AGRICULTURAL PERSONNEL
MANAGEMENT PROGRAM
NEWSLETTER

FEDERAL WELFARE- TO -WORK
TAX CREDIT FOR EMPLOYERS

The 1997 Taxpayer Relief Act provides employers an income tax credit on eligible wages paid to qualified long-term AFDC or "Temporary Assistance to Needy Families" (TANF) recipients during the first 2 years of employment. The new welfare-to-work tax credit is equal to 35% of the first $10,000 of wages in the first year of employment and 50% of the first $10,000 of eligible wages in the second year of employment for a maximum credit of $8,500 per qualified employee. The employee must be retained at least 180 days or 400 hours.

The welfare-to-work tax credit is effective for wages paid to a qualified person starting work for an employer between January 1, 1998 and May 1, 1999. Qualified long-term family assistance recipients include: (1) members of a family that has received family assistance for at least 18 consecutive months ending on the hiring date; (2) members of a family that has received family assistance for a total of at least 18 months (whether or not consecutive) after August 5, 1997, if they are hired within 2 years after the date the 18 month total is reached; and (3) members of a family who are no longer eligible for family assistance because of Federal or State time limits, if they are hired within 2 years after such limit made the family ineligible for assistance.

Prospective employees don't have to give this kind of information to an employer. Their participation is voluntary. If an applicant is willing, have her or him complete the U.S. Department of Labor "Individual Characteristics Form," ETA -9061 (Revised 11/97). If information provided on Form ETA-9061, shows the job applicant meets the requirements for one or more target groups, complete the "Pre-Screening Notice and Certification Request" IRS Form 8850. In California, request Forms ETA-9061 and 8850 on (916) 654-9715.

Applicants having a "Confidential Certification, Work Opportunity Tax Credit and Welfare-to-Work Tax Credit" Form ETA-9062 have already been certified as eligible by a State agency. Complete the employer portion of the ETA-9062.

To receive certification that a new employee qualifies the employer for tax credit, the employer should complete and sign Forms 8850 and ETA-9061 (or 9062) by the day the job offer is made and, within 21 days of the employee's start date, mail them (in California) to: WOTC Center, PO Box 1408, Roseville, CA 95661. If the applicant meets the criteria, the Center will send the employer a tax credit certification form. Keep these certifications and supporting documents for 5 years from the certification date.

Employers claim the welfare-to-work credit on IRS Form-8861. Employers who can't take the full tax credit amount in the current tax year may claim a refund of all or part of taxes paid in the last 3 years. Unused credit is carried back to the earliest of the last 3 tax years, then to the second earliest, and so on. Credit that can't be taken in these years may be carried forward for up to 15 years until all the credit is used.

The welfare-to-work tax credit could lower the after-tax cost of employing qualified long term welfare recipients by 5% to 25% over the first 2 years. The amount of savings, if any, hinges on the number of hours the worker is employed and the employer's marginal federal income tax rate. The employers business deduction for hired labor expense must be reduced by the amount of any credit claimed. Employers may want to weigh anticipated income tax savings against any projected difference in worker training costs and productivity.

CALIFORNIA AGRICULTURAL WAGE ORDERS
AND OVERTIME RULES

Starting March 1, 1998, California law requires a minimum wage of $5.75/hour. Overtime to agricultural employees working above a fixed number of hours per day or week continues to be required. Although California's overtime security doesn't apply to "administrative, executive, or professional" employees, there is no blanket overtime exemption for employees paid salaries.

California occupational Wage Order 14 applies to those with agricultural production occupations (including field packing and equipment maintenance) unless they are covered by Orders 8 or 13. Current State law still requires that agricultural production employees working over 10 hours in a workday, or more than 6 days in a workweek, must receive 1 and one-half times their regular pay rate for hours worked over 10 in a workday, and for the first 8 hours worked on the seventh work day in the workweek. These employees must be paid twice their regular rate for all hours worked over 8 on the seventh work day in the workweek. However, an employee may be employed on 7 workdays in a workweek with no overtime required if total hours during the workweek do not exceed 30, and total hours in any one workday during that week do not exceed six.

