Top 10 Laws and Regulations for 2019

Every year comes with new laws and regulations that affect employers.

It pays to stay on top of all the new requirements, so we are here to help you understand those that are most likely to affect your business. The following are the top 10 laws, regulations and trends that you need to know about going into 2019.

1 Sexual harassment training

Since 2005, California law has required employers having 50 or more employees to provide at least two hours of sexual harassment training to supervisors every two years. SB 1343 changes this by requiring employers with five or more employees to provide non-supervisory employees with at least one hour by Jan. 1, 2020.
In addition, this training must be held every two years. Employers with five or more workers must provide (or continue to provide) two hours of the biennial supervisory training, as well.

2 Data privacy

Companies that collect data on their customers online should start gearing up in 2019 for the Jan. 1, 2020 implementation of the California Consumer Privacy Act of 2018, which is the state’s version of the European Union’s General Data Protection Regulation.

The law gives consumers the following rights in relation to their personal information:

  • The right to know, through a general privacy policy and with more specifics available upon request, what personal information a business has collected about them, where it was sourced from, what it is being used for, whether it is being disclosed or sold, and to whom it is being disclosed or sold;
  • The right to “opt out” of allowing a business to sell their personal information to third parties;
  • The right to have a business delete their personal information; and
  • Not be discriminated against by opting out.

The law applies to businesses that:

  • Have annual gross revenues in excess of $25 million,
  • Annually buy, receive for their own commercial purposes, or sell or share for commercial purposes, the personal information of 50,000 or more consumers, households or devices, and/or
  • Derive 50% or more of their annual revenues from selling consumers’ personal information.

    3 Independent contractors

While this legal development happened in 2018, now is a good time to go over it. In May, the California Supreme Court handed down a decision that rewrites the state’s independent contractor law.

In its decision in Dynamex Operations West, Inc. vs. Superior Court, the court rejected a test that’s been used for more than a decade in favor of a more rigid three-factor approach, often called the “ABC” test.

Employers now must be able to answer ‘yes’ to all three parts of the ABC test if they want to classify workers as independent contractors:

  • The worker is free from the control and direction of the hirer in relation to the performance of the work, both under the contract and in fact;
  • The worker performs work that is outside the usual course of the hirer’s business; and
  • The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hirer.

The second prong of the ABC test is the sentence that really changes the game. Now, if you hire a worker to do anything that is central to your business’s offerings, you must classify them as an employee.

4 Electronic submission of Form 300A

In November 2018, Cal/OSHA issued an emergency regulation that requires California employers with more than 250 workers to submit Form 300A data covering calendar year 2017 by Dec. 31, 2018. The new regulation was designed to put California’s regulations in line with those of Federal OSHA.

Starting in 2019, affected employers will be required to submit their Form 300A data by March 2. For instance, the 2018 summary would have to be posted before March 2, 2019. The law applies to:

  • All employers with 250 or more employees, and
  • Employers with 20 to 249 employees in specified high-risk industries.

    5 Harassment non-disclosure

This law, which takes effect Jan. 1, 2019, bars California employers from entering into settlement agreements that prevent the disclosure of information regarding:

  • Acts of sexual assault;
  • Acts of sexual harassment;
  • Acts of workplace sexual harassment;
  • Acts of workplace sex discrimination;
  • The failure to prevent acts of workplace sexual harassment or sex discrimination; and
  • Retaliation against a person for reporting sexual harassment or sex discriminat

The big issue employers will need to watch out for, according to experts, is that the new law could actually keep the employer and employee from reaching resolutions for disputes.

We will cover the five other top laws and regulations in our next blog post. 

Safety Risks Soar as Job Market Tightens

One by-product of a strong economy is more employment, but the increased activity usually results in more workplace injuries.

That’s because there are more inexperienced people on worksites and when a company is busy and there is more activity, the chances of an incident occurring also increase. This is especially the case in manual labor environments from production facilities, warehousing and logistics to construction and other trades.

The September USG + U.S. Chamber of Commerce Commercial Construction Index found that 80% of contractors said that the skilled labor shortage is affecting jobsite safety and it’s the number one factor increasing safety risk on the jobsite.

As business activity grows and the job market tightens, many companies are forced to hire more inexperienced workers who are not skilled at understanding all safety hazards.

Experienced personnel have the know-how to identify workplace hazards and understand the safety protocols for all aspects of their work. While training can help new hires, nothing beats experience.

Additionally, with many businesses working hard to fulfill orders, workplaces are busier, which can cause some workers to cut corners or take risks. Amidst all that hustle and bustle and people moving quickly, the speed and activity can also contribute to accidents in the workplace.

