legislative bills Archives

Leapsolutions | December 19, 2023

By, Tracy Emmerich & Tracy Long

The California legislature saw fit to pass several employment laws that will go into effect on January 1, 2024 and beyond. As always, Leap Solutions is here to help you face them proactively and confidently. Our HR professionals have the knowledge, expertise, and resources to inform and guide you through ever-changing legislation and empower your company to thrive in 2024 and beyond.

In this issue of our newsletter:

2024 Minimum Wage
Updates on Current and New Legislative Bills
Meal and Rest Break Premium Pay
Ongoing Mandatory Harassment Prevention Training
Employee Handbook Review/Updates
Injury and Illness Prevention Program and COVID Prevention Plan
California Labor Law Posters

2024 MINIMUM WAGE

January 1, 2024 brings another increase in the California state hourly minimum wage for both non-exempt and exempt salary workers. Due to the increased annual inflation rate, the minimum wage was increased to $16.00 per hour regardless of the number of workers employed by an employer. The exempt salary threshold is two times the minimum wage, therefore, it increases to $66,560 for employers regardless of the number of workers employed.

Local (city and county) non-exempt minimum wage ordinance changes became effective July 1, 2023 to June 30, 2024. We recommend that a compensation review be conducted as soon as possible to ensure that you have identified those in your workforce who need to be brought to the minimum. Your review may reveal wage compression or other issues that you may want/need to address.

UPDATES ON LEGISLATIVE BILLS

The following is a summary of recent legislation and is not intended as legal advice.

New I-9 Form
Effective 11/1/2023 – Applies to All Employers
The new Form I-9, Employment Eligibility Verification, which was released on August 1, 2023, must be used for all new hires, effective November 1, 2023. Some of the changes include reducing sections 1 and 2 to one page. The Lists of Acceptable Documents page has been revised to include acceptable receipts in addition to physical documents. The updated Form I-9 also provides guidance and links to information on automatic extensions of employment authorization documentation. The new I-9 form is available in on the USCIS website (www.uscis.gov).
What this could mean for you: Update new hire packets to include the new I-9 form.

SB 616: Paid Sick Leave Expansion
Effective 1/1/2024 – Applies to All Employers
Under the current Paid Sick Leave, all employers are required to provide up to 24 hours or three days (whichever is greater) of paid sick leave per year. Under the new law, employers will be required to increase that amount to 40 hours per year. Employers may still front load the hours at the beginning of the year with no carry over or accrue paid sick leave based on hours worked (one hour for every 30 hours worked) with two times the annual accrual capped at 80 hours or 10 days (whichever is greater). Employers who front load paid sick leave or accrue based on payroll cycles (not actual hours worked) must ensure that an employee has no less than 24 hours by their 120^th day and an additional 16 hours (40 annual hours) of accrued sick leave by their 200th calendar day of employment. Employers using the accrual method with a cap of 80 hours can still limit employees paid sick leave to 40 hours or 5 days per year, whichever is greater. In addition, SB 616 extends some protections to these
employees covered by a collective bargaining agreement such as covered uses, replacement worker prohibition, and anti-retaliation protections.
What this could mean for you: Review and update existing handbook policies/practices and forms to ensure that employees are aware of the expanded paid sick leave expansion.

SB 848: Reproductive Loss Leave
Effective: 1/1/2024 – Applies 5+ Employees
SB 848 adds to California’s bereavement leave policy by allowing employees who have worked for the company for at least 30 days to use leave for a “reproductive loss event,” which is defined as “the day or, for a multiple-day event, the final day of a failed adoption, failed surrogacy, miscarriage, stillbirth, or an unsuccessful assisted reproduction.” Employers with 5 or more employees will be required to provide up to five days of leave for a reproductive loss event. The law limits the amount of reproductive loss leave to a maximum of 20 days within a 12-month period should an employee experience multiple losses in a 12-month period. Eligible employees must take the leave within three months of the triggering event; however, the leave does not need to be taken on consecutive days. Leave under the statute is unpaid, unless the employer has an existing policy requiring paid leave. Eligible employees may choose to use any accrued and available sick leave, or other paid time off, for reproductive loss leave.
What this could mean for you: Review and update existing handbook policies/practices and forms to ensure that employees are aware of the expanded leave expansion.

