When it comes to california new work law updates in 2024, both employers and employees in the Golden State have a lot to catch up on. Here are the key changes:
- Minimum Wage Increase: Statewide minimum wage rises to $16 per hour.
- Paid Sick Leave: Expanded to 40 hours per year.
- Reproductive Loss Leave: Provides 5 days of leave for events like miscarriages and failed adoptions.
- Noncompetition Agreements: New laws void most noncompete agreements signed anywhere.
- Cannabis Use Protections: Off-duty cannabis use protected from discrimination.
Understanding these updates can help you ensure compliance and make the most of the new employee rights and protections.
I’m Chris Lyle, a seasoned attorney specializing in workers’ compensation and co-founder of CompFox, an AI-powered legal research tool designed to streamline your research needs. With experience in california new work law, I aim to make your navigation through these changes as smooth as possible.
Now, let’s dive into the specifics of these new laws.
Essential california new work law terms:
– california labor code 202
– california labor code 3212.88
– california labor law 221
Minimum Wage Increases
Starting January 1, 2024, the state minimum wage in California will increase to $16 per hour for all employers. This change impacts both non-exempt and exempt workers.
Fast Food Workers
Fast food workers will see even higher wages. Beginning April 1, 2024, their minimum wage will be $20 per hour. This rate will increase annually through 2029. This new law, Assembly Bill 1228, also establishes a Fast Food Council to set wages and health standards.
Healthcare Workers
Healthcare workers’ minimum wage will vary based on the size and type of facility. For example, at facilities with at least 10,000 full-time employees, the minimum wage will rise to $23 per hour starting June 1, 2024, with an increase of $1 per hour each year thereafter.
Local Ordinances
Around 30 cities and counties in California have their own minimum wage rates that are higher than the state minimum. These include:
- Los Angeles: $17.50 per hour
- San Francisco: $18.07 per hour
- Sunnyvale: $17.55 per hour
Employers must comply with the highest applicable wage rate.
Impact on Employers and Employees
For employers, this means adjusting payroll systems and budgets to accommodate higher wages. Some businesses, especially in the fast food industry, may turn to automation to offset labor costs. For example, Chipotle is testing a robot called Autocado to help with food preparation.
For employees, these increases aim to improve living standards but may also result in reduced hours or job cuts as businesses adapt.
Understanding these changes is crucial for compliance and to leverage the new protections and benefits effectively.
Next, let’s explore the expanded Paid Sick Leave provisions under SB 616.
Improved Paid Sick Leave (SB 616)
Starting January 1, 2024, California’s paid sick leave law, known as SB 616, will significantly expand. This update modifies the Healthy Workplaces, Healthy Families Act of 2014, providing more generous benefits for employees.
Increased Entitlement
Under SB 616, employees are now entitled to five days or forty hours of paid sick leave annually. This is a substantial increase from the previous entitlement of three days or twenty-four hours. This change ensures that workers have more time to recover from illnesses without financial stress.
Accrual or Frontload Options
Employers have two main options for providing paid sick leave:
- Accrual Method: Employees can accrue paid sick leave at a rate of one hour for every thirty hours worked. Employers must ensure that employees can accrue at least:
- Twenty-four hours by their 120th day of employment.
-
Forty hours by their 200th day of employment.
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Frontload Method: Employers can also choose to frontload the entire amount of paid sick leave at the beginning of each year. This method provides immediate access to the full forty hours of leave.
Increased Annual Usage Cap
Employers can now limit the annual use of paid sick leave to forty hours. Previously, the cap was set at twenty-four hours. This change allows employees to use more of their accrued leave each year.
Increased Accrual Cap
The new law also raises the cap on accrued paid sick leave. Employers can now cap accrual at eighty hours or ten days. The previous cap was forty-eight hours or six days. This means employees can accumulate more leave over time, providing a larger safety net for longer illnesses or emergencies.
Special Considerations for Alternate Workweeks
The California Division of Labor Standards Enforcement (DLSE) has noted that employers may need to provide five regularly scheduled workdays of leave. For employees on a 4/10 workweek (four days at ten hours each), this could mean providing fifty hours of paid sick leave (five days × ten hours/day).
Practical Implications
For employers, these changes mean updating policies and payroll systems to comply with the new requirements. It’s essential to communicate these changes to employees clearly and ensure that all staff understand their new entitlements.
For employees, the expanded sick leave provisions offer greater flexibility and security. Workers can take the time they need to recover from illnesses without worrying about losing income or job security.
Next, let’s dive into the New Reproductive Loss Leave provisions under SB 848.
