State Law Changes

November 30, 2007 Update

Recordkeeping/Posters Law

The state has updated its child labor law poster (AK ¶2-9900).

Unemployment Insurance Law

Tax rate information has been updated (AR ¶4-1700).

Overtime Pay Law

The wage payment criteria for computer software employees to be exempt from California's overtime requirements will be set at $36.00 an hour, effective January 1, 2008 (Ch. 482 (S. 929),
L. 2007, and State of California, Department of Industrial Relations, Division of Labor Statistics and Research, Memorandum, October 25, 2007, at CA ¶5-1100).

The minimum hourly wage rate licensed physicians and surgeons must receive to be exempt from California overtime requirements will be adjusted to $65.59, effective January 1, 2008 (State of California, Department of Industrial Relations, Division of Labor Statistics and Research, Memorandum, October 23, 2007, at CA ¶5-1100).

Wage Payment Law

California employers may reimburse employee business expenses as required by state wage payment law by paying an increased base salary or commission rate, the California Supreme Court ruled November 5, 2007. Nothing in the language of Labor Code Sec. 2802 restricts the methods that an employer may use to calculate reimbursement, said the court, so long as the employer identifies the portion of overall compensation that is meant as expense reimbursement and provides sufficient amounts of increased compensation to fully reimburse employees for all appropriate expenses actually incurred. Agreeing that wages and expense reimbursement are “conceptually distinct,” the court emphasized that employers must provide some method or formula to identify the amount of the combined employee compensation payment that is intended to provide expense reimbursement (Gattuso v. Harte-Hanks Shoppers, Inc., CalSCt No. 139555, November 5, 2007, at CA ¶5-1200).

Minimum Wage Law

Effective January 1, 2008, Colorado's minimum wage will be $7.02 per hour. Also effective January 1, 2008, the tipped employee minimum wage will be $4.00 per hour. The state's constitution requires the minimum wage to be adjusted annually for inflation (Colorado Minimum Wage Fact Sheet, November 2007, at CO ¶6-1000).

Additionally, a new minimum wage order will take effect in the state on January 1, 2008: Colorado Minimum Wage Order Number 24. This wage order supersedes all previous wage orders.

Unemployment Insurance Law

Effective October 7, 2007, the maximum weekly benefit amount in Connecticut is $501 (CT ¶7-1700).

Unemployment Insurance Law

Effective January 1, 2008, the term “wages” will not include remuneration over $10,500 paid to an employee in a calendar year, counting remuneration paid to the employee for service in another state (DE ¶8-1700).

Smoking in the Workplace Law

Effective November 2, 2007, District regulations have been amended with respect to smoking in places of employment and public places. Policy and posting provisions were among the affected areas (DC ¶9-2700).

Recordkeeping/Posters Law

The state has updated the English and Spanish versions of its Bill of Rights for the Injured Worker posters (GA ¶11-9900).

Unemployment Insurance Law

Georgia has amended its Employment Security Law as follows:

The definition of independent contractor status has been revised to include a provision that services performed for wages are deemed to be employment unless it is shown that such individual and the services performed for wages are the subject of an SS-8 determination by the Internal Revenue Service, which decided against employee status. The provision stating that services performed outside the usual course of business will not be considered employment has been removed.

For the period of January 1 through December 31, 2008, and January 1 through December 31, 2009, the overall increase in the rate required will be suspended, except in the event the State-wide Reserve Ratio is less than 1.25 percent on the computation date with respect to rates applicable to calendar year 2008 or 2009, then for each such year the Commissioner of Labor will have the option of imposing an increase in the overall rate of up to 35 percent, as of the computation date, for each employer whose rate is computed under a rate table. Previously, this provision only applied for calendar year 2007.

An individual's weekly benefit amount is the whole dollar amount, disregarding any fraction of a dollar, computed by dividing the wages paid him or her in the highest two quarters of the base period by 42 (previously, 44). If an individual fails to meet regular qualifying requirements, his or her weekly benefit amount is computed by dividing the highest single quarter of the base period wages by 21 (previously, 22). Effective July 1, 2007, the minimum weekly benefit amount is $44, and the maximum weekly benefit amount is $320. Effective July 1, 2008, the minimum weekly benefit amount will be $44, and the maximum weekly benefit amount will be $330 (GA ¶11-1700).

