The first category mirrors the federal EEO-1 and requires employers to report the number of employees by race, ethnicity, and gender in 10 federally identified job categories: executive or senior-level officials and managers; first or mid-level officials and managers; professionals; technicians; sales workers; administrative support workers; craft workers; operatives; laborers and helpers; and service workers. Employers with California operations will want to … The Department of Labor Standards Enforcement ... employers should make sure that they are in compliance with state and local minimum wage laws. Buy California Employment Laws, 2021 ed. If you require legal or professional advice, kindly contact an attorney or other suitable professional advisor. © 2010-2020 Allen Matkins Leck Gamble Mallory & Natsis LLP, National Law Review, Volume X, Number 345, Public Services, Infrastructure, Transportation. The requirements for this exemption have also been modified to allow service providers to negotiate their rates with the client. Expansion of Family and Medical Leave Law: We covered this topic in more detail in this blog. California voters were definitive in their support of Proposition 22, with nearly 10 million voters approving the Proposition. This information is intended to help the claims administrator determine whether there is an “outbreak” at the worksite such that the presumption may be applicable. Exempt salaried employees may not be eligible for overtime; however, employers have to pay salaried exempt employees at twice the minimum hourly wage based on a 40-hour workweek. California has enacted a number of new laws. Larger employers previously covered by the CFRA and smaller employers complying with CFRA for the first time should take note of the change to the definition of “family members,” which now includes a child, parent, grandparent, sibling, spouse, or domestic partner. Upon the employer's mediation request, the employee is prohibited from filing a civil claim in court until after mediation is completed. Finally, this bill amends Labor Code Section 1205, which currently states that local jurisdictions are not precluded from enforcing their own local labor laws that are more stringent than state law. What California Employers Should Do Now ... with state and local minimum wage laws. Jeffrey G. Briggs is an associate in our San Francisco office and a member of our Labor & Employment group. Considering the magnitude of state and federal agencies in existence today, it's no surprise that labor laws are constantly changing. Finally, AB 2143 clarifies that, in order to qualify for the "good faith determination" exception, an employer's determination must have been made and documented before the aggrieved person filed the claim or complaint. By Anthony Zaller on September 18, 2020. However, to be eligible for CFRA leave, a California employee must still 1) have completed at least 12 months of employment with the employer, and 2) have worked for the employer for at least 1,250 hours in the past 12 months. The executive order applied to dates of injury from March 19, 2020, through July 5, 2020. Professional Services Exemption: AB 2257 expands the professional services exemption set forth under AB 5 for still photographers, photojournalists, freelance writers, editors, and newspaper cartoonists who had more than 35 submissions in a year. Professionally laminated State, Federal & OSHA notices in one high quality 25.5" X 39.5" poster; Includes all 16 required posters in CA, Federal & OSHA posters into one poster California Minimum Wage: $14.00 - Effective 01/2021 Discrimination Notice A law that went into effect in 2019 already requires all publicly owned companies based in California to have at least one woman on the board. AB 2143 – Loosened Restrictions on "No Re-Hire" Provisions in Employment Settlement Agreements. Jan. 1, 2025*. Throughout 2020, the California courts were fairly quiet. Starting January 1, 2021, AB 1947 extends this time period for filing a complaint to one year. Direct Listing on the New York Stock Exchange: “Undertaking” the... During Biden Administration, SEC will require Climate Change Risk and... Consolidated Appropriations Act, 2021: Unemployment Relief, SPAC Disclosures – SEC Focuses in on Conflicts of Interests. These "no-rehire" provisions prevent, prohibit or otherwise restrict employees from obtaining future employment with the employer or a related entity. Stephanie has successfully represented high-profile clients and examined key fact witnesses at trial; defended depositions of fact and expert witnesses; briefed and prepared arguments in connection with a variety of motions and trial briefs; and prepared fact and expert witnesses for trial. AB 1867 also applied the benefits provided under the Families First Coronavirus Response Act (FFCRA) to any employer that employs healthcare providers or emergency responders. Such complaints can lead to an investigative hearing and remedial action (e.g., rehiring or reinstatement, reimbursement of lost wages, penalties). If the DFEH does not receive the required report from an employer, the Department may seek an order requiring the employer to comply with these requirements and shall be entitled to recover the costs associated with seeking the order. 