• Understanding Employee Classification: Exempt or Non-Exempt?
    by AIA California on July 24, 2024 at 3:55 pm

    Practice Advisory //byline Ryan J. Kohler  July 24, 2024 Overview California employers often have questions how to properly pay employees under the California Labor Code.  An improper classification creates the risk of liability exposure.  AIA California, in conjunction with Ryan Kohler of Collins + Collins LLP, provides this advisory to answer Frequently Asked Questions about this issue. Disclaimer: AIA California is providing this resource as general information and it is not to be construed as legal advice. Be sure to obtain legal counsel for questions about your specific situation. An architectural firm is looking to expand and hires a designer with seven years of experience.  The designer is working on obtaining his architect’s license.  The firm extends an offer at $40 an hour ($83,200 a year at full time) and notes they plan to have the designer supervise one draftsman on their team.  The applicant counters that she would rather have the proper responsibility and title of a salaried employee and proposes a salary of $85,000 a year.  The parties shake hands and have a deal.  But isn’t there someone they forgot to ask about these terms?  The State of California.  The careful practitioner should also consult with the appropriate labor laws and regulations to determine how to classify an employee. Exempt vs Non-Exempt: The BasicsThe law refers to salaried or hourly as “exempt” or “non-exempt.”  The “exemption” is for California’s wage and hour laws.  If an employee is “exempt” than the employer does not need to track hours, overtime, meal periods, etc.  So why not classify everyone as exempt?  Unfortunately, the default under the law is non-exempt.  And perhaps the most important thing to know: it is the employer’s obligation to prove that an exemption applies.  This means when in doubt, there is less risk to classify the employee as non-exempt. To establish the exemption, an employer must ensure the employee meets three key criteria: enough pay, a qualifying exemption classification (executive/managerial, administrative, or professional), and the duty requirement (to show the employee is primarily involved in exempt work). Salary ExemptionThe salary requirement is the most straightforward: an employer must pay the employee at least two times the state minimum wage for a full-time employee (40 hours a week, 52 weeks a year).  While easy to calculate, take note that it is also a moving target; the state minimum wage is tied to inflation so expect this number to creep up each year on January 1st. For 2024, the minimum wage is $16 an hour, so the salary exemption minimum is $66,560. If an employee is too close to the cut-off, the cautious practitioner should consider classifying the employee as non-exempt, so the moving minimum wage does not inadvertently cause the employee to lose the salary exemption down the road.  The also State tends to look closer at the classification of employees near the salary threshold, in case of an enforcement action by the California Labor Commissioner. Classification ExemptionThe general exemptions for “executive, administrative, and professional employees” are set forth in Labor Code § 515.  However, architects and other designers are also subject to the Industrial Welfare Commission regulations, specifically Industrial Wage Order Number 4, which spells out additional details on the test for classification. Executive / Managerial ExemptionAn employee under this exemption must primarily manage the business itself – or a department or subdivision of the business.  Their duties should include directing the work of at least two or more full-time employees (or the equivalent if managing any part-time employees) and they should have some managerial authority as well (such as to hire, fire, or play a role in suggesting the hiring, firing, advancement, promotion, etc.) of other employees. An employee in charge of a permanent unit managing multiple subordinates, like a project manager in charge of a substantial design team, often qualifies for this exemption – but to truly qualify, they need to be involved in some aspect of the management of employees, such as the role in assessing employment performance for future promotions, and not just managing the completion of design tasks.  Additionally, the regulations note the employee must manage a “customarily recognized department or subdivision thereof” and the State notes this is meant to distinguish between a unit with a permanent status and function and one that is just a temporary collection of employees assigned from “time to time to a specific job.”  One way to think of it is a distinction between being a manager and being in management. Administrative ExemptionThis designation is not for administrative staff or assistants in general.  Instead, this exemption applies to employees performing office (or non-manual) work directly related to management policies or general operations with the practice or its customers. The must have the ability to use discretion and independent judgment on important matters.  They also must generally work with independent discretion and judgment, subject only to “general supervision,” and must have some level of specialized or technical lines of work that requires special training, experience, or knowledge to perform their work. This could include roles in finance, accounting, HR, or marketing.  It can also include an executive administrative assistant that directly assists the head of the firm or another high-level manager, provided they meet the other requirements (such as independence and working with only general supervision). Employees who are trained on specific administrative procedures and then generally just execute those procedures according to a standardized process generally do not qualify for this exemption. Professional ExemptionThis exemption can be the easiest to establish for architects – if the employee is actually a licensed architect.  An employee licensed by the state in architecture or engineering, as well as several other licensed fields ((or accounting or law), qualifies for this exemption. There is also a more difficult standard for the (unlicensed) employee – that of a “learned or artistic” professional.  These two standards are set forth in the Industrial Wage Order 4 as Work requiring knowledge of an advanced type in a field or science or learning customarily acquired

