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August 2022: Governor Newsom Signs Bill Extending Provisions Related to Filing Work Share Plans Indefinitely 

01 Aug

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Update Applicable to: 
All employers in the state of California.

What happened?
On July 19, 2022, Governor Newsom signed Assembly Bill 1854 (AB 1854), which extends the provisions under AB 1731 indefinitely, and requires the EDD to accept electronic signatures on all work sharing plan documents.

What are the details? 
In 2020, California passed Assembly Bill 1731 (AB 1731), which created an alternative process for employers to submit and be approved for work-sharing plan programs. Previously, some employees would be eligible for unemployment benefits if they worked less than their usual weekly hours and their employer was participating in a work-sharing plan that met specified requirements and was approved by the Director of Employment Development. Employers were required to submit to the director a signed, written work-sharing plan application form that met specific requirements.

For work sharing plan applications submitted by eligible employers between September 15, 2020, and September 1, 2023, AB 1731 required that, upon approval by the Director of Employment Development, they be deemed approved for one year, except as specified.

Moreover, the Employment Development Department (EDD) must mail an eligible employer a claim packet for each participating employee within five business days following approval of the application. The EDD must also make online claim forms available to the approved employer for each participating employee within five business days following approval of the application if an employer submitted its work sharing plan application online.

For more information, please see the links below:

Assembly Bill 1854 (AB 1854)

Assembly Bill 1731 (AB 1731)

Article 

What do employers need to do?
Employers should review the links above and be aware of any possible changes to this law.

Need help understanding how changes to employment laws will affect your business?

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This communication is intended solely for the purpose of conveying information. The present post might incorporate hyperlinks directing readers to websites managed by third-party entities. The inclusion of any links within this communication is meant to serve as points of reference and could encompass opinion articles from various law firms, articles from HR associations, official websites, news releases, and documents of government agencies, and other relevant third-party sources. Vensure has no authority over these external websites and bears no responsibility for their content. Furthermore, Vensure does not endorse the materials present on these websites. The contents of this communication should not be interpreted as legal advice or as a legal standpoint concerning specific facts or scenarios. Nor should it be deemed an exhaustive compilation of facts potentially pertinent to federal, state, or local laws. It is strongly advised that employers solicit legal guidance from an employment attorney when undertaking actions in response to any legal updates provided. This is due to the possibility of future alterations occurring in federal, state, and local laws, regulations, as well as the directives and guidelines issued by governing agencies. These changes may transpire at any given time, potentially rendering certain portions of the content within this update void or inaccurate.

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