Alliance Resources

Membership Directory  – The brand new Power Inn Alliance Membership Directory is now available! Take a look at this interactive list of your Power Inn neighbors. 2021 Membership Directory

Check out our Restaurant & Entertainment Guide

Crime Prevention Guide – What to do when an issue arises

Who to Call, How to Report – Issues such as crime and illegal dumping

Resources and Financial Assistance

SBA and Sacramento Asian Pacific Chamber of Commerce – Help is available for those navigating the multitude of loans, grants and technical assistance.
Explore more COVID Relief programs with the Small Business Administration (SBA), click here
For personal or mult-language assistance, contact the Sacramento Asian Pacific Chamber of Commerce.
916-446-7883 or visit their site here

Business Guidance – Find a Business Mentor. Be a Business Mentor.

Sacramento County COVID-19 Resources, Opening Guides by Industry, and Help for those affected by Civil Unrest – More information 

New Small Business Resource: California Rebuilding Fund – The California Rebuilding Fund is a loan program to support California’s small businesses-especially those located s economically disadvantaged and historically under-banked areas of the state. The loans are flexible, transparent and are designed to help businesses access the capital and advisory services they need to get through these challenging economic times. Click here to learn more about the program!

Legal Advice from Young, Cohen & Durrett LLP

AB 80 – New State Tax Breaks

On April 29, 2021, Governor Newsom signed Assembly Bill 80 (AB 80) into law. AB 80 allows expenses associated with certain federal loans related to the COVID-19 pandemic to be deducted from state taxes, conforming more with the federal deductions. The tax break applies to employers which are not publicly traded companies and which can prove they incurred at least a 25% loss during at least one three-month period in 2020.

For taxable years beginning on or after January 1, 2019, AB 80 excludes from gross income any advance grant amount pursuant to the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) and the Consolidated Appropriations Act, 2021, (CAA) as well as covered loan amounts forgiven pursuant to the CARES Act, the Paycheck Protection Program (PPP) and Health Care Enhancement Act, the PPP Flexibility Act, and the CAA.

Additionally, AB 80 conforms state law to federal law with respect to the provisions of the CAA which prohibit reduction in tax deductions, denial of basis adjustments, and reduction in tax attributes based on the exclusion of forgiven loan amounts from gross income for taxable years beginning on or after January 1, 2019. Further, AB 80 also conforms state law to federal law with respect to the tax treatment of forgiven PPP loans for taxable years beginning on or after January 1, 2019.

If you have any questions about employment law, please reach out to the experts at Young, Cohen & Durrett, LLP at (916) 569-1700. Please note that we are not tax experts and you should consult with your tax preparers regarding the exact requirements of this new law and how to best maximize these tax changes for your company.

Supplemental COVID-19 Sick Leave Update
Employers with between 25 and 500 employees may want to look into “voluntarily” participating in the FFCRA so that they can get tax credits for providing the sick leave which California is now mandating.
The notice must be posted “in a conspicuous place” (found here)
If an employer’s covered employees do not frequent a workplace, the employer may satisfy the notice requirement by disseminating notice through electronic means.
The CA Dept of Industrial Relations has put up a new FAQ (found here) to help provide answers to some of the most burning employer questions.
For now, once you post the notice, it’s up to your employees who were out with COVID to request retro COVID pay. If those requests come in check with The Employers’ Council before you start calculating payment so we can let you know if the court has stopped the retroactive portion of the law or not by that point.
Temporary COBRA Premium Subsidy and Payroll Tax Credit
In addition to tax credits for voluntary FFCRA compliance, discussed (HERE), the American Rescue Plan Act of 2021 created a 100% COBRA premium subsidy as well as special COBRA enrollment rights for eligible individuals who lost or lose group health plan coverage due to an involuntary termination of employment or reduction in hours. The requirement does not apply to employees who voluntarily terminate employment.
Employers are required to cover 100% of the employee’s cost of continuing group health coverage under COBRA for up to six months if an employee/former employee has lost coverage under their employer’s plan due to a reduction in hours or involuntary termination (not including termination for gross misconduct), if they elect COBRA continuation. Then, the government will make the employer whole by providing a tax credit on the employer’s quarterly tax filings.
The COBRA subsidy period is between April 1, 2021 and September 30, 2021.
Employers should begin looking over their records to determine if any employees or former employees may be eligible and reach out to their benefit plan administrators to begin coordinating notices and making sure that persons already enrolled will receive the subsidy.
For help with employers’ obligations surrounding this subsidy and tax credit, please give YCH LLC a call at (916) 569-1700.

