January 2012

Alaska
Unemployment Insurance

Contribution rates in Alaska for 2012 range from 1.31% to 5.4% for eligible employers, based on payroll decline experience. For 2012, the average benefit cost rate used to determine the rates is 0.024417, the trust fund reserve rate is 0.021016, and there is a 0.6% trust fund solvency adjustment. The standard rate for 2012 is 4.11%, and the employee tax rate for 2012 is 0.66%. Summaries, State Employment Law Library ¶2-1700.

Arizona
Minimum Wage

Reminder: Effective January 1, 2012, the minimum wage rate in Arizona is $7.65 per hour. The 30 cent increase from the 2011 rate of $7.35 is based on a 3.8% increase in the cost of living from August 2010 to August 2011. See Section 23-363. Summaries, State Employment Law Library, ¶3-1000. Full text, State Employment Law Library, ¶3-41,001a.

Arkansas
Background Checks

Arkansas has amended its statutes to provide that it is unlawful for a sex offender who is required to register under the Sex Offender Registration Act of 1997, and who has been assessed as a Level 3 or Level 4 offender, to knowingly accept work as a self-employed person, an independent contractor, or an employee or agent of a self-employed person or independent contractor that is to be performed at a private daycare facility when the private owned daycare facility has in its care a child (Act 1023 (H. 1415), L. 2011). Summaries, State Employment Law Library ¶4-9000).

Arkansas
Unemployment Insurance

Basic contribution rates in Arkansas will continue to be increased by a 0.8% stabilization tax, a 0.1% extended benefits tax, and a 0.2% advance interest tax in 2012. Thus, rates will range from 1.2% to 7.1% for the year. The rate for new employers will be 4.0%, which also includes the stabilization, extended benefit, and advance interest taxes. Summaries, State Employment Law Library ¶4-1700.

California
Minimum Wage

Reminder: The minimum wage for employees working in San Francisco, California, is $10.24 per hour, effective as of January 1, 2012. Employers must pay the minimum wage to all employees performing work in the City, including temporary and part-time employees. The law applies to both adult and minor employees who work two or more hours per week within the geographic boundaries of the city. Summaries, State Employment Law Library ¶5-1000.

The Minimum Compensation Ordinance (MCO) requires that commercial businesses that contract with the city or that lease property at SFO pay a minimum compensation of $12.06 per hour to employees, effective January 1, 2012. Nonprofit organizations must pay a minimum compensation rate of $11.03 per hour. Summaries, State Employment Law Library ¶5-1000.

California
Overtime Pay

In a long awaited decision, the California Supreme Court has ruled that insurance claims adjusters were exempt “administrative” employees not entitled to overtime compensation under the California Labor Code and regulations of the California Industrial Welfare Commission (IWC) (Harris v Superior Court of Los Angeles County, December 29, 2011, Case No. S156555, Corrigan, C). In this instance, the California high court ruled that the court of appeals improperly relied on the administrative/production worker dichotomy as a dispositive test as to whether or not the claims adjusters were exempt administrative employees. Summaries, State Employment Law Library ¶5-1100.

Colorado
Minimum Wage

Reminder: The minimum wage in Colorado is $7.64 per hour, effective January 1, 2012. The minimum wage applies to all adult employees and emancipated minors. If an employee is covered by both federal and Colorado minimum wage laws, then the employer must pay the higher, state minimum wage rate. For tipped employees who receive more than $30 per month in tips, employers must pay a minimum wage of at least $4.62 per hour (If tips and combined wages do not equal the minimum wage of $7.64, the employer must make up the difference in cash wages). Employees with a physical disability certified by the Director and unemancipated minors under the age of 18 may be paid a reduced minimum wage of $6.49 per hour (15% below the current minimum wage, less any applicable lawful credits)(Source: Colorado Minimum Wage Order No. 28; Colorado Minimum Wage Fact Sheet, Revised December 2011). Summaries, State Employment Law Library ¶6-1000. Full text, State Employment Law Library ¶6-41,001 and ¶6-41,803.

Connecticut
Health Insurance Benefits Coverage

The state has amended its law concerning health insurance coverage of prescription drugs for pain treatment (P.A. 11-169 (S. 1083), L. 2011, effective January 1, 2012). Summaries, State Employment Law Library ¶7-4000.