  • Units to Support Disability Pride
    by AIA California on July 18, 2024 at 6:40 pm

    AIA CA Working for you //byline Nicki Dennis Stephens, Hon. AIA July 18, 2024 Greetings from the AIA California Office, As problem solvers, we proudly articulate and celebrate how architects utilize the power of design to create a built environment that addresses a variety of challenges. Accessing the places and spaces you design is one of the most fundamental ideas, and that’s why this month, which has been proclaimed “Disability Pride Month, we are pleased to recognize  “the many ways that people living with disabilities—whether visible or invisible, mobility or cognitive, vision or hearing, learning or sensory, developmental or acquired—add to the diversity and strength of California.” According to the recent proclamation from Governor Gavin Newsom, California is home to more than 7 million adults with disabilities and provides one in seven kids with disability services in schools. How our profession approaches architecture for neighbors, family members, and colleagues that ensures accessibility and inclusion has grown more sophisticated and integrated in design since the Americans with Disabilities Act (ADA) became law in 1990. At AIA California, we are determined to share the possible in design for accessibility and inclusion through new courses that go further than simply fulfilling ADA units. In September, we will launch a series of Case Studies of the award-winning Willie “Woo Woo” Wong Playground by Jensen Architects, and the Center for the Deaf and Hard of Hearing Youth designed by Mithun. Mandatory CE  units required for licensure renewal are a given. But understanding how deftly practitioners channel code requirements to enhance the user’s experience and create an equally accessible and inclusive space inclusion is entirely something else. These webinars are engaging and inspiring as well as conveyers of precise technical information needed to meet the accessibility code. We’re proud that they continue our library of high-quality, existing on-demand webinars, which you may find here, that are often our most well-attended sessions. Creating learning opportunities that share best practices across the profession, showcase solutions to complex design problems, and ultimately launch dynamic discussions is an important part of how we are working for you. Till next week,

  • Climate Action and School Bonds Slated for the 2024 November Ballot in California
    by AIA California on July 9, 2024 at 4:50 pm

    Legislative Advocacy //byline Scott Terrell, AIA CA Director of Government Relations + Tibby Rothman, AIA CA Communications Director July 9, 2024 Two bond measures–with important repercussions for the state, our climate future, and architects–will be on the ballot this November 2024, through agreements by State of California legislative leaders in the final days of June, as the legislature faced ballot deadlines, budget deficits, and fittingly record heat. The first, the “Safe Drinking Water, Wildfire Prevention, Drought Preparedness, and Clean Air Bond Act of 2024,” an agreement amended into SB 867 (Allen), designates funding for climate and environmental projects in three areas: rising sea levels; drinking water and groundwater upgrades; and wildfire and forest programs. The bond designates that 40% of the funds benefit disadvantaged communities, although some lawmakers assert that the bill’s financial definition of “disadvantaged communities” was too wide and does not go far enough in protecting the most vulnerable Californians and neighborhoods. The second raises monies for school facilities and was supported by AIA California as it worked its way through the legislature as AB 247 (Muratsuchi), the “Education finance: school facilities: Kindergarten Through Grade 12 Schools and Local Community College Public Education Facilities Modernization, Repair, and Safety Bond Act of 2024.” If passed by California voters, it will set aside $8.5 billion for new construction and modernization of K-12 schools and $1.5 billion for community colleges. The California constitution allows for the Legislature to place bonds on the general or primary election ballot that have been passed by a 2/3 vote of all members elected to each house of the Legislature and signed by the Governor. The measures must receive majority support of all votes cast in the November election to pass. Click for the here for the AP News; here for coverage on The Hill; here for LA Times coverage; or here for the Cal Matters story.

