New Employment Laws for California

With the start of the new year, new employment laws will be going into effect on January 1,2020. All employers who have businesses in California should be aware of these changes and understand how they may impact them. It is always wise to seek counsel to avoid any problems. 

Wage and Hour

AB5: Independent Contractor or Employee Status 

The ABC test is used to properly classify a worker as an employee or an independent contractor. The employer is required to prove that a worker is properly classified as an independent contractor by fulfilling all the three conditions as follows:

• The worker is free from the control and direction of the hirer in connection with the performance of the work, both under the contract for the performance of such work and in fact.
• The worker performs work that is outside the usual course of the hiring entity’s business.
• The worker is customarily engaged in an independently established trade, occupation, or business of the same nature as the work performed for the hiring entity.

Certain professions are exempt from this law. For more information on the AB5 bill, please read our previous blogs or contact our office. 

AB673: Recovering Unpaid Wages

 The employees who do not get their pay on time can now, under the new law, file for a private action to recover statutory penalties against the employer or force civil penalties under PAGA (Private Attorneys General Act) but not for the same violation. 

SB 688: Labor Commission’s Authority Expanded to Pursue Wage Claims

The new law gives the Labor Commissioner authority to issue citations for violations made for unpaid wages that were less than the wage set by contract in excess of minimum wage. 

Increase in Minimum Wage

Effective January 1,2020 the minimum wage in California will increase to $12 per hour for employers with 25 or less employees and to $13 per hour for employers with 26 or more employees. 

Harassment and Discrimination

AB9: Fair Employment and Housing Act Administrative Exhaustion Extension 

The timeline for an individual to file a discrimination, harassment, or retaliation complaint has been extended from 1 year to 3 years. 

SB188: Hairstyle Discrimination 

SB 188 expands the Fair Employment and Housing Act’s definition of race to cover traits associated with race, such as hair texture and protective hairstyles.  The law prohibits workplace dress code and grooming policies that prohibit protective hairstyles and natural hair, including afros, braids, twists and locks. 

SB788: Extension of Deadline to Complete Sexual Harassment Prevention Training

All employers with five or more employees are required to provide two hours of sexual harassment training to supervisory staff and one hour of training to nonsupervisory staff within six months of hire or promotion into a supervisory role, and every two years after that, from January 1, 2020 to January 1, 2021. It does not change the training timeline for seasonal and temporary workers, which requires training of workers within 30 days or 100 hours of employment beginning January 1, 2020.

Arbitration and Settlement Agreements

AB51: Ban on Mandatory Arbitration Agreements

Employers will no longer be able to force applicants or employees into arbitration for state discrimination and Labor Code claims. The law prohibits employers in California from requiring employees and applicants to sign arbitration agreements as a condition of employment, continued employment, or the receipt of any employment-related benefits. The law also prohibits any kind of retaliation and discrimination against an employee who refuses to sign an arbitration agreement.

SB707: Arbitration Agreement Fee and Costs

If an employer fails to pay for the costs and fees for an arbitration within 30 days of the due date, they will be in breach of the arbitration agreement, which will result in the waiving of their right to compel arbitration. The employee will be able to withdraw the claim and proceed to court. 

AB749: No Rehire Provisions in Settlement Agreements

The new law prohibits settlement agreement provisions that prevent an employee from seeking re-employment with the employer with whom the employee is settling the claim, unless the employer made a good faith determination that the employee engaged in sexual harassment or sexual assault. This law prohibits only the agreement with the employee. It does not prohibit employers from determining, based on the conduct of a particular employee, that it will not rehire the employee at any time in the future. 

Workplace Accommodation, Leave and Safety

SB142: Lactation Accommodation 

The employer is required to provide a reasonable amount of break sufficient for an employee to express breast milk as well as provide the employee with a room or other location to express milk in private. The lactation room should be close to the employee’s work area, shielded from view and have a surface to place a breast pump and have electricity to operate an electric breast pump. 

SB83: Expansion of Paid Family Leave 

Starting July 1, 2020, the maximum duration of Paid Family Leave (PFL) benefits an individual can receive from California’s State Disability Insurance program will be increased from six to eight weeks.

AB1223: Organ Donation Leave of Absence

Employers are required to give 30 business days of paid leave to an employee who is an organ donor. In addition to that, employers must permit the employee to unpaid leave of absence, not more than 30 days in a one-year period for the purpose of organ donation. Employers should update their leave policies to provide information about the additional unpaid leave also being available. 

AB1804: Reporting Occupational Injury and Illness

Starting January 1, 2020, employers will be required to report serious workplace injuries, illnesses, or death immediately by telephone or through an online platform to be developed by the California Division of Occupational Safety and Health. Not reporting will lead to a $5,000 civil penalty.

AB61: Workplace and School Gun Violence Restraining Orders

Effective September 1, 2020, the new law authorizes an employer, coworker who has substantial and regular interactions with the given individual to file a petition for a gun violence restraining order, if the individual shows a substantial likelihood of significant danger or harm to themselves or others. 

Privacy

AB 25: Consumer Privacy Act 

The new law requires all businesses to provide consumers with notices about what information is collected about them and its purpose for collecting the said information. These notices must be provided before or at the time of collection.

These are a few but not all changes to the employment laws in California, our purpose of sharing this information with you is to make sure that you update all your policies and agreements. If you have any questions, especially pertaining to the AB5 bill, please contact us at G&S Accountancy at 909-217-7855.