As we step into 2024, California employers across various industries need to stay informedabout the latest legislative changes impacting employment law. The new laws, effective January 1, 2024, introduce significant updates in areas like paid sick leave, noncompete agreements, worker rights, and minimum wage standards. This article summarizes these key updates to help employers navigate the changing legal landscape.
Expanded Paid Sick Leave Benefits (SB 616)
California’s SB 616 brings a significant increase in mandatory paid sick leave for employees, upping the minimum from three days (24 hours) to five days (40 hours) annually. The law also adjusts the accrual cap to 80 hours or ten days. It’s critical for employers to ensure timely accrual of sick leave, with 24 hours accumulated within the first 120 days of employment, reaching 40 hours by the 200th day. This necessitates a thorough review and update of existing sick leave policies to ensure compliance.
Reproductive Loss Leave (SB 848)
Under SB 848, employers with five or more employees must now offer up to five days of unpaid leave for reproductive loss events, such as miscarriages or stillbirths. The law allows for flexibility, with leave days being non-consecutive and available within a three-month period post-event. This new mandate applies to employees who have completed at least 30 days of service, highlighting the need for compassionate leave policies in the workplace.
Amendments to California’s Noncompete Laws (SB 699, AB 1076)
SB 699 makes it a civil violation for employers to include noncompete clauses in contracts, rendering such agreements unenforceable in the state, regardless of where they were signed. This law allows employees to sue if these clauses are enforced and recover legal costs if successful. However, there’s some uncertainty about whether this includes non-solicitation covenants, so caution is advised for employers.
AB 1076 requires employers to notify current or former employees (hired after Jan. 1, 2022) that any noncompete clauses in their contracts are void. Failure to provide this notice violates California’s unfair competition law. This law reinforces that noncompete clauses are invalid in California, regardless of their wording.
Workplace Violence Prevention (SB 553)
SB 553 mandates the establishment of comprehensive workplace violence prevention plans by July 1, 2024.Exceptions are for certain employers with locations not open to the public and employing fewer than 10 people. These plans should encompass hazard identification, evaluation, and correction strategies, alongside employee training and detailed recordkeeping. The aim is to bolster safety measures and preparedness against workplace violence.This plan can be part of the existing Injury and Illness Prevention Plan or a separate document. It should designate responsible individuals, outline procedures for identifying, assessing, and mitigating violence risks, and detail how to handle violence reports. Employers need to keep records of violence incidents, provide annual training, regularly review and inspect the plan for potential safety issues, and keep related records for five years (training records for one year). Employees have the right to inspect or request copies of these records, except for investigation details, within 15 days of asking.
Prohibitions on Cannabis-Use Inquiries (SB 700)
Employers are now barred from asking job applicants about past cannabis use, a move designed to prevent discrimination based on such history. Additionally, information regarding past cannabis use obtained from criminal history checks cannot be used in employment decisions, with certain exceptions. This law signals a shift towards more privacy and fairness in the hiring process.
Expanded Whistleblower Retaliation Rights (SB 497)
Enhanced protections for whistleblowers come into play, with a presumption of retaliation if an employee faces disciplinary action within 90 days of engaging in protected activities. Employers found in violation can face fines up to $10,000 per employee per incident, emphasizing the importance of fair and legal treatment of whistleblowers.
‘Fast Food’ Worker Minimum Wage (AB 1228)
The minimum wage for fast-food workers is set to rise to $20.00 per hour from April 1, 2024. This significant wage increase, however, comes with specific business exemptions, such as for certain bakery-defined entities or restaurant brands operating within grocery stores.
Health Care Facility Worker Minimum Wage (SB 525)
A new tiered minimum wage system is introduced for health care workers, with different rates based on the type and size of the employing health care facility. This comprehensive wage structure aims to better reflect the diverse range of roles and responsibilities within the healthcare sector.
Meal and Rest Period Exemption for Airline Flight Crew Members (SB 41)
Airline cabin crew members under collective bargaining agreements are now exempt from California’s meal and rest break requirements. This law, retroactive in its application, impacts legal actions related to meal or rest break violations, signifying a unique industry-specific adjustment.
New Obligations Related to Food Handler Cards (SB 476)
Employers in the food service industry must now cover all costs associated with obtaining food handler cards for their employees. This includes the expenses for training, testing, and the time spent in acquiring these certifications, ensuring that employees are not financially burdened for mandatory certifications. Co must include:
Employers in the food service industry must now cover all costs associated with obtaining food handler cards for their employees. This includes the expenses for training, testing, and the time spent in acquiring these certifications, ensuring that employees are not financially burdened for mandatory certifications. Co must include:
- Cost of testing and any other element required for obtaining certification.
- Time it takes for employee to complete the training (i.e., compensable time). Employers must relieve employees of all other work duties during the training/testing.
Revised Grocery Worker Recall Rights (AB 647)
Recall rights for grocery workers have been expanded to include distribution centers owned and operated by grocery entities. This law also sets out specific exemptions based on operational status and employee count, reflecting a nuanced approach to employee retention and rights in the grocery sector.
Revised Rights of Laid-Off Hospitality and Building Services Employees (SB 723)
The right of recall for laid-off employees in the hospitality and service industry has been extended to December 31, 2025. This extension offers additional job security for workers in these industries, who have been particularly impacted by the economic fluctuations of recent years.
Eliminating Automatic Stays During Appeals (SB 365)
SB 365 introduces a notable change in trial proceedings, particularly during appeals related to arbitration decisions. Trial courts are no longer required to pause proceedings during such appeals, a move that may expedite the resolution of legal disputes.
Minimum Wage Increases
California sees a statewide increase in the minimum wage to $16.00 per hour for all employers, with a corresponding raise in the salary threshold for most exemptions to $66,560 per year. This increase reflects the state’s ongoing commitment to ensuring a living wage for all workers.
Amended Wage Theft Notice Requirements (AB 636)
Employers must now include additional information in wage theft notices, particularly concerning recent emergency or disaster declarations that may impact employees’ health and safety. This requirement is part of a broader effort to enhance transparency and employee awareness in the workplace.Additionally, effective March 15, 2024, employers must provide H-2A agricultural workers with detailed information on their rights under California law, including the H-2A wage rate, pay frequency, non-retaliation for complaints, and sexual harassment policies, in a distinct Spanish section of the notice. Upon request, this notice must also be available in English for H-2A employees.
The year 2024 brings significant changes to employment law in California. Employers must carefully review these updates and adjust their policies and practices accordingly to ensure compliance. For detailed guidance and assistance, consulting legal counsel is recommended.