New California Re-Hire Law

Last Friday, April 16, 2021, Governor Newsom signed into law Senate Bill 93 (SB 93). SB 93 requires certain employers to first offer any new positions to covered employees who were laid off for COVID-related reasons. Covered employers include those who own or operate hotels with 50 or more rooms, as well as employers in other related industries—private clubs, event centers, airport hospitality operations, airport service providers, or providers of building service (janitorial, building maintenance, or security services) to office, retail, or other commercial buildings. Covered employees are those who worked two hours or more per week for a covered employer, were employed by a covered employer for at least six months in 2019, and were “separat[ed] from active service” for COVID-19-related reasons.

Once there is an open position, covered employers will have five days to contact covered employees who are qualified for the position to notify them of the opening; this must be done in writing, either by hand or last known physical address, and by email and text where known. Covered employees are qualified if they held the same or similar position at the time of their most recent layoff by the employer. If more than one covered employee is interested in an offered position, the employer must offer the position to the employee with the most seniority, defined as the greatest length of service based on the employee’s date of hire with the company. After the employee receives the offer, they will have five business days to consider it. Additionally, if the employer chooses to fill the open position with someone other than an interested, covered former employee, the employer must send a follow-up notice to the covered employee including specified reasons for the decision to hire someone else over them; this must be done within 30 days of hiring the new employee.

For at least three years, measured from the date of the written notice regarding the employee’s layoff, covered employers must also maintain records of the following:

  • The employee’s full legal name;
  • The employee’s job classification at the time of separation from employment;
  • The employee’s date of hire;
  • The employee’s last known address of residence;
  • The employee’s last known email address;
  • The employee’s last known telephone number;
  • And a copy of the written notices regarding the layoff provided to the employee and all records of communications between the employer and the employee concerning offers of employment made to the employee pursuant to this new law.

This program will remain in place until December 31, 2024, and it also applies to successor employers, so if a business transfers ownership, the new owner must continue to reach out to any of the previous owner’s former employees who qualify. Employers may not retaliate against employees who exercise their rights under SB 93 or those who mistakenly, but in good faith, allege that the employer is not complying with this law. Employees may file a complaint with the DLSE, which may award: hiring and reinstatement rights; front or back pay; value of the benefits the complainant “would have received under the employer’s benefit plan;” and interests on all amounts due and unpaid. The DLSE can also impose civil penalties of $100 for each employee whose rights are violated, as well as liquidated damages of $500 per employee “for each day the rights of an employee under this section are violated and continuing until such time as the violation is cured.”

Based on this information, it may be wise to consider developing a template letter to provide to qualifying employees that gives them the option to opt out of receiving more offers in the future as well. If you would like our assistance in drafting that letter, or if you have any questions about whether your business will be subject to this new law and what would be required of you as an employer, please call the experts at Young, Cohen & Durrett, LLP at (916) 569-1700.

New Legislation in 2021!

