New California Laws – What Employers Need to Know

Governor Jerry Brown was quite busy during the 2013 legislative session, signing roughly 800 bills into law.  Many bills in the lengthy list of enacted legislation affect employers. One of the most highly publicized business interest defeats came when Brown signed a bill to raise California’s minimum wage from $8.00 to $10.00 per hour by 2016. Compliance Poster Company’s Research & Compliance Team has surveyed some of the most significant new laws for easy reference.  The majority of recently signed bills are effective January 1, 2014 unless otherwise noted.

Highlights include the following:

Minimum wage increase – California’s minimum wage will increase by a dollar to $9.00 per hour effective July 1, 2014, then again by another dollar to $10.00 per hour on January 1, 2016. The final version of the bill signed by Brown does not tie future minimum wage rate increases to inflation, although the original version did. Supporters of the bill believe a modest increase will assist struggling Californians who are at the bottom of the wage scale. Opponents see economic recovery still in the infancy stage with additional concern fueled by implementation of the Affordable Care Act.

• Employers should audit mandatory-to-post notices displayed in employee break rooms.
• Compliance Poster Company will be updating the Minimum Wage Notice included on the CA All-On-One™ Poster.

Minimum wage violations – This bill expands penalty and restitution provisions for minimum wage citations authorizing the California Labor Commissioner to collect liquidated damages from an employer.

Meal and rest or recovery periods – As dictated by order of the Industrial Welfare Commission (IWC) employers cannot require employees to work during any meal or rest period. This bill adds “recovery period” in addition to meal and rest periods meaning employers cannot require employees to work during any “recovery period” either. For definition purposes “recovery period” means a cool down period afforded an employee to prevent heat illness. Unfortunately, employees who are subjected to high heat temperatures and/or conditions can suffer from heat illness which can be fatal. There are consequences for noncompliance with the law. If an employer fails to provide an employee a meal, rest or recovery period he/she must pay the employee one additional hour of pay at the employee’s regular rate of compensation for each work day the meal, rest or recovery period is not provided. Supporters note employees can be induced to work through meal, rest or recovery periods because they suffer a loss of income, however, opponents suggest the law adds the threat of costly litigation.

• Employers should re-evaluate meal and rest period policies to account for the newly added “recovery” designation.

Whistleblower protections expanded – Strengthens labor law protections for workers. Existing law prohibits employers from discharging or discriminating any employee or applicant because he/she shares information with government entities. Protections are expanded to prohibit employers from making, adopting, or enforcing any rule, regulation or policy, including unfair immigration-related practices, which block employees from disclosing information to local authorities or retaliate for complaints of unpaid wages. Unfair immigration-related practices include requesting more or different documents as required by law, refusing to honor documents that appear to be genuine or threatening to contact immigration authorities.

• Employers should consider whistleblower management as an important part of the organization’s overall ethics code by adopting a whistleblower policy that informs employees of the appropriate steps to take in communicating concerns internally.

Leave of Absence: Protections for employees who are victims of domestic violence, sexual assault and stalking – Existing law provides protections to victims of domestic violence or sexual assault. It prohibits employers from discharging, discriminating or retaliating against employees. The bill is amended to extend the same protections to victims of stalking as well as provide reasonable accommodations that may include the implementation of safety measures or procedures for victims of domestic violence, sexual assault or stalking.

• Employers might consider adopting protocol to respond to requests for time off from employees who are victims of domestic violence, sexual assault and stalking.

Leave of Absence: Time off for victims of crime – This bill adds new protections for crime victims to take time off from work and conduct related business.

• Employers might consider adopting procedures to handle time off of work requests.

Paid family leave – This bill broadens the definition of family within the Paid Family Leave program to include time off to care for a seriously ill grandparent, grandchild, sibling, or parent-in-law. Expansion of the law ensures California workers can care for close family members without jeopardizing their financial health.  It is effective July 1, 2014.

Discrimination protections: Military and veteran status – The California Fair Employment and Housing Act (FEHA) provides protections to individuals based on specified categories. This bill adds “military and veteran status” to the list of categories protected from employment discrimination.

• Employers should review and revise employment policies, handbooks and labor law posters as well as hiring and selection criteria.
• Compliance Poster Company’s California All-On-One™ poster will be updated to reflect changes to the FEHA Discrimination and Harassment posting.

Sexual harassment – This bill clarifies that sexually harassing conduct need not be motivated by sexual desire.

• California companies with 50 or more employees are required to provide supervisors with two hours of sexual harassment prevention training every two years. This training should include elements of the amended law to emphasize unacceptable workplace behavior especially as it relates to sexual harassment whether or not it is motivated by sexual intent or desire.

As we approach the end of the year, several mandatory-to-post labor law notices will be updated based on the aforementioned law changes. Compliance Poster Company’s Research & Compliance Team will report on developments and update affected state compliance products.