5th 903 (Dynamex). Throughout 2020, the California courts were fairly quiet. Employers must provide written notice to all employees who "may have been exposed" at a worksite. US M&A Outlook for 2021 Appears Positive, Driven in Part by SPACs. If the law expires while an employee is taking COVID-19 supplemental paid sick leave, the employee is entitled to continue to take the full amount of COVID-19 supplemental paid sick leave that he or she would have been otherwise entitled to. Posted in California Legislation Update. For full text details and authorship regarding individuals laws and the effective dates, just click on the bill number for full text access via the California Legislature. Additionally, musicians and vocalists who do not receive royalties are to be treated as employees for purposes of receiving minimum wages and overtime. The notice can be provided in any manner that is likely to be received (e.g. 9 / 50. Dwight manages the firm's Labor and Employment Law Practice Group and is experienced in both litigation and transactional matters. Some positions that are generally exempt include: recording artists; songwriters, lyricists, composers, and proofers; managers of recording artists; record producers and directors; musical engineers, mixers, and musicians engaged in the creation of sound recordings; vocalists; and independent radio promoters. Five Employment Law Changes Employers Can Expect Under a Biden Administration AB 685 Requires Employers To Provide Notice to Employees and Local Health Departments About COVID-19 In The Workplace personal service, email, or text message) and that is typically used for communicating with the employee. Unless otherwise noted, attorneys are not certified by the Texas Board of Legal Specialization, nor can NLR attest to the accuracy of any notation of Legal Specialization or other Professional Credentials. Significantly, the Cal/OSHA regulations require that employers offer free COVID-19 testing during work hours. She focuses her practice on complex commercial disputes, business litigation matters, and labor & employment litigation. Indeed, cases have been brought by California truckers, freelance journalists, and gig economy businesses challenging the application of AB 5 to their industries and the constitutionality of the law itself. US Commerce Names “Military End Users”, Limits Access to Certain US... International Trade Practice at Squire Patton Boggs. AB 3075 also adds new obligations for a company when submitting its statement of information with the California Secretary of State, to state whether "any member or any manager has an outstanding final judgment issued by the Division of Labor Standards Enforcement or a court of law, for which no appeal therefrom is pending, for the violation of any wage order or provision of the Labor Code. In September 2019, the California Legislature passed AB 5 which overhauled California law with respect to independent contractor relationships. Under current law, workers alleging they were discriminated or retaliated against in violation of any Labor Commissioner-enforced law have six months to file a complaint with the Labor Commissioner, but beginning January 1, 2021, AB 1947 extends that time to one year. FTC Approves Amendments to EnergyGuide Labels, Draws Strong... Congress Extends FFCRA Tax Credit into 2021, Declines to Extend FFCRA... How to File a Baby Powder Ovarian Cancer Lawsuit. Some of the significant exemptions that AB 2257 creates or amends are set forth below. However, there are a few significant employment law cases scheduled to appear before the California Supreme Court in 2021. Below is a summary of some of these laws that employers should make themselves aware of heading into the new year. AB 1867 – Supplemental COVID-19 Paid Sick Leave Expires Dec. 31, 2020 / Small Employer Family Leave Mediation Pilot Program. September 30, 2020 is the deadline for Governor Newsom to sign into law all bills passed by the Legislature this year. CFRA no longer has a provision permitting employers to provide fewer than 12 weeks for leave in connection with the birth, adoption, or foster care placement of a child if both parents work for the same employer. This small but necessary investment will deliver immense benefits to your business! Numerous labor and employment laws passed by the California Legislature and signed into law by Gov. Miscellaneous Exemptions: Subject to certain requirements, AB 2257 also adds exemptions for individuals engaged in underwriting inspections and other services for the insurance industry; manufactured housing salespersons; certain individuals engaged by international exchange visitor programs; and competition judges. Jan. 1, 2021. The bill takes effect on January 1, 2021. These new requirements are in addition to the requirements enacted last year, requiring female representation on such corporate boards, set forth in California Corporations Code section 301.3, as detailed in our firm’s alert from last year. This exemption now includes services provided by a still photographer, photojournalist, videographer, or photo