Each year the California legislature passes new and amended employment laws that impact businesses that operate in California. The COVID-19 pandemic brought about significant legal changes for California employers in 2020 and those changes will continue into 2021. From increased minimum wage rates, both statewide and locally, to COVID-19 notice obligations, to expanded leave of absence rights, California employers need to be aware of the new laws that will affect their workforce. To help you stay on top of these changes Guardian HR is providing this California Legislative Update Cheat Sheet.
DISCLAIMER: THIS DOCUMENT IS MEANT AS AN OVERVIEW GUIDE FOR EMPLOYERS AND HR PROFESSIONALS REGARDING NEW CALIFORNIA EMPLOYMENT LAWS FOR 2021. IT IS NOT INTENDED AS LEGAL ADVICE AND WE RECOMMEND THAT ANYONE NEEDING TO COMPLY WITH THESE LAWS CONSULT WITH AN ATTORNEY. THIS DOCUMENT IS NOT INTENDED TO BE A RESOURCE TO RELY UPON FOR COMPLIANCE PURPOSES AS IT DOES NOT COVER THE ENTIRETY OF PROVISIONS APPLICABLE TO EACH NEW PIECE OF LEGISLATION.
AB 685 – When an employee(s) contracts the virus, ER must take steps including notifying affected EEs within 1 business day of becoming aware of potential exposure. Actions/Notice include:
- Determine who was at the worksite (including third parties) during the infectious period
- “Infectious period” = at minimum, the 48 hours before the individual developed symptoms.
- “worksite” = limited to the same building or location where the individual was physically present
- Written notice to potentially exposed employees
- The notice must be sent out within 1 business day of ER becoming aware of potential exposure. (maintain notice for 3 years)
AB 685 – C-19 breakout = 3 > EE who are not from the same household, at the same worksite, test positive within a 14-day period.
- Time frame to notify LHD = 48 hours
SB 1159 – Any EE may file a WC claim for COVID-19 with causation to be determined in due course. However, SB 1159 creates a new presumption of compensability for two classes of EEs:
- First responders and healthcare workers (LC §3212.87) who test + for COVID-19 w/in 14 days of a workday occurring at a worksite that is not their home.
- EEs (a) whose ERs have five > EEs; (b) who test + w/in 14 days of a workday occurring at a worksite that is not their home (unless a caregiver); and (c) who test + during an “outbreak” at their workplace. Outbreak = within 14 days at a specific place of employment:
- ERs with < 100 EEs if 4 EEs test positive.
- ERS with > 100 EEs if 4% of EEs who reported to the worksite test +; or
- The place of employment is ordered closed by an LHD, the State Department of Health, the Cal-OSHA, or a school superintendent due to the risk of infection of COVID-19.
- Notice under SB 1159 – ERs with 5 > EEs must notify their claims administrators w/in 3 business days when they know, or reasonably should know, that an EE has tested positive.
AB 2257 – modifies AB 5 (employee vs. independent contractor) including:
- (1) modifying and clarifying the business-to-business, referral agency, and professional services exemptions set forth in AB 5; and
- (2) exempting additional occupations and business relationships.
- *B2B exemption now applies to a “public agency or quasi-public corporation” that has retained an independent contractor.
- “Single-Engagement” Business-To-Business Exemption
- Professional Services: this existing exemption has been expanded
Prop 22 – App-based delivery drivers include those who:
- Provide delivery services on an on-demand basis through a business’s online-enabled application or platform or
- Use a personal vehicle
SB 1383 – CFRA EXPANDED TO SMALLER EMPLOYERS
- ERs with 5> must comply with the CFRA.
- Eliminates the employee count within a 75-mile radius.
- Law does not indicate whether EE counts are solely for those in CA or also include out-of-state workers.
AB 2143 – amends LC §1002.5 re: no-hire provisions in settlement agreements.
- To meet the sexual harassment/assault exception the ER must have made “and documented” a good faith determination BEFORE the EE filed the claim, that the EE engaged in sexual harassment or sexual assault.
AB 979 – Board of Directors Diversity requirement:
- Applies to publicly held domestic or foreign corporations with principal executive offices in CA
- Individuals from these groups: Black, African American, Hispanic, Latino, Asian, Pacific Islander, Native American, Native Hawaiian, Alaska Native, Gay, Lesbian, and Bisexual or transgender.
- 12-31-21 at least one director from an underrepresented community.
- 12-31-22 (i) corps with 5-8 directors must have at least two; and (ii) nine> directors must have at least 3
- Failure to comply = fines up to $100,000.00 for 1st violation and it goes up from there.
AB 1947 – Extends time to file DLSE complaints & attorneys’ fees for whistleblowers.
AB 3075 – Expanded successor liability for wage and hour judgments.
- Defines who constitutes this type of successor business.
- As of 1-1-22, certain businesses must now certify in the Statement of Info, whether any officer, director, or member, or manager of an LLC has an outstanding final judgment in any court or issued by DLSE.
SB 973 – New pay data reporting. ERs with 100 > EEs who are required to file EEO-1, must collect and submit compensation data to the DFEH on the following:
- *Same as EE0-1, and
- Number of EEs by race, ethnicity, and gender whose annual earnings fall w/in each of the pay bands used by the U.S. Bureau of Labor Statistics in the Occupational Employment Statistics survey, which range from a low of < $19,239 to a high of >$208,000 based on W-2 wages.
- The report must include a total number of hours worked by each EE in each pay band during the reporting year.
- ERs with multiple establishments must submit a consolidated report for all EEs and a separate report for each establishment.
If you are a client of Guardian HR, please reach out to your Guardian HR Manager for assistance with complying with these laws. If you wish to become a client of Guardian HR and get access to all our resources including your own dedicated consultant and our team of employment attorneys, please contact us at sales@guardian-hr.com or call us at 888-373-4724.
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