Saturday, April 6, 2013

Regulatory Requirements for all businesses in California. Plus New Labor laws for 2013



OSHA Covers Just About Everyone In Your Workplace
You must follow OSHA's rules for every worker in your business, regardless of the worker's title, status, or classification. This means that the law covers managers, supervisors, partners, stockholders, officers, and family members who work for you as well as rank-and-file employees.

 General Safety Rules For All Businesses
OSHA requires employers to maintain a workplace that is free of hazards that they know or should know about, and that are causing or are likely to cause death or serious physical injury. 

 Other OSHA Requirements
Your obligations under OSHA don't stop with maintaining a safe work environment. You must also meet certain reporting requirements, posting requirements, and record keeping requirements like the OSHA 300 logs that must be completed and posted each year.
 In California, if you have more then 10 employees you MUST have a written Injury Illness prevention plan (IIPP) and an Emergency Action Plan (EAP) If your company provides fire extinguishers for employee use, OSHA requires you also provide training on their use.

 Additional Requirements
OSHA is not the only regulatory agency that requires every business to conduct and maintain life safety procedures. The national fire protection agency (NFPA) requires that all Fire door assemblies in your facility be inspected and tested not less then annually, and that the written record of the inspection shall be signed and kept for inspection. The NFPA also requires that exits and egress routes  be free from obstruction and an inspection be conducted at least annually.

 New labor laws for 2013

Pregnancy-Related Issues
•   On Friday, November 30, 2012, 28 pages of new pregnancy regulations were approved by the Office of Administrative Law. They become effective December 30, 2012, and will affect virtually every California employer.   While some of the amendments are technical and simply update certain terms in the existing regulations, other changes are significant. California employers are encouraged to familiarize themselves with these significant new regulations before year-end and to ensure strict compliance with respect to all employees “affected by pregnancy.”

Compensation Issues
•   A new Labor Code provision will require that all in-state and out-of-state employers paying commissions to employees working in California provide them with written "contracts"
•   Some employers have a practice of paying nonexempt employees a fixed or guaranteed salary which includes all overtime hours worked (e.g., a fixed amount for all hours worked up to 50 in a week). AB 2103 amends section 515 of the Labor Code to specifically forbid this practice. Employers are required to provide at least nine categories of specified information to employees on every wage statement each time wages are paid to an employee. A mistake here can cost employers $4,000 per employee.

Social Media Issues
•   California Labor Code prohibits California employers from requiring or requesting current employees or job applicants to: (i) disclose their user name or password so the employer can access their personal "social media;" (ii) access their personal "social media" in front of the employer; or (iii) divulge their personal "social media" to the employer. The new law considers an employee's or applicant's personal e-mail and text messages as "social media."

Record Keeping Issues 
•   Current law requires that every employer provide at the time of each payment of wages to each employee an accurate itemized statement showing certain specified information. Employers are required to retain a copy of the statement and the record of deductions on file for three years. AB 2674 also allows employees to inspect certain of their personnel records. If an employer fails to comply with inspection and copying requests, either the current/former employee or Labor Commissioner may collect a penalty of $750.
•   In the past year, the NLRB has taken a position on "at-will" provisions in employee handbooks, finding that some standard provisions violate the National Labor Relations Act. Due to the NLRB's increased scrutiny in this area, employers should update the at-will provisions in their employment documents (applications, offer letters, employee handbooks, and employment contracts).
•   The newly created Consumer Financial Protection Bureau recently issued regulations modifying the notices required under the Fair Credit Reporting Act (FCRA). The changes affect three forms: the Summary of Consumer Rights under FCRA; the Notice to Users of Consumer Reports of Their Obligations under the FCRA; and the Notice to Furnishers of Information of Their Obligations under the FCRA. Employers must use the new forms beginning January 1, 2013.

Discrimination Issues
•   The passage of AB 1964 adds to and amends California's Fair Employment and Housing Act (FEHA) by prohibiting discrimination on the basis of an employee's or job applicant's religious dress or grooming practices. In anticipation of the new law, employers should review their uniform policies and dress codes to ensure that there are sufficient accommodations for religious dress and grooming.
•   AB 2386 changes the FEHA's definition of "sex" to expressly include breastfeeding and related medical conditions. As a result of AB 2386, discrimination on the basis of breastfeeding (or related medical conditions) is expressly a violation of the FEHA. Employers should not delay in revising their notices, postings, policies, and training related to preventing discrimination and harassment.
•   The recently enacted "Shriver R-Word Act," also known as AB 2370, revises the language in several California statutes. Under existing law, California statutes refer to mentally retarded persons. The bill replaces the term "mentally retarded" with "intellectually disabled" and "mental retardation" with "intellectual disability." 

Good Practice Principles for deterring and detecting Fraud


100% fraud prevention is not practicable as the additional internal controls required would stifle an organization’s ability to function. It would also be highly costly and may be seen as outweighing the benefits which might be gained by the reduction of potential fraud loss.
Fraud deterrence aims to improve organisational procedure to reduce or eliminate the underlying causes of fraud, and involves both short term (systems) and long term (cultural) initiatives, for example:

Systems

  • Writing a fraud strategy statement
    Guidelines adopted at a top level within an organisation should provide guiding principles on how to distinguish between what is accepted custom and practice and what is not acceptable. The guidelines could answer such practical questions as ‘when does pilfering become fraud?’ and ‘when does hospitality become corruption?’
    The establishment of a register of interests can also help identify areas or within an organisation where the potential for fraud may lie.
  • Engaging/establishing an audit committee
    One of the roles of an audit committee is to help design fraud prevention measures, investigate allegations of malpractice, and suggest action when they are uncovered.
  • Utilizing Information Technology
    Fraud is sometimes perpetrated because one department does not know what the other is doing. Integrated and relational databases enable information to be cross referenced, both internally and with other organisations, to enable fraud to be more easily spotted.