AB 685 — Notice Obligations for COVID-19 Exposures in the Workplace and Cal/OSHA Enforcement Changes (Effective Jan. 1, 2021)
AB 685 prescribes notice requirements on employers in the event of a COVID-19 exposure in the workplace, enhances reporting requirements to local health authorities in the event of a COVID-19 outbreak, and expands the Division of Occupational Safety and Health of California’s (Cal/OSHA) authority to shut down worksites deemed to be an “imminent hazard” due to COVID-19 and issue “serious violation” citations.
Under AB 685, private and public employers who receive notice of a potential exposure to COVID-19 must do the following within one business day:
  • Provide written notice to all employees, and the employers of subcontracted employees, who were on the premises at the same worksite as the “qualifying individual” within the infectious period that they may have been exposed to COVID-19.
  • Provide written notice to the exclusive representative (union), if any, of the employees above.
  • Provide all employees who may have been exposed and their exclusive representative, if any, with information regarding COVID-19-related benefits to which they may be entitled, including but not limited to worker’s compensation, COVID-19-related leave, and paid sick leave, as well as the employer’s anti-discrimination and anti-retaliation policies.
  • Provide notice to all employees, the employers of subcontracted employees, and the exclusive representative, if any, of the disinfection and safety plan that the employer plans to implement and complete, per CDC guidelines.
The written notice provided to employees may include, but is not limited to, personal service, email or text message if it can reasonably be anticipated to be received by the employee within one business day of sending and shall be in both English and the language understood by the majority of the employees.
AB 685 also imposes reporting obligations on employers who are notified of a COVID-19 outbreak, as defined by the CA Department of Public Health. Within 48 hours of learning of the outbreak, employers must notify the local public health agency in the jurisdiction of the worksite of the names, number, occupation and worksite of qualifying individuals, as well as the employer’s business address and NAICS code of the worksite where the qualifying individuals worked. Following the reporting of an outbreak, the employer must continue to give notice to the local health department of any subsequent laboratory-confirmed cases of COVID-19 at the worksite.
The new law also adds a section to the Labor Code which specifically provides that Cal/OSHA can shut down or prohibit operations at a worksite when, in the opinion of Cal/OSHA, a worksite or operation “exposes workers to the risk of infection” of COVID-19 so as to constitute an imminent hazard. In addition, it eliminates the requirement that Cal/OSHA provide to the employer its notice of intent (1BY) to issue a “serious violation” citation for COVID-19 related hazards. This means that employers no longer have a “15-day window” to respond to the notice with evidence to support their defense before a citation can be issued. This provision of the bill will expire on January 1, 2023.

AB 1867 — Supplemental Paid Sick Leave; Handwashing; Family Leave Mediation (Effective Sept. 9, 2020)
AB 1867: supplemental paid sick leave for employers with 500 or more employees nationwide; handwashing requirements for food employees working in any food facility; and small employer family leave mediation pilot program under the California Fair Employment and Housing Act (FEHA).
Supplemental Paid Sick Leave: This bill codifies Governor Newsom’s Executive Order N-51-20 (signed April 16, 2020) which provided supplemental paid sick leave to food sector employees for an employer with 500 or more employees nationwide as a result of the COVID-19 pandemic (COVID-19 Supplemental Paid Sick Leave). This bill also extends COVID-19 Supplemental Paid Sick Leave to non-food sector employees such that sick leave must be provided to all employees who leave their homes or place of residence to perform work and who work for employers that have 500 or more employees nationwide. Moreover, COVID-19 Supplemental Paid Sick Leave is now available to health care employees and emergency responders who were not provided paid sick leave by their employers under the federal Families First Coronavirus Response Act (FFCRA).
The California Labor Commissioner has published useful FAQs to assist employers.

AB 1867 requires employees working in any food facility to be permitted to wash their hands every 30 minutes and additionally as needed.

Small Employer Family Leave Mediation Pilot Program:
The California Department of Fair Employment and Housing (DFEH) has, among other things, the power to investigate, mediate and prosecute complaints by employees or former employees under FEHA. AB 1867 requires the DFEH to create a small employer family leave mediation pilot program which would authorize a small employer or the employee to request all parties to participate in mediation through the DFEH’s dispute resolution division. If mediation is requested, this bill would prohibit the employee from pursuing a civil action until the mediation is complete, and the statute of limitations would be tolled for the employee to bring a civil claim. This program expires as of January 1, 2024.

