December 2006
WIN AT WORK MONTHLY
A Community Service of SESSIONS & KIMBALL LLP, Employee Rights Attorneys
Win at Work	Employee Rights Update
CONTINUING HEALTH INSURANCE Losing your health insurance, along with your job, could be devastating. According to law, your employer must provide notice of your opportunity to continue your health insurance if your employment ends for any reason, except for gross misconduct. There are substantial penalties for failure to notify employees of this provision. You may continue health insurance for 18 months or more after being fired, quitting, having your hours reduced so you no longer qualify for coverage, and being laid off. However, coverage can end if you don’t pay the premiums, your employer terminates the group health plan for all its employees, you become eligible for Medicare, or you become eligible for another group health plan. Your medical insurance rights are especially important if you, or someone in your family, is uninsurable at the time you lose your job. At least continued health insurance coverage gives you time to look for other options.	NEW MINIMUM WAGE LAW California’s minimum wage will increase to $7.50 per hour on January 1, 2007 and to $8.00 per hour in 2008. This increase in minimum wage affects the qualifying income for the executive, administrative and professional exemptions from overtime. This income has to be two times the minimum wage. In 2008 the annual amount will increase to $33,280. Employers sometimes forget about this point when they incorrectly classify employees as exempt. Qualification for overtime depends on examination of the employee’s job duties. It does not matter whether the employee has an important-sounding title. If the employee spends more than 50% of his time on non-exempt work he will normally qualify for overtime payment. The increase in minimum wage will eventually be passed on to consumers and will play its part in the cost of living cycle. Many minimum wage jobs are in industries which are labor intensive. In addition salaried and hourly workers will want increases in pay as the cost of living rises. Peter W. Taylor, Attorney
Update on our attorneys: We are pleased to announce that three of our former law clerks, Brett T. Abbott, Lisa C. Fults, and Paul B. Miner have passed the Bar and will join us as attorneys in January.
Look for our answers to employees’ questions in the “Life and Work Q & A” column of the Orange County Register’s "Business Monday" magazine. E-mail us at info@job-law.com to have your address added or removed from our monthly mailing list. For more employee rights information or for past issues of Win at Work Monthly, click here for our website, job-law.com; here to order our book, Employee Rights in California; or contact our office directly at 23456 Madero, Suite 170, Mission Viejo, CA 92691, (949) 380-0900, (800) 774-7494, info@job-law.com. The Win at Work portion of Win at Work Monthly is from our ongoing syndicated column, which appears in the Los Angeles Times’ “Career Builder Magazine” and elsewhere. Win at Work Monthly is intended for general information and should not be construed as legal advice or opinion. Readers in need of legal advice should promptly retain the services of an attorney. ©2006 by Sessions & Kimball LLP