Important New Law Applicable to All Employers for 2012 1

By: Allyson K. Thompson

The California Legislature recently enacted a new law that requires all employers to give their new hires written notice regarding the terms of their employment. This law goes into effect on January 1, 2012. The form is accessible through this link. Keep in mind that you do not need to have your new hires fill out this form if 1) the employees are directly employed by the state or any political subdivision; 2) the employees are exempt and not entitled to overtime, and 3) if the employee is covered by an collective bargaining agreement.

This law is not retroactive, so only new employees as of January 1, 2012 need to fill out this form. Be sure to keep a copy of this form in the employee's personnel file. Should any of the information contained in the Employee Notice change during the course of the employment, the employer is required to update the Employee Notice and inform the employee.

What is important about this new law, is that all employers must be clear about classifying their new hires as either exempt or non-exempt at the outset of their employment. If you have any questions about whether or not a new hire is exempt or non-exempt or the new law, please contact us.

Allyson K. Thompson is an Associate with Kring & Chung, LLP's Irvine, CA office. She can be contacted at (949) 261-7700 or athompson@kringandchung.com.