In The Spirit Of The New California Employment Laws: What You Should Know
Governor Gavin Newsom recently signed into law several employment-related bills that were passed by the state legislature in 2021. California employers now face an avalanche of new obligations stemming from these laws that will soon take effect—or have already done so.
Tellingly, the ongoing pandemic continues to have a significant impact on the legislative cycle this year, as pandemic-related policy issues dominated the legislative agenda
Outlined below are the most significant new laws affecting employers:
1. Non-Disclosure Agreements and Confidential Settlement Agreements
SB 331 now famed as the “Silenced No More Act” voids provisions in any agreement entered on or after 1st January 2022, limiting an employee from divulging factual information regarding any kind of harassment, discrimination, or retaliation. The law also prohibits non-disparagement agreements or similar agreements demanded as a condition of employment or continued employment that negates an employee’s right to divulge information about unlawful acts in the workplace, unless the agreement includes a characteristic exception establishing the employee’s right to discuss workplace conduct the employee has reason to believe is unlawful.
2. Arbitration
Under SB 762 , payment of arbitration fees is now mandatory on receipt of invoice with the exception being where the arbitration agreement clearly states a payment schedule.
3. Record Storing
Currently, employers are mandated to keep personnel records for two years. This requirement has been extended to four years by SB 807. Where the matter has become a subject of litigation, such records must be kept until the applicable statute of limitations has concluded, or until the end of the suit.
4. Leave
AB 1033 extends the definition of “parent” under the California Family Rights Act to include parents-in-law.
5. Wage Theft
AB 1003 added section 487m to the California Penal Code. Now, the definition of grand theft has been expanded to include intentional theft of wages, including gratuities, above $950 from any one employee, or $2,350 from a group of employees.
6. Covid-19
AB 654 amends current provisions requiring employers to notify employees who may have been in close contact at work with a person infected with COVID-19. This law went into effect on October 5, 2021. The new law mandates employers to notify employees who were on the premises at the same worksite as the qualifying individual within the infectious period (not employees who may have been exposed) of the exposure and also about any benefits to which they might be entitled, including the cleaning and disinfection plan that the employer has implemented under Cal/OSHA standards.
7. The Right of Recall
Being an emergency statute that took effect on April 16, 2021, SB 93 put several RECALL responsibilities on employers. This law applies to hotels, private clubs, event centers, airport hospitality operations, and service providers, alongside janitorial, building maintenance, and security services provided to office, retail, and other commercial buildings.
8. Discrimination and Harassment
AB 1407 mandates hospitals and nursing education programs to administer implied bias training as part of the training plan for new nurses.
9. Wage and Hour
AB 286 mandates third-party food service delivery companies to supply a detailed cost analysis of each transaction to both customers and restaurants. The law also prohibits food delivery companies from charging higher prices for food than what the restaurant charges its customers.
CONCLUSION
2021 has been an active year for the California legislature, particularly in the area of employment law. With this new set of laws, California continues its reputation of being one of the most challenging states for employers to operate in.
If you need help navigating through California including updating your handbooks, contact us at clarusHR!
December 13, 2021