The Larkin Company News

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Effective February 5, 2007 employers who have workers in San Francisco must provide paid sick leave to each employee (including part-time and temporary employees). Employees as of February 5 begin to accrue sick-leave immediately. Those hired after February 5, 2007, begin to accrue after 90 days of employment. Paid Sick-leave accrues at one hour for each 30 hours worked. The accrual cap is 40 hours for employers with fewer than 10 employees, 72 hours for all others. Employees can use paid sick-leave for their own medical care or to care for a family member or “designated person.”

In the first major examination of the regulations, the Labor Department is requesting information from the public on possible changes to the 13-year old Family and Medical Leave Act. Twelve specific areas have been identified in this request for guidance, but the commenters are not limited to just the questions posed by the DOL.

The Labor Department suggests that a large problem for employers is the use of intermittent leave as an accommodation when the leave is unscheduled or with little advanced warning. Other noted concerns include the proper flow of accurate medical information, which allows employers to determine whether an employee has a serious medical condition or is fit to return to work. Related to this are complaints that the certification process is too burdensome on employees and health care providers alike.

Along with the concerns expressed by employers and worker advocates, FMLA regulations have met with skepticism in the federal courts, with numerous sections having been found largely unworkable or invalid.

Written comments on the RFI should be submitted to Richard M. Brennan, Senior Regulatory Officer, Wage and Hour Division, Employment Standards Administration, U.S. Department of Labor, Room S-3502, 200 Constitution Avenue, N.W., Washington D.C. 20210. Electronic comments may be submitted by e-mail to whdcomments@dol.gov. Comments of 20 pages or less may be submitted by fax machine to (202) 693-1432, which is not a toll-free number. Comments should be received by no later than 5 p.m., February 2, 2007.

The California Employment Development Department announced that the 2007 State Disability Insurance (SDI) employee contribution rate will be lowered to 0.6%. The employee wages on which the contribution is taken will increase to $83,389. The maximum employee cost in 2007 will be $500.33.
The maximum weekly benefit will be increased to $882.00.

Lexi Young joined The Larkin Company in May. She worked part-time while in training and while completing her studies at the University of Santa Clara from which she received her BA in English in June. Lexi has been working and training with Nancy Cantley and will be handling disability claims. Lexi is a great addition to our team and we’re thrilled to welcome her!

The Larkin Company was an exhibitor (first time!) at the 11th annual Disability Management Employer Coalition Conference in steamy San Diego, July 16th through the 19th. Tom Larkin actually worked the booth all three days. It was an opportunity to meet some old friends, make some new ones and to discuss disability and leave opportunities with company representatives. Many employers, large and small, from across the country attended and the presentations were great. Unfortunately, it was so hot and humid in San Diego so Tom’s golf game suffered a little. Next year’s conference will be in Boston on July 15th through the 18th. Go to www.dmec.org for more information.

In its May Forecast, the California Employment Development Department (EDD) projected that the 2007 SDI contribution rate would fall to 0.6% of covered employee wages (wages up to $81,498). Both the contribution rate and covered wage amount are set by statutory formula. The current contribution rate is 0.8% of wages up to $79,418. The projected contribution rate and wage base would produce a maximum employee contribution in 2007 of $488.99, a 23% drop from 2006’s maximum of $635.34 The maximum weekly benefit for disability and Paid Family Leave claims is projected to increase from $840 to $862.
The EDD’s forecast is based on actual contributions and Fund expenses through December of 2005. The actual formula calculation and and rate announcement will be made in October.

Employers who have opted out of SDI and have established self-insured Voluntary Plans may not charge employees more than SDI charges its participants nor may they provide benefits that are less than SDI’s.
The Larkin Company is an administrator of self-insured California Voluntary Disability Plans.