editor who works under a written contract that specifies the rate of pay and time of payment. Highlights. This is commonly known as the "key employee" exemption. Pulling Back the Curtains on California’s New Pay Data Reporting Law. To address this, Proposition 22 included labor and wage policies specific to app-based drivers and companies. Now, by the end of 2021, any board … There are several other significant changes to the CFRA that employers need to consider in 2021. On September 17, 2020, Governor Newsom signed into law AB 685, which will go into effect on January 1, 2021. This bill applies to dates of injury after July 5, 2020, and will be in effect until January 1, 2023. This Holland & Knight alert highlights selected and significant new California labor and employment laws, regulations governing COVID-19 issues at the workplace by the California Division of Occupational Safety and Health (Cal/OSHA), and the state's increased minimum wage and overtime exempt salary thresholds. California Small employers with 25 employees or less must follow the new minimum wage order of $13. While most of the state increases occur on January 1, 2021, several of the orders won’t take effect until later in the year. While AB 685 is aimed primarily at post-COVID-19-exposure requirements, the Cal/OSHA regulations direct employers to act proactively pre-COVID-19 exposure to prevent exposure, including through mandatory assessments of prevention systems and plans. However, the core of AB 5 remains unchanged. On September 17, 2020, Governor Newsom signed into law SB 1159, which codified parts of his prior executive order establishing a rebuttable presumption of compensability for some employees who receive a COVID-19 diagnosis. The specific place of employment is ordered closed by a local health department, the State Department of Health, the Division of Occupational Safety and Health, or a school superintendent due to the risk of infection of COVID-19. In addition to the above, as of January 1, 2021, employers will have reporting requirements if they are notified that the number of cases at their worksite meets the definition of a “COVID-19 Outbreak” as defined by the State Department of Public Health. AB 685 requires that employers take prompt action in response to COVID-19 incidents. The National Law Review is not a law firm nor is www.NatLawReview.com  intended to be  a referral service for attorneys and/or other professionals. This poster is updated for 2021 and meets all labor law compliance requirements. For employers with 25 employees or less, the minimum wage will increase from $12 per hour to $13, and the exempt annual salary threshold will increase from $49,920 to $54,080. SB 3, enacted in the 2015-2016 legislative session, sets forth a schedule for minimum wage increases through 2023. SB 1383 brings the CFRA into closer alignment with the federal Family Medical Leave Act (FMLA) by allowing CFRA leave because of a "qualifying exigency" related to the covered active duty or call to covered active duty of an employee's spouse, domestic partner, child or parent in the U.S. armed forces. CCP 1002.5 does not apply to standard severance agreements; only to settlement agreements when an employee has filed a claim against the employer in court, before an administrative agency, or through some form of ADR or employer internal complaint process. Non-independent music publicists are also not exempt. OPUs can prohibit entry into a particular place of employment or use of particular equipment or processes and now may be more quickly issued under AB 685 – no pre-citation notice of a potential "serious violation" is required before issuing a citation. The employer must not reveal the employee's name or other identifying information unless the employee has already initiated a Workers' Compensation claim. Instead of printing out pages of mandatory California and Federal labor law posters, you can purchase a professional, laminated all-in-one labor law poster that guarantees compliance with all California and federal posting requirements. AB 2257 also modifies the exemption for photographers, photojournalists, videographers and photo editors. Even with all the unexpected challenges of 2020, the California State Legislature still passed employment laws that will take effect in 2021. The CFRA and its regulations provide complex requirements for CFRA leave administration, benefit continuation, employee notices, medical certifications and interaction with other protected leaves. Keep a step ahead of your key competitors and benchmark against them. This report must also include the total number of hours worked by each employee in each pay band during the reporting year. If the hiring business fails to establish any of these factors, the worker will remain classified as an employee. In our annual update of new employment laws impacting California private sector employers, we lead off with California’s COVID-19 related laws, given their … Newsom on March 4, 2020. Additionally, SB 1383 expands leave rights by allowing CFRA leave for the care of a grandparent, grandchild or domestic partner who has a serious medical condition. By 2025, that reduces to 0.5% copper by