NEW LAWS AFFECTING CALIFORNIA EMPLOYERS

Effective January 1, 2002, new California state law imposes additional penalties on employers who fail to comply with court ordered child support wage assignments. Assembly Bill 1426, Chapter 371, Statutes of 2001, authorizes local child support agencies and/or support obligees to obtain a court order requiring employers to make child support payments through electronic funds transfer, if the employer has willfully failed to comply with a particular wage assignment order on three separate occasions within a 12 month period. Employers who are found in contempt by the court may also face a civil penalty of up to 50% of the support amount not forwarded to the child support obligee, including any interest incurred as a result of the employer's failure to forward child support payments.

Effective January 1, 2003, employers and health plans must begin health care coverage for the employee's dependents named in the National Medical Support Notice within 30 days after service of the Notice unless an order is received to quash the health insurance assignment. Prior to January 1, 2003, the deadline to begin coverage was within 20 days but not later than 40 days of receipt of the Notice.

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