Connecticut
Recordkeeping/Posters

The state has provided an optional paid sick leave law poster for employer use in meeting the notice requirements of the law. Summaries, State Employment Law Library ¶7-9900.

Delaware
Background Checks

The state has amended its criminal background check law with respect to school bus drivers (Ch. 19 (H. 39), L. 2011). Summaries, State Employment Law Library ¶8-9000.

Florida
Minimum Wage

Reminder: The Florida minimum wage increased from $7.31 per hour to $7.67 per hour effective January 1, 2012. The minimum wage applies to all employees in the state who are covered by the federal minimum wage. Employers of “tipped Employees” who meet eligibility requirements for the tip credit of $3.02 under the Federal Labor Standards Act (FLSA) must pay tipped employees a direct hourly wage of $4.65 per hour effective January 1, 2012, to equal $7.67 per hour. The 36-cent increase for 2012 reflects a 4.9% increase in the cost of living, based on the Consumer Price Index—South Urban Wage Earners and Clerical Workers, for the period August 2010 to August 2011. See Article X, Sec. 24, Constitution of the State of Florida. Summaries, State Employment Law Library ¶10-1000. Full text, State Employment Law Library ¶10-41,001.

Georgia
Unemployment Insurance

For rate year 2012, rates for employers with positive reserve accounts will range from 0.025% to 2.110%, and rates for employers with negative reserve accounts will range from 2.15% to 5.4%. These rates do not include the 0.08% administrative tax where applicable (this tax is not payable by employers paying the minimum rate or the maximum rate), which remains in effect for 2012. Summaries, State Employment Law Library ¶11-1700.

Hawaii
Unemployment Insurance

For 2012, the taxable wage base is $38,800, an increase of $4,600 over the 2011 taxable wage base of $34,200. Schedule H is in effect for 2012, and rates range from 2.4% to 5.2% for positive-balance employers. The rate is 5.4% for all negative-balance employers. New employers pay 5.2%. The Employment and Training Assessment is 0.0% for 2012.

The maximum weekly benefit amount in Hawaii for UI purposes is $523 for 2012. Summaries, State Employment Law Library ¶12-1700.

Idaho
Right to Work

On December 22, 2011, in Building and Construction Trades Council, et al. v. Wasden, (USDC Idaho, Case No. 1:11-cv-00253), United States District Judge B. Lynn Winmill stopped right to work measures enacted in 2011 from going into effect, saying the measures violate federal rules and would restrict the free play of economic forces. The bills at issue, S.B. 1006, the “Open Access to Work Act,” and S.B. 1007, the “Fairness in Contracting Act,” prohibit requiring project labor agreements on public works projects and prohibit labor organizations from using member wages, dues or assessments to pay wage subsidies or rebates to members to directly or indirectly subsidize a contractor or subcontractor. According to Judge Winmill, the Fairness in Contracting Act is invalid because it would bar programs protected under the National Labor Relations Act. See Secs. 44-2012 and 44-2013. Full text, State Employment Law Library ¶13-63,044 and ¶13-63,044a.

Idaho
Unemployment Insurance

For 2012, the taxable wage base for Idaho is $34,100, an increase of $1,100 from the 2011 taxable wage base amount of $33,300. Summaries, State Employment Law Library ¶13-1700.

Illinois
Equal Pay

Reminder: Changes to the Illinois Equal Pay Act are effective January 1, 2012, to protect workers who file complaints with the Department of Labor from discharge and discrimination and increasing the maximum penalty from $2,500 to $5,000 (Public Act 97-512 (S.B. 115), L. 2011). Summaries, State Employment  Law Library ¶14-2500. Full text, State Employment Law Library ¶14-42,010.

Illinois
New Hire Reporting

Each new hire report must now contain the date services for remuneration were first performed by an employee, in addition to the employee's name, address, and Social Security number, and the employer's name, address and federal Employer Identification Number (P.A. 97-621 (S. 72), L. 2011). Summaries, State Employment Law Library ¶14-1600. Full text, State Employment Law Library ¶14-47,024.

