California: Newly Permitted Electronic Notices
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APPLIES TO All Employers with Employees in CA |
EFFECTIVE January 1, 2024
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QUESTIONS? Contact HR On-Call |
Quick Look
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Discussion
Employers must provide employees with notice regarding the availability of federal and state Earned Income Tax Credits (EITC) as well as unemployment insurance (UI) benefits. AB 1355 permits those notices to be provided to employees via email if an employee affirmatively, and in writing or by electronic acknowledgment, opts into receipt of electronic statements or materials. In the case of UI benefit notices, the electronic acknowledgment must fully explain that the employee is agreeing to electronic delivery of the notice, provide the employee with information about how they can revoke consent to electronic receipt, and create a record of the employee’s agreement to electronic delivery of the notice.
An employer cannot discriminate, retaliate, or take any adverse action against an employee who does not opt into receipt of electronic statements or materials. These permissions remain in effect until January 1, 2029.
The EITC notice must be provided within one week before or after, or at the same time, that the employer provides an annual wage summary, including, but not limited to, a Form W-2 or a Form 1099, to any employee. The notice must be provided a second time in March, but has been permitted to be delivered electronically. The UI benefits notice must be provided at the time of termination.
Action Items
- Review the bill here.
- Implement electronic receipt authorization forms.
- Have appropriate personnel trained on the requirements.
Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser. © 2023 ManagEase