AB 1947 — Time period for filing DLSE complaints
(Effective Jan. 1, 2021)
AB 1947 extends the period of time for employees who believe that they have been discharged or otherwise discriminated against in violation of any law enforced by the Labor Commissioner to file a complaint with the Division of Labor Standards Enforcement from six months to one year. AB 1947 also authorizes a court to award reasonable attorney’s fees to a plaintiff who successfully brings a whistleblower action under Labor Code Section 1102.5. Prior to AB 1947, workers who prevailed in lawsuits alleging that their employer made, adopted or enforced a policy that prevented them from disclosing information to a government or law enforcement agency where they had reasonable cause to believe that the information disclosed a violation of a state or federal law could obtain damages, but were not permitted to recover attorney’s fees. AB 1947 now affords them the ability to do so.

AB 2017 — Sick Leave: Kin Care (Effective Jan. 1, 2021)
AB 2017 provides that when an employee takes sick leave to attend to the illness of a family member, the designation of sick leave is at the sole discretion of the employee.

AB 2143 — Settlement Agreements (Effective Jan. 1, 2021)
AB 2143 amends Code of Civil Procedure section 1002.5 to specify the circumstances under which an agreement to settle an employment dispute may include a provision that prohibits a settling party from working for the employer again (sometimes known as a “no-rehire” provision). Under current law, an employer may not enter into an agreement that restricts an “aggrieved person” from working for the employer against which the “aggrieved person” has filed a claim. Pursuant to AB 2143, the “aggrieved person” must have filed the claim in good faith for the provision to apply. In addition, while existing law has an exception to the ban on “no-rehire” provisions if the employer has made a good-faith determination that the “aggrieved person” engaged in sexual harassment or sexual assault, AB 2143 requires the determination of sexual assault or harassment to be documented by the employer before the “aggrieved person” filed the claim. AB 2143 also extends this exception to include determinations of criminal conduct.

AB 2399 – Paid Family Leave (Effective Jan. 1, 2021)
Paid Family Leave will include time off for participation in a qualifying exigency related to the active duty or call to active duty of an individual’s spouse, domestic partner, child or parent in the Armed Forces of the United States.

AB 2765 — Public Works: Prevailing Wages (Effective Jan. 1, 2021)
California law requires that generally no less than the general prevailing rate of per diem wages be paid to workers employed on public works. AB 2765 expands the definition of “public works” for these purposes to include any construction, alteration, demolition, installation or repair work done under private contract on a project for a charter school when the project is paid for with the proceeds of certain bonds.

AB 2992 – Employee Leave (Effective Jan. 1, 2021)
Existing law prohibits employers from discharging — or discriminating or retaliating against — employees who are a victim of domestic violence, sexual assault or stalking, for taking time off from work to obtain or attempt to obtain relief to help ensure the health, safety or welfare of the victim or victim’s child. AB 2992 expands existing provisions to apply to employees who are victims of a crime or abuse for taking time off from work to obtain or attempt to obtain relief which includes but is not limited to a temporary restraining order, restraining order or other injunctive relief to help ensure the health, safety, or welfare of the victim or their child. In addition to existing certification requirements, this bill provides that employers are prohibited from taking action against employees when an unscheduled absence occurs if employees provide certification that they were receiving services for certain injuries, or if the documentation is from a victim advocate (as defined).
Under AB 2992, “victim” includes: a victim of stalking, domestic violence, or sexual assault; a victim of a crime that caused physical injury or that caused mental injury and a threat of physical injury; or a person whose immediate family member is deceased as the direct result of a crime. This bill also contains a broad definition of “immediate family member” to include “any other individual whose close association with the employee is the equivalent of a family relationship” as described.
Finally, for employers with 25 or more employees, AB 2992 prohibits the discharge of, or discrimination or retaliation against, employees who are victims and who need to take time off to seek medical attention for injuries caused by crime or abuse, obtain services from prescribed entities as a result of the crime or abuse, obtain psychological counseling or mental health services related to an experience of crime or abuse, or participate in safety planning and take other actions to increase safety from future crime or abuse. The California Labor Commissioner has published useful FAQs to assist employers.

