extended the filing period for complaints of unlawful or discriminatory employment practices from one year to three years. In HR Dive’s Mailbag series, employment law experts addressed many of these concerns. The ATRF notes that excessive tort costs in California lead to an estimated increase of $15.1 billion in the cost of doing business in the state and the loss of 242,761 jobs according to The Perryman Group. Interactive map feature to drill down to state-specific COVID-related requirements. It can be difficult for employers both large and small to navigate California's complex legal requirements. ", Ogletree Deakins recommends "conducting spot audits of payroll practices to ensure that employees are receiving their pay in a timely manner. "Some courts have said it's fair to both sides because the employee has the option not to take the job if she or he is unwilling to work under those conditions. Effective on January 1, 2020, an employer who fails to pay within 30 days after the due date the costs and fees necessary for arbitration to begin or continue will be in material breach and default of the arbitration agreement and will waive its right to compel arbitration. With 725+ lawyers active in virtually every major market worldwide, we are recognized not only for our legal excellence, but also our dedication to client service. It seems to demonstrate a sensitivity that in modern society, conforming to a particular anglocentric look is no longer going to be a requirement for success in the job market," Pearce said. AB-51: Preserving the right to legal recourse, Another new state law would prohibit the use of some mandatory arbitration agreements as a condition of employment, but remains under a, temporary restraining order (TRO) blocking it. Consistent with our reporting from the past few years, California is once again listed among the American Tort Reform Foundation’s (ATRF) “Top Judicial Hellholes” in the United States. En español. Child Labor Laws. Be customarily engaged in an independently established trade, occupation or business of the same nature as that involved in the work performed. We invite you to review our newly-posted November 2020 California Employment Law Notes, a comprehensive review of the latest and most significant developments in California employment law. Want to share a company announcement with your peers? with plans to replace them with employees. "What California has done is set the default to employee, leaving the burden upon the entity that views the relationship different than the employee to establish the criteria that is set forth," Mark Pearce. The Emergency Temporary Standards, which are now in effect, apply to virtually all California employers, employees, and places of employment, with three exceptions:  (1) workplaces where there is only one employee who does not have contact with other people; (2) employees who are working remotely; and (3) employees covered by Cal/OSHA’s Aerosol Transmissible Diseases regulation. expands on existing labor codes to levy the same penalties for failure to pay minimum wage to companies that pay or cause an employee to be paid "a rate of compensation that is less than set by contract. Our proprietary tracker allows employers to search the legal requirements in the jurisdictions where they conduct business, and provides real-time updates. Labor Commissioner's Office; California Paid Sick Leave: Frequently Asked Questions UPDATE New Questions Concerning the Paid Sick Leave Law Updated March 29, 2017 Questions about An Employer’s Use of a “Grandfathered” (Existing) Paid Time Off Plan to Provide Paid Sick Leave. By signing up to receive our newsletter, you agree to our. Industries exempt from the law are mostly in professional services or trades, such as doctors, electricians, independent consultants, architects and accountants. Some are facing judicial challenges, the outcome of which will determine the nature of their final implementation. This year, California finished with a Bronze Medal as just the third most hellish (behind Pennsylvania and New York City), improving on its first place finish in 2019. Another new state law would prohibit the use of some mandatory arbitration agreements as a condition of employment, but remains under a temporary restraining order (TRO) blocking it from taking effect. "If we're talking about individuals who come into a workplace and are performing essentially the same work that is the focus of the business, there is a large question as to whether or not the intent of the business is to duck its obligation to provide the appropriate employee protections to the worker, by means of placing the worker in a different category," Pearce said. The language of the bill does not specify arbitration, but rather prohibits companies or people "from requiring any applicant for employment or any employee to waive any right, forum, or procedure for a violation of any provision of the California Fair Employment and Housing Act (FEHA) or other specific statutes governing employment as a condition of employment, continued employment, or the receipt of any employment-related benefit. Given that the Emergency Temporary Standards take effect immediately, employers with any employees in California may wish to contact counsel to assist them in developing a compliant COVID-19 Prevention Program. In just the past decade, more than 13,000 businesses have left the Golden State for better business climates (they’re increasingly going to Texas). Additionally, the state's salary threshold of overtime exemption is now $54,080 for employers with 26 or more employees and $49,920 for employers with 25 or fewer employees. The California Consumer Privacy Act grants consumers certain rights regarding personal information that is owned by businesses. On top of that, four California cities enacted even higher minimum wages, according to law firm Fisher Philips: Oakland, San Diego, San Jose, Santa Clara. California Family Right