Illinois
Prevailing Wages

Reminder: The Prevailing Wage Act is amended to provide for stricter certified payroll reporting requirements, effective January 1, 2012. The Act is amended to increase the penalty for willfully failing to file a certified payroll or filing a false certified payroll from a Class B misdemeanor to a Class A misdemeanor. The Act is also amended to allow federal, state or local law enforcement agencies and prosecutors access to certified payroll records. In addition, the Act is amended to provide that any contractor or subcontractor convicted or found guilty of willful violations would be subject to an automatic and immediate debarment from participating in any public work project for four years, with no right to a hearing (Public Act 97-571 (H. 3237), L. 2011).  Full text, State Employment Law Library ¶14-50,006, ¶14-50,007 and ¶14-50,014.

Also, the definition of “public works” is amended to include projects undertaken under a public-private agreement under the Public-Private Partnerships for Transportation Act (PA 97-502 (H 1091), L. 2011). Full text, State Employment Law Library ¶14-50,003.

Illinois
Unemployment Insurance

Illinois has amended its unemployment insurance law in many areas, including taxable wage base, weekly benefit amount, maximum benefit amounts, adjusted state experience factor, contribution rates, and fund building rates. Summaries, State Employment Law Library ¶14-1700.

Louisiana
Unemployment Insurance

The taxable wage base in Louisiana for 2012 will remain $7,700. Summaries, State Employment Law Library ¶19-1700.

Maine
Arbitration

The Uniform Arbitration Act is amended relating to court jurisdiction, providing that court jurisdiction for enforcing an arbitration agreement and to enter judgment on an award under the agreement refers to the superior court or the district court of the state (Ch. 80 (H. 379; L.D. 486), L. 2011). Full text, State Employment Law Library ¶20-61,002, ¶20-61,017 and ¶20-61,018.

Maine
Employee Misclassification

Law is enacted concerning independent contractor status in the trucking and messaging courier industries. The operator of a motor vehicle engaged in the business of freight transportation or courier and messenger services is considered an employee, unless certain conditions apply or the operator is able to provide proof of coverage by a valid workers' compensation insurance policy—in such instances, the operator would be considered an independent contractor.

An operator of a motor vehicle (van, truck, or truck tractor used for freight transportation or courier or messenger services) is considered an independent contractor in the business of freight transportation or courier and messenger services if the operator: (1)owns or leases the motor vehicle; (2) is responsible for the maintenance of the motor vehicle; (3) is responsible for substantially all of the principal operating expenses of the motor vehicle; (4) is responsible for paying the operator's personal expenses; (5) is responsible for supplying the necessary services to operate the motor vehicle; (6) is compensated based on factors directly related to the work performed, such as mileage-based rates, and not solely on the amount of time expended by the operator; (7) substantially controls the means and manner of performing the services related to the business of freight transportation or courier and messenger services in conformance with the specifications of a shipper and the law; and (8) possesses a certification statement affirming that the operator whose services are being acquired meets each of the factors specified in this and that the operator is understood to be an independent contractor and not an employee. The statement must be signed and dated by the operator and the hiring entity and must be supplied on demand to an insurance premium auditor or the board (Ch. 176 (S. 332; L.D. 1099), L. 2011). Full text, State Employment Law Library ¶20-48,004.

Maine
Job Reference Liability

A school administrative unit employee who discloses information about a former employee’s job performance or work record to a prospective employer is presumed to be acting in good faith and, unless evidence shows a lack of good faith, is immune from civil liability  for such disclosure or its consequences under a new law enacted September 28, 2011 (Ch. 397 (H. 1030; L.D. 1402), L. 2011). Summaries, State Employment Law Library ¶20-9000. Full text, State Employment Law Library ¶20-64,055.

Maine
Workers’ Compensation

In a 4-3 decision, a panel majority of the Maine Supreme Judicial Court upheld a decision of a workers' compensation board hearing officer finding that an employee of an employment agency could not seek relief against the client company to which he was assigned because he did not have a contract for hire with it (Doughty v Work Opportunities Unlimited/Leddy Group, December 13, 2011, Case No. 2011 ME 126, Gorman, J). The dissent disagreed, arguing that the traditional test to determine employee status should have been applied and that under those standards, he was clearly an employee. Summaries, State Employment Law Library ¶20-4300.