AB 2188, SB 700: Cannabis Employment Discrimination
Effective: 1/1/2024 – Applies to All Employers
This new protection prohibits discrimination based on the person’s use of cannabis off the job and away from the workplace, which includes an employer-required drug screening test that has found the person to have “non-psychoactive” cannabis metabolites in their hair, blood, urine, or other bodily fluids. In addition, an employer cannot request information from a job applicant relating to the applicant’s prior use of cannabis, including in the applicant’s criminal history. Exceptions apply for certain trades and where federal laws require applicants or employees to be tested for controlled substances. An employer may discriminate in hiring, or any term or condition of employment, or otherwise penalize a person based on scientifically valid preemployment drug screening that do not screen for non-psychoactive cannabis metabolites.
What this could mean for you: Employers may need to look for alternative testing to determine impairment. Employers may still maintain a drug-free and alcohol-free workplace policy where employees may not possess, be impaired by, or use cannabis on the job.

SB 699, AB 1076: Non-Compete Agreements Unlawful
Effective: 1/1/2024 – Applies to All Employers
Most noncompetition agreements are unenforceable in California. Agreements that restrict an employee’s ability to pursue similar employment after leaving a job are prohibited unless a noncompetition agreement clearly falls under one of the following exceptions:

Trade secrets protections, which can legally restrict an employee’s ability to use confidential information or company-defined trade secrets.
Sale of a business, which can legally restrict a seller’s ability to compete with the buyer in the geographic location where the seller had carried on his/her business.
Dissolution of a partnership, which can legally define a geographic area within which one of the partners cannot conduct a similar business.

The new statute creates a private right of action for employees whose agreements include restrictive covenants for any current, former, or even prospective employee who successfully brings suit over an employer’s use of those restrictive covenants. An employer that may have included a noncompete clause in an employment contract, requires the company to issue a notice to all current and former employees who were employed after January 1, 2022, that the noncompete clauses in their contracts are void. The deadline for this notice is February 14, 2024.
What this could mean for you: Employers should review any non-compete agreements and send out the required notices by February 14, 2024 if applicable.

Cal. Code Regs. Tit. 2, § 11017.1.: Criminal History Inquiries
Effective: 7/1/2024 – Applies to All Employers
New regulations prohibit employers from inquiring into, considering, distributing, or disseminating information related to the criminal history of an applicant until after the employer has made a conditional offer of employment to the applicant. If an employer intends to deny an applicant the employment position they were conditionally offered based solely or in part on the applicant’s conviction history, the employer must first conduct an individualized assessment to determine if there is a direct and adverse relationship with the specific duties of the job that justify denying the applicant the position and that it is job-related and consistent with business necessity. If, after conducting an individualized assessment, an employer makes a preliminary decision that the applicant’s conviction history disqualifies them from the employment conditionally offered, the employer shall notify the applicant in writing. Employers must then permit applicants to respond by providing evidence of rehabilitation or mitigating circumstances and/or evidence challenging the accuracy of the conviction history report that is the basis for the preliminary decision to rescind the offer. Employers shall consider any information submitted by an applicant before making a final decision regarding whether to rescind a conditional offer.
What this could mean for you: Employers who conduct criminal background checks should update their background policy and create a procedure for reviewing all background checks for compliance.

SB 553: Workplace Violence Prevention Program
Effective: 7/1/2024 – Applies to All Employers
Under the California Division of Occupational Safety and Health (Cal/OSHA, covered employers will be required to develop and implement a workplace violence prevention plan (WVPP) as part of their required Injury and Illness Prevention Plans (IIPP) by July 1, 2024. Employers will also have to provide training, create workplace violence incident logs, and keep various records for up to five years.
What this could mean for you: Employers should review their current Violence in the Workplace policy and begin to assess relevant factors to determine the risk level your organization faces for workplace violence such as location, previous incidents of violence, the presence of cash on site. Leap will be available to help write your Workplace Violence Prevention Plan and conduct on-site training for your employees to help you stay in compliance.

SB 476: Food Handler Card Costs
Effective: 01/01/2024 – Applies to all Employers
Employees who work in a food facility or mobile food facility (catering or produce trucks, carts, etc.) who are involved in the preparation, storage, or service of food, is a food handler and needs a California food handler card. California requires relevant workers to obtain a food handler card within 30 days of their date of hire. Under SB 476, employers will be required to cover the cost associated with obtaining a food handler card, including the cost of the test, and paying employees at their regular rate of pay for any time spent completing the training and taking the test. Currently employees can complete the training through American National Standards Institute (ANSI). Under SB 476 the California Department of Public Health will be required to post a list or a link to all certified food handler training programs, including the cost of each program on their website by January 1, 2025.
What this could mean for you: Employers should update their written food handler and timekeeping policies to include the employer paying for food handler cards and all time spent in such training and plan how employees should report it on their timesheets.

