Special Report New California Employment Laws Effective in 2014 HR. Payroll. Benefits.
California Employer Challenges in 2014 The California legislature has produced more new employment-related laws than in any recent year. The new laws impose additional burdens on employers and continue the trend of expanding employee rights that has existed for several years. The purpose of this report is to provide a summary of the major laws that may impact a client s operations and to help clients plan and prepare for these new compliance challenges. The laws covered in this report are effective January 1, 2014 unless otherwise noted. Categories covered in this year s report are as follows: Employment Protections (Discrimination / Retaliation) Wage and Hour Issues (including increases to the minimum wage) Leave and Related laws (including an overview of the San Francisco Flexible Work Arrangement Ordinance) Workplace Safety Background Checks As always, please contact your ADP Resource Human Resource Business Partner if you have any questions regarding these developments.
Employment Protections Military and Veteran Status Now Protected under California Employment Discrimination Law The California Fair Employment and Housing Act ( FEHA ), Cal. Civ. Co de 12920 et seq., has been amended to include military or veteran status as a class protected from employment discrimination. The law defines military or veteran status as a member or veteran of the United States Armed Forces, United States Armed Forces Reserve, the United States National Guard, and the California National Guard. The new law allows employers to inquire regarding an applicant s or employee s military or veteran status for the purpose of awarding a veteran s preference as permitted by law. Protection for Stalking Victims Protection from discrimination and retaliation has been extended to employees who are victims of stalking under an amendment to the California Labor Code, Sections 230 and 230.1. The prior version of the law covered only victims of domestic violence and sexual assault. The amended law prohibits employers from discharging, discriminating against, or retaliating against employees who need to take time off from work to address issues related to domestic violence, sexual assault, and stalking. It also prohibits discrimination and retaliation based on the employee s status as a victim of domestic violence, sexual assault, or stalking and requires employers to provide certain accommodations for the safety of such victims. Prohibitions Against Discrimination and Retaliation The law broadly prohibits employers from discriminating or retaliating against an employee because of the employee s status as a victim of domestic violence, sexual assault, or stalking if the victim provides notice to the employer, or the employer has actual knowledge, of that status or because the employee takes time off from work to appear in court or to obtain applicable legal relief. The law also bans employers from discriminating or retaliating against an employee because the employee requires medical attention or psychological counseling related to domestic abuse, sexual assault, or stalking; services from a domestic violence shelter, program, or rape crisis center; or must participate in safety planning. Reasonable Accommodation Requirements The law includes a reasonable accommodation provision requiring employers to provide victims of domestic violence, sexual assault, or stalking with accommodations to enhance their safety in the workplace. Reasonable accommodations may include transfer, reassignment, modified schedule, changed work telephone, changed work station, installed lock, assistance in documenting domestic violence, sexual assault, or stalking that occurs in the workplace, and other safety procedures. Employers must engage in an interactive process with an employee who requests a reasonable accommodation, including any subsequent requests. In determining whether an accommodation is reasonable, the employer must consider the current circumstances and dangers facing the employee. Employers need not implement any accommodation that would constitute an undue hardship on the employer s business, as defined in the California Fair Employment and Housing Act, Cal. Civ. Code 12926. Under section 12926 undue hardship means an action requiring significant difficulty or expense, when considered in light of the following factors: Page 3 of 14
1. The nature and cost of the accommodation needed. 2. The overall financial resources of the facilities involved in the provision of the reasonable accommodations, the number of persons employed at the facility, and the effect on expenses and resources or the impact otherwise of these accommodations upon the operation of the facility. 3. The overall financial resources of the covered entity, the overall size of the business of a covered entity with respect to the number of employees, and the number, type, and location of its facilities. 4. The type of operations, including the composition, structure, and functions of the workforce of the entity. 