Act Expanded (SB 1383): Currently, employers with 50 or more employees must provide 12 workweeks of unpaid leave for family care and medical leave. In 1977, Larry Ellison co-founded Oracle with Bob Miner and Ed Oates in Santa Clara with just $2,000 in seed money. This is just the latest example of how California’s, uh, rather challenging tax and regulatory environment continues to drive employers from the Golden State. Administers the Job Service, Unemployment Insurance, Disability Insurance, Workforce Investment Act, and Welfare-to-Work programs and handles the audit and collection of employment taxes and maintains employment records for more than 19 million California workers. As 2019 draws to a close, it is time to take a close look at some of the most important new laws that have been passed which will affect California employers in 2020 and beyond. All Rights Reserved. "What California has done is set the default to employee, leaving the burden upon the entity that views the relationship different than the employee to establish the criteria that is set forth," Mark Pearce, distinguished lecturer and executive director of Georgetown University Law Center's Workers' Rights Institute and former chair of the National Labor Relations Board, told HR Dive. California Employment Law Update Events; SUBSCRIBE. that the Uber lawsuit alleging the law is unconstitutional is "bizarre." Listen to the podcast or read the transcript here. Also consider conducting an equal pay audit to identify whether certain job categories are vulnerable to equal pay claims.". FEHA prohibits employers from using discriminatory practices in the hiring, promotion and termination of employees. The training must be provided within six months of hire or within six months of the assumption of a supervisory position. This law entitles employees to an additional 30 days of unpaid leave, in addition to 30 days of paid leave already permitted, to donate an organ. Well, we know that that's not equitable and ignores the reality of the employer-employee relationship. Subscribe to HR Dive: Topics covered: HR management, compensation & benefits, development, HR tech, recruiting and much more. Webinars California Employment Law Update. Here is what we know as of today. Under the Emergency Temporary Standards, all covered employers must establish, implement, and maintain “an effective, written COVID-19 Prevention Program,” which may either be a standalone document or incorporated into employers’ preexisting Injury and Illness Prevention Programs. AB-673 updates existing labor code so employees can seek penalties for late wage payments. Employers – listen now in order to plan ahead for what could be significant shifts from the new administration in Washington. Ensure that employees know they must, without fear of reprisal, report COVID-19 symptoms, possible exposures and/or possible COVID-19 hazards in the workplace; Communicate to employees about the employer’s COVID-19 prevention procedures and available testing resources; Identify, evaluate, and correct COVID-19 hazards; Establish physical distancing, face covering protocols, and other controls or equipment to reduce transmission risk; Develop procedures to investigate and respond to COVID-19 cases, including an effective employee screening process; Provide testing to employees who are exposed to COVID-19, and in the case of multiple infections or a major outbreak, implement regular workplace testing for employees in the exposed work areas; Require the exclusion of COVID-19 cases and exposed employees from the workplace until they are no longer an infection risk; and. does not specify arbitration, but rather prohibits companies or people "from requiring any applicant for employment or any employee to waive any right, forum, or procedure for a violation of any provision of the California Fair Employment and Housing Act (FEHA) or other specific statutes governing employment as a condition of employment, continued employment, or the receipt of any employment-related benefit. distinguished lecturer and executive director of Georgetown University Law Center's Workers' Rights Institute and former chair of the National Labor Relations Board, told HR Dive. Employers must also provide access to electricity or alternative devices and access to a sink and a refrigerator near the employee's workspace. Companies may want to have their arbitration agreements reviewed and updated if necessary.". The FFCRA, which included federal Paid Sick Leave and paid “E-FMLA”, expires December 31, 2020, as does the California version that required paid sick leave for larger employers. Additionally, the new law allow new parents who work for the same employer to take 12 weeks for himself or herself for baby bonding. Subscribe to HR Dive to get the must-read news & insights in your inbox. With the new year, the state minimum wage became $13.00 per hour for employers with 26 or more employees and $12.00 per hour for employers with 25 or fewer employees. As a result in this increase, the minimum salary an employee must earn to qualify for exempt status under California law will increase to $43,680 per year ($840 per week) for employers with 25 or fewer employees, and to $45,760 per year ($880 per week) for employers with 26 or more employees. December 16, 2020. "The one clear thing we know about Uber is they will do anything to try to exempt themselves from state regulations that make us all safer and their driver employees self-sufficient," she said. A recent ruling of the Superior Court of California in Los Angeles also, Media companies that rely on freelancers for blogging, reporting, photography and management of web properties also may be heavily affected. Copyright © 2020, Proskauer Rose LLP. AB-5 established a set of parameters for employers looking to label workers as independent contractors — instead employees — called the "ABC test.". Industries exempt from the law are mostly in professional services or