OTHER EMPLOYMENT LAWS TO KEEP IN MIND FOR 2024

Meal and Rest Break Premium Pay
Applies to All Employers
The burden of meal break compliance proof rests squarely on the employer. It is imperative that non-exempt employees document their meal breaks daily on their time records and that premiums are paid timely. Premiums must be reported on the employee’s pay statement when an employee misses or does not complete their full (at least 30 minutes) meal period. Meal and/or rest break premium pay is considered “wages,” similar to overtime premium pay, reporting time pay, or split-shift pay. Failure to pay can cause expensive waiting time and wage statement penalties. In very limited situations, when the nature of the employee’s duties prevents the employee from being relieved of all duty, certain designated employees may be authorized to work an “on-duty meal period.” (An example would be a lone cashier at a gas station who works the night shift.) An employee will be permitted to take an on-duty meal period only if the nature of their job requires an on-duty meal period, and the employee and the company have agreed, in advance, and in writing, to an on-duty meal period. In this situation, the on-duty meal period will be paid and treated as hours worked.

Ongoing Mandatory Harassment Prevention Training
Applies to 5+ Employers
Employers with five or more employees must provide one hour of sexual harassment prevention training to nonsupervisory employees and two hours of training to employees with supervisory authority. (This includes part-time, temporary, seasonal, and on-call staff as well as independent contractors, workers from staffing agencies, and employees outside of California, although you are only required to train supervisors located in California or those who supervise any California employees.)

Training must take place within six months of hire or promotion and every two years thereafter.
Seasonal and temporary employees or employees hired to work less than 6 months, must be trained within 30 calendar days after hire or within 100 hours worked, whichever is earlier.
Employers are not required to train employees who are employed for fewer than 30 calendar days and work for fewer than 100 hours.

Leap Solutions can provide interactive onsite or online Harassment Prevention training for your employees!

EMPLOYEE HANDBOOK REVIEW/UPDATES

If your employee handbook has not been reviewed in over a year, you may have missed out on important changes that could affect employee retention and increase your liability. Our HR consultants work with you to customize your handbook while ensuring that you and your employees have clear, up-to-date information to inform and to instruct.

INJURY AND ILLNESS PREVENTION PROGRAM AND COVID PREVENTION PLAN

A written, effective Injury and Illness Prevention Program (IIPP) which includes a COVID Prevention Plan (CPP) is required for every California employer. We can develop a plan with you to ensure that you are in compliance!

DON’T FORGET TO UPDATE YOUR CALIFORNIA LABOR LAW POSTERS TO REFLECT 2024 CHANGES!

The California Department of Industrial Relations requires employers to post current information related to wages, hours and working conditions in an area frequented by employees where it may be easily read during the workday. Remote employees also need to receive required notices. CalChamber Store can help> Labor Law Posters

LEAPING FORWARD

The HR professionals at Leap Solutions can demystify these and many other complicated new employment and labor laws for you, your employees and your hiring managers and supervisors. Count on us to guide you through the complexities of each new piece of legislation and help you respond efficiently, reduce legal risk, minimize expenses, and achieve the peace of mind that comes with keeping your organization compliant and your people safe, strong, and successful.

Are You Ready to Leap into 2024?

*****

Leap Solutions is a diverse group of highly skilled management, organizational development, and human resources, and executive search and recruitment professionals who have spent decades doing what we feel passionate about helping you feel passionate about what you do. Our HR specialists can help you get a handle on the ever-changing COVID-19 guidelines, programs, and legislation that may impact you and your employees. We are available to work with you to develop practical solutions and smart planning decisions for your organization’s immediate, near, and long-term needs.

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Leapsolutions | December 1, 2022

By Tracy Long & Tracy Emmerich

The California 2022 legislature has once again passed employment laws that will go into effect on January 1, 2023 and beyond. As always, Leap Solutions is here to help you face them proactively and confidently. Our HR professionals have the knowledge, expertise, and resources to inform and guide you through ever-changing legislation and empower your company to thrive in 2023 and beyond.

In this issue of our newsletter:

- 2023 Minimum Wage
- Updates on current and new Legislative Bills
- Meal and Rest Break Premium Pay
- On-going Mandatory Harassments Prevention Training
- Employee Handbook Review/Updates
- Injury and Illness Prevention Program and COVID Prevention Plan
- California Labor Law Posters

2023 Minimum Wage

January 1, 2023, brings another increase in the California state hourly minimum wage for both non-exempt and exempt salary workers. Due to the increased annual inflation rate, the minimum wage was increased to $15.50 per hour regardless of the number of workers employed by an employer. The exempt salary threshold is two times the minimum wage, therefore, it increases to $64,480 for employers regardless of the number of workers employed.

Local (city and county) minimum wage ordinance changes may also be effective January 1, 2023 (although some city’s effective dates, like San Francisco, are effective July 1, 2023). We recommend that a compensation review be conducted as soon as possible to ensure that you have identified those in your workforce who need to be brought to the minimum. Your review may reveal wage compression or other issues that you may want/need to address. Remember also to update your employment law posters.