Michigan
Health Insurance Benefit Coverage

Under the Public Employee Domestic Partner Benefit Restriction Act, a public employer shall not provide medical benefits or other fringe benefits for an individual currently residing in the same residence as a public employee, if the individual is not one or more of the following: (1) married to the employee; (2) a dependent of the employee for federal tax purposes; (3) otherwise eligible to inherit from the employee under Michigan laws of intestate succession. A provision in a contract entered into after December 22, 2011, that conflicts with the requirements of the act is void. If a collective bargaining agreement or other contract that is inconsistent with the act was in effect for a public employee on December 22, 2011, the act does not apply to that group of employees until the CBA or other contract expires or is amended, extended, or renewed (Act 297 (H. 4770), L. 2011, effective December 22, 2011). Summaries, State Employment Law Library ¶23-4000.

Minnesota
Unemployment Insurance

For 2012, the base rate is 0.50%, and the Workforce Development Fee is 0.10%. An additional assessment of 14.0% of the tax due also is in effect for 2012. High experience-rated industry new employers will be assigned a total rate of 10.8696%. All other new employers will be assigned a total rate of 3.5715% for 2012. There is also a 0.50% federal loan interest assessment in effect for 2012. Summaries, State Employment Law Library ¶24-1700.

Missouri
Job Reference Liability

By July 1, 2012, every school district must adopt a written policy on information that the district provides about former employees, both certificated and noncertificated, to other public schools. The policy must include who is permitted to respond to requests for information and what information is to be provided. In addition, the policy must require that notice of this provision be provided to all current employees and to all potential employers who contact the school district regarding the possible employment of a school district employee. An employee permitted to respond to requests for information regarding former employees under the school district’s policy who, acting in good faith and without malice, communicates only the information the policy directs would be immune against any civil liability arising out of the communication of such information. A school district would not be immune from liability if, when furnishing a reference for a former employee or when responding to a potential employer's request for information, the district fails to disclose any allegations of sexual misconduct for which an employee (whose job involved contact with children) was dismissed or allowed to resign in lieu of being fired (S. 54, L. 2011). Summaries, State Employment Law Library ¶26-9000.

Montana
Minimum Wage

Reminder: The minimum wage in Montana is $7.65 per hour, effective as of January 1, 2012. A business not covered by the federal Fair Labor Standards Act whose gross annual sales are $110,000 or less may pay $4.00 per hour; However, if an individual employee is producing or moving goods between states or is otherwise covered by the Fair Labor Standards Act, that employee must be paid the greater of either the federal minimum wage or Montana’s minimum wage. See Sec. 39-3-409. Summaries, State Employment Law Library ¶27-1000. Full text, State Employment Law Library ¶27-41,009.

New Jersey
Unemployment Insurance

The rate New Jersey employees will pay to cover Family Leave Insurance has increased from 0.06%, which was effective from January 1, 2011, to December 31, 2011, to 0.08% for the period of January 1, 2012, to December 31, 2012. Also, the employee contribution rate for Disability Insurance will be 0.2% for the period January 1, 2012, to December 31, 2012, which represents a decrease from the 0.5% rate that was effective for 2011. Summaries, State Employment Law Library ¶31-1700.

New Mexico
Unemployment Insurance

For 2012, the rates in Schedule 3 are in effect. Schedule 3 contribution rates range from 0.6% to 5.4%. The rate for new employers is 2.0%. Summaries, State Employment Law Library ¶32-1700.

North Carolina
Unemployment Insurance

The taxable wage base in North Carolina for 2012 is $20,400, an increase of $700 from the 2011 taxable wage base of $19,700. Summaries, State Employment Law Library ¶34-1700.

North Dakota
Child Support

Employers with more than 24 employees who have received more than four income withholding orders must remit withheld funds by an electronic method approved by the child support agency. Employers with fewer than five income withholding orders may opt out of the requirement only by written request. The child support agency may waive, upon a showing of good cause, the requirement to remit electronically.

Also, new hire reporting requirements are amended to require employers to include among the information submitted to the directory whether health insurance is offered to employees, and employers with more than 24 employees must report new hires through an internet-based method provided by the department. The department may waive, upon a showing of good cause, the requirement to report new hires electronically (Ch. 251 (S. 2258), L. 2011, effective January 1, 2012). Full text, State Employment Law Library ¶35-47,012a, ¶35-47,024 and ¶35-47,025.

