Earned Income Tax Credit Mandatory Notice
While California’s AB 1847 law has been in effect for a while, it never hurts to remind employers that they need to provide the California Earned Income Tax Credit (CalEITC) notice to all employees every year.
This information must be physically given to employees or mailed to them within one week of issuing their W-2 or 1099 forms. It lets California employees know that they may be eligible for both federal and California Earned Income Tax Credits.
- How to Notify Employees About CalEITC
- CalEITC Helpful Materials
- State of California Franchise Tax Board: Fact Sheet 2018 Filing Season
2018 California Compliance Reminders
In October 2017, we reported on 5 major pieces of legislation that California Governor Jerry Brown signed into law. The information below will help ensure your i’s are dotted and your t’s are crossed when it comes to compliance.
- Salary History Ban
Under Labor Code 432.2, employers cannot ask applicants about their prior salary, compensation, or benefits.
It is essential that you and others involved in your hiring process STOP:
- Asking candidates in person, online, or over the phone about their former salaries or benefits packages.
- Considering salary history as the sole basis for hiring and pay decisions.
- Evading applicant questions about the salary range associated with a position.
If you use a background screening provider to conduct reference checks, their reports may include the candidate’s past salary levels. Check with them on how to remove this information and talk with your legal counsel. You’ll also need to comply with California’s ban the box requirements.
- Ban the Box
Under AB 1008, employers need to delay when they screen candidates for the presence of a criminal record.
If you have 5+ California employees, you CANNOT:
- Ask about criminal history on applications or in interviews.
- Look into an applicant’s conviction history before extending a conditional offer of employment.
- Consider, distribute, or disseminate information about someone’s criminal information.
- New Parent Leave
If you have 20+ employees, you need to offer 12 weeks of bonding leave for new parents (biological, adoptive, or foster).
- Minimum Wage Increases
California’s minimum wage is now $11/hour for employers with 26+ employees and $10.50/hour for employers with 1-25 employees. It has also increased in 21 California cities.
- Harassment Training
California employers with 50+ employees have long been required to provide at least 2 hours of anti-sexual harassment training to supervisors within 6 months of them starting management roles. However, this training must now also address gender identity, gender expression, and sexual orientation.
If you’re a KPA client, this training is already updated and available!
Any California employers with 5+ employees must also display a poster on transgender rights.
Under the Immigration Worker Protection Act (AB 450), California workers are protected from certain immigration enforcement. Employers can’t reverify current employees’ employment status in a timeframe or manner different than federal employment eligibility verification laws.
Federal immigration agents also can’t access non-public areas without a warrant. Nor can federal agents access personnel files without a warrant. The exceptions are I-9 forms or other documents asked for through a Notice of Inspection.
For I-9 inspections in California, you need to:
- Post a notice to employees within 72 hours of receiving a Notice of Inspection.
- Provide a copy of the Notice of Inspection to affected employees upon their request.
- Within 72 hours of receiving results, give affected employees and your collective bargaining representative (if applicable) a copy of the results, including employer and employee obligations.