How’s the New Law Going to Affect Small Business in 2012

Year end is approaching; it’s time to plan for the coming year. A great deal of state legislation has been quietly passed. If you are a small business owner or a self-employed individual, new laws may impact how you do business.

There are several changes to Labor laws which will take effect in 2012. Pregnancy disability leave and maternity coverage are amongst those. How does it affect employers and employees?

SB299, this legislation gives women more benefits on pregnancy disability leave. Previously, an employer may cease group health plan payments on behalf of an employee on this type of leave, when certain conditions were met. Under the new law, employers are now prohibited from doing so. In the past, only employers with 50 or more employees were required to follow the old rule of maternity leave for up to 12 weeks. The new changes will affect small businesses with as few as five employees; also the new law extends the time from three months to four months.

SB222 outlines how the health insurers are doing business in California? The law will take effect on July 1, 2012.

The new law requires all Health insurance providers who do business in California to provide maternity coverage, such as prenatal care; maternity services; inpatient hospital maternity care….. Individuals normally are favor of given the option to choose the maternity coverage or not. The option of non maternity coverage which would keep the premium lower would be ideal to some, especially to those 50+ individuals. Under the new law, Health insurance policy will no longer be offered non maternity coverage plan.

Under current economic environment, businesses are struggling to keep afloat, and have to cut their expenses in order to survive. Cutting labor costs are unavoidable. What did the new laws do to help small business? It will add more costs to run a business. I am wondering the new laws would create more jobs or would destroy small business? Or is it part of UN Agenda 21 plan?

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One response to “How’s the New Law Going to Affect Small Business in 2012

  1. I am a small business owner and I support the changes to the law. Perhaps that’s because I am also the mother of 2 young children. I don’t see how adding this benefit will “destroy” my business. While the disability payment for maternity leave comes from the State of CA, not directly from my business, insurance premiums will be higher due to the high cost of maternity care in this country. In the end, I think laws that support families with young children will help businesses succeed.

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