New Reproductive Loss Leave (SB 848)
Starting January 1, 2024, California introduces a new type of leave specifically for reproductive loss events, known as SB 848. This law provides critical support for employees experiencing significant personal losses such as miscarriages or failed adoptions.
What is Reproductive Loss Leave?
Reproductive loss leave allows eligible employees to take up to five days of unpaid leave following a reproductive loss event. This event can include:
- Miscarriage
- Failed adoption
- Stillbirth
- Unsuccessful assisted reproduction
Eligibility and Conditions
To qualify for this leave, employees must meet certain conditions:
- They must have worked for their employer for at least 30 days prior to the leave.
- The employer must have at least five employees.
Key Features of SB 848
1. Flexibility in Taking Leave:
Employees can take the five days of leave nonconsecutively within three months of the event. This flexibility allows them to manage their time and emotional needs better.
2. Use of Existing Leave Policies:
If an employer already has a leave policy that covers such events, employees can use that. If not, the leave under SB 848 can be unpaid, but employees can opt to use their available paid leave balances, such as vacation or accrued sick leave.
3. Confidentiality:
Employers must maintain confidentiality regarding the employee’s request for or use of reproductive loss leave. This ensures privacy and respect for the employee’s situation.
Practical Implications for Employers
Employers need to update their employee handbooks to include this new leave provision. Training supervisors and managers about these new obligations is also essential to ensure smooth implementation.
Practical Implications for Employees
For employees, this new leave provides much-needed time to cope with personal loss without the added stress of job security or financial concerns. Knowing that they have this support can make a significant difference during difficult times.
Next, let’s explore the new restrictions on Noncompetition Agreements under SB 699 and AB 1076.
Noncompetition Agreement Restrictions (SB 699, AB 1076)
California has long been known for its strict stance against noncompetition agreements. The new laws, SB 699 and AB 1076, strengthen these restrictions even further, ensuring that employees have the freedom to move between jobs without being unfairly restricted by previous employers.
Key Provisions of SB 699 and AB 1076
1. Noncompetition Agreements are Void:
SB 699 introduces Section 16600.5 to the California Business and Professions Code, making it clear that any noncompetition agreement that is void in California is unenforceable, regardless of where it was signed or where the employment was based. This means that even if an agreement was signed in another state, it cannot restrict an employee’s job mobility in California.
2. Affirmative Prohibition:
AB 1076 codifies existing case law by making it illegal for employers to require employees to sign noncompetition agreements or include non-compete clauses in employment contracts. This applies to agreements signed after January 1, 2022.
3. Notification Requirements:
Employers must notify current and former employees (employed after January 1, 2022) in writing by February 14, 2024, that any noncompetition agreements they signed are void. This notification must be sent to the employee’s last known address and email.
4. Private Right of Action:
Employees now have a private right of action to enforce these laws. They can seek injunctive relief, actual damages, and attorney’s fees if they prevail in a lawsuit challenging an unlawful noncompetition provision.
Real-World Implications
For Employers:
- Review Existing Agreements: Employers should review all current employment agreements and remove any noncompetition language that does not comply with the new laws.
- Send Notifications: Ensure that all required notifications are sent out by the February 14, 2024 deadline. Keep records of these notifications in employee personnel files.
- Consult Legal Counsel: Given the potential for significant penalties, employers should consult with legal counsel to steer these changes and avoid costly mistakes.
For Employees:
- Increased Mobility: Employees can now change jobs without fear of being sued over noncompetition agreements that are void under California law.
- Legal Recourse: Employees have the right to challenge any unlawful noncompetition agreements and can recover damages and attorney’s fees if they win.
Case Example
Imagine an Oregon-based software engineer who signed a noncompetition agreement with their employer. If they move to California for a new job, their previous employer cannot enforce the noncompetition agreement to prevent them from working in the same industry.
Expert Opinion
Employment law experts anticipate that these new provisions will face legal challenges, especially the aspects that invalidate noncompetition agreements from other states. However, until such challenges are resolved, the law provides strong protections for employee mobility in California.
Next, let’s look at the new Cannabis Use Protections under AB 2188 and SB 700.
Cannabis Use Protections (AB 2188, SB 700)
Starting January 1, 2024, California’s new laws, AB 2188 and SB 700, will change how employers handle cannabis use among employees. These laws aim to protect workers from discrimination based on their off-duty cannabis use and drug test results.
Key Provisions of AB 2188 and SB 700
1. Off-Duty Cannabis Use:
Under AB 2188, employers cannot discriminate against employees or job applicants for using cannabis during their off-hours and away from the workplace. This means that what employees do in their personal time should not impact their employment status.
