California Employment Bill Recap

California legislators have been active passing several employment law bills that impact local businesses in recent months. Here’s a recap of some with brief summaries. Legal counsel should be sought for a complete understanding of each new law, and the potential impact to your unique business circumstances.

Workers Compensation (SB863)

Makes numerous changes to the State’s workers compensation system in an effort to streamline and control rising medical costs. One of the major changes is that it makes the Independent Medical Review process mandatory for almost all disputes about medical treatment, effectively replacing the Workers Compensation Appeals Board in this regard, as well as limiting the involvement of attorneys and judges.

Commissions (AB1396)

Requires commission agreements between employers and employees to be in writing, and that the employer provide a signed copy to the employee. The agreement must set forth the method by which the commissions are computed and paid. Short term productivity bonuses are not considered commissions under the bill.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Robert Freedman - Partner at Tharpe & Howell, LLP | Attorney Advertising

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