M I N I M U M W A G E

	25 Employees or Less	26 or More	100 or More
CA Non-exempt	$15.50/hour	$15.50/hour	N/A
CA Exempt Salary Threshold	$64,480/yr.	$64,480/yr.	N/A
Novato +CPI	$15.53/hour	$16.07/hour	$16.32/hour
Hayward	$15.50 /hour	$16.34/hour
Sonoma	$16.00/hour	$17.00/hour
Petaluma	$17.06 (not dependent on employer size)
Santa Rosa	$17.06 (not dependent on employer size)
San Francisco	$16.99 (eff. 7/1/22 – 6/30/23)
Oakland	$15.97 (not dependent on employer size)
Oakland Hotel Employees	$17.37 (with Health Benefits)
Oakland Hotel Employees	$23.15 (without Health Benefits)

Bills

SB 1162 – Wage Transparency Eff: 1/1/2023
Upon request, employers are required to provide the pay scale (salary or hourly wage range) that the employer reasonably expects to pay for the position in which the employee is currently employed. Additionally, for employers with 15 or more employees, all job postings must include the pay scale for the position, even when using a third-party. Employers will also be required to maintain records of a job title and wage rate history for each employee for the duration of employment plus three years and be open to the Labor Commissioner for inspection. Civil penalties from $100 to no more than $10,000 may be assessed per violation.

The bill also affects private employers with 100 or more employees (or a private employer that has 100 or more employees hired through labor contractors) with expanded pay data reporting requirements effective on or before 5/10/2023.

What this could mean for you: Before recruiting for any position, you will want to perform a market-based compensation analysis. In addition to helping you meet compliance requirements, an analysis gives you current business intelligence with benchmarks that provide the relative value of a position, helps you forecast salary budgets for planning, and gives your employees confidence that a fair pay system is used to determine wages. Please contact our HR Consultants for more information about market-based compensation analyses.

AB 152 CA COVID-19 Supplemental Paid Sick Leave – Eff: 9/30/2021
The CA COVID-19 Supplemental Paid Sick Leave (SPSL) has been extended through 12/31/2022. This is an extension to use the leave, not a new round of leave. SPSL requires that employers with 26 or more employees provide up to 40 hours (pro-rated for part-time) for isolation and quarantine, receiving or experiencing symptoms related to a COVID-19 vaccine, experiencing COVID-19 symptoms and seeking a medical diagnosis, and caring for a child whose school/daycare is closed due to COVID-19. An Additional 40 hours is available only when an employee or qualified family member for whom the employee provides care, tests positive for COVID-19. If an employee refuses to test or to provide proof of test results, the employee is not entitled to SPSL. New: An employer may require the employee to test 5 days after the initial positive test and show proof of results. Grants for qualified small businesses/nonprofits (26 to 49 employees) of up to $50,000 are also available to offset the cost of the leave through the CA Office of the Small Business Advocate.

What this could mean for you: There are no test standards. If you require proof of positive tests (photo of test results), be consistent with all employees. Also ensure that you continue to meet the posting and wage statement requirements. The COVID Prevention Plan may also need to be amended.

AB 2693 COVID-19 Exposure Notification Extended and Revised – Eff: 1/1/2023 -1/1/2024
Existing law requires that an employer provide written notice, within one business day, to all employees on the premises, at the same worksite, when they receive a notice of potential exposure to COVID-19. As an alternative, that notice obligation may now be satisfied by prominently displaying a notice where all other employment notices are customarily posted (including an employee portal). It shall remain posted for not less than 15 days and the employer would be required to keep a log of all the dates the notice was posted at each worksite. Existing law also requires that the number of cases meeting the definition of a COVID-19 outbreak be reported by the employer to the local public health agency within 48 hours. This will no longer be required on the effective date.

What this could mean for you: Since the notice obligation may be satisfied in two ways, you will need to determine which makes the best sense for your organization. The COVID Prevention Plan may also need to be amended.

AB 1041 – Expands Family Member to Include Designated Person – Eff: 1/1/2023 The California Family Rights Act (CFRA), which provides up to 12 workweeks of protected family care and medical leave to a qualifying employee and the Healthy Workplaces, Healthy Families Act of 2014 (HWHFA), which entitles an employee who works in CA for 30 or more days within a year to paid sick days, as specified, have expanded their family member definitions to include a “Designated Person.” Under CFRA, a designated person is defined as, “any individual related by blood or whose association with the employee is the equivalent of a family relationship.” Under HWHFA, a designated person is defined as “a person identified by the employee.” The designated person may be identified at time of leave, and the employer may limit the designation to one person per 12-month period. CFRA affects employers with five (5) or more employees. HWHFA affects employers of all sizes. Note: Paid Family Leave does not recognize a “designated person,” as a qualifying family member so EDD benefits would not be available.

