California

What Is a Lifestyle Spending Account?

Chances are you’re paying more attention to your benefits and wondering how to get the best bang for your buck. You’re likely familiar with health savings and flexible spending accounts, but lifestyle spending accounts (LSAs) are gaining more traction. This employee benefit supports your physical, financial and emotional wellness.

An LSA is an employer-funded account that can cover some healthand wellness-related expenses outside your group health plan. Employers determine their annual contribution amount and how you can spend your LSA funds. Your employer will also place parameters on acceptable products, services and expenses.

How Does it Work?

An employer allocates amounts and only pays for what is spent. They deposit money into your LSA to pay for eligible products and services that support your lifestyle.

What Types of Expenses Are Covered?

  • Physical Wellness- Athletic apparel, Exercise equipment, Gym or spa memberships, Personal trainer services, Weight management program fees

  • Financial Wellness- Financial education programs, Financial planning, Identity theft services, Tax preparation fees, Will fees

  • Emotional Wellness- Counseling services, Family support, Life coaching, Mindfulness apps, Personal development

When Can You Use Funds?

You’re typically encouraged to spend LSA funds in the calendar year they are deposited, but some employers may allow you to carry funds over.

 
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California Employment Laws Effective January 1st, 2022

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In general, once approved by both the state legislature and the state governor, a new bill in California becomes effective on Jan. 1 of the following year (some exceptions are possible for emergency measures and when the bills specifically appoint a different effective date).

This Compliance Bulletin provides an overview of labor and employment laws California adopted throughout 2021. Specific labor and employment updates include the following topics:

• Anti-harassment protections

• Electronic posters and notifications • Employee leave

• Employee wage payment

• Independent contractor classification

• Personal information protections

• Prohibited Discrimination

• Warehousing quotas

• Workplace safety

Important Updates

Electronic Posters and Notices

Employers required to physically post notices may also distribute that information to employees by email with the document or documents attached.

Wage Payment Enforcement

The intentional theft of wages, including gratuities, in an amount greater than $950 from any one employee, or $2,350 in the aggregate from two or more employees, by an employer in any consecutive 12-month period is punishable as grand theft.

Warehousing Quotas

Specified employers are required to provide to each employee defined as a nonexempt employee who works at a warehouse distribution center upon hire or within 30 days of the effective date of these provisions with a written description of each quota to which the employee is subject.

Action Steps

Employers should review these laws and update their employment policies, practices and procedures to remain in compliance. Employers should seek the advice of a knowledgeable legal professional for specific situations and counsel on how to implement required changes. Employers should also continue to monitor California’s Department of Industrial Relations communications for updates on these and additional labor and employment topics.

Please contact Coffman Benefits for more information on these updates and other labor and employment issues at info@coffmanbenefits.com or (949) 409-4411

EEOC Issues New Guidance on COVID-19 and ADA Disability

On Dec. 14, 2021, the Equal Employment Opportunity Commission (EEOC) issued 14 new answers to frequently asked questions (FAQs) about what employers may or may not do to comply with federal fair employment laws during the COVID-19 pandemic. The new FAQs specifically address the definition of “disability” and how to determine whether an individual with COVID-19 meets it under the Americans with Disabilities Act (ADA). 

ADA and COVID-19 Background

Under the ADA, employers with 15 or more employees may face liability if they take certain adverse employment actions against individuals who have been diagnosed with or are believed to have COVID-19. The ADA also requires these employers to provide reasonable accommodations for individuals with disabilities, including any related to COVID-19. Smaller employers may be subject to similar rules under applicable state or local law.

Three-Part Definition     

The EEOC’s new FAQs clarify that COVID-19 may qualify an individual for ADA protection based on “actual” disability, a “record of” disability or being “regarded as” having a disability. Employers must perform an individualized assessment to determine whether a specific employee’s COVID-19 meets any of these definitions.

Disability Types

COVID-19 is an actual disability if it is a physical or mental impairment that “substantially limits one or more major life activities.” The FAQs provide examples of situations in which an individual with COVID-19 would (and would not) meet this definition.

The FAQs also explain and provide examples illustrating how certain adverse employment actions may violate the ADA even if an individual only had COVID-19 in the past (“record of” disability)or is mistakenly believed to have COVID-19 (“regarded as” having a disability).

Highlights

COVID-19 as a Disability 

Determining whether COVID-19 is a disability is determined on a case-by-case basis and always requires an individualized assessment.

Actual Disability

COVID-19 is an actual disability if it substantially limits one or more major life activities.  

Substantial Limitations   

Limitations from COVID-19 do not have to last any length of time or be long-term to be substantially limiting.

Major Life Activities

Major life activities include major bodily functions, such as respiratory, lung or heart function, and most daily activities, such as walking or concentrating.

California Will Allow Electronic Distribution of Workplace Notices

Starting January 1st, 2022 employers in California will be allowed to distribute required notices and posters as an email attachment

On July 16, 2021, California amended its Labor Code to allow employers to distribute certain workplace notices and posters electronically in addition to displaying the postings required by law. The amendment becomes effective Jan. 1, 2022.

Document Distribution

Starting Jan. 1, 2022, employers in California will be allowed to distribute required notices and posters as an email attachment. The amendment affects notices that must be physically posted.

Required Postings

California requires employers to post several notices to inform employees about their rights and protections under the state’s labor and employment law. Required workplace posters are available free of charge from the agency that enforces compliance with the posting requirement.

The California Department of Industrial Relations (DIR) requires employers to display these posters in areas frequented by employees, in a location where employees can easily read them during the workday.

Employers can use the DIR website to access specific required workplace posters. 

Impact on Employers

Employers that wish to distribute required workplace posters and notices electronically to their employees starting on Jan. 1, 2022 should ensure they have accurate employee email addresses.

Employers are also encouraged to review their current workplace posters and evaluate whether they are displaying all current and applicable required postings.