Overtime doesn't apply to an employee during a week in which over half of his working time is devoted to irrigation. An irrigator is one who applies water to crops through portable pipes, ditches, or sprinkler systems. Irrigators may carry, lay out, and connect pipes; monitor flow rates; adjust valves; shovel dirt in building and repairing ditches; start, stop, and repair pumping and conveyance systems; disassemble and move equipment; and conduct rodent control. Greenhouse or nursery workers generally are not irrigators. Keep time records of irrigation activity and total work time.

Clerical workers employed by an agricultural company (Wage Order 14) are not considered to be engaged in an agricultural occupation; so, they are governed by occupational Wage Order 4, which applies to clerical workers generally and which now requires overtime pay only after 40 hours per week.

For piece-rate work, overtime can be computed by raising the regular piece rate by half (for time and a half), with precise records on labeled overtime pieces. Piece-rate workers must earn at least the minimum wage per hour averaged over the employer's pay period (weekly, bi-weekly, daily).

Packing sheds, wineries, and cotton gins - Industry Wage Order 13 covers operations in a permanent fixed structure, or on a moving packing plant, to prepare products for market when these operations are done on sites owned or operated by the same employer producing the crops. Packing firms, and growers packing or processing for other growers along with their own production, are covered by Industry Wage Order 8.

In industries handling crops after harvest, an employee may work up to 72 hours in any workweek, after which he or she must get a day off duty. However, in grape and tree fruit industries, receivers, loaders, fork lift drivers, shipping clerks, and maintenance workers are exempt from the day off requirement.

Employees (including clerical) working under Industry Wage Orders 8 and 13, must be paid time and a half for hours over 8 in a day, or 40 hours in a week. Generally, minors may not work over 8 hours in a workday, and the 8-hour premium will therefore not apply to them. Double-time pay is required for hours over 12 in a day, or in excess of 8 hours on a seventh consecutive day of work in any workweek.

Request free wage order posters, Poster MW-96 (reflecting California minimum wage increase), and "Pay Day Notice," DSLE 8 on (415) 975-2080. Wage order posters communicate rules on tools, reporting time pay, meal periods, and breaks.

Revised 1/26/98

MARCH 4
Western Agricultural Safety Conference

8:00 a.m. - 10:00 a.m.
Panel: Are You Really in Compliance?
Moderator: John Barrientos, CA Floral Council/Paula Insurance
Steve Sutter, UC Cooperative Extension; George Daniels, Farm Employers Labor Service; Elizabeth Manzo, CAL/OSHA Consultation; and Roy Rutz, CAL/EPA Department of Pesticide Regulation

11:00 a.m. - 12:30 p.m.
Accident Management-Tips, Tricks, and Traps, George Daniels, FELS

8:00 a.m. - 9:00 a.m.
Pesticide Laws and Regulations, Ben Laverty and Jim Hodge, California Safety Training Corporation

9:30 a.m. - 10:30 a.m.
Safe Pesticide Handling, Dave Esqueda, Wilbur-Ellis Co.

11:00 a.m.- 12:00 noon
Personal Protective Equipment for Applicators, Dana Killmer, Chemsearch

1:30 p.m. - 3:30 p.m.
Disciplinary Policies for Enhancing Employee Compliance with WPS Training, Gregory Billikopf, UC Cooperative Extension (Department of Pesticide Regulation has approved 5.5 hours of continuing education units for PCA's and certified commercial and private applicators [3 hours Laws and Regs].)

9:00 a.m. - 10:30 a.m.
Workers Comp: Fraud vs. Abuse, Don Marshal, Cal Farm Insurance

10:30 a.m. - 12:00 noon
Repetitive Motion Injuries: Assessing Risks, Mark Molthen, D.C. F.I.R.M. Inc.

2:00 p.m. - 4:00 p.m.
Intro to Safety Regulations, Part 1, Ben Laverty, California Safety Training Corporation (Part 2, March 5)

2:00 p.m. - 4:00 p.m.
Incident Investigation, Barbara Davis, Valley Fresh

8:00 a.m. - 10:00 a.m.
Safety Psychology: Evaluating Unsafe Behavior, Lupe Sandoval, Daugherty & Co.