Unemployment Insurance Law

The Hawaii Employment Security Law has been amended as follows:

For benefit years beginning January 1, 2008, and ending December 31, 2010, 75% (currently, 70%) of the average weekly wage will constitute the maximum weekly benefit amount and will apply to all claims for benefits filed by an individual qualifying for payment of the maximum weekly benefit amount in the benefit year commencing on or after the first day of the calendar year immediately following the determination of the maximum weekly benefit amount.

Effective for weeks beginning January 1, 2008, each eligible individual who is unemployed in any week will be paid with respect to that week a benefit in an amount equal to the individual's weekly benefit amount less that part of the wages, if any, payable to the individual with respect to that week which is in excess of $150 (currently, $50) (HI ¶12-1700).

Drug Testing Law

Executive Order No. 2007-08, establishing the Idaho Alcohol and Drug-Free Workplace Policy, repeals and replaces Executive Order No. 2006-42 (ID ¶13-8600).

Department of Human Rights Rules of Practice and Procedure

When investigating a discrimination complaint, the Department shall neither rely on nor make credibility determinations without affording the parties the rights of confrontation and cross-examination. Title 56, Chapter II, Part 2520, Subpart C, Section 2520.430, as amended effective Oct. 19, 2007 ¶14-20,127.430.

Health Insurance Benefit Coverage Law

The state will require group insurers to provide coverage and reimbursement for amino acid-based elemental formulas, regardless of delivery method, for the diagnosis and treatment of eosinophilic disorders and short bowel syndrome when the prescribing physician has issued a written order stating that such formula is medically necessary (S. 935, L. 2007, at IL ¶14-4000).

Recordkeeping/Posters Law

The state's unemployment insurance poster has been updated (IL ¶14-9900).

Unemployment Insurance Law

The taxable wage base in Iowa for 2008 will be $22,800. This is an increase of $800 over the 2007 taxable wage base amount of $22,000 (IA ¶16-1700).

Discrimination in Public Contracts (EEO Act of 1978)

Contractors may not discriminate against any employee or applicant for employment because of race, color, religion, sex, age forty (40) and over, disability, veteran status, or national origin. Title VI, Chapter 45, Sections 45.560, 45.570, 45.590, 45.600, 45.610, 45.620, 45.630 as amended by Ch. 137 (H.B. 334), effective June 26, 2007. ¶18-23,300.02, ¶18-23,300.03, ¶18-23,300.05 through ¶18-23,300.09.

Recordkeeping/Posters Law

The state's safety and health posters (English and Spanish versions) have been updated (KY ¶18-9900).

Unemployment Insurance Law

For 2008, the taxable wage base in Missouri will increase to $12,000. This is $1,000 higher than the taxable wage base of $11,000 that has been applicable since 2005 (MO ¶26-1700).

Minimum Wage Law

Final minimum wage regulations of the Labor Commissioner took effect October 31, 2007. These replace temporary regs issued by the commissioner earlier in the year (NV ¶29-1000).

Family Leave Rules Public Employees

Unused sick leave shall accumulate from year to year without limit, whether or not it was accrued prior to an intergovernmental transfer, however, in the case of an intergovernmental transfer, the sick leave of a firefighter, or a law enforcement officer, including a sheriff's officer and a county correction officer, who has waived all accumulated sick leave, shall accrue from the effective date of the transfer. Title 4A, Sections 4A:6-1.3 and 4A:8-2.4, as amended effective Nov. 19, 2007. ¶31-22,501.03 and ¶31-22,501.40.

Unemployment Insurance Law

For 2008, the taxable wage base in New Mexico will be $19,900, which is an increase of $1,300 from the 2007 taxable wage base amount of $18,600 (NM ¶32-1700).

Preemployment Inquiries Law

The state has enacted a law allowing criminal background checks of employees of licensed mental health facilities by private entities (Session Law 2007-444 (H. 772), L. 2007, at NC ¶34-9000).

Unemployment Insurance Law

The taxable wage base in North Dakota for 2008 will be $22,100. This is an increase from the 2007 taxable wage base amount of $21,300 (ND ¶35-1700).

Criminal Background Checks Rules

Provisions regarding applicants of facilities providing care for older adults that are required to undergo a criminal background check as a condition of employment were amended. Chapter 3701-13, Sections 3701-13-01 through 3701-13-09, as amended effective Nov. 25, 2007. ¶36-23,650.51 through ¶36-23,650.57.

Persons who apply for employment with a home health agency in a position as a person responsible for the care, custody or control of a child or direct care of an older adult are required to undergo a criminal background check and submit fingerprint impressions as a condition of employment. Chapter 3701-60, Sections 3701-60-02 through 3701-60-10, as amended effective Nov. 12, 2007. ¶36-23,650.61 through ¶36-23,650.69.