5. The geographic separateness, administrative, or fiscal relationship of the facility or facilities. For purposes of this law, an undue hardship also includes any action that would violate an employer s duty to furnish and maintain a place of employment that is safe and healthful for all employees under the California Labor Code, Section 6400. Employers may request certification (described below) for the need for a reasonable accommodation. Employees must notify their employer if a reasonable accommodation is no longer needed. Employers are prohibited from discriminating or retaliating against an employee for requesting a reasonable accommodation. Procedural Requirements Employees requiring leave under the law must give their employers reasonable advance notice of the need to take time off, unless advance notice is not feasible. An employee may use vacation, personal leave, or compensatory time off for permitted leave. If an unscheduled absence occurs, an employer may not take any adverse action against the employee if the employee provides a certification to the employer regarding the absence. A certification will be deemed sufficient if it is one of the following: a police report indicating the employee was a victim of domestic violence, sexual assault or stalking; a court order protecting or separating the employee from the perpetrator, or other evidence from the court or prosecutor showing the employee appeared in court; or documentation from a licensed medical professional, health care provider, domestic violence or sexual assault victim s counselor showing the employee was undergoing treatment related to being a victim of domestic violence, sexual assault or stalking. Except as required by law or as necessary to protect the employee s safety, employers must maintain the confidentiality of any documents indicating that an employee is a victim of domestic violence, sexual assault, or stalking. The employer must give the employee notice before any authorized disclosure. Enforcement An employee may file a complaint for any violation of the law with the state Division of Labor Standards Enforcement within one year of the violation. The employee is entitled to reinstatement, lost wages and benefits, and other appropriate equitable relief for a violation. Employers that fail to rehire, promote, or otherwise restore an employee to an appropriate position, as required by law, are guilty of a misdemeanor. Page 4 of 14
Employment Protections for Crime Victims A new law prohibits employers from discharging, discriminating or retaliating against employees who are victims of certain offenses for taking time off from work to appear in any court proceeding in which their rights are in issue. Under the new law, employees who are discharged or otherwise discriminated against because they have taken such time off may file a complaint with the state Division of Labor Standards Enforcement and are entitled to reinstatement and reimbursement for lost wages and benefits for violations. Applicability The legislation broadly defines victim to include any person who suffers direct or threatened physical, psychological, or financial harm as a result of the commission or att empted commission of a crime or delinquent act. A victim also includes the person s spouse, parent, child, sibling, or guardian. The new law applies to victims of the following offenses (as they are defined in the state Vehicle Code or state Penal Code): vehicular manslaughter while intoxicated; felony child abuse likely to produce great bodily harm or a death; assault resulting in the death of a child under eight years of age; felony domestic violence; felony physical abuse of an elder or dependent adult; felony stalking; solicitation for murder; a serious felony; hit-and-run causing death or injury; felony driving under the influence causing injury; and sexual assault. The law applies to any court proceeding where the victim s rights are in issue, including a delinquency proceeding involving a post-arrest release decision, plea, sentencing or post-conviction release decision. Procedural Requirements Employees requiring leave under the law must give their employers reasonable advance notice of the need to take time off, unless advance notice is not feasible. If an unscheduled absence occurs, an employer may not take any adverse action against the employee if the employee provides a certification to the employer regarding the absence. A certification shall be deemed sufficient if it is one of the following: a police report indicating the employee was a victim of a specified offense; a court order protecting or separating the employee from the perpetrator or other evidence from the court or prosecutor that the employee appeared in court; or documentation from a health care provider, domestic violence or sexual assault victim s advocate, or other counsel showing that the employee was undergoing treatment related to being a victim of a specified offense. An employee may use vacation, personal leave, or compensatory time off for leave permitted under the law. Page 5 of 14
Prohibited Conduct; Enforcement Employers are prohibited from discharging, discriminating against, or retaliating against employees for taking time off for a permitted reason. Employees who are discharged or otherwise discriminated against in violation of the law are entitled to reinstatement and reimbursement for lost wages and benefits. An employee may file a complaint for any violation with the Division of Labor Standards Enforcement within one year from the date of the violation. Employers that fail to rehire, promote, or otherwise restore an employee to an appropriate position, as required by law, are guilty of a misdemeanor. Whistle Blower Retaliation Protections Current CA law prohibits employers from preventing employees from reporting violations of law to a government agency, and prohibits retaliation against employees for making these external reports. CA courts have historically interpreted the law to exclude employees whose duties include disclosure of legal compliance information. The new law expands the protections to internal whistleblowers. It also overturns case law exempting employees who have legal compliance duties. The law prohibits an employer from adopting any rule, regulation, or policy preventing an employee from disclosing reasonably-believed violations of law or regulations to a person with authority over the employee or to another employee who has authority to investigate, discover, or correct the violation or noncompliance, regardless of whether disclosing the information is part of the employee s job duties. The law also prevents retaliation against an employee based on the belief that the employee disclosed or may disclose / report reasonably-believed violations of law. Finally, the law makes it illegal to take specified actions designed to prevent an employee from providing information to, or testifying before, any public body conducting an investigation, hearing, or inquiry where the employee reasonably believes the information or testimony discloses a violation of law or a regulation, and prohibits retaliation against an employee who provides such information or testimony. Page 6 of 14