  • In Inside Look at Current Legislative Actions Affecting Architects
    by AIA California on July 2, 2024 at 8:47 pm

    Legislative Advocacy //byline Tibby Rothman, Hon. AIA|LACommunications Director, AIA California July 2, 2024 Possible changes in tax law at the California state level, what should worry us about the budget, when do lawmakers forfeit their pay, and an inside look at how the legislative process really functions  (in analog days, a clock was, literally, physically stopped, so the legislature could exceed deadlines for budget and legislation) were amongst Mike Belote’s points at a June webinar presented by AIA California to inform members on Legislative Updates. Belote works for and is the Immediate Past President of California Advocates, a government affairs group that has consulted with AIA California for fifty years. The stability of this relationship has greatly benefitted members, providing a rich understanding of the Capitol’s functions and success in advancing AIA California legislative goals. Belote was the first of three speakers at the webinar offering Legislative Updates (two more to come). View his update on the video. https://youtu.be/YyARZKBWHuM

  • AIA California Practice Advisory: Compliance with California’s 2024 Workplace Violence Prevention Law
    by AIA California on July 1, 2024 at 9:19 pm

    Practice Advisory //byline AIA California Staff July 1, 2024 Overview California employers are required to comply with new workplace violence prevention requirements by July 1, 2024.  Labor Code section 6401.9 requires most employers – including most architectural firms with 10 or fewer employees – to develop a workplace violence prevention plan (WVPP), provide annual training, and maintain records. Workplace violence is defined as “any act of violence, against persons or property, threats, intimidation, harassment, or other inappropriate, disruptive behavior that causes fear for personal safety at the worksite.” A Workplace Violence Prevention Plan (WVPP) is like an extension of an Injury and Illness Prevention Program (IIPP), and the State already requires every employer to have an IIPP.  Just as an IIPP helps employers think about ways to reduce workplace injuries and how to respond after an injury occurs, the WVPP is meant to help employers think about potential risks to employees from violence and how to correct, respond to, or prevent such violence.  While the risk of workplace violence to architects is relatively low, there are still some risks, and a WVPP will help an employer and employees be prepared.   AIA California, in conjunction with Collins + Collins LLP, provides this Advisory to answer Frequently Asked Questions about the law. We have also created a draft Workplace Violence Prevention Plan (WVPP) template you can customize for your firm. Cal/OSHA’s overview of the new workplace prevention requirements can be accessed on the California Department of Industrial Relations website, which also has a model written Workplace Violence Protection Plan as a general resource guide for employers. Disclaimer: AIA California is providing this resource as general information, and it is not to be construed as legal advice. Be sure to follow California Labor Code and Cal-OSHA requirements and obtain legal counsel for questions about your specific situation. WVPP Template Compliance with California’s 2024 Workplace Violence Prevention Law California employers are required to comply with new workplace violence prevention requirements by July 1, 2024.  Labor Code section 6401.9 requires most employers – including most architects – to develop a workplace violence prevention plan (WVPP), provide annual training, and maintain records.  AIA California, in conjunction with Collins + Collins LLP, provides this advisory to answer Frequently Asked Questions about the law, along with guidance on a potential template for a WVPP. Disclaimer: AIA California is providing this resource as general information and it is not to be construed as legal advice. Be sure to follow California Labor Code and Cal-OSHA requirements and obtain legal counsel for questions about your specific situation. Workplace Violence Prevention Plan: Basics Workplace violence is defined as “any act of violence, against persons or property, threats, intimidation, harassment, or other inappropriate, disruptive behavior that causes fear for personal safety at the worksite.” A WVPP is like an extension of an Injury and Illness Prevention Program (IIPP), and the State already requires every employer to have an IIPP.  Just as an IIPP helps employers think about ways to reduce workplace injuries and how to respond after an injury occurs, the WVPP is meant to help employers think about potential risks to employees from violence and how to correct, respond to, or prevent such violence.  While the risk of workplace violence to architects is relatively low, there are still some risks, and a WVPP will help an employer and employees be prepared.  