Confidentiality of AIDS Tests Results Law

Unless otherwise provided by law, all information and records which identify any person who has participated in a public health investigation or who may have any communicable or noncommunicable disease which is required to be reported or information and records of any disease which are held or maintained by any state agency, health care provider or facility, physician, health professional, laboratory, clinic, blood bank, funeral director, third party payor, or any other agency, person, or organization in the state shall be confidential. Title 63, Chapter 1, Article 5, Section 1-502.2, as amended by Ch. 153 (S.B. 833), L. 2007, effective Nov. 1, 2007. ¶37-22,250.01.

Criminal Background Checks Law

Security guards and private investigators are required to undergo a criminal background check as a condition of licensure. Title 59, Chapter 42A, Section 1750.6, as amended by Ch. 360 (S.B. 920), L. 2007, effective Nov. 1, 2007. ¶37-23,600.51.

Unemployment Insurance Law

The taxable wage base in Oklahoma for 2008 will be $13,600. This is an increase of $400 over the 2007 taxable wage base amount of $13,200 (OK ¶37-1700).

Criminal Background Checks Rule

The language relating to the moral fitness of law enforcement officers was amended to clarify that background investigations are to be conducted by the employing agency on each law enforcement officer being considered for employment. Chapter 259, Division 8, Section 259-008-0010, as amended by DPSST 10-2007, effective Oct. 15, 2007. ¶38-23,653.01.

Violence in the Workplace Law

Oregon Governor Theodore R. Kulongoski signed Executive Order 07-17 requiring the Department of Administrative Services (DAS) to adopt a statewide written policy regarding issues of domestic violence, sexual assault or stalking involving agency employees by February 1, 2008. The policy shall include the following elements: (1) guidance for employees and management in addressing incidents of domestic violence, sexual assault and stalking and their effects in the workplace; (2) a requirement that the agency maintain, publish and post in locations of high visibility such as bulletin boards, break rooms and online sources, a statewide list with contact information for counseling, advocacy and referral resources for victims of domestic violence, sexual assault and stalking, as well as counseling resources for perpetrators; and (3) a clear prohibition of discrimination against employees on the basis of their victimization (Executive
Order 07-17, at OR ¶38-3300).

Overtime Pay Law

The state has enacted a law relating to overtime for health care facilities workers. The law, which will take effect March 4, 2008, establishes a maximum workday for certain nursing hourly wage employees in public or private hospitals, beyond which the employees cannot be required to perform overtime work. There are exceptions in the event of any declared national, state or municipal emergency or a disaster (Ch. 496 (S. 29) and Ch. 515 (H. 5099), L. 2007, at RI ¶41-1100).

Workers' Compensation Law

In a case of first impression, the Tennessee Supreme Court has ruled that the injuries of a telecommuter, who was viciously attacked by a neighbor she allowed into her home during the workday, occurred during the course of her employment, but did not arise out of her employment. Thus they were not compensable under state workers’ compensation law (Wait v Travelers Indemnity Co. of Illinois, TennSCt, No. M2007-00099-SC-R3-WC, November 16, 2007, at TN ¶44-4300).

Minimum Wage Law

The minimum wage in Vermont will increase from $7.53 per hour to $7.68 per hour on January 1, 2008, the Vermont Department of Labor announced on October 31, 2007. Vermont's minimum wage increases at the same rate as the August Consumer Price Index (CPI) each year. The CPI increased by two percent (State of Vermont Department of Labor Press Release, October 31, 2007).

For the first time since 2005, the basic wage rate for “service and tipped” employees is also increasing. Legislation signed by the Governor earlier this year also ties basic wages for tipped employees to the CPI. The basic wage for tipped employees will increase from $3.65 to $3.72 per hour. Service or tipped employees are individuals working in hotels, motels, tourist places, and restaurants who customarily and regularly receive more than $120.00 a month in tips for direct and personal service.

Like other workers, tipped employees' total earnings during a pay period must equal or exceed $7.68 per hour. If a combination of tips and the basic wage do not meet that requirement, the employer must make up the difference (VT ¶47-1000).

Unemployment Insurance Law

For 2008, the taxable wage base in Washington increases to $34,000 from the 2007 amount of $31,400 (WA ¶49-1700).

Unemployment Insurance Law

For 2008, the taxable wage base in Wyoming increases to $20,100. This is an increase of $2,000 from the 2007 taxable wage base amount of $18,100 (WY ¶52-1700).