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The Human Resources Briefs below are a general overview of the subject matter, and are not meant to provide legal opinions regarding any specific case, matter, or set of facts, or to substitute for the professional advice of Waag and Co.

FEBRUARY 2002

FEDERAL LAWS: WHAT YOU CAN EXPECT FROM CONGRESS IN 2002: Based on several conversations with members in the House and Senate, you can expect their priorities to be as follows: Top Priority: Homeland and National Security, Fast Track Trade Authority for the President, a new Economic Stimulus Plan (Republicans want tax breaks, the Democrats want more for the unemployed), Energy Plan, Election Reform and passage of a Farm Bill. Additionally, with the Enron Scandal, Pension Reform has been moved to the top of the agenda. Campaign Finance Reform, which had lost all momentum after 9/11, is now back on the "priority" list by a coalition of Republicans and Democrats, but the Republican Leadership would still like to see the issue tabled. Low Priority: Social Security recipients being able to invest a small portion of their contributions into an Individual Savings Account, Medicare Reform and passage of a Patients Bill of Rights. Article Source: Law Offices of Mike Stoker, 2/11/02, (805) 937-6790, MikeStoker@aol.com.

STATE LAWS: WHAT YOU CAN EXPECT FROM SACRAMENTO IN 2002: The three E's (The Economy, Energy and Environment) will predominate California politics in 2002. Political insiders indicate that Gov. Davis has made some agreements with key figures in the field of organized labor and the environment to push their agenda in 2002 in exchange for enthusiastic support in the Governor's race. Since becoming Governor, Davis has played to the mainstream in both the environmental and labor arena. Expect that to change in 2002. For instance, the Worker's Compensation legislation that has been vetoed three times is, according to its proponents, is going to get Gov. Davis' support this time. SB 71, which the Governor vetoed, would have increased worker's compensation costs to business by an estimated $3.6 billion per year. However, the status of California's budget will most likely be the focus of debate in our state capitol. In 12 months, Gov. Davis has seen the state budget go from almost a 12 billion dollar surplus and what is now expected to be a 14 to 20 billion dollar deficit by June 2002. You can count on the budget to be the focal point in the legislature as well as the campaign trail between Davis and whoever becomes the Republican nominee. Article Source: Law Offices of Mike Stoker, 2/11/02, (805) 937-6790, MikeStoker@aol.com.

EMPLOYERS MUST KEEP NEW OSHA LOG 300: Employers covered by OSHA's record-keeping obligations must maintain Cal/OSHA Log 300 forms and comply with the new record-keeping requirement, effective January 1, 2002. The Log of Work-Related Injuries and Illnesses (Form 300) classifies work-related injuries and illnesses, notes the extent and severity of each case and records specific details about what happened. An injury or illness is considered work-related if an event or exposure in the workplace caused or contributed to the condition or significantly aggravated a pre-existing condition. There are two principal exemptions to the Log 300 requirement: small employers (10 or fewer employees) and employers with certain industrial classifications (private employers with a Standard Industry Classification of 52- 89, except 52-55, 57, 70, 75, 76, 781, 79 and 80). Employers must record work-related injuries and illnesses that result in death; loss of consciousness; days away from work; restricted work activity or job transfer; and medical treatment beyond first aid. Employers also are required to record work-related injuries and illnesses that are significant or meet the following criteria: any needle-stick injury or cut from a sharp object that is contaminated with another person's blood or other potentially infectious material; any case requiring an employee to be medically removed under the requirements of an OSHA standard; any Standard Threshold Shift (STS) in hearing; and tuberculosis infection. Employers must keep a log for each establishment or site. Employers with more than one establishment must keep a separate log and summary for each physical location expected to be in operation for one year or longer. Note that every February, employers still must post the familiar Cal/OSHA Forms 101 and 200 (also known as Log 200). However, as of January 1, 2002, injuries and illnesses must be noted on the new Form 300.

SURVEY RELEASED REGARDING CALIFORNIA'S ANTI-BUSINESS CLIMATE: The California Chamber of Commerce and the California Business Roundtable recently published results of a survey they conducted among 400 business leaders in our state. One area that this survey focused on was how the California business climate compared to other states. The results were not good. Business leaders cited a number of areas where our state is at a competitive disadvantage to other states. Here are some examples:

  • 81% say that Housing costs in California are much more expensive than other states. High housing costs and the subsequent lack of affordable housing impact employees of all California businesses.
  • 74% say that Energy costs in California are significantly higher than other states.
  • 71% say that Employee costs such as worker's compensation and insurance make it difficult to operate in California.
  • 2/3rds of respondents listed Taxes and Regulations as other areas where California costs more than other states.
 


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