Covered EmployersThe new workplace violence prevention requirements apply to all California employers except for the following: Workplaces where there are fewer than 10 employees present at any given time and which are not accessible to the public; Employees who telecommute from a location of their choosing that is outside the employer’s control; General Workplace Violence Prevention Plan Requirements:Employers are required to adopt and implement a workplace violence prevention plan, which includes: The names of the persons responsible for its implementation; Procedures for accepting and responding to reports of workplace violence, including a prohibition on retaliation against the reporting employee; Procedures for communicating about workplace violence matters; Procedures for investigating employee concerns; Procedures for responding to actual or potential workplace violence emergencies; and Procedures for post-incident response and investigation. The plan must be in writing and “easily accessible” to employees. This means at a minimum, it must be available to the more curious employees upon request, but it does not necessarily need to be distributed to all employees.  However, distributing it to employees or making it available on an internal document system does make the plan “easily available” and also helps fulfill requirements on training employees about the plan.    The plan must be “specific to the hazards and corrective measures for each work area and operation” – although for most architectural practices, one overall plan will be applicable for all work operations. It can be a stand-alone plan or can be incorporated into an existing Injury and Illness Prevention Plan. Types of Violence Under Labor Code Section 6401.9 The law requires an assessment of four major types of workplace violence: Type 1: Criminal Violence – committed by a person who has no legitimate business at the worksite, including by those who enter the workplace or approach employees with the intent to commit a crime. Type 2: Customer or Invitee violence – committed by individuals who were allowed in the workplace, like clients, students, contractors, or other allowed visitors. This would include violence on a jobsite by another party involved in construction.  Type 3: Employee violence – committed by a present or former employee, supervisor, or manager (potentially related to some kind of ‘revenge’ for what they perceive as unfair treatment in the workplace) Type 4: Personal violence – committed by a person who has a personal relationship with an employee, but is not an employee (so a violent intrusion of an employee’s personal life into the work environment) Training Requirements?Covered employers are required to provide training to employees when they establish the workplace violence prevention plan, and to continue to provide training thereafter on an annual basis. Trainings must cover

  • Study Hub, Licensure for the Next Generation
    by AIA California on June 27, 2024 at 5:49 pm

    AIA CA Working for you //byline Nicki Dennis Stephens, Hon. AIA June 27, 2024 Greetings from the AIA California Office, One of AIA California’s most significant commitments to its members is supporting the development of the next generation of architects. How? By recognizing the next generation is pursuing licensure in a different way and AIA California is here to help. Founded by David Garcia, Assoc. AIA, a tireless volunteer, educator and advocate for those entering this profession, the ARE/CES California Study Hub is a series of study sessions hosted by a revolving cadre of ten professionals: Some, newly licensed; some with extensive experience in the field. All—deeply engaged with emerging professionals working together towards licensure. Launched mid-2023, the Study Hub is one of the most breakout-successful AIA California programs we’ve facilitated. What makes it so, isn’t simply the professionals sharing their time and experience but the commitment of those on the path to licensure. The program has 717 participants; 410 of which connect and share material on Study Hub’s Slack channel; and, an average of 65 individuals attending each Study Hub session that are devoted to different divisions of the architectural registration exam (ARE). This engagement has had a direct impact on the ARE pass rate for May/June 2024: 83 Study Hub members have self-reported passing exams 19 reported passing multiple exams 9 members became licensed in Q1 We are exceedingly grateful to the mentors leading the sessions, and committed, ourselves, to continuing this exciting program. But we’re equally excited about this program as an investment in the future of this profession. We know student enrollment in architecture school is stable, but many lament the struggle in connecting with a qualified and committed workforce.  Building a community and ensuring the legacy of this profession through the ARE Study Hub is just one more way AIA California is working for you.

