Effective Date: January 1, 2024
California, known for its progressive stance on labor rights, has recently implemented several new employment laws that aim to protect workers and promote fairness in the workplace. These laws cover a wide range of topics, including noncompete agreements, notice requirements, discrimination, workplace safety, and paid leave. With an effective date of January 1, 2024, these laws bring significant changes to the employment landscape in the state. Let’s delve into the details of these new laws and their implications for both employers and employees.
1: Voiding Noncompete Agreements
California AB 1076 and SB 699 have effectively voided noncompete agreements in the state. AB 1076 specifies that noncompete agreements in an employment context that do not satisfy exceptions to the prohibition on non-competes are now void. Employers are required to notify current and former employees in writing by February 14, 2024, that any noncompete agreements that applied to them are no longer valid. SB 699 goes a step further, prohibiting employers from entering into or attempting to enforce noncompete agreements, regardless of where and when the contract was signed. These laws aim to promote employee mobility and prevent unfair restrictions on job opportunities.
2: Notice Requirements and Electronic Statements
AB 1355 and AB 636 introduce new notice requirements for employers. AB 1355 allows employers to email employees’ statements of earned income tax credits and unemployment benefits with written consent. It also prohibits employers from taking adverse action against employees who opt out of receiving electronic statements. On the other hand, AB 636 mandates that employers include information regarding emergency or disaster declarations in the required notice to new employees. Additionally, for employees admitted to work under the federal H-2A agricultural visa, employers must provide information about agricultural employee rights under California law in English and Spanish, if requested. These laws aim to ensure transparency and provide employees with essential information.
3: Unemployment Compensation and Cannabis Use
AB 1389 extends the response time for a levy for delinquent payment of employer contributions for Unemployment Insurance and Employment Training Tax from five days to no longer than 14 business days. This change provides employers with additional time to address any outstanding payments. Meanwhile, AB 2188 and SB 700 address cannabis use in the workplace. AB 2188 prohibits discrimination in hiring, termination, or terms and conditions of employment based on cannabis use during non-work hours or non-psychoactive cannabis detection in employer-required drug screenings. SB 700 makes it unlawful for employers to request information from job applicants regarding their prior cannabis use, unless required by state or federal law. These laws reflect the changing attitudes towards cannabis and seek to protect employees from unfair treatment.
4: Enforcement of Labor Code and Grocery Store Rights
AB 594 grants public prosecutors the authority to bring civil or criminal actions for Labor Code violations. This empowers prosecutors to hold employers accountable for violations and ensures that workers’ rights are protected. AB 647 expands the rights of employees in the event of a change of control of a grocery establishment and broadens the definition of a grocery establishment to include grocery distribution centers. These measures aim to safeguard the rights of grocery store employees during times of transition and change.
5: Sexual Harassment, Fast Food Franchises, and Arbitration Proceedings
AB 933 establishes that complaints and related communications regarding sexual assault, harassment, or discrimination are privileged and protected from civil actions such as defamation suits. This law encourages victims to come forward without fear of legal repercussions. AB 1228 creates a Fast Food Council that will make recommendations for new standards specific to the fast food industry. Effective April 1, 2024, it also implements a new minimum wage rate of $20 per hour for employees at a “National Fast Food Chain.” SB 365 clarifies that an appeal from an order dismissing or denying an employer’s petition to compel arbitration does not automatically stay trial court proceedings. This change streamlines the arbitration process and provides clarity for employers and employees.
6: Wage and Hour, Discrimination and Retaliation, Workplace Health and Safety
SB 476 ensures that time employees spend completing food handler training and certification is compensable as “hours worked.” It also requires employers to reimburse employees for necessary expenditures or losses incurred in obtaining a food handler card. SB 497 creates a rebuttable presumption against an employer in a claim by an employee or applicant for discrimination, retaliation, or adverse action within 90 days of their protected conduct. This law also introduces a civil penalty of up to $10,000 for each violation. SB 553 mandates that employers implement a workplace violence prevention plan and provide training to employees. Effective January 1, 2025, it allows collective bargaining representatives to seek a restraining order against an employee who poses a credible threat of violence. These laws address various aspects of employee rights, ensuring fair treatment and promoting workplace safety.
7: Paid Sick Leave and Right to Recall in the Hospitality Industry
SB 616 increases the number of job-protected paid leave hours employees can receive and use each year. It also extends some protections to employees covered by a collective bargaining agreement and creates partial preemption of local sick and safe time standards. SB 723 extends until December 31, 2025, the expiration date for the law affording a right to recall for employees in the hospitality industry who were laid off due to the COVID-19 pandemic. It also establishes a presumption that separations due to lack of business, reduction in force, or other economic reasons are due to COVID-19. These laws prioritize employee well-being and provide necessary support during challenging times.
Conclusion:
California’s new employment laws, effective January 1, 2024, bring significant changes to the rights and protections of workers across various industries. From voiding noncompete agreements to enhancing notice requirements, addressing discrimination, and promoting workplace safety, these laws aim to create a fair and equitable working environment. Employers must familiarize themselves with these new regulations to ensure compliance, while employees can benefit from the increased protections and rights afforded by these laws. As California continues to lead the way in labor rights, these new laws set a precedent for other states to follow in their pursuit of a more just and inclusive workforce.
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