Also, aggressive scheduling may cause employers to use workers with less experience or training, and can push employees to work longer hours, which can lead to shortcuts and compromised processes. If employees are working overtime, they may also be tired and fatigued, which can contribute to poor judgment and workplace incidents.

One other issue that’s affecting workplace safety and is related to the tight job market is that employers are often having to settle for workers they may not normally hire in other times. As you know, the scourge of opioid addiction has been rampant and unfortunately if someone who has an addiction is hired, they may be a serious liability for the employer.

Not only that, but more states are legalizing recreational marijuana and nearly 40 states have medical marijuana laws on the books. In many cases, people can easily get their hands on a medical marijuana card without an affliction that would require a prescription.

Here’s what’s concerning construction employers on the worker addiction front, according to the USG + U.S. Chamber of Commerce Commercial Construction Index:

  • 39% were concerned about the safety impacts of opioids.
  • 27% were concerned about the safety impacts of alcohol.
  • 22% were concerned about the safety impacts of cannabis.

The report showed that while nearly two-thirds of contractors have strategies in place to reduce the safety risks presented by alcohol (62%) and marijuana (61%), only half have strategies to address their top substance of concern: opioids, which is a growing issue.

What you can do

In this environment of labor shortages and high competition for workers, employers should focus on:

  • Creating a culture of safety.
  • Improving the safety climate in the worksite.
  • Improving the firm’s safety culture.
  • Providing more leadership training for supervisors.
  • Tracking near misses and injuries, and identifying the factors that led to the near miss or accident.
  • Ensuring accountability at all levels.
  • Demonstrating management’s commitment to safety.
  • Empowering and involving employees in the safety process.

Tackling substance abuse safety risks

The top strategies employers are using to reduce safety risks caused by substance abuse are:

  • Testing
  • Prescreening before hiring
  • Education
  • Communication oversight by supervisors
  • Zero tolerance policies
  • Counseling
  • Access to rehab.

The Health of Your Drivers May Be Hurting Your Business

Semi Truck Preparing to Drive

Most goods in the U.S. are delivered by truck. Trucking companies, businesses that deliver their own product and their customers rely on well-functioning vehicles and drivers for the success of their operations.

Too often, though, driving a truck is not conducive to good health. That can spell trouble for the drivers and for the profitability of their employers.

There are a number of factors about the truck-driving occupation that contribute to poor physical health, including:

  • Drivers are hired to sit all day behind the wheel, with limited opportunities for exercise.
  • They eat at truck stops and other restaurants where they can get meals quickly, contributing to poor diets.
  • Their work schedules are not consistent, interfering with sleep patterns.
  • The job is stressful. They have to contend with the annoyances and hazards of the road all day long, including traffic delays, dangerous drivers, and poor weather. On top of that, they are under pressure to reach their destinations on time. This gives them incentives to skip on sleep and ingest stimulants to help them stay awake.

Not surprisingly, studies have found that:

  • The obesity rate for truck drivers is double that of the general population.
  • Their smoking rate is almost triple that of the general population.
  • 88% of truck drivers report having hypertension, smoking or obesity, and 9% reported having all three, quadruple the general population’s rate.
  • Truck drivers’ life expectancy is 16 years less than the national average.
  • Unhealthy drivers do not perform their jobs as well as healthy ones do.
  • Among private sector employees, truck drivers have the highest number of illnesses and injuries that cause them to miss work.

A 2017 study found that drivers with three or more serious health conditions like the ones mentioned above are two to four times more likely to have an accident than are those with only one.

One common affliction for many drivers is sleep apnea. Drivers who have untreated sleep apnea are five times more likely to have a preventable accident than are those who treat it.

What you can do

What can you as an employer do to maintain a healthy driving force? Plenty.

  • During the pre-employment screening process, evaluate candidates’ fitness levels through physical examinations and a review of their driving histories.
  • Review employer safety policies and driver wellness and fitness requirements during new employee orientation.
  • Implement injury prevention programs.
  • Offer free or discounted memberships at gyms with locations around the country.
  • Encourage drivers to take quick exercise breaks during trips.
  • Encourage healthy eating both at home and on the road.
  • Monitor drivers’ performance through data provided by telematics devices installed in trucks, review of accident reports, and in-person observation of drivers.

The takeaway

If a truck driver suffers a heart attack or dozes off while hauling a load weighing tens of thousands of pounds, the results can be catastrophic. In addition to the lives lost or forever changed, the cost to the employer could be millions of dollars in jury awards.

Making driver wellness a priority is the right thing to do, but it also makes business sense for employers.