Even if you have one employee working in the state of California, these six (6) new laws going into effect next year may have an impact on you.
Not to panic. We’ve broken down the who, what, and when of these new employment laws, but not particularly in that order.
Minimum Wage Increase
WHAT: California minimum wage will be increasing to $16 per hour; salaried exempt employees must earn a minimum of $66,560 per year. If you have exempt employees currently earning less than $66,560 then you will have to re-classify them to non-exempt and pay them overtime and/or increase their wages.
The minimum wage for healthcare workers will be increased to $25/hour and the minimum wage for fast food workers will be increased to $20/hour.
WHO: Employers of all sizes with at least one employee in the state of California.
WHEN: January 1st, 2024
Sick Leave Expansion
WHAT: SB 616 expands the current paid sick leave requirements from 24 hours (3 days) to 40 hours (5 days). Instead of the previous “use it or lose it” provision, employees now must be able to carry over the five days from year to year, increasing the accrual cap to 10 days (or 80 hours).
WHO: All full-time and part-time employees, and employers of all sizes with at least one employee in the state of California.
WHEN: January 1st, 2024
Workplace Violence Prevention
WHAT: SB 553 requires employers to adopt workplace violence prevention plans, maintain records of any threats or incidents of workplace violence, and provide effective training to workers on workplace violence.
Employers must keep a log of all reports of violence or threats and what the employer did about it, starting on July 1, 2024. The log should not contain any personally identifiable information. These records must be maintained for at least five years and presented to the California Division of Occupational Safety and Health (Cal/OSHA) upon request. Employers can be fined if they don't keep the log properly.
WHO: Employers of all sizes with at least one employee in the state of California, with the exception of employer locations with no public access and with fewer than 10 employees at a time, along with healthcare facilities, facilities operated by the Department of Corrections and Rehabilitation, certain law enforcement agencies, and teleworkers.
WHEN: July 1st, 2024 - Employers are required to provide training when the plan is initially implemented and then annually thereafter.
Reproductive-Related Bereavement Leave
WHAT: SB 848 requires employers to offer up to five days unpaid leave when an employee suffers a “reproductive loss event,” i.e., a miscarriage, stillbirth, failed adoption, failed surrogacy, or unsuccessful assisted reproduction.
WHO: Employers with five or more employees, and employees who have been employed by the employer for at least 30 days.
WHEN: January 1st, 2024
Reproductive-Related Bereavement Leave - On Oct. 11, California Gov. Gavin Newsom signed a bill into law expanding California unpaid leave by allowing employees up to five days of time off work for reproductive-related losses. Applies to private employers with five or more employees (and public employers of any size).
Prohibitions on Noncompete Agreements
WHAT: SB 699 and AB 1076 prohibit employers from enforcing non compete agreements considered void and unenforceable under Section 16600 of the California Business and Professions Code. SB 699 states that any contract that is void under Section 16600 is unenforceable regardless of where and when the contract was signed—meaning an out-of-state employer that attempts to enforce a noncompete in California would be bound to the requirements of this law.
Similarly, AB 1076 amends Section 16600 to further clarify prohibitions on noncompete agreements and codify existing precedent on the topic, in accordance with Edwards v. Arthur Andersen LLP, 44 Cal. 4th 937 (2008). This would require employers to notify current and former employees in writing by February 14, 2024, that any noncompete agreements they may have signed are void.
WHO: Employers of all sizes with at least one employee in the state of California.
WHEN: January 1st, 2024 and February 14th, 2024 respectively
Expanded Protections for Off-Duty Cannabis Use
WHAT: SB 700 prohibits employers from requesting information from job applicants relating to their prior cannabis use. SB 700 does not prohibit employers from inquiring about an applicant’s criminal history if otherwise permitted by law. Therefore, information about an individual’s prior cannabis use obtained from a legally obtained criminal history report, and if such information is otherwise lawful for an employer to consider in making employment decisions, would be exempt from the new Section 12954.
WHO: Employers of all sizes with at least one employee in the state of California.
WHEN: January 1st, 2024
Don’t know where to begin? Contact Atomus Partners and we’ll walk alongside you.
Disclaimer: Atomus Partners are not employment attorneys and this is not meant to be legal advice.