Prohibition of Retaliation Against Suspected Undocumented Workers Under a new law it is unlawful for an employer or any other person to engage in, or direct another person to engage in, an unfair immigration-related practice against a worker in retaliation for exercising a legal right. Unfair Immigration-Related Practices An unfair immigration-related practice is defined as any of the following practices when taken for retaliatory purposes: Requesting more or different documents than are required under federal immigration law, or a refusal to honor documents tendered pursuant to federal law that, on their face, reasonably appear to be genuine; Using the federal E-Verify system to check the employment authorization status of a person at a time or in a manner not required under federal law or not authorized under any memorandum of understanding governing the use of the federal E-Verify system; Threatening to file or the filing of a false police report; or Threatening to contact or contacting immigration authorities. Under the new law, protected activity includes the following: Filing a complaint or informing any person of an employer s or other party s alleged violation of the Labor Code or a local ordinance, if the complaint or disclosure is made in good faith; Seeking information regarding whether an employer or other party is in compliance with the Labor Code or a local ordinance; Informing a person of his or her potential rights and remedies under the Labor Code or a local ordinance; and assisting another in asserting their rights. Significantly, the law creates a rebuttable presumption that an adverse action taken within 90 days of the employee exercising a protected right is retaliatory. The law also prohibits an employer from discharging or discriminating, retaliating or taking any adverse action against an employee because the employee updates or attempts to update his or her personal information, unless the changes are directly related to the skill set, qualifications, or knowledge required for the job. It is not clear whether the law prohibits the termination of an employee who had provided a false Social Security number or other information relied upon by the employer to verify identity and legal authorization to work in the United States. The law does not specifically address for example whether a decision to terminate can be based on an employer policy of terminating employees who intentionally provide false information (ex. on an employment application and other employment forms). Clients are urged to consult with their Human Resource Business Partner. Enforcement / Penalties The law authorizes a civil action for equitable relief and damages or penalties for an unfair immigration-related practice and also authorizes a court to order the suspension of certain business licenses held by the employer for prescribed periods based on the number of violations. Finally, retaliation against an employee who has complained to the employer, orally or in writing, that the employee is owed unpaid wages can result in a civil penalty of up to $10,000 per violation. Protection for Employees Who Aid Injured Persons Employers may not prevent an employee from providing voluntary emergency medical services, including cardiopulmonary resuscitation, in response to a medical emergency. However, an employer may adopt and enforce a policy prohibiting an employee from performing emergency medical services on a person who has expressed the desire to forgo resuscitation or other medical interventions through legally recognized means. The new law does not impose any express or implied duty on an employer to train its employees regarding emergency medical services or cardiopulmonary resuscitation. Page 7 of 14
Wage and Hour Issues Increase to State Minimum Wage A new law increases the state s hourly minimum wage rate from $8.00 an hour up to $10.00 an hour by January 1, 2016. The rate increase will take effect in two stages: a $1.00 increase on July 1, 2014, to $9.00 an hour, and another $1.00 increase on January 1, 2016, to $10.00 an hour. The last time California increased its minimum wage was on January 1, 2007. Beyond the significant impact the wage increases will have on businesses in California, the change has a domino effect on other California employment compliance areas that are linked to the state minimum wage Other Compliance Areas Following are some of the other key effects the new law will have for employers. Exempt Employees Private sector employers with exempt employees in California must determine whether they will continue in compliance. For employees to be properly classified as exempt under the Executive, Administrative, and Professional Exemptions of many California Wage Orders, the employee must earn a monthly salary equivalent to no less than two times the state minimum wage and meet the duty test under the exemption. Effective July 1, 2014, the minimum salary test for the California Executive, Administrative, and Professional Exemptions will increase from $33,280 to $37,440 annually. Employers should review whether their exempt employees will still meet the salary requirement by July 1, 2014, and again, by