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News Notes: HIPAA Rules For Small Health Plans Go Into Effect Soon

In April 2003, comprehensive new privacy rules under the Health Insurance Portability and Accountability Act went into effect for large group health plans. Now, on April 14, 2004, the rules will also apply to small group health plans—which includes insured plans with total annual premiums of less than $5 million or self-insured plans with total […]

Wage and Hour: California High Court Backs Employer on Expense Reimbursement

In an important new ruling, the California Supreme Court has approved an employer’s practice of paying increased salaries and commissions to cover employees’ mileage expenses. At issue was Labor Code Section 2802, which requires employers to indemnify employees for necessary expenditures they incur as a result of the job. The employees here had argued that […]

News Notes: Deadline Looms For Employers To File Taxes Electronically

  If your company pays more than $50,000 in annual payroll taxes, you must start paying electronically by July 1 or incur steep penalties. The IRS says about 230,000 employers nationwide are not yet prepared. You can use a commercial payroll service or one of the two deposit options offered by the IRS: 1) making […]

News Notes: Employer’s Refusal To Arbitrate Bars Raising Defense

When Tarlochan Sidhu was laid off by Fletco Co. following a workers’ comp leave, the union grieved his termination and sought arbitration as called for in the union contract. After Fletco refused to arbitrate on the grounds that the contract didn’t apply to the dispute, the union sued to enforce the CBA. Fletco asked the […]

Arbitration: High Court Rules That Class-Wide Arbitration May Be Available-Even If Arbitration Agreement Doesn’t Say So

When an arbitration agreement is silent about whether class actions are permitted, it is up to an arbitrator to interpret the agreement to decide whether a claim can go forward as a class action, according to a new U.S. Supreme Court ruling.Although the mandatory arbitration agreement in this case involved a home loan, the high […]

State Joins IRS in Tax Breaks for Hurricane Relief Donations

The California Franchise Tax Board has announced state tax benefits for businesses and employees who aid Hurricane Katrina relief efforts by donating the cash value of employee leave time. The program–which mirrors a similar federal IRS program announced last week–allows workers to donate unused sick, vacation, or other personal leave time in exchange for the […]

News Notes: Mandatory Employee Furloughs Require Caution

With the economic slowdown, if you’re tempted to ask employees to take time off to cut costs and avoid layoffs, you probably won’t have legal problems with nonexempt, nonunion employees, but use caution when it comes to exempt workers. Under the wage and hour laws, you can’t dock the pay of exempt employees, because they […]

Wal-Mart Settles Break Suit for $54.25 Million

Retail giant Wal-Mart has agreed to pay up to $54.25 million to settle a lawsuit accusing the retailer of violating hours of work and break laws at Wal-Mart and Sam’s Club stores in Minnesota. This settlement follows a judge’s decision last summer finding that Wal-Mart violated a host of wage and hour laws. Approximately 100,000 […]