What this could mean for you: Review and update existing handbook policies/practices and forms to ensure that employees are aware of the expanded definition and that both types of leaves are administered properly. Employers subject to FMLA (50 or more employees) will have additional burdens since a designated person is not a covered person under FMLA.

AB 1949 – Bereavement Leave Eff: 1/1/2023 with 5 or more employees
Employees who have been employed for at least 30 days prior to the commencement of the leave may be allowed up to 5 days of bereavement leave upon the death of a qualified family member. The leave must be completed within 3 months of the date of death and the time off does not have to be consecutive. Absent an existing policy, the time off is unpaid, however, the employee may use other available paid leave, including accrued and available paid sick leave. The employer may require documentation; however, the documentation is considered confidential and shall be treated as such.

What this could mean for you: A review of your current bereavement policy is needed to determine how it may integrate with the new regulation and the policy updated, if warranted.

SB1044 – Emergency Condition Retaliation Eff: 1/1/2023
The new law prohibits an employer, in the event of an “Emergency Condition” as defined, from taking or threatening adverse action against any employee for refusing to report to, or for leaving, a workplace or worksite within the affected area because the employee has a “reasonable belief” that the workplace or worksite is unsafe. The law also prohibits an employer from preventing any employee from accessing the employee’s mobile device or other communications device for seeking emergency assistance, assessing the safety of the situation, or communicating with a person to confirm their safety. Employers may require an employee to notify the employer of the emergency condition requiring the employee to leave or refuse to report to the workplace or worksite, if feasible. There are certain classifications of employees who are exempt from this law including first responders and those involved in providing aid during an emergency response.

What this could mean for you: Emergency conditions are those conditions of disaster or extreme peril and/or an order to evacuate that are caused by natural forces or a criminal act and do not include a health pandemic. A reasonable belief means that a reasonable person, under the circumstances, would conclude there is a real danger of death or serious injury. Due to the lack of clarity, each situation will need to be reviewed on a case-by-case basis.

AB 2183 Agriculture Labor Relations Eff: 1/1/2023
Farmworkers in California will have an easier process for forming unions for the next five years (Expires in 2028). Existing law grants agricultural employees the right to form and join labor organizations and engage in collective bargaining with respect to wages, terms of employment, and other employment conditions, and authorizes employees to elect exclusive bargaining representatives by secret ballot. AB 2183 changes the process in how agricultural employees can select whether to have union representation.

The bill establishes alternative procedures to the polling place election and authorize a labor organization to be certified as the exclusive bargaining representative of a bargaining unit through either a labor peace compact or a non-labor peace compact, dependent on whether an employer enrolls and agrees to a labor peace compact for labor organization representation campaigns. For calendar year 2023, this choice shall be made during the time period of January 1, 2023, through February 1, 2023. For all subsequent years, an agricultural employer shall exercise this option in the 30 days prior to January 1 of the following year.

A “labor peace compact” is defined as an agreement by the employer to make no statements for or against union representation to its employees or publicly, in any written or oral form, at any time during employee hire, rehire, or orientation, or after certain documents regarding organization are filed with the board. However, employers would be allowed to communicate truthful statements to employees regarding workplace policies or benefits.

If the employer agrees to a labor peace compact, then employees may decide whether to unionize through a newly created mail-in ballot election as an alternative to the polling place election. If the employer does not agree to sign a labor peace compact, then unions will be permitted to solicit employees to authorize the union to represent them – through authorization cards, petitions, or other proof of majority support, rather than, mail-in or in-person secret ballot, process. Agricultural employers who commit unfair labor practices under the law face higher exposure, including civil penalties.

What this could mean for you: Agricultural employers should expect union organizers, especially the UFW, to kick in high gear and begin sweeping efforts to unionize using card check. Employers should be prepared with legal counsel ready in the event of UFW activity and have a response plan ready to go now.

AB 2188 Cannabis Employment Discrimination Eff: 1/1/2024
Beginning in 2024 (not 2023!), this new protection prohibits discrimination based on the person’s use of cannabis off the job and away from the workplace, which includes an employer-required drug screening test that has found the person to have “non-psychoactive” cannabis metabolites in their hair, blood, urine, or other bodily fluids. Exceptions apply for certain trades and where federal laws require applicants or employees to be tested for controlled substances. An employer may discriminate in hiring, or any term or condition of employment, or otherwise penalize a person based on scientifically valid preemployment drug screening that do not screen for non-psychoactive cannabis metabolites.

What this could mean for you: Employers may need to look for alternative testing to determine impairment. Employers may still maintain a drug-free and alcohol-free workplace policy where employees may not possess, be impaired by, or use cannabis on the job.