Culture

Systems can only be effective in an organisation where the cultural environment is such that fraud prevention and detection measures are supported and communicated.
  • Leadership
    Messages about fraud and corruption need to come from the top and be reinforced with action. There may be cynicism among employees if previous concerns have been brushed under the carpet.
  • Communication
    If fraud has occurred within your organisation it is important that relevant information is fed back to staff. Communication should occur to allow concerns to be addressed. It is also important that the offence is not overly trivialized or dramatized and that updates and conclusions are given to employees on cases that are being investigated.
    Explain to your teams what fraud is and the effect that it will have on their jobs and the services provided to internal and external customers. Ensure they are aware of the possible signs that indicate fraud may be occurring in the organisation. A range of communication channels can be used such as formal policy statements, presentations and internal newsletters.
  • Whistle blowing
    Employees need to be aware of the appropriate reporting routes if they identify an issue or problem.
    This can be through their line manager or a nominated member of staff who is perceived as being independent. Employees should not attempt to investigate the matters of fraud themselves.
    The Public Interest Disclosure Act 1999 offers a framework for the protection of employees who whistle-blow. Provided a disclosure is believed to be substantially true and made in good faith, the act provides the employee with protection from sanctions.

Triggers for Fraud


The ‘fraudster’ can operate at all levels of an organisation, but each individual will have his or her own motives and opportunities. Donald R Cressey, an American criminologist, devised a theory for the triggers required to lead to fraud, which involved three aspects which became known as the Fraud Triangle:
  • Pressure
    The motivation for fraud is often rooted in overwhelming pressure, be it business factors such as targets to meet, or the need to continue on a promotion path, or personal factors such as gambling habits and financial problems. Often these pressures are deemed to be non-shareable, but are perceived to be solvable by the fraudulent activity.
  • Rationalization
    From minor unauthorized risks, to continual bad business practices, deception increases slowly, perhaps over a period of years, with the fraudster rationalizing the continued deception. This does offer the chance that some frauds may be stopped in the early stages if robust detection procedures are in place.
  • Opportunity
    An environment has to be in place to allow the opportunities for the fraud to happen. A lack of internal controls, a blame culture, lack of reporting structure can all in their small ways create the opportunity for fraud to more easily occur.
If the triggers for potential fraud can be managed within an organisation, it has the potential to lessen the chance of fraudulent activity occurring.

Sesacon's Advantage

Sesacon & Associates, LLC has a proven success rate in creating and maintaining safety/security programs that ensure a legally compliant, safe and productive workplace.
Throughout Silicon Valley, corporations and small companies rely on us for:
  • Expertise Our management team has over 120 years combined experience of providing corporate security and safety. We bring both domestic and international experience to the range of interrelated fields necessary for top notch security.
  • Extreme Value. A solid Security and Safety Program saves you millions of dollars in litigation and lost revenues. In addition, in the last five years, our Financial Restitution Program has allowed corporations to recoup over 5 million dollars lost to theft and fraud.
  • Technical Expertise. You'll have access to our large network of associates who provide programs & projects for start-ups and Fortune 500 companies. These trusted associates have over 200 years combined experience in the Security/Safety field, including:
    • Licensed Alarm Company
    • Licensed Access Control Installation
    • Licensed Private Security Patrol
    • Licensed Locksmith
     
    • Licensed Industrial Hygiene
    • Certified Auditing Inspector
    • Certified Forklift Operator Training
    • Competent Person For Fall Protection
  • Heightened Productivity. Our comprehensive safety and security programs allows you to focus on what you do best: running your business.
  • Highly Trained Professionals. It's reassuring to know that when disaster strikes, you have professionals on hand who know what to do. From medical emergencies to appropriate emergency response measures, our people are fully prepared for nearly any contingency. Click here to view our certifications and trainings.

Ready to get serious about protecting your assets?


Contracting an annual Security/Safety Program includes:
  • Investigations -- External (Theft, Counterfeiting, Extortion, Blackmail, Espionage), Internal (Theft, Product Leak Information, Employee Relations, Sexual Harassment, Illegal Drugs, Violence & Threats), Background (Corporations, Companies, Consultants, Contractors and Employees).
  • Security Operations -- Employee Security Training, Physical Security Management of Personnel, Travel Security, Executive Protection Program, Project Management of New Facilities.
  • Safety Operations -- Employee Safety Training, Injury Illness Prevention Program, Ergonomics Program, Workplace Violence Program, Fire Safety, Hazardous Materials, Emergency Response Team Training, Forklift Operator Training, Competent Person For Fall Protection, Cal-OSHA Regulations and Inspection Program.
  • Technical Operations -- CCTV, Access Control/Card-Key, Photo-ID Program, Security & Fire Safety Alarms, Lock & Key Program, Computer Security Program, Information Security Program and High-Level Counter-Intelligence Activity Program. Oversight of the IT Security Group for development of all policies and procedures dealing with the overall Global Security Plan.
  • Administration -- Strategic Security Business Planning, Brand Protection Program, Risk Management, Workers Compensation Administration, Business Emergency Contingency Program, Budget Management and writer of Corporate Policies & Procedures. Utilization and development of programs that incorporated the Sarbanes-Oxley Act, Customs Trade Partnership Against Terrorism Act (C-TPAT), USA Patriot Act and the Foreign Corrupt Practices Act.
  • Business Continuity Planning -- Disaster Recovery Planning, Strategic Security Business Planning, Brand Protection Program, Risk Management Program