amended by Ch. 103 (A. 3787), L. 2006, effective Feb. 19, 2007.  ¶31-22,450.03.

Health Insurance Benefits Coverage Law

New rules have been added to the New Jersey Administrative Code regarding employer responsibilities in case of health benefits plan termination or changes. The rules took effect January 16, 2007, and will expire on January 16, 2012 (NJ ¶31-4000).

Law Against Discrimination

The law was amended by adding ``gender identity or expression’’ to the list of protected classes. Title 10, Chapter 5, Sections 10:5-3 through 10:5-6, 10:5-8. 10:5-10 and 10:5-27, as amended by S.B. 362, L. 2006, effective June 17, 2007. ¶31-20,025.03 through ¶31-20,025.06, ¶31-20,025.08, ¶31-20,025.10, ¶31-20,025.12, and ¶31-20,025.27.

In addition, same-sex couples will have the same rights and benefits as heterosexual couples who choose to marry, this civil union status will be a protected class under the law. Title 10, Chapter 5, Sections 10:5-5 and 10:5-12, as amended by Ch. 103 (A.B. 3787), L. 2006, effective Feb. 19, 2007. ¶31-20,025.05 and ¶31-20,025.12.

Preemployment Inquiries Law

The state has added background check requirements for specified independent contractors, effective September 15, 2007 (Ch. 101 (S. 462), L. 2006, enacted December 19, 2006, at NJ ¶31-9000).

Criminal Background Checks Law

The education commissioner has the authority to promulgate rules requiring the fingerprinting of all prospective employees. This law is in the Education Law, Title I, Section 305, as amended by Ch. 630 (A.B. 11399), L. 2005, effective July 1, 2007. ¶33-23,600.01.

The state has enacted a law authorizing nonpublic and private elementary and secondary schools to require their prospective employees to submit fingerprints through the commissioner of education for the purpose of criminal background checks. Education Law, Title IV, Section 3001-3, as enacted by Ch. 630 (A.B. 11399), L. 2006, effective July 1, 2007. ¶33-23,600.20.

Fair Employment Practices Law

On January 1, 2007, Governor Eliot Spitzer signed Executive Order No. 5, specifically continuing Executive Order No. 19, which was signed by former Governor Mario M. Cuomo on May 31, 1983. This order constitutes the state policy statement on sexual harassment in the workplace (NY ¶33-2500).

Unemployment Insurance Law

For 2007, the rates in Schedule 0 remain in effect in North Carolina. Also, because the fund balance on the computation date was less than $163,349,000, the 20% State Reserve Tax is also in effect this year (NC ¶34-1700).

Unemployment Insurance Law

For positive experience-rated North Dakota employers for 2007, contribution rates range from 0.34% to 1.07%. Rates for negative experience-rated employers for 2007 range from 5.18% to 8.09%. New positive-balance nonconstruction employers pay 1.60%. Negative balance nonconstruction employers pay 5.18%. All new construction employers pay 8.09% (ND ¶35-1700).

Criminal Background Checks Rules

Child care center administrators and personnel are required to sign a statement of non-conviction and to undergo a criminal history check as a condition of licensure and employment. Chapter 5101:2-12, Section 5101:2-12-26, as amended effective Jan. 1, 2007. ¶36-23,651.01.

Persons operating a family day-care home are required to provide a statement of non-conviction and undergo a criminal history check. Chapter 5101:2-13, Section 5101:2-13-26, as amended effective Jan. 1, 2007. ¶36-23,651.11.

Drug Testing Law

The state has enacted a law prohibiting a state agency from awarding a public improvement contract unless its terms require the contractors and subcontractors to participate in a specified drug-free workplace program (H. 80, L. 2005, enacted December 29, 2006, at OH ¶36-8600).

Fair Employment Practices Law

The definition of “physical or mental impairment” has been amended to exclude the current use of alcoholic beverages under psychoactive substance use disorders, effective July 1, 2007 (H. 187, L. 2005, at OH ¶36-2500).

The definition of "Physical or mental impairment" has been amended to exclude the current use of alcoholic beverages under psychoactive substance use disorders. Title 41, Chapter 4112, Section 4112.01, as amended by H.B. 187, L. 2005, effective July 1, 2007. ¶36-20,025.01.