Meal and Rest Break Premium Pay
The burden of meal break compliance proof rests squarely on the employer. It is imperative that non-exempt employees document their meal breaks daily on their time records and that premiums are paid timely. Premiums must be reported on the employee’s pay statement when an employee misses or does not complete their full (at least 30 minutes) meal period. Meal and/or rest break premium pay is considered “wages,” similar to overtime premium pay, reporting time pay, or split-shift pay. Failure to pay can cause expensive waiting time and wage statement penalties. In very limited situations, when the nature of the employee’s duties prevents the employee from being relieved of all duty, certain designated employees may be authorized to work an “on-duty meal period.” (An example would be a lone cashier at a gas station who works the night shift.) An employee will be permitted to take an on-duty meal period only if the nature of their job requires an on-duty meal period, and the employee and the company have agreed, in advance, and in writing, to an on-duty meal period. In this situation, the on-duty meal period will be paid and treated as hours worked.

Ongoing Mandatory Harassment Prevention Training

Employers with five or more employees must provide one hour of sexual harassment prevention training to nonsupervisory employees and two hours of training to employees with supervisory authority. (This includes part-time, temporary, seasonal, and on-call staff as well as independent contractors, workers from staffing agencies, and employees outside of California, although you are only required to train supervisors located in California or those who supervise any California employees.)

Training must take place within six months of hire or promotion and every two years thereafter.
Seasonal and temporary employees or employees hired to work less than 6 months, must be trained within 30 calendar days after hire or within 100 hours worked, whichever is earlier.
Employers are not required to train employees who are employed for fewer than 30 calendar days and work for fewer than 100 hours

Leap Solutions can provide interactive onsite or online Harassment Prevention training for your employees!

Employee Handbook Review/Updates

If your employee handbook hasn’t been reviewed in over a year, you may have missed out on important changes that could affect employee retention and increase your liability. Our HR consultants work with you to customize your handbook while ensuring that you and your employees have clear, up-to-date information to inform and to instruct.

Injury and Illness Prevention Program and COVID Prevention Plan

A written, effective Injury and Illness Prevention Program (IIPP) is required for every California employer and now so is a COVID Prevention Plan (CPP). We can develop a plan with you to ensure that you are in compliance!

Don’t Forget to Update Your California Labor Law Posters to Reflect 2023 Changes!

The CalChamber Store can help https://store.calchamber.com/20000034/products/posters/california-labor-law-posters

Leaping Forward

The HR professionals at Leap Solutions can demystify these and many other complicated new employment and labor laws for you, your employees and your hiring managers and supervisors. Count on us to guide you through the complexities of each new piece of legislation and help you respond efficiently, reduce legal risk, minimize expenses and achieve the peace of mind that comes with keeping your organization compliant and your people safe, strong and successful.

Are You Ready to Leap into 2022?

***

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Leapsolutions | November 16, 2021

By Tracy Long & Tracy Emmerich

With the end of the 2021 California legislative session, the State begins to roll out all the new employment laws and new regulations. Whether a large employer, small employer, or new startup, being on top of the newest laws not only keeps you informed but allows you to proactively strengthen your business. While some laws may start immediately, most become law on January 1, 2022. No matter the size of your business, number of employees, or industry, Leap Solutions is here to help you face these changes proactively and confidently.

In this issue of our newsletter:

- The Federal OSHA Emergency Temporary Standard
- Minimum Wage
- Updates on New and Current Legislative Bills
- On-going Mandatory Harassment Prevention Training
- Employee Handbook Review/Updates
- Injury and Illness Prevention Program and COVID Prevention Plan
- California Labor Law Posters

The California 2021 legislative session was active so we’ve compiled a few of the laws that were passed that may affect you starting immediately or on January 1, 2022. Leap Solutions HR professionals have the knowledge, expertise, and resources to inform and guide you through ever-changing legislation and empower your company to thrive in 2022 and beyond.

But first, the Federal OSHA Emergency Temporary Standard has been announced requiring employers with 100 or more employees to require that all employees be vaccinated (unless the employee qualifies for a medical or religious exemption) OR provide an option to be vaccinated or participate in weekly testing and mask-wearing. Covered employers are required to pay for a reasonable amount of time, including travel time, (up to four hours) to employees for their primary vaccination dose(s) and reasonable time and paid sick leave to recover from side effects. There is also a mandatory policy requirement (in the language and literacy level the employee understands) as well as other provisions. Employees have until January 4, 2022, to be vaccinated or to begin weekly testing and mask-wearing. Employers with less than 100 employees may not be out of the woods as OSHA is still researching whether the requirements are onerous for small businesses or not. We are also waiting on updated guidance from Cal/OSHA. For our small business clients, we will update you in a future newsletter.