Ohio
Health Insurance Benefit Coverage

No qualified health plan as defined in the Patient Protection and Affordable Care Act, offered in this state through an exchange created under that act, shall provide coverage for a nontherapeutic abortion (Session Law No. 2011-57 (H. 79), L. 2011, enacted December 21, 2011). Summaries, State Employment Law Library ¶36-4000.

Ohio
Minimum Wage

Reminder: The minimum wage in Ohio is $7.70 per hour for non-tipped employees and to $3.85 per hour for tipped employees (plus tips), effective as of January 1, 2012. However, for those employees whose employers gross $283,000 or less per year and for minors ages 14 and 15 years old, the minimum wage is $7.25 per hour, which is tied to the federal rate. See Article II, Section 34a, Ohio Constitution. Summaries, State Employment Law Library ¶36-1000. Full text, State Employment Law Library ¶36-41,001.

Ohio
Unemployment Insurance

For 2012, Ohio contribution rates will range from 0.7% to 9.1%. The mutualized rate is 0.4%. The new employer rate for 2012 will be 2.7%, except that new employers in the construction industry will pay a rate of 7.0%. The maximum rate (delinquency rate) will be 11.4%. Summaries, State Employment Law Library ¶36-1700.

Oklahoma
Drug Testing

The Oklahoma Standards for Workplace Drug and Alcohol Testing Act (SWDATA) provides an independent cause of action authorizing a classified state employee to file an action in district court for a willful violation of the Act without first exhausting all administrative remedies, held the Oklahoma Supreme Court in a case of first impression (Jones v State of Oklahoma, December 20, 2011, Kauger, Y). Summaries, State Employment Law Library ¶37-8600.

Minimum Wage

Reminder: The minimum wage in Oregon is $8.80 per hour effective January 1, 2012. Employers, including employers regulated under the federal Fair Labor Standards Act, may not include any amount received by employees as tips in determining the amount of the minimum wage required to be paid. See Sec. 653.025. Summaries, State Employment Law Library ¶38-1000.  Full text, State Employment Law Library ¶38-41,005.

Also effective January 1, 2012, the exemptions from minimum wage requirements are amended to include volunteer golf course marshalls if (a) The services the individual provides are limited to monitoring starting times and speed of play and informing golfers of golf course etiquette; (b) the individual is not allowed to provide volunteer golf course marshal services for more than 30 hours in a calendar week; and (c) the individual receives no wage other than golf passes for providing the volunteer golf course marshal services (Ch. 376 (H. 3030), L. 2011). Summaries, State Employment Law Library ¶38-1000.  Full text, State Employment Law Library ¶38-41,003.

Oregon
Recordkeeping/Posters

The state’s agricultural employees minimum wage/child labor posters have been updated. The family leave posters have also been updated, and the following have been added: smokefree workplace decal and smokefree workplace brochure. Summaries, State Employment Law Library ¶38-9900.

Rhode Island
Unemployment Insurance

The state will now have a two-tier UI taxable wage base in effect beginning in calendar year 2012. Tier 1 sets the state's UI taxable wage base at 46.5% of the statewide average annual wage for most employers. Tier 2 impacts only employers in the highest tax group (those receiving a rate of 9.79%), and sets the taxable wage base $1,500 higher than the wage base for employers in lower tax groups. As a result, the 2012 UI taxable wage base for most employers will be $19,600. This figure is based upon the 2010 average annual wage of $42,113, and represents a $600 increase over the 2011 taxable wage base. The 2012 UI taxable wage base for employers in the highest tax group—approximately one quarter of all employers in the state—will be $21,100.
Prior to July 1, 2012, the benefit rate payable to an eligible individual for a week of total unemployment is equal to 4.62% of the wages paid to the individual in that quarter of the base period in which his or her wages were highest. Effective July 1, 2012, an individual's weekly benefit amount will be based upon the average of the total wages in the two highest quarters of his or her base period rather than the wages earned in the single highest quarter. This will avoid any skewing of the benefit rate for those who worked overtime or received bonuses during only one quarter of their base period. Thus, for benefit years on or after July 1, 2012, and prior to July 1, 2013, the benefit rate will be 4.38% of the average wage paid to an individual in the two calendar quarters of the base period in which his or her wages were highest. For benefit years beginning on or after July 1, 2013, and prior to July 1, 2014, the benefit rate will be 4.15%. Beginning on or after July 1, 2014, the benefit rate will be 3.85%.

