New Laws Roll Out for 2010
A new year, a new set of laws.
2010 will see a handful of new federal and state laws that affect businesses across the state.
Ranging from the state taking more money out of your check to donations of counterfeit merchandise, the changes in the laws will have a far-reaching effect.
“I don’t think [2010] will be ’business as usual.’ The landscape of [laws and regulations] is changing too quickly and dramatically to predict what the effects will be on business,” said Stan Levy, a partner with the law offices of Manatt Phelps Phillips. He noted that his law offices will host a complimentary Webinar on Jan. 14 covering employment laws that were passed in 2009. (For more information, go to www.manatt.com.)
Richard Wortman, a partner at the law firm of Grunfeld, Desiderio, Lebowitz, Silverman & Klestadt LLP in Los Angeles, said the Consumer Product Safety Improvement Act will continue to be a major legislative focus for apparel companies as the Consumer Product Safety Commission continues to amend and implement CPSIA regulations. “There is still a lot of uncertainty and serious questions in the apparel industry on topics such as certification,” he said.
But in 2010, many eyes will be focused on Capitol Hill as the Obama administration moves closer to passing an $871 billion health care measure designed to cover 31 million uninsured Americans. In November, the House approved its version of a massive overhaul of the nation’s health care system. In late December, the Senate passed a similar bill. Now, lawmakers must combine the two measures before it can be signed into law, the effects of which aren’t expected to be felt until 2013.
Here is a brief summary of laws that go into effect in 2010:New Form I-9 Revised in August 2009, the new Form I-9 for employment-eligibility verification contains an updated list of acceptable documents that employees must present upon hiring. The updated form also includes a stipulation that all documents presented to establish identity or the ability to work in the United States must not be expired.
Acceptable documents to verify the legal right to work in the United States include a U.S. passport or passport card, a permanent-resident card or alien registration receipt card and an employment-authorization document that has a photograph. Documents that may be used to establish identity include a state driver’s license or identification card, school identification card with a photograph, voter’s registration card, or a Native American tribal document. Employment authorization may be established with documents such as a Social Security account-number card or an original or certified copy of a birth certificate issued by a state, county, municipal authority or territory of the United States bearing an official seal. A full list of documents is available online at www.uscis.gov.E-Verify RequiredFederal contractors and subcontractors must use the E-Verify system when hiring employees. E-Verify compares I-9 documents provided by new employees with federal government databases to verify employment eligibility. Employers who aren’t contracted to work with the federal government are not required to use E-Verify.State WithholdingState withholding increases went into effect on Nov. 1, 2009, with a 10 percent mandatory increase on employee withholdings, a 0.6 percent increase in supplemental wage withholding and a 1.2 percent increase on wage stock options and bonus payments.Alternative Workweek SchedulesEight-hour days are now considered a valid alternative schedule under the amended law that governs alternative workweeks. Nonexempt employees may also work 10-hour or 12-hour days without the employer having to pay overtime as long as they do not exceed 40 hours of work per week. Under any alternative workweek schedule, overtime is still owed if employees work more than 40 hours per week. The Division of Labor Standards Enforcement also issued an opinion letter stating that under some circumstances, an alternative workweek schedule may be in place for less than a full year.
SafetySenate Bill 188 amends the Code of Civil Procedure to permit post-secondary educational institutions, including community colleges and trade colleges, to seek temporary restraining orders or injunctions on behalf of a student or students with the written consent of the student. Workers’ CompensationWorkers’ compensation cannot be denied because an employee was killed by a third party in the course of the employee’s work or because a personal relationship existed between them or because the injury/death was due to a third party’s personal belief relating to the employee’s race, religion, color, national origin, age, gender, disability, sex or sexual orientation.Counterfeit GoodsAn amended Senate Bill 324 allows the owners of lawfully registered trademarks to consent to the donation of seized counterfeit goods to charity. Before SB 324 was passed in 2009, the law required that confiscated counterfeit goods be destroyed. SB 324 excludes recordings and audiovisual works. Officials estimate counterfeit goods worth more than $2 billion are sold in Los Angeles every year. On Dec. 28, the Los Angeles Police Department and the city attorney put the new law to use, distributing counterfeit Nike and Adidas sneakers to 1,800 residents of the Union Rescue Mission. The mission is scheduled to get 5,000 pairs of sneakers. Another 5,000 pairs of counterfeit sneakers are scheduled to be distributed through shelter partnerships throughout 2010.Business Mileage DecreaseThe Internal Revenue Service announced a 5 cent decrease in the standard mileage rate for business miles, from 55 cents per mile to 50 cents per mile. The mileage rate change goes into effect Jan. 1 and will also apply to travel related to injured workers’ visits for medical treatment or evaluation of their injuries.