AB 3075 — Successor Liability for Unpaid Wages (Effective Jan. 1, 2021)
AB 3075 expands the information corporations must include in the corporation’s statement of information filed with the California Secretary of State. Specifically, AB 3075 requires a corporation to include whether any officer or director, or in the case of a limited liability company, any member or manager, has an outstanding final judgment issued by the Division of Labor Standards Enforcement or a court of law, for which no appeal therefrom is pending, for the violation or provision of the Labor Code. The new law also adds a section to the California Labor Code which provides that a successor employer is liable for any wages, damages and penalties owed to any of the predecessor employer’s former workforce pursuant to a final judgment, after the time to appeal therefrom has expired and for which no appeal therefrom is pending, if the successor employer meets any of the following criteria:
  • Uses substantially the same facilities or substantially the same workforce to offer substantially the same services as the predecessor employer. This factor does not apply to employers who maintain the same workforce pursuant to Chapter 4.5 (commencing with Section 1060) of Part 3.
  • Has substantially the same owners or managers that control the labor relations as the predecessor employer.
  • Employs as a managing agent any person who directly controlled the wages, hours or working conditions of the affected workforce of the predecessor employer (the term managing agent has the same meaning as in subdivision (b) of Section 3294 of the Civil Code).
Operates a business in the same industry and the business has an owner, partner, officer or director who is an immediate family member of any owner, partner, officer or director of the predecessor employer.

SB 973 — Pay Data Collection and Reporting (Effective Jan. 1, 2021)
SB 973 requires California private employers with 100 or more employees to submit a pay data report to the Department of Fair Employment and Housing (DFEH) by no later than March 31, 2021, and annually thereafter. Modeled after the federal EEO-1 Component 2 collection form, the state pay data report requires employers to collect aggregate W-2 earnings and report the number of employees in each of the 12 pay bands (spanning from $19,239 and under to $208,000 and over) for the 10 broad job categories (executive or senior-level officials and managers; first or mid-level officials and managers; professionals; technicians; sales workers; administrative support workers; craft workers; operatives; laborers and helpers; and service workers), classified by race, sex and ethnicity. Employers must also report total hours worked by each employee within a given pay band during the reporting year. Employers with multiple establishments must submit a report for each establishment as well as a consolidated report that includes all employees.

SB 1159 — Workers’ compensation: COVID-19: Critical Workers (Effective Sept. 17, 2020)
SB 1159 codifies and supersedes Governor Newsom’s Executive Order N-62-20 (signed May 6, 2020), which created COVID-19 presumptions that an employee’s illness related to coronavirus is an occupational injury and therefore eligible for workers’ compensation benefits if specified criteria are met. Executive Order N-62-20 covered all California employees who worked at a jobsite outside their home at the direction of their employer between March 19 and July 5, 2020.

B 1383 – California Family Rights Act (Effective Jan. 1, 2021)
SB 1383 repeals the California New Parent Leave Act (NPLA) and California Family Rights Act (CFRA), and instead implements a new CFRA. Under SB 1383, the CFRA will be expanded to cover any employer with 5 or more employees. Such employers will be required to grant employees up to 12 workweeks of unpaid protected leave during any 12-month period to bond with a new child of the employee or to care for themselves or a child, parent, grandparent, grandchild, sibling, spouse, or domestic partner. Such employers will also be required to grant up to 12 workweeks of protected leave during any 12-month period due to a qualifying exigency related to the covered active duty or call to covered active duty of an employee’s spouse, domestic partner, child or parent in the Armed Forces of the United States.
Notably, SB 1383 removes any requirement that the employer employ a certain number of employees within a 75-mile radius of the employee’s worksite for the employee to be eligible for leave. However, it does retain the requirement that, to be eligible for leave, an employee must have at least 1,250 hours of service with the employer during the previous 12-month period. New CFRA leave will also continue to run concurrently with leave taken pursuant to the FMLA, except for any leave taken under the FMLA for disability because of pregnancy or childbirth.
SB 1383 also requires that an employer who employs both parents of a child grant up to 12 weeks of leave to each employee, whereas the old CFRA allowed an employer to only grant a total of 12 weeks to such employees.

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