Posted on March 5th, 2020
Several of 2020’s new California laws are changing the workplace as we know it. Learn about this year’s new California laws at work!
There are almost 19 million employed workers in the state of California.
California is facing many employment law changes in the new decade, many of which are unfair to business owners.
Are you a business owner in California? It’s important you comply with the most recent California labor laws.
Navigating these strict laws can be difficult. Here are the new California laws regarding labor and how you can be compliant.
More Protections for Independent Contractors
We are living in the era of the gig economy. Independent contractors make up almost 7% of workers in the United States.
Freelance work is beneficial for both contractors and businesses.
Contractors can make their own schedules and have more flexibility in selecting their gigs and jobs. Businesses can save money on benefits and taxes (freelancers have to pay the full cost of Medicare and Social Security).
Previous freelance laws were flexible. All employers had to do was ask the contractor to sign a contract, agreeing to pay their own taxes and consent that there will be no benefits provided. However, this is changing in the new decade.
In 2020, California is implementing bill A.B.5. In order to classify your employees as independent contractors, they need to fit all aspects of the ABC test. The ABC test consists of three categories:
- They are free from control and direction from the business
- They perform work outside of the business
- They are customarily engaged in an independently established business
In other words, your freelancers need to own their own entity, have free control over their work, not provide full-time services for your business (unless they do so by choice) and have the freedom to hold additional clients.
Keep in mind, the bill is expected to be updated. The updates will provide more autonomy for contractors, specifically in different industries, such as the music industry.
Minimum Wage Increases
Ever since 1831, minimum wage strikes have been occurring.
In 2020, the minimum wage will increase in California.
You must pay your employees $13/h if you have more than 26 employees and $12/h if you have less than 26 employees. It’s also expected the minimum wage will increase to $15/h by 2020.
This also depends on the jurisdiction your business is based in.
Some jurisdictions require higher minimums; you must pay $14.25/h ($15/h for large employers) if your business is in Los Angeles, Malibu, Santa Monica, and Pasadena.
Sexual Harassment in the #MeToo Era
The #MeToo movement inspired many employees to take action — workplace and sexual harassment lawsuits doubled as a result of #MeToo.
A.B. 9 is making sexual harassment law filings more lenient for employees.
Previously, employees had a year to file harassment, discrimination, and retaliation complaints. Now, an employee can file these claims within three years of the situation.
A.B. 749 is another response to the #MeToo movement. If an employee achieved financial settlement through a harassment lawsuit, they will be forced to quit their job. A.B. 749 prohibits that, forcing employers to rehire the employee.
Sexual harassment training isn’t new —SB 1343 was passed in 2018. This law states supervisors and employees must undergo sexual harassment training.
Keep in mind, the deadline was January 1, 2020. You also must undergo sexual harassment training once every two years.
End to Forced Arbitration
Previously, forced arbitration protected employers. This act binds its lawsuit to their employment.
The bill A.B. 51 is ending forced arbitration. Because of A.B. 51, an employer can’t fire or threaten an employee if they file a lawsuit.
Employers must update arbitration policies based on the new law.
If a lawsuit does emerge, there are also strict penalties if your business refuses to pay any fees.
Corporate and Executive Diversity
To bring an end to discrimination, a diverse executive board is required for all California-based businesses.
All publicly-traded companies must have at least one woman stand at their board of directors. By 2021, if your board has five members, two must be women. If your board has six members, three must be women.
Noncompliance results in a penalty of $100,000.
Child-Care Workers Covered by Federal Labor Law
Home-based child-care workers and businesses in California are now covered by federal labor laws, thanks to A.B. 378.
If you own a business in the child-care industry, you must increase the quality of jobs, offer better pay and initiatives, improve working conditions, and let employees bargain over wages.
Lactation Stations
8 in 10 mothers breastfeed. In 2018, AB 1976 was passed to ensure mothers could have a place to breastfeed in the office. In 2020, SB 142 passes. This law expands on some of the policies from AB 1976.
Employers must create a policy about lactation and lactation accommodation.
There are stricter standards for your temporary lactation space. All lactation spaces must be private and can’t be placed in a bathroom or locker room.
There should be plenty of space for personal items (breast pump, etc.) as well as a place to sit. Every lactation station should have electricity. If you can, create the station close to the employees’ work area.
Nursing mothers must receive a break to lactate. Failure to allow this results in a $100 fine. However, you qualify for a hardship exemption if you have an office with fewer than 50 employees.
You can’t terminate, discharge, or discriminate against an employee because of lactation.
Have a Powerful Lawyer Who Understands the New California Laws
The workplace is changing in the state of California, thanks to the new California laws regarding labor. These laws will only become stricter in the next few years and your business is at risk for lawsuits and potentially shutting down.
Hiring a lawyer will ensure your business is protected if a lawsuit arises.
If you’re looking for a business lawyer, contact us today. We understand the hardship of owning a business in California and will work diligently to ensure you win your lawsuit.