January 1, 2016. Collective Bargaining Agreements Employers with collective bargaining agreements in California should determine whether they will remain in compliance with the rate change. Under most California Wage Orders, employers and unions are permitted to negotiate overtime premiums different from those required by the applicable Wage Order, so long as their employees are covered by a valid collective bargaining agreement designating wages, hours and working conditions and the employees regular hourly rate of pay is not less than 30 percent more than the state minimum wage. Employers should determine whether their union contracts or other procedures are affected. Commission Exemption Wage Orders 4 and 7 Employers subject to California Wage Orders 4 and 7 also should review their practices where the employer is relying on the commission overtime exemption (Section 3). Employers with employees exempt from overtime provisions based on the commission exemption must determine whether the employees will still qualify. Employees whose earnings exceed one and one-half times the minimum wage and more than half their compensation represents commissions could be exempt from the overtime provisions under Section 3 of California Wage Orders 4 and 7. Employer would need to ensure these individuals earn at least one and one-half times the new state minimum wage. Tools or Equipment Section 9 of Wage Order Employers who require employees to provide their own tools or equipment based on provisions of the California Wage Order may be affected. Generally, when tools or equipment are required by the employer or are necessary to the performance of a job, they must be provided and maintained by the employer. However, employees who earn at least two times the state minimum wage can be required to provide and maintain their own hand tools and equipment customarily required by the trade or craft under Section 9 under most California Wage Orders. If employers are taking advantage of this limited provision, they should ensure they are paying employees twice the new state minimum wage. Page 8 of 14
Voluntary Crediting Agreements Employers with voluntary written agreements with employees for crediting meals or lodging against the employer s minimum wage obligation should adjust their crediting accordingly under Section 10 of most California Wage Orders. Note also that crediting arrangements must also comply with federal law. Contact your Human Resource Business Partner for more information. Overtime Exemption Rates for Computer Software Employees and Physicians Increased The Labor Code provides that certain computer software employees and physicians are exempt from the overtime requirements stipulated in the Code if certain criteria are met. One of the criteria is that the employee s hourly rate of pay is not less than the statutorily specified rate, which the California Department of Industrial Relations is responsible for adjusting annually to be effective on January 1 of the following year by an amount equal to the percentage increase in the California Consumer Price Index for Urban Wage Earners and Clerical Workers. The Department has adjusted the computer software employee s minimum hourly rate of pay exemption from $39.90 to $40.38, the minimum monthly salary exemption from $6,927.75 to $7,010.88, and the minimum annual salary exemption from $83,132.93 to $84,130.53. The department has also adjusted the licensed physicians and surgeons employee s minimum hourly rate of pay exemption from $72.70 to $73.57. Page 9 of 14
Domestic Workers to Receive Overtime Pay Private individuals employing domestic workers in California, such as childcare providers and caregivers, must pay such employees overtime at a rate of time-and-a-half for all hours worked in excess of nine in one day or more than 45 hours in one week. The new law will expire on January 1, 2017, unless it is extended. The law applies to any person, including corporate officers or executives, who directly or indirectly employs, or exercises control over the wages, hours or working conditions of, a domestic work employee. The law excludes health care facilities, employment agencies, any individual or entity that employs or exercises control over the wages, hours or working conditions of an individual who performs domestic work services through California s In-Home Supportive Services program. A domestic work employee includes any person who performs domestic work, including live-in workers and personal attendants. A personal attendant spends at least 80 percent of his or her time supervising, feeding, clothing or otherwise caring for a child or a disabled or elderly individual. The law excludes minor babysitters and casual babysitters for minor children, as long as their employment is irregular and not performed by an individual whose vocation is babysitting. The law also does not apply to workers who are paid through the state s In-Home Supportive Services program, employees of licensed health care facilities, or workers hired through employment agencies. Clients should also keep in mind recent changes to federal regulations governing the payment of overtime to direct care workers under the Fair Labor Standards Act. Significantly, effective January 1, 2015, direct care workers employed by agencies and other third-party employers are entitled to receive at least the federal minimum wage and overtime pay. Court Recovery of Unremitted Employee Wage Withholdings Under current law it is a crime for an employer to willfully or with the intent to defraud fail to remit agreed-upon payments to health and welfare funds, pension funds, or other various benefit plans. The crime is a felony where the amount the employer fails to remit exceeds $500. All other violations are punishable as a misdemeanor. A new amendment makes it