10:30 a.m.- 12:00 noon
Safety: Motivating for Effectiveness, Valentine DiCerto, DiCerto Enterprises

1:30 p.m. - 3:00 p.m.
Back Injuries - Think Prevention Rather Than Rehab, R.J. Banks, State Fund

2:00 p.m. - 4:00 p.m.
Controlling Drugs and Alcohol in the Workplace: A Proactive Approach, Michael Saqui, Attorney at Law

Workshops in Spanish (March 4)

8:00 a.m. - 10:00 a.m.
Introduction to Safety - Basics of Safety Order 3203, Elvia Martinez Mullins and Gabriel Rojas, Farm Employers Labor Service

8:30 a.m. - 10:00 a.m.
Safety and Labor Laws for Supervisors to Live By, Lourdes Gonzales, Western Growers Insurance

10:30 a.m. - 12:30 p.m.
Disciplinary Action Policies for Enhancing Employee Compliance with WPS Training, Gregorio Billikopf - Encina, UC Cooperative Extension

11:00 a.m. - 12:30 p.m.
The Works of Workers' Compensation, Joe Zavala, State Compensation Insurance Fund

1:00 p.m. - 3:00 p.m.
Safety and Health Guide for Farm Labor Contractors, Elizabeth Manzo, CAL/OSHA Consultation Service

2:00 p.m. - 4:00 p.m.
Safety Skills for Supervisors and Managers, Jess Gomez, Jess Gomez and Associates

MARCH 5
4th Annual AgSafe Conference

7:30 a.m. CONTINENTAL BREAKFAST, Charter Oaks Ballroom

8:00 a.m. Welcome and Introductions

8:30 a.m.
Opening Address "What's New at Cal/OSHA Compliance," Bill Krycia, Regional Manager, Cal/OSHA Compliance

9:45 a.m. Concurrent Workshops
Intro to Safety Laws and Regulations, Part 2, Ben Laverty, California Safety Training Corporation
Cal/OSHA Appeals and Variances - What to Expect, David Smith, Ensign Safety and Health Advisory
WPS Enforcement Guidelines, Chuck Andrews, DPR Pesticide Enforcement Branch
Effective Safety Training, Part 1, Lupe Sandoval, Daugherty and Company

12:15 p.m. LUNCH - Keynote Speaker - Raffle
"Safety With An Attitude," Landon Heffner, VP, Human Resource Development, Monrovia Nursery

2:00 p.m. Concurrent Workshops
Effective Safety Training, Part 2 , Lupe Sandoval, Daugherty and Company
Ergonomic Hazards and Solutions in Ag, UC Professors Jim Meyers and John Miles
Workers Comp Liability in Worker Transportation, Len Hintergardt, Zenith Insurance
Tractor Safety Train-the-Trainer Certificate Program, Richard Cavaletto, Ag Engineer, Cal Poly

5:00 p.m. ADJOURN

Please select workshops of interest, and send with registration coupon.

Name__________________________Firm______________________________
Address________________________Tel._______________________________
City___________________________State_____________Zip_______________

Western Agricultural Safety Conference and Exposition (March 4, 1998)

Early Registration -- $79/person
Company Discount (3 or more) -- $69/person

Late/Walk-in -- $95/person
Company Discount -- $85/person

AgSafe Conference (March 5, 1998) -- $99/person

Both the Western Ag Safety Conference, and the 4th Annual AgSafe Conference -- $165/person

Hotel Information:

Reservation Department
Radisson Hotel Visalia
300 South Court Street
Visalia, CA 93291
Tel. (209) 636-1111

Single/Double Rate $79 (Reservation must be made by February 20, 1998.)

Directions: From 198 East, (off Hwy 99), take Central Visalia Exit (puts you on Frontage Road East [Noble]); 3rd signal light is Court; turn left on Court; go 1 block to Radisson Hotel/Visalia Convention Center