Currently, the state maximum UI weekly benefit amount is set at 67% of the statewide average weekly wage. This figure, calculated on an annual basis, is $566 for 2011. Recent legislative changes will freeze the weekly benefit amount at the 2011 level until such time as the $566 figure represents less than 57.5% of the statewide average weekly wage. Moving forward from that point, the maximum weekly benefit will be unfrozen and calculated at 57.5% of the statewide average weekly wage.

Individuals who receive severance pay from their employers will have the start of their claim delayed by the number of weeks of severance pay received. If the employer does not specify the number of weeks of severance pay, the individual's severance pay will be prorated based on his or her weekly benefit amount. Summaries, State Employment Law Library ¶41-1700.

Texas
Unemployment Insurance

Contribution rates range from 0.61% to 7.58% for 2012. The replenishment ratio is 1.32, the replenishment tax rate is 0.42% and the obligation assessment ratio is 0.17. In addition, the interest tax rate is 0.0%, and the employment training assessment rate is 0.10%. Summaries, State Employment Law Library ¶45-1700.

Utah
Background Checks

Utah has amended its criminal background checks law to replace outdated or derogatory terms relating to persons with a disability with current, non-derogatory terms (Ch. 366 (H. 230), L. 2011). Full text, State Employment Law Library ¶46-23,600.15. Summaries, State Employment Law Library ¶46-9000.

Utah
Unemployment Insurance

The taxable wage base in Utah for 2012 is $29,500, up $900 from the 2011 wage base amount of $28,600. Summaries, State Employment Law Library ¶46-1700.

Vermont
Minimum Wage

Reminder: The minimum wage in Vermont is $8.46 per hour, effective as of January 1, 2012. For service or tipped employees who customarily and regularly receive more than $120 a month in tips in the hotel, motel, tourist place or restaurant industries, the basic wage rate is $4.10 an hour with a maximum tip credit of $4.36 an hour. The basic wage rate is the minimum required employer contribution towards the minimum wage; If an employee does not receive sufficient tips in the work week to at least achieve the minimum wage rate for all hours worked that week, the employer must make up the difference. Also effective January 1, 2012, an employer is entitled to deduct from the wages earned an allowance for meals and lodging actually furnished and accepted as follows: breakfast, $2.85 daily; lunch, $3.20 daily; dinner, $3.56 daily; full board, $9.61 daily or $67.29 per week; nightly lodging, $3.91 daily; full room, $23.54 weekly; full room and board, $81.31 per week. See Vermont Statutes Ann., tit. 21, Secs. 383 and 384 and Vermont minimum wage rules. Summaries, State Employment Law Library ¶47-1000. Full text, State Employment Law Library ¶47-41,003, ¶47-41,004 and ¶47-41,501.

Washington
Minimum Wage

Reminder: The minimum wage in Washington is $9.04 per hour, effective as of January 1, 2012. Minors ages 14 and 15 may be paid 85 percent of the adult minimum wage, or $7.68 per hour.  No tip credit is allowed for tipped employees; Gratuities received by employees can not be considered as part of the minimum wage. See Sec. 49.46.020. Summaries, State Employment Law Library ¶49-1000. Full text, State Employment Law Library ¶50-41,003.

Wisconsin
Background Checks

Wisconsin has enacted a law providing that it is not employment discrimination because of conviction record for an educational agency to refuse to employ or to terminate from employment an unpardoned felon (S. 86, L. 2011). Full text, State Employment Law Library ¶52-23,600.43. Summaries, State Employment Law Library ¶51-9000.

Wisconsin
Unemployment Insurance

For 2012, Schedule A is in effect. Rates (including the solvency rate) under Schedule A range from 0.27% to 9.8%. In addition, the rate for newly liable construction employers with payrolls both over and under $500,000 is 7.1% for 2012. The general new employer rate is 4.1% for employers with payrolls of $500,000 and over and the general new employer rate is 3.6% for employers with payrolls of under $500,000. Summaries, State Employment Law Library ¶51-1700.