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California Compliance Connection - June 2022

June 30, 2022

Download the PDF version here.

Federal Compliance Update 

Federal: ACA, Health Plans, and Reproductive Rights

 

The U.S. Department of Health & Human Services’ (HHS) press release from June 25, 2022, provides information about the right to access health care, have it covered by insurance or other health care coverage if available, where to go if someone doesn’t have coverage, and how to get more information. 

Most health coverage— whether its public (Medicaid) or private (through the Affordable Care Act (ACA) Marketplace or an employer)— covers family planning counseling, birth control, and other preventive services at no cost to the individual. Under the ACA, most health plans are required to provide birth control and family planning counseling with no out-of-pocket costs. This includes:

  • Hormonal methods, like birth control pills and vaginal rings.
  • Implanted devices, like intrauterine devices (IUDs).
  • Emergency contraception, like Plan B and ella.
  • Barrier methods, like diaphragms and sponges.
  • Patient education and counseling.
  • Sterilization procedures.

Learn more about birth control coverage requirements for different types of health plans on HealthCare.gov (a federal government website managed by the U.S. Centers for Medicare & Medicaid Services). 

Additionally, the right to access other preventive health services with no out-of-pocket costs is legally required under most health insurance plans. Most health insurance plans are required to cover women’s preventive health services, including: 

  • Well-woman visits to screen health at any time, including a pap smear, breast exam, and regular checkup. 
  • Counseling and screening services. 
  • Breast and cervical cancer screenings. 
  • Prenatal care (care received while pregnant). 
  • Breastfeeding services and supplies. 
  • Interpersonal violence screening and counseling (for instance, sexual assault evidence collection exams). 
  • HIV screening and STI counseling. 

The HHS website ReproductiveRights.gov provides more information about legal rights and available federal resources.

Federal: IRS Increases Mileage Reimbursement Rate Starting July 1

 

The Internal Revenue Service (IRS) has announced that its optional standard mileage rate will increase to 62.5 cents per mile driven for business purposes. The increase takes effect on July 1, 2022.

Use of this rate is optional, though it is widely used by employers as a standard rate for calculating mileage reimbursement for employees who use their personal vehicle for business purposes. If your organization uses the IRS rate to calculate mileage reimbursement, be sure to update your systems to account for this change.

DOL to Hire 100 Investigators, Signaling Potential Enforcement Increase

 

The U.S. Department of Labor (DOL) recently announced an initiative to add 100 investigators to its Wage and Hour Division (WHD)—a potential sign to employers that increased enforcement may be on the horizon.

 

The WHD is tasked with enforcing comprehensive labor laws that affect more than 148 million workers. This latest push for WHD investigators tracks with the White House’s larger agenda of strengthening workers’ rights.

 

According to the DOL, the core enforcement obligations of WHD investigators include:

 

  • Conducting investigations to determine if employers are paying workers and affording them their rights as the law requires
  • Helping ensure that law-abiding employers are not undercut by employers who violate the law
  • Promoting compliance through outreach and public education initiatives
  • Supporting efforts to combat worker retaliation and worker misclassification as independent contractors

In fiscal year 2021, the WHD collected $230 million in wages owed to 190,000 workers, according to the DOL. 

What’s Next?

This addition of WHD investigators could translate to an increase in enforcement in 2022. 

This means employers should continue to review relevant workplace laws to ensure wage and hour compliance. Common violations include worker misclassification, unpaid overtime, tip theft, insufficient break periods and failure to provide protected leave.

Employers concerned about potential violations are encouraged to speak with legal counsel.

State Compliance Update

California Local Minimum Wage Increases: Compliance Reminder

 

On July 1, 2022, numerous cities and counties across California will increase their hourly minimum wage. The new rates are as follows, with employee count listed if applicable:

  • Alameda: $15.75
  • Berkeley: $16.99
  • Emeryville: $17.68
  • Fremont: $16.00
  • Foster City: $15.75 (Note that Foster City’s minimum wage is new this year and will increase again on January 1, 2023.)
  • Long Beach (hotels with 100 or more guest rooms): $16.73
  • Los Angeles City: $16.04
  • Los Angeles City (hotels with 150 or more guest rooms): $18.17
  • Unincorporated Los Angeles County: $15.96
  • Malibu: $15.96
  • Milpitas: $16.40
  • Pasadena: $16.11
  • San Francisco: $16.99
  • Santa Monica: $15.96
  • Santa Monica (hotels): $18.17
  • West Hollywood (1–49 employees): $16.00
  • West Hollywood (50 or more employees): $16.50
  • West Hollywood (hotel workers): $18.35
  • West Hollywood recently released minimum wage regulations, which are available on its Minimum Wage webpage.

California: San Francisco Voters Approve Permanent PHEL

 

On June 9, 2022, the San Francisco Department of Elections preliminarily reported the passage of Proposition G enacting the city’s permanent public health emergency leave (PHEL). The proposition is scheduled to take effect October 1, 2022, and will require employers in the city—with more than 100 employees worldwide—to provide up to 80 hours of paid PHEL per year for their employees in San Francisco. This leave will be in addition to the city’s paid sick leave and available at the beginning of: 

  • A local or statewide health emergency related to any contagious, infectious, or communicable disease, declared by the City’s local health officer or the state health officer pursuant to the California Health and Safety Code; or 
  • An Air Quality Emergency.

This leave replaces the city’s prior COVID-related PHEL, which expired earlier in the year, and its implementation and guidance will be provided by the city’s Office of Labor Standards Enforcement.

Compliance Calendar

June

No reporting to discuss for June

July

No reporting to discuss for June

August

8/1 – Form 5500 Deadline (calendar year plans)

8/1 – Form 941 Filing Deadline (second quarter)

8/1 – PCORI Fee Deadline

8/1 – VETS-4212 Filing Open (federal contractor)

Disclaimer:

Lighthouse HR Support (LHRS) provides practical human resource information and guidance based upon our knowledge and experience in the industry and with our clients. LHRS services are not intended to be a substitute for legal advice. LHRS services are designed to provide general information to human resources and/or business professionals regarding human resource concerns commonly encountered. Given the changing nature of federal, state and local legislation and the changing nature of court decisions, LHRS cannot and will not guarantee that the information is completely current or accurate. LHRS services do not include or constitute legal, business, international, regulatory, insurance, tax or financial advice. Use of our services, whether by phone, email or in person shall indicate your acceptance of this knowledge.

Written By:

Kelly Murphy

Kelly Murphy

Senior HR Business Partner

Kelly brings a wealth of knowledge with nearly 30 years of human resource experience. She provides expertise in various human resource categories, including employee relations, performance management, HR Form creation/review (employee handbooks, job descriptions, etc.), employee/management training, workplace investigations, etc. Her human resource certifications include PHR (Professional Human Resources) and SHRM-PC (Society for Human Resource Management Certified Professional). 

Kelly attended Colorado Mesa University and Waldorf University, where she earned a degree in Human Resource Management and Business Administration with Summa Cum Laude honors. She was named Western Colorado Human Resource Association Professional of the Year, 2013, and currently serves on the Board of Directors. She also is a member of the WCHRA Skills Development Committee, the WCCA Education Committee, and the Members/Events Committee. She serves as an Ambassador for both the Fruita and Palisade Chamber of Commerce.