In response to the #MeToo movement, the need for greater gender equality, and clarification to existing contractual laws, there were new laws passed by Governor Brown in November of 2018 that affect California businesses. Below is a list of some of the most prominent laws that employers should review to ensure compliance.
2019 MINIMUM WAGE INCREASE: January 1, 2019 the minimum wage in California goes up to $12.00 for employers with 26 or more employees and $11.00 for employers with 25 or less employees. This wage increase will continue yearly until 2023. The change in minimum wage also affects the salary requirement for exempt employees, who must be paid at least $45,760 (25 or less); or $49,920 (26 or more) in addition to meeting the other requirements for exempt status. Local ordinances have also called for different minimum wage increases (some that are higher than the state as a whole), so be sure to check your locale to ensure compliance.
SB 1343: EMPLOYERS WITH 5 OR MORE EMPLOYEES: this bill requires employers with 5 or more employees, including temporary or seasonal employees, to provide at least 2 hours of sexual harassment training to all supervisors and at least one hour of sexual harassment training to all nonsupervisory employees by January 1, 2020, and training every 2 years thereafter.
SB 1412: APPLICANTS FOR EMPLOYMENT; CRIMINAL HISTORY: this bill clarifies what information employers may use when screening job applicants. There are certain employers, who by law, are required to inquire the criminal backgrounds of applicants and can deny those applicants a job based upon certain categories of criminal offense and criminal conduct. This law clarifies what those limited exceptions are that employers may ask.
SB 224: INCREASES THE TYPES OF JOB TITLES THAT CAN BE PERSONALLY LIABLE FR SEXUAL HARASSMENT: the bill adds “investor, elected official, lobbyist, director, and producer” among those listed persons who may be liable for sexual harassment (on an individual basis) under Civil Code Section 51.9.
SB 1252: PAYROLL RECORDS: The existing law grants current and former employees the right to inspect or copy records pertaining to their employment, upon reasonable request. The law also requires that employers respond to these requests within 21 days. The amended law requires that employers must provide a copy upon request, rather than requiring the employee to make a copy. The amendment leaves in place the employer’s right to charge the employee “the actual cost of reproduction.”
SB 1300: UNLAWFUL EMPLOYMENT PRACTICES: DISCRIMINATION AND HARASSMENT: this law prohibits an employer from requiring an employee to execute a release of a claim or right under FEHA or from requiring an employee to sign a non-disparagement agreement or otherwise deny the employee the right to disclose information about unlawful acts in the workplace, including, but not limited to, sexual harassment, as a condition of receiving a raise or bonus, or as a condition of continued employment.
SB 826: CORPORATE BOARD OF DIRECTORS MUST HAVE A SET NUMBER OF WOMEN: in furtherance of creating gender equality, the Governor mandated that public companies with principle executive offices in the state of California must have a set number of women on the board of directors.
SB 820: SEXUAL HARASSMENT, ASSAULT AND DISCRIMINATION CONFIDENTIALITY CLAUSES: this bill prohibits settlement agreements to include a provision that prevents the disclosure of factual information relating to certain claims of sexual assault, harassment or discrimination.
AB 1309: WAIVER OF RIGHT OF PETITION OR FREE SPEECH: this bill makes any provision in a contract or settlement agreement, entered after January 1, 2019, unenforceable that waives a party’s right to testify in an administrative, legislative, or judicial proceeding relating to alleged criminal conduct or alleged sexual harassment on the part of the other party when subpoenaed, or requested by writing to by an administrative body.
