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Independent Contractors: New Case Highlights Tax Risks of Misclassification

A new decision from a California Court of Appeals underscores how erroneously classifying workers as independent contractors rather than employees can have serious tax consequences. The case involved a group of courier companies—collectively called Sonic—that classified delivery drivers as independent contractors and reported their pay on 1099 forms. The California Employment Development Department, however, decided […]

Accommodating Disabilities: When You Don’t Have To Accommodate A Worker Whose Medical Condition Poses A Safety Threat

Norman Hutton, a diabetic who worked for Portland, Ore. based chlorine manufacturer Elf Atochem North America Inc., sued for disability discrimination after he was terminated following a series of on-the-job hypoglycemic episodes. Elf claimed it didn’t have to keep Hutton in his job because his condition created a direct safety threat to the workplace—and now […]

News Notes: Democratic Agenda Would Impact Employers; Minimum Wage Reminder

Senator Edward Kennedy (D-Mass) has laid out a series of labor proposals for the coming year. They include expanding the federal family leave law to cover employers with as few as 10 workers; requiring employers to contribute to the cost of health insurance for employees and their families; and increasing the federal minimum wage by […]

Employee Complaints: Court Overturns $175,000 Verdict For Policemen Who Claimed Retaliation

Two white male Los Angeles police officers who claim they were transferred in retaliation for complaining about their African-American female supervisor, have lost a $175,000 verdict a jury had awarded them. The federal Ninth Circuit Court of Appeals, in overturning the verdict, acknowledged that racial and gender equity issues did arise in the officers’ complaints […]

News Notes: Employer Settles DOL Charges Over Using Youth Drivers

Restaurant Runners Inc., which contracts with restaurants to deliver prepared meals to customers’ homes, has shelled out $15,200 in civil penalties to settle Department of Labor (DOL) charges that the company violated child labor laws. The DOL said Restaurant Runner, which has offices in Santa Clarita and Bakersfield, allowed minors to work as delivery drivers, […]

News Notes: Workers’ Comp Rates Headed Up Again

The California Department of Insurance has approved a 10.1% hike in the average workers’ compensation pure premium rates. The increase takes effect July 1, 2002, and follows on the heels of a 10.2% increase that took effect in January 2002. Although the pure premium rate is only advisory and insurers aren’t required to follow the […]

News Notes: EEOC Proposes Update of EEO-1 Reporting Rules

The Equal Employment Opportunity Commission has proposed changes to the EEO-1 form, which must be filed annually by private employers with 100 or more employees and some federal contractors with 50 or more employees. The changes would increase the number of categories for reporting racial and ethnic background and split the existing “officers and managers” […]

Domestic Partners: New Legislation Expands Workplace Rights, Benefits; Review Your Employee Handbook

Two new bills extending the rights and benefits provided to spouses to domestic partners were recently signed into law. We’ll take a look at the new laws. State Contractors Can’t Discriminate Under AB 17, certain state contractors have to provide employee benefits for registered domestic partners on the same basis as they do for spouses. […]