2022 Minimum Wage

January 1, 2022, brings another increase in the California state hourly minimum wage for both non-exempt and exempt salary workers. Local (city and county) minimum wage ordinances may also be effective January 1, 2022 (although some city’s effective dates, like San Francisco, are effective July 1, 2022). We recommend that compensation be evaluated as soon as possible to reflect the changes on the 1^st.

	25 Employees or Less	26 or More	100 or More
CA Non-exempt	$14.00/hour	$15.00/hour	N/A
CA Exempt salary threshold	$58,240/yr.	$62,400/yr.	N/A
Novato	$15.00/hour	$15.53/hour	$15.77/hour
Hayward	$14.52 /hour	$15.56/hour
Sonoma	$15.00/hour	$16.00/hour
Petaluma	$15.85 (not dependent on employer size)
Santa Rosa	$15.85 (not dependent on employer size)

Bills

SB 807 FEHA Record Retention – Eff: 09/23/2021
Under the amended law, employers will now be required to maintain personnel records for four years (instead of two). If litigation has been filed, those records must be maintained until the applicable statute of limitations has run or until the litigation has been concluded, whichever is later.

What this could mean for you: There are other record retention laws or statutes that affect personnel records. We recommend that you review your record’s retention policy to ensure that you are incorporating all of the applicable retention requirements and that you are considering comparability (we treat like cases alike) beyond those limits.

AB 1003 Wage Theft – Eff: 9/27/2021
The intentional theft of wages, including gratuities, benefits or other compensation, in an amount greater than $950 from any one employee, or $2,350 in the aggregate from 2 or more employees, by an employer in any consecutive 12-month period is punishable under the penal code as Grand Theft. For purposes of this provision, independent contractors are considered “employees”. Under existing law, grand theft is generally punishable either as a misdemeanor by imprisonment in a county jail for up to 1 year or as a felony by imprisonment in county jail for 16 months or 2 or 3 years.

What this could mean for you: Audit for wage and hour compliance including meal breaks and rest periods. Avoid misclassifying employees as independent contractors as the stakes just got a lot higher.

AB 1506 and AB 1561 Independent Contractors – Eff: 1/1/2022
Speaking of independent contractors, existing law creates a presumption that a worker who performs services for a hirer is an employee for purposes of claims for wages and benefits. A 3-part test, commonly known as the “ABC” test, is used to determine if workers are employees or independent contractors. Some occupations and business relationships are exempt from the application of the ABC test and the older “Borello” test applies instead. Newspaper carriers, licensed manicurists, and construction industry contractors/subcontractors are such entities and have been given extensions until 2025. Added to the exempt list are insurance claims adjustors and insurance third-party administrators.

What this could mean for you: Evaluate your independent contractors and ensure that they meet the applicable test or consider using a staffing agency to payroll the person for you.

SB 331 Non-disclosure and Settlement Agreement Limitations – Eff: 1/1/2022
Existing law prohibits a settlement agreement from preventing the disclosure of factual information regarding specified acts related to a claim. These acts include sexual assault, sexual harassment, an act of workplace harassment or discrimination based on sex, failure to prevent such an act, or retaliation against a person for reporting such an act. The amended law, known as the “Silenced No More Act,” expands the prohibition to include acts of workplace harassment or discrimination not based on sex. Furthermore, the law prohibits an employer from requiring an employee to sign a nondisparagement agreement or other document to the extent it has the purpose or effect of denying the employee the right to disclose information about unlawful acts in the workplace.

What this could mean for you: Unlawful acts in the workplace would include FEHA’s protected categories (race, religion, color, gender identity, etc.) and other conduct that the employee has reasonable cause to believe is unlawful (think missed rest/meal breaks, unpaid overtime, late paycheck, etc.). Ensure that Harassment Prevention training is up-to-date. Review confidential information and trade secret policies.

SB 657 Electronic Distribution of Required Employment Posters – Eff: 1/1/2022
Where an employer is required to physically post information, an employer may also distribute that information to employees by email with the document or documents attached. Although you may email the posters, the labor code does not alter the employer’s obligation to physically display required postings. (LC 1207)

What this could mean for you: This is optional in addition to physically displaying the posters. The new labor code affects the electronic distribution of notices required under the Labor Code which include wage orders, paid sick leave and Cal/OSHA notices. It does not cover federal posters and may not cover posters required through other state laws.

AB 1033 Extends CFRA Family Member to Include Parent-in-law – Eff: 9/27/2021
The California Family Rights Act, which affects employers with five or more employees, now includes leave to care for a parent-in-law within the definition of family care and medical leave. (This corrects a drafting error.) “Parent-in-law” means the parent of a spouse or domestic partner. Additionally, the bill established a more practical, streamlined procedure for implementing the small employer family leave mediation program.

