• Increase in California’s Minimum Wage
    On January 1, 2017, the California minimum wage for employers with 26 or more employees will increase from $10.00 to $10.50 per hour.
    During 2017 the minimum wage for employers with 25 or fewer employees will remain $10.00 per hour.
    On January 1, 2017, the minimum salary for exempt employees who work for employers with 26 or more employees is increasing from $41,600 to $43,680 per year.
    Although the federal overtime rule changes are currently on hold, California’s state law – requiring that exempt employees make at least twice the state minimum wage on a

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  • Department of Labor’s Overtime Rule Delayed
    A Federal judge in Texas granted a nationwide preliminary injunction halting the implementation of the new Department of Labor rule extending overtime pay to millions of Americans. Under the new law, as of December 1, 2016, employees classified as exempt would be required to be compensated at $47,476 annually in order to qualify for exemption from overtime, nearly double the old threshold of $23,660.
    21 States filed an emergency motion to block this new law. “A preliminary injunction preserves the status quo while the court determines the department’s authority to make the final rule as well

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  • 2016 Furnishing Deadline for ACA Reporting Delayed

    On November 18, 2016, the Internal Revenue Service (IRS) issued Notice 2016-70 to:

    • Extend the due date for furnishing forms to individuals under Sections 6055 and 6056 for 2016 for 30 days, from January 31, 2017, to March 2, 2017.
    • Extend good-faith transition relief from penalties related to 2016 information reporting under Sections 6055 and 6056.

    Notice 2016-70 does not extend the due date for filing forms with the IRS for 2016. The due date for filing with the IRS under Sections 6055 and 6056 remains Feb. 28, 2017 (March 31, 2017, if filing electronically).


    • March 2,

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  • Overtime Rule to Take Effect – December 1, 2016

    A Department of Labor (DOL) final rule is set to increase the salary threshold for the “white collar overtime exemptions” to $47,476 per year. Recent challenges to the rule have left some questioning whether it will take effect on Dec. 1, 2016, as scheduled.

    The U.S. House of Representatives passed H.R. 6094, which would delay implementation of the final rule. The bill would have to be passed by the Senate and approved by the president before it becomes law. President Obama has threatened to veto the bill.

    A coalition of 21 states and a number of

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  • Updated I-9 Form Released

    On November 14, 2016, U.S. Citizenship and Immigration Services (USCIS), part of the U.S. Department of Homeland Security, issued an updated version of Form I-9: Employment Eligibility Verification (I-9 Form). Under federal law, every employer that recruits, refers for a fee, or hires an individual for employment in the United States must complete an I-9 Form.

    The updated form replaces a form that was issued in 2013 and expired on March 31, 2016. The updated form includes changes that should make using both the paper and electronic versions more intuitive and easier to

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  • IRS Releases Final ACA Reporting Forms for 2016

    The Internal Revenue Service (IRS) has released final 2016 forms for reporting under Internal Revenue Code Sections 6055 and 6056. The Affordable Care Act (ACA) requires Applicable Large Employers (ALEs) to report to the IRS on offers of medical coverage made to full-time employees. The ACA also requires employers of all sizes that sponsor self-funded health plans to report to the IRS on all individuals covered under the self-funded plan during the calendar year.

    • Forms 1094-B and 1095-B are used by entities reporting under Section 6055, including self-insured plan sponsors that are not applicable large

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  • Have You Received an Exchange Subsidy Notice?

    Employers have started receiving notices from Health Insurance Marketplaces (or Exchanges) when their employees are eligible for Exchange health insurance subsidies. Many employers are uncertain about what actions to take after receiving a notice.

    This subsidy notice (Notice) is particularly important to Applicable Large Employers (ALEs), but all employers should be prepared to receive a Notice and respond if appropriate.


    Under the Affordable Care Act (ACA), individuals may purchase health coverage on an insurance Exchange, and each Exchange will determine whether an individual is eligible for a subsidy. Once an individual

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  • July 1st Increases to California Local Wages

    Effective July 1, 2016, some California employers will be subject to an increase in the local minimum wage.

    Minimum Wage Increases for San Francisco and Bay Area Cities

    As part of Proposition J, signed in 2014, the City of San Francisco will incrementally increase its minimum wage each year until it reaches $15.00 an hour in 2018. This year’s increase will take effect on July 1st and will put the minimum wage at $13.00 an hour.

    Emeryville will increase the minimum wage for large employers (56 or more employees) to $14.82 an hour

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  • COBRA Penalty Cost Employer $1.85 Million

    Paying $1.85 million in COBRA penalties would certainly be a wake-up call for most companies.  It was in the case of Pierce v. Visteon Corp., No. 1:05-cv-01325-LJM-DKL (S.D. Ind., June 25, 2013), where an Indiana federal court ordered Visteon to pay $1.85 million to former employees who did not receive COBRA notices in a timely manner (some never received notices).  Visteon will also be paying for the cost of the lawsuit; attorney’s fees have yet to be determined.

    You might be using a Third Party Administrator (TPA) to manage your company’s COBRA administration, so you figure you’re covered, so did

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  • “Pay or Play” Employer Mandate Delayed until 2015

    Important news was announced yesterday afternoon by the U.S. Treasury Department regarding the ACA (Affordable Care Act) employer mandate known as “Pay or Play”.

    The U.S. Treasury Department announced the 2014 mandate on large employers, those with 5o or more full-time equivalent employees, to offer qualifying health insurance coverage to their employees or face a penalty is being delayed until 2015.

    The U.S. Treasury is working to simplify the reporting required of employers and insurers and doesn’t expect to implement reporting until 2015.  Accordingly, it has decided to delay enforcement of penalties until 2015.  Formal guidance will be issued by the U.S. Treasury within

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