  • State Historic Preservation, Join and Have an Impact
    by AIA California on June 27, 2024 at 5:41 pm

    AIA CA Working for you //byline Nicki Dennis Stephens, Hon. AIA May 30, 2024 Greetings from the AIA California Office, AIA CA takes great pride in advocating for the profession while supporting your practice with programs to increase your bottom line. As a member-driven organization, we also find opportunities to influence the political and regulatory process, leveraging the skill and experience of architectural professionals. No where is your knowledge more important than in shaping California’s building code. We are looking for a few AIA California members who are interested in making an impact; the State Historical Building Safety Board has openings now: for members, who can make a statewide impact on a code that we believe will become increasingly important for such projects as adaptive reuse of underused commercial buildings for housing. Advancing AIA California’s working for you by reducing barriers to adaptive use and increasing opportunities for housing. Both of which are, of course, AIA California goals. We would like to see these positions filled by professionals who have experience in project delivery (note: code experience or historic preservation experience is helpful, but not required). It just takes commitment, passion, and a few hours a month to make an impact. There are openings on the State Historical Building Safety Board in each of these categories: AIA CA Member – we worked hard to obtain this position, specifically for a member – let’s utilize it! Landscape Architect Building Official Employee of the Department of Parks and Recreation Member of the California Chapter of the American Planning Association Building Contractor Member of the California State Association of Counties Member of the California Preservation Foundation Mechanical Engineer Electrical Engineer Advocacy is a long game; AIA California is built for it. Providing expertise to shape California’s Building Code – that’s definitely playing the long game – will impact everyone not only in the architectural profession but within the entire design and construction industry.

  • Economic Forecast
    by AIA California on June 27, 2024 at 5:28 pm

    AIA CA Working for you //byline Nicki Dennis Stephens, Hon. AIA May 30, 2024 Greetings from the AIA California Office, Every program which AIA California initiates is linked to practice in some way; how do we remove onerous barriers, provide tools that aid firms, advance best practices that lead to flourishing businesses and improved office culture. Yet none are as foundational as our Economic Forecast series. I’m not sure if you know this but these talks are specifically tailored to California featuring a deep dive into not only the residential and non-residential market sectors but are broken out into the five separate regions of California. To me, this is a cannot-miss resource, especially for small and mid-size firms. It is of incredible value to members, offering the type of data very few firms have the resources to research themselves, it provides access to economic expertise on a national level, specializing in our field. A terrific benefit of membership. By special arrangement, AIA’s Managing Director of Research and Practice Michele Russo, who oversees AIA’s business intelligence and economic work, presents this complex information in an easily understandable way – providing actionable information you can use. And, as a bonus, she will also share brand new information released in May’s Architecture Billings Index (ABI) which is cited as one of the nation’s leading economic indicators, offering a 9-12 month glimpse into spending and demand for design and construction. You still have time to RSVP for the Wednesday, May 22 session hosted by AIA California. It’s free to members, but given the value of these insightful webinars, we are starting to charge non-members. I know how busy your office is, but I highly recommend you invest an hour to gain insights into future budgeting, opportunities, resource management, and hiring/payroll management; just one more, very tangible way AIA California is working for you.

