In the face of the negative economic climate, the California Industrial Welfare Commission last week voted (3-2) to reject a labor-backed proposal to increase the state minimum wage by $1.25 over the next two years. If passed, the proposal would have raised the wage by 50 cents this July and by an additional 75 cents in July 2004. State labor leaders responded that workers can't live on $6.75 an hour in California and pledged to seek an increase through the Legislature.

Unemployed workers did receive several pieces of good news, however. Last week, President Bush signed into law a bill ensuring that nearly 800,000 people recently cut off from federal unemployment insurance will be reinstated with full retroactive benefits. An estimated 1.9 million others will qualify for benefits in coming months. The new year also brought increases in the maximum weekly benefit amounts for both disability and unemployment insurance claims. UI benefits will increase from $330 to $370 per week while DI payments will go from $490 to $602 per week.

You might be surprised to know that, on January 1, 2003, 1,169 new state laws went into effect. As discussed in Lerner Lines during the last few months of 2002, a number of these laws will significantly impact the manner in which companies do business in California. As the economy worsens, many legislators are hoping to use that as a reason to reverse laws passed in recent years that they say drives businesses from the state. Laws that will be specifically targeted provide increased workers' compensation benefits, paid family leave and the use of sick time to care for ill family members. Those actions, whether successful or not, will take place in the future. In the meantime, employers must gear up to ensure they are in compliance with today's law.

I suggest the following actions: First, review my previous newsletters which outline the most important pieces of legislation. If you feel you need more information, go to the Internet and download the full bill, or at least, the Legislative Counsel's Digest of the bill. Finally, I recommend that you attend one or more programs scheduled throughout the southland where qualified employment-law attorneys review the legislation and suggest strategies for implementation.

One of my favorite speakers is attorney R. Craig Scott. Craig will be doing a breakfast program for the non-profit Employer Advisory Council of Orange County on Thursday, January 16 at the Hyatt Regency hotel in Garden Grove. In addition to covering the significant new laws, Craig will review the major court cases which will impact you in 2003. Cost for the program is $60 for members and $80 for non-members. Call Jean Gardner at (714) 573-0741 for more information.

If you cannot make this program or if you are interested in a more intimate setting, plan to join Craig and me for a special morning program featuring human resources consulting on Wednesday, January 22. This will be held in the executive conference room at Scott & Whitehead, located near the Orange County Airport. Attendance will be restricted to no more than 20 participants and there will be ample opportunity for questions and discussion. As a special bonus, I will share a special strategy to help your human resources department avoid the challenges you can expect under SB 1471 whenever you terminate any employees for absenteeism. Cost for this program is $75 and includes all materials, consulting and handouts.

For information about this special program - or if you would like to schedule me to come to your company and review the new labor laws and OSHA requirements for your management team - email my office or contact me at (714) 671-0202

Have a great 2003!