Hill, Farrer & Burrill LLP

Employment Updates

IRS Delays Mandatory W-2 Reporting of Cost of Health Care Coverage

On October 12, 2010, the IRS issued a notice providing interim relief to employers with regard to reporting the cost of coverage of employer-sponsored group health plans. Notice 2010-69 states that the previously mandatory notification to employees of the cost of such coverage will not be required on Forms W-2 issued for 2011. This notice should come as welcome news for employers facing the daunting prospect of having to comply with health care cost reporting requirements under the Patient Protection and Affordable Care Act of 2010 (“Health Care Act of 2010”). The Health Care Act of 2010, which was enacted as Public Law 111-148 on March 23, 2010, would have required employers to report the total cost of employer-sponsored health care coverage beginning with tax year 2011.  More>>

Labor Code § 512 Revised to Allow Employees Under a Valid CBA to Negotiate for On-Duty Meal Periods

On September 30, 2010, California Governor Arnold Schwartznegger signed Assembly Bill 569 into law, exempting certain categories of unionized employees from California’s meal period laws. AB 569, authored and championed by Senator Bill Emmerson, will take effect January 1, 2011. Prior to the introduction of AB 569, existing labor law prohibited employers from requiring an employee to work more than 5 hours per day without providing a mandatory “off-duty” meal period, subject to certain poorly-articulated exceptions. AB 569 amends Labor Code § 512 to clarify those occupations exempted from meal period requirements, including those within the following industries: ·          Construction ·          Commercial driving ·          Security services ·          Wholesale baking ·          Motion picture ·          Broadcasting ·          Electrical or gas corporation ·          Local publicly owned electric utility To qualify for exemption under the new law, the employees in question must be covered by a valid collective bargaining agreement (“CBA”).  More>>