Posted on January 15th, 2019
In 2018 Governor Brown signed on some more changes to California labor laws that are sure to give us business owners more headaches.
These are new employment bills will affect us employers in the coming year of 2019.
Read on to learn more.
In September of 2018, Governor Brown signed a long list of impactful new employment bills that became laws on January 1, 2019.
The new laws will require major changes for most California businesses.
Some of the new laws will restrict nondisclosure agreements and other settlement agreements around topics on discrimination and harassment.
Sexual harassment training requirements are expanding – and these examples are only the beginning.
Failing to follow the new laws means penalties and risk of big legal problems.
Not only will the potential for lawsuits will increase as these new laws take effect we will see more greedy employee-side attorneys looking to take advantage of the situation.
Understanding the new California labor laws for 2019 and knowing how to follow the requirements is necessary to continue doing business in California.
In this article, we help you with what you can do to prepare for these new labor laws.
What You Should Know About California Labor Laws 2019
California is a great place to do business because of our booming economy, but the mountain of restrictive labor laws continue to make it challenging to feel secure in your business.
If you’re not one of those folks considering moving your business to a different state, then you will need to figure out how to operate and stay compliant with the crazy laws of this state.
With the wide array of laws considered this session, employers have been waiting to find out how serious the changes will be.
Not going to sugar coat this. They are just making it harder and harder for us employers and business owners.
But the good news is as long as you understand the laws and comply, your business can lower its risk of an employee lawsuit and continue to thrive in California.
1. Anti-Harassment Requirements
New standards on sexual harassment training may require companies to expand their training programs.
By January 1, 2020, businesses with five or more employees have to provide sexual harassment training to all workers.
Training should also take place every two years after the first training.
Under the previous law, only businesses with 50 or more employees were required to provide sexual harassment training.
Also, the training was only required for employees in a supervisory role.
This expansion of all employees will have a major effect on larger companies resulting in thousands of more people to train for some.
This, of course, will come at a cost and disruption for employers as they scramble to figure out how to get the required training in place.
The creation and implementation of new or expanded programs for sexual harassment training will be a big undertaking. Even though the training will be a big burden on companies, failure to comply will cause your more problems.
Another change in this area is with Sexual Harassment agreement settlements. Broad confidentiality provisions within sexual-harassment settlement agreements are no longer allowed.
This new law will require review of the standard settlement agreements for most employers for the removal of broad restrictions.
The law will only apply to agreements made after Jan 1, 2019.
You should note that the above applies to any discrimination agreement based on sex and not only sexual-harassment.
Additional laws relating to preventing sexual harassment have been passed as well, so a thorough review of your companies policies on the matter is necessary.
2. Lactation Accommodations
Going along with federal law, California law now states that a lactation room can’t be a bathroom. The Governor vetoed a bill with more requirements such as access to a refrigerator near the workstation, but changes still need to be made by many companies.
Failing to provide lactation accommodations will cause major problems for your company, so make changes right away.
This bill becomes law on Jan 1, 2019.
Note:
Your businesses can apply for an exemption with the Department of Industrial Relations if you can show that making a space other than a bathroom available for lactation is too large a hardship.
3. Women on Boards
Publicly-traded companies in California will now have to have a certain number of women on the board of directors. At least one female will have to be on the board by the end of 2019.
If a board of directors is made up of five people then there will be two needed and a board of six members will need three.
The completion of the board of directors requirement is expected to by the end of 2021.
So the State is now mandating by gender who should be on your company board regardless of any other circumstances.
Protecting Your Business Against Lawsuits
With all the new laws coming in 2019, it’s easy to feel overwhelmed. Being unsure about where to start working on your compliance can be a major challenge.
Trying to understand labor laws and keep up with the latest changes on your own can feel like a full-time job.
Instead of trying to keep up with everything in-house, speaking with an attorney that can help with the process will ensure you have your bases covered.
New laws come into play each year that require different training, disallow certain activities, and more.
If you fall behind on even one of the requirements, your company could get in trouble with the law.
Amend Your Current Training Program
If you have five or more employees, now is the best time to amend your sexual-harassment training program. Your training program should be professional and cover all required points on the topic.
Updating a training program but failing to place important points in the training will open up your business to employee lawsuits.
Speak with an attorney to ensure your training covers all needed points.
What Happens if an Employee Wins Their Claim?
Fear of lawsuits for lack of compliance often isn’t enough for companies to take action. Until a lawsuit comes against their company, many are unmotivated to start working on requirements.
For you to fully understand the possible backlash your company could experience see the information below.
In the case of an employee winning a lawsuit against your company, you may have to pay:
- All back wages (or triple if you fail to pay in a timely manner)
- All the employee’s attorney fees (this can be super costly)
- Interest on any amount due to employee
- And more
Losing a lawsuit over failing to comply with labor laws can cause serious harm to your business financially and socially. Thousands of cases are filed against employers.
The odds are heavily stacked on the side of the plaintiffs to win. So the best bet is to avoid a lawsuit at all costs by ensuring you are compliant and have proper legal protection.
Get Help with Legal Issues Before They Get Out of Hand
It’s easy for legal issues to spiral downward. If you don’t understand the laws or are unaware of a law you’re breaking, you could be slapped with a heavy lawsuit.
One major lawsuit can potentially cripple a small or even a large company. Don’t wonder if you have your bases covered anymore.
Contact us today so we can help you comply with the California labor laws that were written in 2018 and implemented on January 1, 2019.
