Wednesday, July 22, 2015

90 Day delay of payments on workers' compensation/Sick Leave amendments


Have you ever said to yourself why do insurance companies on workers compensation  claims automatically pay when an employee claims a workers compensation injury?


Well, part of the reason is because it is very difficult to prove the injury is not work related
but you do have the ability when filing a claim to request a 90 day delay of payment. If you do this the  company is obligated to investigate the claim. They will be required to pay up to  $10000 of medical expenses but do not have to pay temporary disability until after the investigation.

The key here is you have to ask the insurance company to do this and you need to file claim as soon as possible as the 90 days is from date of injury.


On July 13th the legislature passed and the Governor signed amendments to the sick leave law.
Our friends at the California Employers Association have outlined below the changes that have been made.



 

The Employer's Update
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A Weekly Update For California Employers
Paid Sick Leave - AB304 Update!
Read Time: Less Than 2 Minutes

The rules for California's mandatory Paid Sick Leave (PSL) Law have been amended! The Healthy Workplaces, Healthy Families Act of 2014, which went into full effect on July 1, 2015, was amended on July 13, 2015. AB 304 is intended to clarify this confusing new Law. Employers who have been struggling with understanding the original statue may find some guidance here, but may also need to revise their policies and procedures again.

CEA will host a Paid Sick Leave Webinar UPDATED with AB304 on 9/2/15.
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Area of Clarification:

Eligibility


Accrual Rate Options




Accrual Rates for Exempt Employees


Lump Sum


Employers who offer "Unlimited Leave"


Reinstatement of PSL



Rates of Pay





Paystub Notification




Notification of PSL by Employee
New Provisions:

Employees must work in California for the same employer for 30 or more days to be entitled to paid sick leave.

Allows employers additional options for accrual (other than 1 hour for each 30 hours worked) provided that the accrual is on a regular basis and the employee will have 24 hours of accrued sick leave available by the 120th calendar day of employment, or each 12 month period.

Exempt employees are deemed to work 40 hours/workweek unless the employee's normal workweek is less than 40 hours, in which case the employee will accrue based on normal hours.

An employer may also provide no less than 24 hours or three days of PSL which is available to use by the 120th calendar day of employment.

The bill would permit an employer who provides unlimited sick leave to its employees to satisfy notice requirement by indicating "Unlimited" on the employee's itemized wage statement.

Employers are not required to reinstate accrued PSL to an employee rehired within one year of separation from employment if they were paid out at the time of termination, resignation or separation.

Nonexempt employees (2 options): 1) Calculate paid sick time rate in same manner as the regular rate of pay for the workweek (i.e. the rate used to calculate overtime), regardless of whether the employee works overtime, or 2) Divide the total wage by total hours worked in the full pay period of the prior 90 days of employment.
Exempt employees: Calculate rate of pay in the same manner as the employer calculates wages for other forms of paid leave time.

Employers must provide an employee with written notice showing the amount of PSL, or paid time off (PTO) in lieu of sick leave, available for use on the employee's itemized wage statement or in a separate writing with each payment of wages. Employers do not have to show time used.

An employer is not obligated to inquire into or record the purposes for which an employee uses paid leave or paid time off. (DLSE actually takes the position that employers MAY NOT inquire about this.)
COPYRIGHT. © 2015 California Employers Association. All rights reserved. No part of this publication may be reproduced by any mechanical, photographic or electronic process, nor may it be stored in a retrieval system, transmitted or otherwise copied (except members of the California Employers Association may copy all or part of this publication exclusively for personal use or use in the operation of that member's industry business other than a publication) without prior written permission from the publisher. For permission to make photocopies, contact CEA at 800.399.5331.

DISCLAIMER. The Employer's Report is educational and information in nature, and not intended as legal, expert or other professional advice, or as any form of recommended minimum standard or best practice. The accuracy and appropriateness of the information presented herein is dependent upon the actual facts and circumstances in each particular situation, all (facts and circumstances) of which are unknown to CEA. As such, CEA DOES NOT CERTIFY OR GUARANTEE THE ACCURACY OR APPROPRIATENESS OF THE INFORMATION OR IDEAS PRESENTED HEREIN, AND DISCLAIMS ANY AND ALL EXPRESS OR IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE.  CEA does not endorse, nor has it accredited, certified or approved any of the persons or entities providing materials herein. Users are advised to carefully review the ideas and information presented herein with qualified human resources and legal advisors prior to acting upon or implementing said ideas and information.

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Scott Hauge
President
Small Business California
2311 Taraval Street
San Francisco, CA  94116
shauge@cal-insure.com
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