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Bulletin Item: President Bush Signs Pension Funding Equity Act (HR 3108)

The new law provides a short-term replacement for the current 30-year Treasury bond rate, which is currently used as the benchmark rate for pension funding liabilities. Some employers, unions, and workers expressed concerns about using the Treasury bond rate because it artificially inflates a plan’s funding liabilities. Congress enacted a temporary fix in March 2002 […]

News Notes: Employers Paying More For Absenteeism, Survey Says

A new absenteeism survey by Commerce Clearing House Inc. indicates that absenteeism costs climbed to an all-time high in 2002—even though absenteeism itself dropped slightly. Employers spent an annual average of $789 per employee for unscheduled days off, up from $755 in 2001. While workers listed illness as the most common reason for calling in […]

News Notes: High Court Issues New Travel Time Ruling

The California Supreme Court recently ruled that an agricultural employer has to compensate farm workers for their travel time to and from work. The workers were required to report to a company parking lot each morning to take their employer’s buses to their worksite. The court noted that employers may provide free transportation to employees without […]

News Flash: Workers’ Compensation Insurers Face Mounting Losses; Employers May Be Hit With Higher Premiums

Some California workers’ comp insurers have been placed on a financial watch list by the California Department of Insurance because rating agencies have raised questions about the insurers’ financial stability. According to the California Workers’ Compensation Institute, for each $1 in premiums taken in during 1999, workers’ comp insurers paid out about $1.51 for claims […]

Employers can restrict use of company email for union activities

The National Labor Relations Board (NLRB) has ruled 3-2 that an employer didn’t violate federal labor relations law by having a policy that barred employees from using the company’s email system for union activities and other non-job-related solicitations. Employers have basic property rights to regulate and restrict the use of company property, including an email […]

Wage and Hour: Governor Signs Minimum Wage Bill

Governor Schwarzenegger has signed into law A.B. 1835, which will boost California’s minimum wage to $8.00 over two years. The first increase, to $7.50, will take effect on Jan. 1, 2007, followed by the final increase to $8.00 on Jan. 1, 2008.

January 31st Deadline for Tax Rate Update

It has only been a month since the new federal Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act was signed into law, but the new tax cut rates are already in effect…and employers must race to adjust their payrolls. As of January 1st, the Social Security Tax withholding rate has been reduced from 6.2% […]