2. Drug Test Results:
Employers are prohibited from taking adverse actions, such as firing or refusing to hire, based on drug test results that show non-psychoactive cannabis metabolites. These metabolites can remain in the body long after the effects of cannabis have worn off and do not indicate current impairment.
3. Exceptions:
The law does not allow employees to use or be impaired by cannabis while on the job. Additionally, certain workers, such as those in the building and construction trades, are exempt from these protections.
Real-World Implications
For Employers:
- Review Drug Testing Policies: Employers should update their drug testing policies to ensure they comply with the new laws. Tests should focus on current impairment rather than past use.
- Training and Education: Train HR and management staff on the new regulations to avoid potential lawsuits and ensure fair treatment of employees.
- Maintain a Drug-Free Workplace: Employers can still enforce policies that prohibit the use of cannabis and other substances during work hours.
For Employees:
- Job Security: Employees can use cannabis during their personal time without fear of losing their job, provided they are not impaired at work.
- Know Your Rights: Understanding these new protections can help employees advocate for themselves if they face discrimination based on off-duty cannabis use.
Case Example
Consider a scenario where an employee uses cannabis legally on the weekend. If they undergo a drug test on Monday, the presence of non-psychoactive metabolites should not lead to disciplinary action or termination under the new laws.
Expert Opinion
Employment law experts believe these changes will help balance the rights of employees with the need for workplace safety. “These laws recognize the evolving legal status of cannabis while ensuring that workplace performance and safety are not compromised,” says an employment law attorney.
Next, let’s explore the new Workplace Violence Prevention Plan requirements under SB 553.
Workplace Violence Prevention Plan (SB 553)
Starting July 1, 2024, California’s SB 553 will require nearly all employers to implement a Workplace Violence Prevention Plan (WVPP). This law aims to protect employees from violence and threats in the workplace through comprehensive prevention strategies and detailed incident logs.
Key Components of SB 553
1. Written Plan:**
Employers must have a written WVPP that is easily accessible to all employees, authorized representatives, and Cal/OSHA. The plan should include:
- Names or job titles of those responsible for implementing the plan.
- Procedures for employee involvement in developing and implementing the plan.
- Methods for coordinating implementation and responding to reports of workplace violence.
2. Training and Education:**
The law mandates training for employees on the WVPP. This training should cover:
- Identifying and evaluating workplace hazards.
- Correcting workplace violence hazards in a timely manner.
- Responding to incidents and emergencies.
3. Incident Logs and Records:**
Employers must maintain detailed logs of workplace violence incidents, which include:
- Date, time, and location of the incident.
- Type of violence and a detailed description.
- Classification of who committed the violence and the circumstances.
These records must be kept for at least five years and made available to employees and Cal/OSHA upon request.
Real-World Implications
For Employers:
- Developing a Comprehensive Plan: Employers need to create a detailed WVPP that covers all the required elements. This includes identifying responsible individuals, procedures for employee involvement, and methods for responding to incidents.
- Training Employees: Employers must provide regular training sessions to ensure all employees understand the WVPP and know how to report incidents.
- Maintaining Records: Keeping detailed incident logs and records is crucial for compliance and may help in identifying patterns of violence that need addressing.
For Employees:
- Active Participation: Employees will have opportunities to be actively involved in developing and implementing the WVPP. This includes participating in identifying, evaluating, and correcting workplace hazards.
- Reporting and Protection: Employees can report incidents of workplace violence without fear of retaliation, knowing there are procedures in place to handle their reports effectively.
- Training Benefits: Regular training will help employees understand how to protect themselves and their colleagues from workplace violence.
Case Example
Imagine a scenario where an employee reports a threat of violence from a coworker. Under SB 553, the employer must respond promptly, investigate the incident, and update the WVPP if necessary. Detailed records of the incident and the employer’s response must be maintained for at least five years.
Expert Opinion
Workplace safety experts believe that SB 553 will significantly improve workplace environments. “By requiring comprehensive prevention plans and detailed incident logs, this law ensures that employers take proactive steps to prevent violence and protect their employees,” says a workplace safety consultant.
Next, let’s examine the new Anti-Retaliation Protections under SB 497.
Anti-Retaliation Protections (SB 497)
SB 497, known as the Equal Pay and Anti-Retaliation Protection Act, introduces new safeguards for employees against retaliation. This law is crucial for ensuring that employees can engage in protected activities without fear of adverse actions from their employers.
Key Aspects of SB 497
1. Rebuttable Presumption:**
Under SB 497, if an employer takes adverse action (like discharge or demotion) against an employee within 90 days of the employee engaging in protected activities, there is a rebuttable presumption of retaliation. This shifts the burden of proof to the employer.