a crime for an employer to fail to remit withholdings from an employee s wages that were made pursuant to state, local, or federal law, e.g., for taxes. Liens on Real Property by Labor Commissioner Under current law, the Labor Commissioner has the authority to hear employee complaints and the Commissioner is required to file an order, decision, or award within 15 days after the hearing on the employee complaint. Once the order is final, the Commissioner is required to file the final order with the Clerk of the Superior Court. The Clerk of the Superior Court enters judgment based on the final order, which has the same force and effect as a judgment entered in a civil action. A new amendment provides that as an alternative to obtaining a court judgment, upon the Commissioner s order becoming final, the Commissioner may create a lien on the employer s real property. Unless the lien is satisfied or released, the lien continues until 10 years from the date of its creation. Page 10 of 14
Leave and Related Laws Leave Law Expanded to Cover Emergency Rescue Personnel and Reserve Peace Officers An amendment to the California Labor Code mandates temporary leaves of absence for firefighters, reserve peace officers, and emergency rescue personnel. A.B. 11 requires employers with at least 50 employees to provide temporary leaves of absence of up to 14 days per calendar year to employees who serve as volunteer firefighters, reserve peace officers or emergency rescue personnel for the purpose of engaging in fire, law enforcement or emergency rescue training. The prior legislation applied only to volunteer firefighters and did not cover emergency rescue training. Under the new law, employers are prohibited from discharging, demoting, suspending or otherwise discriminating against employees who take time off to engage in fire, law enforcement, or emergency rescue training. Aggrieved employees may file a complaint with the Labor Commissioner and are entitled to reinstatement, lost wages and work benefits for violations. Our handbook product will be updated to reflect these changes. Expansion of Paid Family Leave Benefits A new law expands the application of the Family Temporary Disability Insurance program beginning on July 1, 2014. Family Temporary Disability Insurance is also known as Paid Family Leave. Paid Family Leave is a paid benefit provided by California Employment Development Department ( CA EDD ) when an employee is on an authorized employer leave. Paid Family Leave does not create a new right to leave but instead provides a means for eligible employees to receive paid benefits from CA EDD when on an authorized leave. Currently, the Paid Family Leave program provides up to six (6) weeks of wage replacement benefits to workers who take time off work to care for a seriously ill child, spouse, parent, or domestic partner or to bond with a minor child within one year of the birth or placement of the child in connection with foster care or adoption. The new law expands the scope to also include paid benefits when an employee is taking time off to care for a seriously ill grandparent, grandchild, sibling, or parent-in-law. The bill also makes conforming and clarifying changes in provisions relating to family temporary disability compensation. Our handbook product will be updated to reflect these changes. San Francisco Enacts Flexible Work Arrangement Ordinance San Francisco Mayor Edwin M. Lee (D) has signed an Ordinance allowing employees working in the City to request flexible work arrangements to care for a child, family member with a serious health condition, or parent over age 65 without retaliation. Employers must consider employees requests and must provide business reasons for denying them. San Francisco joins the State of Vermont, which enacted similar legislation in May 2013, in adding another dimension to employee leave management. Coverage Private employers that directly or indirectly employ at least 20 workers in the City of San Francisco are covered. Employees, including part-time employees, are eligible to request flexible work arrangements if they work within San Francisco, have been employed for at least six months, and regularly work at least eight hours per week are covered. Collective bargaining agreements may waive the Ordinance s rights for unionized employees; however, any waiver must be stated in clear and unambiguous terms. Page 11 of 14
Requirements Under the Ordinance, eligible employees may request flexible or predictable working arrangements to care for a child for whom the employee has parental responsibilities, a person with a serious health condition with whom the employee has a family relationship (as defined in the Ordinance), or an employee s parent over age 65. The requests must be in writing and may include the following changes: the number of hours that an employee is required to work; the time that an employee is required to work; the employee s work location; work assignments or other factors; or a change in terms and conditions of employment that provide scheduling predictability to assist the employee in providing care. The request must include the proposed date on which the arrangement would become effective, the duration of the arrangement, and how the arrangement relates to caregiving. Employees may make such requests twice every 12 months, unless the employee experiences a major life event, in which case the employee may make, and the employer must consider, an additional request. A major life event is the birth or placement of a child or an increase in the employee s caregiving duties for a person with a serious health condition. Employers may require verification of caregiving responsibilities as part of any request. The employer must meet with the employee within 21 days of the employee s request. The employer must