What this could mean for you: Ensure that your handbook and/or other CFRA notice information is updated to reflect the family member change.

SB 606 Cal/OSHA Rebuttable Presumption of Enterprise-wide Violation – Eff: 1/1/2022
Cal/OSHA now has a rebuttable presumption that a violation committed by an employer with multiple worksites is Enterprise-wide if the employer has a written policy or procedure that violates OSHA rules or the laws OR they have evidence of a pattern or practice of the same violation(s) committed by that employer involving more than one of the employer’s worksites. Additionally, they have created a new Egregious violation that lists seven conditions of which you only need to violate one (Example: The employer, intentionally through conscious, voluntary action or inaction, made no reasonable effort to eliminate a known violation). For egregious violations, Cal/OSHA can now count each employee affected by the violation as a separate violation for purposes of assessing fines and penalties. (LC 6317)

What this could mean for you: Audit your safety policies and procedures. Ensure that supervisors know the safety rules, including for COVID, and how to enforce them. Give special attention to required written programs (Injury Illness Prevention Program, COVID Prevention Plan, Hazard Communication Programs, Workplace Violence Prevention Plans, Respiratory Protection Plans, etc.). Lack of implementation or enforcement could lead to penalties per employee.

AB 654 Notification of COVID Exposure – Eff: 10/5/2021
The amendment states that employers must notify “all employees who were on the premises at the same worksite as the qualifying individual within the infectious period” (not “employees who may have been exposed”) about the exposure. The timeline for reporting is one business day or 48 hours, whichever is later; however, the notice does not need to be provided on weekends and holidays. The notice must also indicate any benefits available and information about the cleaning and disinfection plan that the employer has implemented under Cal/OSHA standards. Several industries, including home health agencies and certain residential care facilities are not subject to the reporting requirement.

What this could mean for you: Update your COVID Prevention Plan (and if you don’t have one), reach out to us to help you develop one.

CA COVID-19 Paid Sick Leave – Expired 9/30/2021
Although the legislators attempted to extend CA COVID-19 Paid Sick Leave (SPSL) it expired on 9/30/2021 along with other city and county ordinances (although some cities and counties have extended their deadline including Oakland).

What this could mean for you: Now is the time to remove the state (and local-if applicable) Covid sick leave posters and to zero out any remaining sick leave balances that may be reflective on employee paystubs. We also recommend that you notify employees that the sick leave(s) have expired and let them know that they can use any unused, accrued sick, or vacation balances in their place.

Other legislation by industry includes:
AB 73 Wildfire Smoke Training for Agricultural Workers – Eff: 9/27/2021

AB 701 Warehouse Quota Restrictions for > 100 employees at one warehouse or >1,000 at one or more warehouses – Eff: 1/1/2022

SB 727 Construction Industry Joint Liability for Penalties/Liquidated Damages – Eff: 1/1/2022

SB 62 Garment “Brand Guarantors” Joint Liability for Wage and Hour Violations – Eff: 1/1/2022

Ongoing Mandatory Harassment Prevention Training

Employers with five or more employees must provide one hour of sexual harassment prevention training to nonsupervisory employees and two hours of training to employees with supervisory authority (This includes part-time, temporary, seasonal, and on-call staff as well as independent contractors, workers from staffing agencies, and employees outside of California, although you are only required to train supervisors located in California or those who supervise any California employees).

Training must take place within six months of hire or promotion and every two years thereafter.
Seasonal and temporary employees or employees hired to work less than 6 months, must be trained within 30 calendar days after hire or within 100 hours worked, whichever is earlier.
Employers are not required to train employees who are employed for fewer than 30 calendar days and work for fewer than 100 hours

Leap Solutions can provide onsite or online Harassment Prevention Training for your employees!

Employee Handbook Review/Updates

Injury and Illness Prevention Program and COVID Prevention Plan

Don’t Forget to Update Your California Labor Law Posters to Reflect 2022 Changes!

The California Department of Industrial Relations requires employers to post current information related to wages, hours and working conditions in an area frequented by employees where it may be easily read during the workday. CalChamber Store can help https://store.calchamber.com/20000034/products/posters/california-labor-law-posters

Leaping Forward

The HR professionals at Leap Solutions can demystify these and many other complicated new employment and labor laws for you, your employees, and your hiring managers and supervisors. Count on us to guide you through the complexities of each new piece of legislation and help you respond efficiently, reduce legal risk, minimize expenses and achieve the peace of mind that comes with keeping your organization compliant and your people safe, strong, and successful.

Are You Ready to Leap into 2022?

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