2. Protected Activities:**
Protected activities include, but are not limited to:
- Filing a complaint about workplace conditions.
- Participating in an investigation or lawsuit regarding labor law violations.
- Reporting discrimination or harassment.
3. Civil Penalties:**
If an employer is found guilty of retaliation, SB 497 directs civil penalties to be awarded to the affected employee. This not only acts as a deterrent but also compensates the employee for the harm suffered.
How SB 497 Works
For Employers:
- Proactive Measures: Employers need to document legitimate, non-retaliatory reasons for any adverse actions taken against employees, especially within the 90-day window.
- Training: Employers should train managers and HR personnel on what constitutes protected activities and how to handle related complaints without retaliation.
- Documentation: Keeping thorough records of employee performance and any disciplinary actions can help employers defend against claims of retaliation.
For Employees:
- Increased Protection: Employees can now feel more secure when reporting issues or participating in investigations. The law makes it easier for them to establish a prima facie case of retaliation.
- Right to Compensation: If retaliation is proven, employees are entitled to civil penalties, which can provide financial relief and justice for the wrongs they experienced.
Real-World Example
Consider an employee who reports unsafe working conditions to OSHA. Within two months, the employer demotes them. Under SB 497, this adverse action would trigger a rebuttable presumption of retaliation. The employer would then need to provide a legitimate reason for the demotion, unrelated to the employee’s complaint.
Expert Insight
Legal experts believe SB 497 will significantly impact workplace dynamics. “This law empowers employees to speak up about injustices without the looming threat of retaliation,” says a labor law attorney. “It also compels employers to be more diligent and fair in their disciplinary actions.”
Next, we’ll dive into the Changes in Arbitration Enforcement brought by SB 365.
Changes in Arbitration Enforcement (SB 365)
SB 365 brings significant changes to how arbitration enforcement is handled in California, starting January 1, 2024. This law alters the current automatic stay of trial court proceedings when an appeal is made against an order denying a motion to compel arbitration.
Key Changes Introduced by SB 365
1. Discretionary Stays:
Under the new law, trial court proceedings will no longer be automatically stayed pending an appeal of an order denying arbitration. Instead, courts now have the discretion to decide whether to stay the proceedings.
2. Impact on Employers:
Employers seeking to arbitrate disputes may need to litigate the underlying claims in trial court while simultaneously pursuing an appeal on the arbitration issue. This could lead to increased legal costs and procedural complexities.
3. Potential Legal Challenges:
SB 365 may face challenges on preemption grounds, as it conflicts with recent U.S. Supreme Court rulings. The Supreme Court has previously held that a district court must stay proceedings pending an interlocutory appeal on the question of arbitration.
Practical Implications
For Employers:
- Increased Litigation: Employers may find themselves involved in both trial court litigation and arbitration appeals simultaneously. This dual-track approach can be resource-intensive.
- Strategic Decisions: Employers need to carefully consider whether to seek a discretionary stay and be prepared to argue for it in court.
For Employees:
- Faster Resolutions: Employees may benefit from quicker trial court proceedings, as the automatic stay is no longer guaranteed.
- Legal Leverage: Employees might gain leverage in settlement negotiations, knowing that employers face the burden of dual proceedings.
Real-World Example
Imagine a company that denies an employee’s request for arbitration and the court supports the employee. Under the old law, the company could appeal and automatically halt the trial. With SB 365, the trial may proceed unless the court specifically orders a stay. This means the company must prepare for both trial and appeal, increasing their legal workload.
Expert Insight
Legal experts predict SB 365 will change the landscape of arbitration enforcement in California. “This law could lead to more trial court activity even as arbitration appeals are pending,” notes a labor law specialist. “Employers will need to adapt their legal strategies accordingly.”
Next, we’ll explore the Updated Wage Theft Prevention Notice required by AB 636.
Updated Wage Theft Prevention Notice (AB 636)
Starting January 1, 2024, California employers must update their Wage Theft Prevention Notices to comply with AB 636. This new law adds crucial information to the existing notice requirements under California Labor Code Section 2810.5.
What’s New with AB 636?
Emergency Declaration Information:
AB 636 requires employers to include details about any federal or state emergency or disaster declarations that may affect the employee’s health and safety. This applies if the declaration was issued within 30 days before the employee’s start date and is relevant to the county where the employee will work.