respond to the request in writing within 21 days of the meeting, unless the period is extended by written agreement. The employer may confirm or deny a request. If the employer denies the request, it must provide a bona fide business reason for the denial and inform the employee of his or her right to request reconsideration. Reasons for denying a request include, but are not limited to, the following: identifiable costs, including the cost of productivity loss, retraining, hiring, or transferring employees from one facility to another; detrimental effect on ability to meet customer or client demands; inability to organize work among other employees; and insufficiency of work to be performed during the time that the employee proposes to work. If an employer denies a request for a flexible or predictable work arrangement, the employee may submit a written request for reconsideration within 30 days of the denial. An employer who receives a request for reconsideration must meet with the employee within 21 days of the request and respond to it in writing within 21 days of the meeting. If the request is denied, the employer must provide a business reason for the denial. Either the employer or employee may revoke a flexible or predictable work arrangement upon 14 days written notice. In such case, the employee may submit an additional request to which the employer must respond as described above, and such requests do not count toward the yearly limit. Model Policy and Forms In order to assist our clients we will be developing a model handbook policy and model forms to document employee requests and employer responses and will post these forms on FormSource in the state appendix prior to the effective date of the ordinance. Page 12 of 14
Posting Requirement Employers must post a notice published by the Office of Labor Standards Enforcement ( OLSE ) in English, Spanish, Chinese and any other language spoken by at least 5 percent of the workforce regarding employees rights under the Ordinance. The notice will be available on the OLSE website. Anti-Retaliation Provisions The Ordinance prohibits employers from discriminating against or retaliating against employees because of their caregiving responsibilities or for exercising their rights to request flexible or predictable working arrangements. The Ordinance also prohibits employers from interfering with employees exercise of their rights. Recordkeeping and Enforcement Employers must maintain records related to requests for flexible or predictable work arrangements for a period of three years and allow the OLSE to inspect them. The OLSE is authorized to investigate violations of the Ordinance s procedural, posting and documentation requirements and anti-retaliation provisions; however, a violation cannot be based on the employer s reasons for denying a request. The OLSE can issue an administrative penalty of $50 per violation for each day of the violation, payable to the employee, and an additional penalty of $50 per violation for each day of the violation payable to the City of San Francisco to offset the costs of investigation and enforcement. In addition, the OLSE may bring a civil action to enforce the Ordinance against an employer and seek legal and equitable relief, including, but not limited to, reinstatement, back pay and benefits, liquidated damages in the amount of $50 for each day of the violation, injunctive relief, attorney s fees and costs. However, no private right of action exists under the Ordinance. Page 13 of 14
Workplace Safety Penalty for Missed Recovery Periods Labor Code 226.7 provides that an employee should receive one hour of pay as a penalty for not receiving rest or meal periods in accordance with California law. SB 435 expands the one hour of pay penalty to missed recovery periods. The new law applies to any meal, rest or recovery period mandated by applicable statute, regulation, standard, or order of the California IWC, the Occupational Safety and Health Standards Board, or the Division of Occupational Safety and Health. SB 435 defines Recovery Period as a cool down period afforded an employee to prevent heat illness. Employers may consider reviewing the CA OSHA resources for preventing heat illness. For example, when the outdoor temperature exceeds 85 degrees Fahrenheit, CA OSHA mandates a recovery period of not less than 5 minutes for employees who work outside to take a cool-down rest, in the shade, to protect themselves from overheating. Background Checks California Further Restricts Employer Use of Prior Convictions in Hiring Decisions Labor Code section 432.7 prohibits employers from considering, or asking applicants about, information concerning: (1) arrests or detentions not leading to conviction or (2) referral to, or participation in, a pretrial or post-trial diversion programs. Newly passed SB 530 adds to these restrictions, amending section 432.7 to prohibit employers from asking job applicants about criminal records that have been expunged, sealed or dismissed. Employers are exempt from these requirements if: (1) the employer is required by law to obtain such information; (2) the job would require the applicant to possess or use a firearm; (3) an individual who has been convicted of a crime is prohibited by law from holding the position sought by the applicant, regardless of whether that crime has been judicially dismissed, expunged, statutorily eradicated or ordered sealed; or (4) the employer is prohibited by law from hiring an applicant who has been convicted of a crime. This Client Alert provides general information regarding its subject and may not be construed as providing legal advice. ADP, the ADP Logo and ADP TotalSource and ADP Resource are registered trademarks of ADP, Inc. In the business of your success is a service mark of ADP, Inc. 2013 ADP, Inc Page 14 of 14