New California AB and SB Bills Bring Significant Changes to Employment Practices
California, known for its progressive stance on labor rights, has recently enacted a series of new laws that will have a significant impact on employers and employees alike. These laws cover a wide range of topics, from noncompete agreements and notice requirements to cannabis use and workplace health and safety. With an effective date of January 1, 2024, these regulations are set to reshape the employment landscape in the state. In this article, we will delve into the details of each law, exploring their implications and potential challenges for employers.
1: Voiding Noncompete Agreements – AB 1076 and SB 699
California AB 1076 and SB 699 mark a significant shift in the state’s stance on noncompete agreements. AB 1076 voids noncompete agreements that do not meet specific exceptions, while SB 699 prohibits employers from entering into or enforcing noncompete agreements altogether. These laws aim to protect employee mobility and prevent unfair restrictions on job opportunities. Employers will need to review and revise their employment contracts to ensure compliance with these new regulations.
2: Notice Requirements – AB 1355 and AB 636
AB 1355 introduces changes to the way employers provide statements of earned income tax credits and unemployment benefits to employees. With written consent, employers can now send these statements via email. Additionally, AB 636 mandates that employers include information about emergency or disaster declarations in the required notice to new employees. For employees admitted under the H-2A agricultural visa, employers must provide information about agricultural employee rights in both English and Spanish upon request.
3: Unemployment Compensation – AB 1389
AB 1389 extends the response time for a levy on delinquent payment of employer contributions for Unemployment Insurance and Employment Training Tax. This change allows employers a longer period, up to 14 business days, to address payment issues. The extension aims to provide employers with more time to resolve any disputes or challenges related to unemployment compensation.
4: Cannabis Use – AB 2188 and SB 700
AB 2188 and SB 700 address the issue of cannabis use in the workplace. AB 2188 prohibits discrimination based on cannabis use during non-work hours, except for employees in the building and construction trades. SB 700 makes it unlawful for employers to inquire about an applicant’s prior cannabis use, unless required by state or federal law. These laws reflect the changing landscape of cannabis legalization and aim to protect employees from discrimination based on their lawful use of cannabis.
5: Enforcement of Labor Code – AB 594
AB 594 grants public prosecutors the authority to bring civil or criminal actions for Labor Code violations. It also renders any agreement between an employer and worker that limits representative actions or mandates arbitration unenforceable in actions by the Labor Commissioner or public prosecutor. This law strengthens the ability of public prosecutors to hold employers accountable for labor law violations.
6: Grocery Stores & Business Restructuring – AB 647
AB 647 expands the rights of employees during a change of control of a grocery establishment and broadens the definition of a grocery establishment to include grocery distribution centers. This law aims to protect the rights of employees during ownership transitions and ensures that they are not unfairly impacted by restructuring or acquisitions.
7: Sexual Harassment and Discrimination – AB 933
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 and report incidents of harassment or discrimination without fear of legal repercussions.
8: Fast Food Franchises – AB 1228
AB 1228 creates a Fast Food Council that will make recommendations for new standards specific to the fast food industry. Additionally, it implements a new minimum wage rate of $20 per hour for employees at a “National Fast Food Chain.” This law aims to address wage disparities and improve working conditions in the fast food sector.
9: Arbitration Proceedings and Procedure – SB 365
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 ensures that legal proceedings can move forward without unnecessary delays.
10: Wage and Hour – SB 476
SB 476 establishes that time spent by employees completing food handler training and certification is compensable “hours worked” for which employees must be paid. It also requires employers to reimburse employees for necessary expenditures or losses incurred while obtaining a food handler card. This law ensures that employees are fairly compensated for their time and expenses related to food handler training.
11: Discrimination and Retaliation – SB 497
SB 497 creates a rebuttable presumption against employers in claims of discrimination, retaliation, or adverse action within 90 days of protected conduct. This law also introduces a civil penalty of up to $10,000 for each violation. SB 497 strengthens protections for employees who experience discrimination or retaliation in the workplace.
12: Workplace Health and Safety – SB 553
SB 553 requires employers to implement a workplace violence prevention plan and provide training to employees. Additionally, it allows a collective bargaining representative to seek a restraining order against an employee who poses a credible threat of violence. This law prioritizes the safety and well-being of employees in the workplace.
13: Paid Sick Leave – SB 616
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. This law enhances employee rights and ensures that workers have access to necessary time off for illness or caregiving responsibilities.
14: Layoffs and Right to Recall – SB 723
SB 723 extends the right to recall for employees in the hospitality industry who were laid off due to the COVID-19 pandemic until December 31, 2025. It also creates a presumption that separations due to lack of business or other economic reasons are a result of the pandemic. This law provides additional protections for workers in the hard-hit hospitality industry.
15: Leaves of Absence – SB 848
SB 848 establishes a leave of absence for reproductive loss events, including failed adoptions, surrogacy, miscarriages, stillbirths, or unsuccessful assisted reproduction. This law recognizes the emotional and physical toll of reproductive loss and provides employees with the necessary time off to heal and recover.
Conclusion:
California’s new employment laws bring significant changes to various aspects of the employer-employee relationship. From voiding noncompete agreements to addressing workplace health and safety, these regulations aim to protect employee rights and create a fair and inclusive working environment. Employers must familiarize themselves with these laws and take proactive steps to ensure compliance. As California continues to lead the way in progressive labor policies, these new regulations serve as a reminder of the state’s commitment to protecting workers’ rights.
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