trades, such as doctors, electricians, independent consultants, architects and accountants. Uber, Postmates and two drivers have, , calling the law unconstitutional. “We believe these moves best position Oracle for growth and provide our personnel with more flexibility about where and how they work,” the company said in its SEC filing. says that settlement agreements between an "aggrieved person" and an employer can no longer contain a provision that restricts an employee from obtaining future employment with that employer and any affiliated entities such as franchises or subsidiaries. Knowing labor and employment law in general isn't enough. Employers must meet all consumer standards by Jan. 1, 2021. Our clients include many of the world’s top companies, financial institutions, investment funds, not-for-profit institutions, governmental entities and other organizations across industries and borders. California Employment Law Update download brochure Because of the extraordinary circumstances caused by COVID-19, NELI will be altering the presentation format of this year’s California Update to be a LIVE WEBINAR Conference with video rather than the in-person meeting. But for now, employers may want to familiarize themselves with some of the most widely applicable and most impactful new laws. Perform work that is outside the usual course of the hiring entity's business. Further, employers are permitted to use “employer-provided employee sick leave … and consider benefit payments from public sources in determining how to maintain earnings…, where permitted by law and when not covered by workers’ compensation.”. This amounts to each Californian paying a $594.74 “tort tax.”. Under the New Parent Leave Act, employers with 20 or more employees must provide 12 workweeks of unpaid leave during any 12-month period to bond with a new child. 2020: 6 NEW CALIFORNIA Employment Law Updates TO BE AWARE OF. "So a lot of burden that is placed on the worker when the worker's relationship with the paying entity is not exactly equal.". Each day, California employers look to CalChamber and HRCalifornia for advice about pressing California employment laws and HR issues, such as sexual harassment and employee compensation law. Maintain records of COVID-19 cases and report serious illnesses and multiple cases to Cal/OSHA and local health departments, as required. Another four will take effect July 1: Berkeley, Pasadena, San Francisco, and Santa Monica. "And that is revolutionary.". On-demand service apps such as rideshare companies that rely on an army of freelance workers to fulfill their orders may be most affected. ", "conducting spot audits of payroll practices to ensure that employees are receiving their pay in a timely manner. AB-1223: Leave of absence after organ donation, AB-9: Employment discrimination statute of limitations. Proskauer’s ProTrack COVID-19 tool is now available for use by our clients. The highlights include: Following last week’s historic presidential election and a forthcoming transition of power, Proskauer’s Anthony Oncidi and Laura Fant join XpertHR Legal Editor David Weisenfeld for a podcast conversation on the changes employers can expect after President-elect Biden takes office in January. This year, Governor Brown, while vetoing a number of bills that surprised many of us, did sign a raft of legislation brought on by the #Me Too movement. Vox Media, for example, recently, laid off all California-based freelancers. In addition, the Emergency Temporary Standards direct employers to “continue to maintain … [the] earnings, seniority, and all other employee rights and benefits” of any employee who has to be excluded from work due to actual COVID-19 infection or potential COVID-19 exposure in the workplace, if the employee is “otherwise able and available to work.”  The Emergency Temporary Standards provide that the obligation to maintain earnings and benefits does not apply to any period when an employee is unable to work “for reasons other than protecting persons at the workplace from possible COVID-19 transmission” or if the employer can demonstrate that the COVID-19 exposure is not work related. The California Legislature, the courts, and state and federal agencies were busy in 2020, passing new laws, issuing new rulings, and implementing new regulations that impact California employers. 2021 Employment Law Update. enacted even higher minimum wages, according to law firm Fisher Philips: Oakland, San Diego, San Jose, Santa Clara. HP’s fabled rise began in 1938 when Bill Hewlett and Dave Packard started the tech-giant-to-be in a garage they had rented in Palo Alto, CA. added hairstyle, including "such hairstyles as braids, locks, and twists," to the list of protected traits. First, disclosures extend to personal information collected from job applicants, employees or contractors. In addition to New York, we have offices in Beijing, Boston, Chicago, Hong Kong, London, Los Angeles, Paris, São Paulo and Washington, D.C., as well as Boca Raton, Newark and New Orleans. Get HR news like this in your inbox daily. The laws, rules, regulations and standards about COVID-19 are a moving target. Our roots go back to 1875, when we were founded in New York City. Employers in the state may need to brush up on recent changes and prepare for those still to come. Another four will take effect July 1: Berkeley, Pasadena, San Francisco, and Santa Monica. `` conducting spot audits of payroll practices to ensure that employees are their! Francisco, and Santa Monica Dynamex Operations West, Inc. v. Superior Court of California in Los Angeles also independent. Equal pay claims. `` tool is now available for use by our clients equal … 2020 6... The free newsletter covering the top industry headlines, Brian Tucker / industry Dive with assets PeterSnow... Are a moving target and free of hazardous materials california employment law update judicial challenges, the is. 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