Posted on January 2nd, 2018
How Does the New 2018 California Employment Law Impact You
Change is coming. The new California employment laws have arrived for 2018, but is your business ready for the change.
Keep reading to learn the impact of these new rules.
As an employer in California, you must be aware that the new 2018 California Employment Law has come out. After all every single year we have to keep ourselves updated because they modify and add to the laws so frequently.
The laws for 2018 include new changes to at-will employment, parental leave, the minimum wage and how sexual harassment is talked about in the workplace.
According to statistics, 2010 saw the number of discrimination complaints jump by over 20,000 individual cases.
Imagine how many more could pop up in 2018 now that these new laws have been introduced. You may find yourself with employees pushing litigation onto you left, right and center.
Don’t be worried though.
We’re going to break down each part of these new laws so you can discover how it will impact your business and how to avoid getting into trouble.
Ban-the-Box Legislation
In the past, it was acceptable to utilize at-will employment. This means you could dismiss an employee for any reason you deemed acceptable.
For example, if you discovered your employee has a criminal history, you could rightfully terminate their employment without needing to establish just cause. However, the new California Employment Law may make this unacceptable in some cases.
The ban-the-box legislation requires businesses who have more than five employees to not ask for a potential employee’s criminal history during job applications.
This has plenty of implications for you and your business. If you accidentally make an inquiry on criminal history, you could risk receiving a lawsuit from the applier for discrimination reasons.
So, how do you deal with this requirement?
To resolve this, ensure all job applications you provide to potential employees do not include questions on criminal history.
You will need to review your current job application forms and postings and remove any questions related to criminal history.
Paid Leave Requirements
If you are a small business who employs expectant parents, this is the part of the new California Employment Law that you need to focus on.
In the past, The California Parental Rights Act focused on businesses with 50 or more employees. However, new laws in California now cover businesses with as little as 20 workers.
The New Parent Leave Act allows the expectant employee to have 12 weeks of job-protected leave, so they can bond with their newborn, fostered or adopted child.
It is unpaid. However, the employee can use wages from any leftover vacation, paid sick time or any other paid leave off.
Prevailing Wages in California
A major factor in the new California Employment Law is the effects it will have on minimum wage.
For employers with 26 employees or more, the current prevailing wage sits at $10.50 an hour. At the start of 2018, this will change to $11 an hour. It will continue to rise as the years go on until it sits at $15 in 2022.
It’s also vital to note that this law differs from city to city. For example, it is expected that employers in San Francisco will raise their minimum wage to $15 an hour starting in 2018. This rise is even higher in Berkeley, where the minimum wage will reach $15.60 in July 2018.
What does this mean for you as an employer?
You need to ensure your minimum wage is raised to meet the standards set by the new law. Otherwise, you could face legal action from employees or their union.
If you find you haven’t been paying the minimum wage rate applicable to your employees, it’s advised that you speak to the employment counsel. If you find yourself in a sticky situation where you need legal advice, we offer only employer focused legal services and we can assist you with a FREE Consultation!
Salary Disclosure
For many years, it was perfectly acceptable for employers to ask employees about their previous salary history.
But that is not going to be the case moving forward.
The new employment laws in California have redacted this completely. The main reason for this is to close the growing gap in employee wages by avoiding making assumptions about how much an employee should earn based on their previous experience.
So, what does this mean for you?
As an employer, this means that you must get rid of any documents or application forms that require potential employees to state their previous salary.
Worker’s Compensation Insurance
As this involves the health and well-being of your employees, this is another aspect of the new California Employment Law you must be aware of.
According to the worker’s compensation experts at WCIRB California, one of the main changes to the Eligibility Requirements for California Workers’ Compensation Insurance was the eligibility threshold.
This will be raised from $10,100 to $10,300 in alignment with wage inflation.
Immigrant Worker Protection Act
If you’ve employed immigrant workers without the proper paperwork, you need to be ready for this.
The Immigrant Worker Protection Act allows immigrant enforcement agents to enter non-public places in a work area without a warrant and access any employment records with a court order.
If you are found to be in violation of the act in any way, the consequences are severe.
You can receive a $5,000 fine for a single breach and then a $10,000 fine for any subsequent violation.
So, how do you protect yourself from such drastic legal action?
Make sure paperwork on all of your employees is up to scratch so you don’t get caught out!
Expanded Harassment Training
Another part of the new laws you should consider is the focus on anti-harassment training.
If you have 50 or more employees, you need to ensure that you provide sexual harassment training to any supervisors once every two years. This must include transgender rights, sexual orientation and gender identity and expression.
If you’re unaware of what this entails, you need to do some research so you are ready to provide this anti-harassment training.
What will happen if you do not perform this training?
Failure to do so could lead to employee complaints and potential problems on your end. This may result in further legal actions being taken.
Be Prepared for the New 2018 California Employment Law
With so many new laws and amendments to wrap your head around, you may be concerned that you’ll slip up somewhere. If you find yourself with a lawsuit from an employee or worker’s union, you can get help from an employer focused law expert.
For more information or to make a booking that will take you less than 60 seconds, click here!