Key Elements of the Updated Notice
- Basic Employment Terms:
- Rate(s) of pay
- Payday
- Employer’s legal name and any “doing business as” names
- Employer’s address
- Workers’ compensation information
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Paid sick leave information
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Emergency or Disaster Declarations:
- Type of emergency (e.g., natural disaster, public health emergency)
- Date of the declaration
- Potential impact on health and safety
Practical Implications
For Employers:
- Stay Updated: Employers must regularly check for any new federal or state emergency declarations that could affect their employees.
- Template Updates: Employers using the Labor Commissioner’s template Wage Theft Prevention Notice should download the updated version from the Labor Commissioner’s website.
For Employees:
- Increased Transparency: Employees will receive more comprehensive information about conditions that might affect their work environment.
- Health and Safety Awareness: Knowing about recent emergency declarations can help employees take necessary precautions.
Real-World Example
Consider a scenario where a wildfire emergency is declared in Los Angeles County. If a new employee is hired within 30 days of this declaration, the employer must include this information in the Wage Theft Prevention Notice. This ensures the new hire is aware of the potential risks and can make informed decisions about their safety.
Expert Insight
Legal experts emphasize the importance of this update. “AB 636 improves transparency and ensures employees are informed about potential health and safety risks,” says a labor law attorney. “Employers need to be diligent in updating their notices to stay compliant.”
Next, we’ll dive into the Frequently Asked Questions about California New Work Law.
Frequently Asked Questions about California New Work Law
What is the new California labor law?
Starting January 1, 2024, several new labor laws will impact employers and employees in California. One of the most notable changes is the increase in the minimum wage to $16 per hour for all employers, regardless of size. This new rate aims to keep pace with the cost of living and ensure fair compensation for all workers.
Additionally, specific industries like fast food and healthcare will see further wage increases later in the year. For example, covered fast food restaurant employers will have new minimum wage requirements starting April 1, 2024, and healthcare facility employers will see changes on June 1, 2024.
What is the new sick law in California 2024?
In 2024, SB 616 will improve California’s paid sick leave benefits. Under this new law, employees are entitled to 40 hours or five days of paid sick leave per year, up from the previous 24 hours or three days. Employers can choose to either frontload these hours at the start of the year or accrue them at a rate of one hour for every 30 hours worked.
Employers who opt for accrual must carry over unused sick leave from year to year, and they can set a cap at 80 hours or 10 days. Importantly, employees can use up to 40 hours of paid sick leave each year.
What is the new work week law in California?
While California has not enacted a new work week law, there is a federal-level proposal that could significantly alter the traditional work week. Representative Mark Takano has introduced a bill advocating for a 32-hour workweek. Although this proposal is still under consideration and has not yet become law, it reflects a growing movement towards shorter work weeks to improve work-life balance and productivity.
For now, California employers and employees should stay informed about potential changes at the federal level that could impact state labor laws in the future.
Next, we’ll dive into the Conclusion.
Conclusion
As we wrap up, it’s clear that 2024 brings significant updates to California’s labor laws. These changes aim to improve worker protections and ensure fair treatment across various industries. Here’s a quick summary of the key updates:
- Minimum Wage Increase: All employers must now pay a minimum wage of $16 per hour, with specific increases for fast food and healthcare workers later in the year.
- Improved Paid Sick Leave (SB 616): Employees are now entitled to 40 hours or five days of paid sick leave annually.
- Reproductive Loss Leave (SB 848): Provides unpaid leave for employees experiencing miscarriage, failed adoption, or stillbirth.
- Noncompetition Agreement Restrictions (SB 699, AB 1076): Noncompetition agreements are now void, with new notification requirements.
- Cannabis Use Protections (AB 2188, SB 700): Protects employees from discrimination based on off-duty cannabis use.
- Workplace Violence Prevention Plan (SB 553): Employers must implement plans to prevent workplace violence.
- Anti-Retaliation Protections (SB 497): Strengthens protections against employer retaliation.
- Changes in Arbitration Enforcement (SB 365): Alters the rules around litigation stays pending arbitration appeals.
- Updated Wage Theft Prevention Notice (AB 636): Requires more detailed information about employment terms and emergency conditions.
Compliance with these new laws is crucial. Employers should review their policies, update their handbooks, and ensure they are fully compliant to avoid penalties.
For legal professionals navigating these changes, CompFox offers a valuable resource. Our AI-powered legal research tools streamline the process of understanding and applying these new laws. With a comprehensive, searchable database of WCAB decisions, CompFox makes legal research faster and more precise, saving you time and enhancing your practice.
Stay ahead of the curve with CompFox’s AI-powered legal research tools and ensure you’re fully prepared for the 2024 California labor law changes.
For more insights and updates on California labor laws, visit our California Workers’ Comp News and Insights page.