  • Housing Policy Synergy: What Our Allied Organizations Are Working On
    by Tibby Rothman on June 19, 2024 at 4:46 pm

    Legislative Advocacy //byline Scott Terrell, Director of Government Relations June 19, 2024 With a process that began at the first AIA California Board meeting last year, AIA California renewed its commitment to making an impact in the Housing arena. On that day we heard from leading experts in California housing policy and architects leading on Housing. From there the Board engaged in a workshop on how we, as an organization, could make the biggest impact. That feedback culminated in the creation of a Housing Steering Committee, which took that feedback and, over many months, assembled a Housing Policy Statement that was approved by the Board earlier this year. One of the Housing Steering Committee’s main initial objectives has been to focus on building relationships with and engaging allied organizations within the housing community that are doing great work to advance initiatives that are in line with our policy. Two of those organizations are the Casita Coalition and the Housing Action Coalition. These organizations have both been active in housing policy development for years. This year is no different, as each organization is advancing important legislation. Below are a few of the bills that AIA California is supportive of: Housing Action Coalition Sponsored Bills: Senate Bill 937 (Wiener) will address the financial barriers facing the housing industry by amending two key policy areas: (1) extending the timeline for entitled housing projects (2) changing the fee payment schedule for new housing projects. Extending Housing Entitlements: With a significant number of entitled projects unable to move forward due to financing challenges, the bill would extend all housing entitlements by an additional 24 months. New Fee Payment Schedule: SB 937 would also defer the collection of development fees until project completion. Assembly Bill 2243 (Wicks) amends the language of the Affordable Housing and High Road Jobs Act of 2022 (AB 2011, Wicks), which allowed the development of multi-family infill housing in areas zoned for parking, retail, and office. In return for making these housing developments by-right, developers need to provide affordable housing on-site and ensure that the construction workers are paid the prevailing wage. The amendments in AB 2243 help facilitate the implementation of AB 2011 by expanding its geographic applicability and clarifying aspects of the law that are subject to interpretation. Casita Coalition Sponsored Bills: Senate Bill 1077 (Blakespear) will responsibly exempt ADUs and JADUs on qualified sites from the additional permitting requirements and cost of Coastal Development Permits, reducing the time and cost burdens for homeowners willing to add long-term more affordable ADU homes to their properties. Senate Bill 1211 (Skinner) improves flexibility for ADU type and location of ADUs on multifamily properties so the existing site cap allowances can be workable for more properties. We applaud these organizations for their commitment to moving the needle on much-needed housing reforms in California. It truly takes a coalition of individuals and industries dedicated to making an impact on housing reform. For a comprehensive list of all the bills AIA California has taken a position on this year, click here.

  • AIA California Board of Directors Adopted Positions on Legislation
    by Tibby Rothman on June 11, 2024 at 9:00 pm

    Legislative Advocacy //byline Scott Terrell, Director of Government Relations June 11, 2024 The AIA California Board of Directors regularly takes positions on legislation that impacts the profession, whether that impact is positive or negative. During the May 31, 2024 board meeting, the board finalized positions on 38 bills (in addition to the 6 priority bills the Executive Committee formerly took action on). A complete list of the bill positions can be found here. The 2024 Legislative Session saw 2,124 bills introduced. From bills that seek to streamline and make more viable adaptive reuse and accessory dwelling unit projects, to bills that ease CEQA requirements for housing projects, to bills that incentivize new housing creation, to bills that help our state meet its climate goals through addressing embodied carbon in the built environment, the legislation introduced this year saw a continued alignment between the issues legislators are seeking to address and the priorities of AIA California, namely housing and climate action. AIA California staff reviewed all of the bills introduced, pulling out about a hundred bills that were relevant to each of our three legislation review subcommittees, which together equal about 40 AIA CA members: Climate Action, Housing Steering, and Advocacy Advisory. These committees review the legislation assigned to them and make recommendations to the Board. The bills were then reviewed by the Executive Committee before receiving a vote from the Board on official positions. To date, the AIA California, via the Board of Directors and Executive Committee, has voted to take positions on 44 bills. Bills are often amended or changed drastically throughout the legislative process. AIA CA monitors those changes and brings any bills back to the committees and board for review if needed. For a complete list of the positions on bills, click here.

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