Minimum Wage Law

The state has enacted a law clarifying its statutory minimum wage provisions in light of the November 2006 ballot measure amending the state constitution with respect to minimum wage (Session Law No. 178 (H. 690), L. 2005, enacted January 2, 2007, at OH ¶36-1000).

Overtime Pay Law

The state has enacted a law clarifying the statutory overtime provisions affected by the November 2006 ballot measure amending the state constitution with respect to minimum wage (Session Law No. 178 (H. 690), L. 2005, enacted January 2, 2007, at OH ¶36-1100).

Recordkeeping/Posters Law

The state has updated its minimum wage poster (OH ¶36-9900).

Unemployment Insurance Law

The state experience factor for 2007 is 41%, and the fund is in condition A. Therefore, rates for 2007 range from 0.2% to 5.8% of the first $13,200 paid to an individual employee. The new employer rate for 2007 is 1.8%. The taxable wage base in Oklahoma for 2007 will be $13,200. This is a decrease of $300 from the 2006 taxable wage base amount of $13,500 (OK ¶37-1700).

Breastfeeding Rights in Employment Law

The law has been expanded to provide nursing mothers one hour to nurse or extract breast milk each full-time working day. Title 29, Part I, Chapter 19A, Sections 478, 478a, 478e through 478h, as amended by Act 239 (S.B. 415), L. 2006, effective Nov. 6, 2006. ¶40-22,650.01, ¶40-22,650.02 and ¶40-22,650.06 through ¶40-22,650.09.

Disability Law

Public agencies and corporations are required to meet hiring quotas in hiring qualified persons with disabilities, as a public policy, five percent over four years, or basically 1.25 per year (Act #219 (H. 2484), L. 2006, at PR ¶40-2600).

Employment of Qualified Handicapped Persons in Public Employment Law—Topic added

Public agencies and corporations are required to meet hiring quotas in hiring qualified persons with disabilities, as a public policy, five percent over four years or basically 1.25 per year. Act 219 (H.B. 2484), L. 2006, Articles 1 through 5, as enacted effective Sept. 29, 2006. ¶40-20,751.01 through ¶40-20,751.05. 

Fair Employment Practices Law

Puerto Rico has expanded its definition of workplace sexual harassment to include harassment by electronic means (Act #252 (H. 223), L. 2006, at PR ¶40-2500).

Meal and Rest Periods Law

Puerto Rico has expanded the rights of nursing mothers in the workplace (Act #239 (S. 415), L. 2006, at PR ¶40-1400).

Unemployment Insurance Law

The 2007 TDI taxable wage base for Rhode Island is $52,100. The employee contribution rate is 1.3% (RI ¶41-1700).

Fair Employment Practices Law

Utah Governor Jon M. Hunstman, Jr. has issued an executive order prohibiting unlawful harassment (discriminatory treatment based on race, religion, national origin, color, sex, age, protected activity or disability) in any and every workplace in which state employees and employees of public and higher education are required to conduct business (Executive Order 2006-0012, at UT ¶46-2500).

Prohibiting Unlawful Harassment E.O. 2006-0012

Utah Governor Jon M. Hunstman, Jr. has issued an executive order prohibiting unlawful harassment (discriminatory treatment based on race, religion, national origin, color, sex, age, protected activity or disability) in any and every workplace in which state employees and employees of public and higher education are required to conduct business. E.O. 2006-0012, effective Dec. 13, 2006, superseding E.O. "Prohibiting Sexual Harassment," dated March 17, 1993. ¶46-21,550.01.

Unemployment Insurance Law

For calendar year 2007, the reserve factor is 1.0, and the social charge tax rate is 0.33%.Total rates for experience-rated employers for 2007 range from 0.3% to 9.3%, except that delinquent employers continue to pay an additional surcharge of 1.0%. Rates for new employers for 2007 are based on an industrial classification rate, and range from 1.5% to 9.3%. The taxable wage base in Utah for 2007 will be $25,400, up from $24,000 in 2006 (UT ¶46-1700).

Recordkeeping/Posters Law

The state has updated its minimum wage poster (WA ¶49-9900).