Added Regulations on Business Get Schwarzenegger Treatment

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It’s gotten to be a familiar refrain every Jan. 1: Employers hit with a slew of costly laws, from minimum wage hikes to paid family leave.


This year is notable for what won’t happen. Only a few new laws are in the offing, thanks to the veto pen of Gov. Arnold Schwarzenegger.


Citing the potential impact on California’s business climate, the governor vetoed legislation involving a minimum wage hike, restrictions on outsourcing and tougher penalties for gender-based pay discrimination. He also campaigned against Proposition 72, a referendum that would have required many businesses to provide health care for their workers.


“It’s nice to have an employer-friendly administration for a change,” said Karen Anderson, vice president of membership and marketing for the Employers Group, a consulting firm.


Added Michael Shaw, assistant state director for the California chapter of the National Federation of Independent Business: “This year, there are many fewer new laws that business owners need to be concerned about.”


Perhaps the most publicized law taking effect Jan. 1 requires employers with 50 or more workers to provide two hours of sexual harassment training every two years. Business groups lobbied against the measure, saying it would impose additional costs and that similar training is already required under other statutes.


“This is a duplicative program,” said Gino de Caro, spokesman for the California Manufacturers and Technology Association. “Supervisors and managers must already undergo six hours of human resources-related training each year.”


Nonetheless, Schwarzenegger, who was dogged by allegations of sexual harassment during the recall election, signed the bill.


The California Chamber of Commerce says it has received some calls from employers confused about whether temporary workers, part-time workers and independent contractors are included in the 50-employee threshold. (The answer is unclear; regulations are still being formulated.)


The most sweeping changes for employers will involve workers’ compensation. Schwarzenegger used the threat of an initiative to push through a major reform package last April. Since then, there have been only minor cuts in workers’ comp premiums, although many of the law’s provisions don’t kick in until Jan. 1.


New features such as permanent disability benefit ratings and the establishment of medical provider networks are expected to push down rates significantly over the next year.


In exchange, though, employers will be required to pay for “immediate medical treatment” of up to $10,000 for any workplace injury, regardless of whether the workers’ compensation claim is ultimately accepted or denied.

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