RESOLUTION APPROVING CHANGES TO THE EMPLOYEE HANDBOOK PURSUANT TO RECENT STATE LEGAL REQUIREMENTS AND RISK MANAGEMENT BEST PRACTICES

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1 AGENDA ITEM #4.G TOWN OF LOS ALTOS HILLS Staff Report to the City Council May 19, 2016 SUBJECT: FROM: APPROVED: RESOLUTION APPROVING CHANGES TO THE EMPLOYEE HANDBOOK PURSUANT TO RECENT STATE LEGAL REQUIREMENTS AND RISK MANAGEMENT BEST PRACTICES Pak Lin, Administrative Services Director4 Carl Cahill, City Manager c,c... RECOMMENDATION: That the City Council Adopt resolution approving changes to the Town of Los Altos Hills Employee Handbook to be in compliance with recent State regulations and ABAG risk management recommendations. DISCUSSION: The Town's current Employee Handbook was comprehensively reviewed and adopted on December 7, The document was amended in 2013, and 2015 to incorporate new policies and minor changes in procedure. Since 2015, State Legislature passed a number of fair labor act laws. The Town's Employee Handbook was updated based on City Attorney's recommendations. Additionally, the Association of Bay Area Governments (ABAG) Plan identified vehicle use policy as the Risk Management topic for the year to mitigate risk to the Town and to the Plan, as a whole. SB 579: Kin Care Provision On October 11, 2015, Governor Brown amended the California kin care provision (SB 579) to require employers to allow employees to use one-half of their accrued sick leave to care for a family member. Additionally, effective January 1, 2016, "immediate" family members includes grandparents, grandchildren, siblings, and traditional definition of children, parents, spouse and domestic partner. While the original provision allowed employees to take leave to "attend to an illness" for all "immediate family" members, Section 6.2 Sick Leave of the Employee Handbook was amended by the City Attorney to allow for leave to be taken for: Diagnosis, care, or treatment of an existing health condition, or for preventative care; and Certain absences resulting from domestic violence, sexual assault, or stalking

2 Harassment, Discrimination, and Retaliation (FEHA) As of April 1, 2016, every California employer must have a harassment, discrimination, and retaliation prevention policy that (a) is in writing, (b) lists all current protected categories under Fair Employment & Housing Act (FEHA), (c) specifies that employees are protected from illegal conduct from any workplace source, including third parties who are in the workplace, ( d) creates a confidential complaint process that ensures a timely response, impartial investigation by qualified personnel, documentation and tracking, appropriate remedial actions and resolutions, and timely closure, (e) informs employees about several avenues of complaint other than to a direct supervisor, (f) requires supervisors to report any complaints of misconduct to a designated company representative, and (g) makes clear that employees will not be exposed to retaliation as a result of making a complaint or participating in any workplace investigation. The entire Section 14.1 Anti-Harassment, Discrimination and Retaliation Policy was removed by the City Attorney and updated with new language consistent with FEHA Regulation and AB 1825 Harassment Training and Education requirements. Double-Time Compensation According to Department of Industrial Relations' provision on overtime pay, non-exempt employees should be paid double the regular pay rate for: 1. All hours in excess of 12 hours in any workday and 2. All hours worked in excess of eight hours on the seventh consecutive day of work in a workweek. Management is also requesting for non-exempt employees who are required to work on an official holiday to be paid at double the regular pay rate. Double-time pay requires direct supervisor approval. Failure to obtain such approval may result in disciplinary action. Driver Selection Policy (ABAG Risk Management) Annually, ABAG Risk Management Committee identifies the area of focus for all ABAG Plan members. Each year a different policy is reviewed and updated as an exercise to mitigate risk of major claims filed against its member agencies. For , vehicle use policy was selected for review and update. In meeting with ABAG Risk Control Consultant, Cathie Bigger-Smith recommended minor edits to the Town's Driver Selection Policy. To strength the policy, the following items were major changes to the policy: 1. Qualified Driver definition was added to Section (B) to provide the Town authorization to temporarily or permanently disqualify an employee from operating Town's vehicle and equipment. 2. Procedures in reporting accident was added to Accident Reporting. 3. Addition of Vehicle Use documents appropriate and inappropriate use of Town vehicles.

3 4. Inspection, Maintenance and Recordkeeping ( ) were added to the policy to identify the department responsible for maintenance of Town fleet. Miscellaneous Cleanup Catastrophic leave (Section 6.3) includes short-term disability, as defined by State and Federal regulations. Definition of Exempt Employees (Section 7.5) was updated to include new positions and to removal old classifications. FISCAL IMP ACT There is no financial impact for update for Town's Employee Handbook. Additional harassment training will be required of all staff members and will be presented as part of the budget. ATTACHMENTS: 1. Resolution 2. Redline text of Personnel Rules and Regulations Sections 3. Senate Bill No Chapter Department of Industrial Relations Overtime Provision 5. Full text offeha amendments can be found at Report prepared by: Frances Reed

4 Attachment 1 RESOLUTION A RESOLUTION OF THE CITY COUNCIL OF THE TOWN OF LOS ALTOS HILLS APPROVING CHANGES TO THE EMPLOYEE HANDBOOK PURSUANT TO RECENT STATE LEGAL REQUIRMENTS AND RISK MANAGEMENT BEST PRACTICES WHEREAS, the State of California amended a number of fair labor act laws in 2015 including: 1. Kin Care Provision (SB 579), effective January 1, Harassment and Discrimination Prevention (AB 1825), effective April 1, Fair Employment and Housing Act (FEHA)'s Anti-Harassment, Discrimination and Retaliation Policy, effective April 1, 2016 WHEREAS, the Town's Employee Handbook complies with amended Kin Care Provision on the definition of "immediate family" but has not specify allowable use of sick leave; and WHEREAS, the Employee Handbook has a sufficient Anti-Harassment Policy but can be expanded per City Attorney's review; and WHEREAS, Town of Los Altos Hills wishes to amend Catastrophic Leave policy to include State and Federal recognized short-term disability; and WHEREAS, the Town of Los Altos Hills wishes to expand Overtime Policy to be consistent with Overtime Provision set by Department of Industrial Relations and to allow double time compensation for official holiday hours worked; and WHEREAS, the Town of Los Altos Hills wishes to update the Definition of Exempt Employees; and WHEREAS, the Town of Los Altos Hills wishes to amend the Driver Selection Policy as recommended by Association of Bay Area Group (ABAG) Risk Management; and NOW THEREFORE, the City Council of the Town of Los Altos Hills does hereby authorize amendments to the Personnel Rules and Regulations to be read as follows: 1. Amend Sick Leave Policy (Section 6.2) in accordance with SB Amend Catastrophic Leave Policy (Section 6.3) to include State and Federal recognized short-term disability. 3. Amend Overtime Authorization (Section 7.3) to define double-time pay for work hours as defined by California Department of Labor Relations and official holiday worked. 4. Amend Definition of Exempt Employee (Section 7.4) in accordance with currently budgeted positions. 5. Amend Anti-Harassment, Discrimination and Retaliation Policy (Section 14.1) in accordance with FEHA Harassment Policy Amendments. 6. Amend Driver Selection Policy (Section 14.11) as recommended by ABAG Risk Management.

5 The above and foregoing Resolution was passed and adopted by the City Council of the Town of Los Altos Hills at a special meeting held on day of May, 2016 by the following vote: AYES: NOES: ABSTAIN: ABSENT: ATTEST: John Harpootlian, Mayor Deborah Padovan, City Clerk 2

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