weight. (iv) operates a business in the same industry as the judgment debtor and the business has an owner, partner, officer, or director who is an immediate family member of any owner, partner, officer, or director of the judgment debtor. How to Appeal... COVID-19: US State Policy Report – December 29, 2020. refusing to participate in an activity that would result in a violation of state or federal statute, or violation of or noncompliance with a local, state, or federal rule, or regulation. Get a 2021 California all-in-one labor law poster . California's minimum wage and overtime exempt salary thresholds will increase on Jan. 1, 2021. Nancy S. Fong, Peter A. Griffin, Baldwin J. Lee, Jennie L. Lee, Alexander Nestor, Annette M. Rittmuller, Nicholas J. Schuchert, Alana Thorbourne Carlyle, Amy Wintersheimer Findley, Melissa K. Zonne contributed to this article. Proposition 22 defined app-based transportation and delivery drivers as independent contractors and adopted certain labor and wage policies specific to app-based drivers and companies. Grant Alexander is a partner in the Los Angeles office of Allen Matkins. If the employer knows or reasonably should know that an employee has tested positive for COVID-19, the employer shall report to the administrator for Workers' Compensation claims, within three business days, that 1) an employee has tested positive, 2) the date of the positive test, with the date being the date the specimen was collected for testing, 3) the address of the employee's place of employment for the 14 days preceding the positive test, and 4) the highest number of employees who reported to work at that particular place of employment in the 45 days preceding the last date the positive employee worked at the particular place of employment. However, the new CFRA (SB 1383) expands the scope and requires compliance employers with five or more employees and also eliminates the requirement that employees work within 75 miles of the same worksite. Patrick Zika in the Alameda County Superior Court. This Holland & Knight alert highlights selected and significant new laws, as well as California's … Specifically, this law was designed to prevent an employer's designation of an employee's usage of sick days as kin care, which would intentionally or erroneously deplete the employee's available kin care leave. Ranging from Covid-19 legislation to revisions to worker classification laws, new reporting requirements, and mandatory additions to boards of directors, below you will find our annual 2021 Employment Law Update. Is Employer’s Unilateral Change Protected by Labor Law’s ‘Contract Coverage’ Standard? By Andrew Sommer, Fred Walter, and Megan Shaked 2020 has been another banner year for California employment laws, with legislation and Cal/OSHA rulemaking associated with COVID-19 prevention and reporting taking center stage. Entertainment/Music Industry Exemptions: AB 2257 also creates several new entertainment industry exemptions, which are largely focused on the music industry. Significantly, AB 2257 expanded the narrowly crafted business-to-business exemption in a manner allowing two sole proprietors to enter into a contractor relationship. Employers are prohibited from discriminating against employees because they used their sick leave for such purposes. The California Labor Commissioner has published a model notice that employers may use for these purposes. Specifically, AB 979 defines “director from an underrepresented community” as “an individual who self-identifies as Black, African American, Hispanic, Latino, Asian, Pacific Islander, Native American, Native Hawaiian, or Alaska Native, or who self-identifies as gay, lesbian, bisexual, or transgender.” In its findings and declarations supporting AB 979, the California Legislature noted that currently, over 35 percent of publicly-traded corporations headquartered in California have all White boards of directors. AB 2257, for example, notably does not make any accommodations for transportation and technology companies serving as platforms to connect passengers or freight to available contractors. Contrary to prior law, AB 5 presumed that all workers are employees, rather than independent contractors. Hitching a Ride on the Omnibus: COVID Relief and Appropriations Act... Major League Soccer To Exercise Force Majeure Clause To Reopen... Shanghai Higher People’s Court Upholds 6-Year Prison Term and 90... COVID-19: US State Policy Report – December 24-28, 2020. New Requirement for Diversity in Leadership: California requires publicly-held corporations headquartered in California to add at least one director from an underrepresented community on their board by December 21, 2021. Under Labor Code section 98.7, the Division of Labor Standards Enforcement (DLSE) has jurisdiction to investigate complaints of discharge or discrimination in violation of any law within the jurisdiction of the DLSE. The main change for 2021 is the extension of the California Family Rights Act (CFRA). The notice to employees must include specific statements regarding availability of unemployment insurance in addition to other required Cal-WARN notice language. Beginning on Jan. 1, 2021, the CFRA's family and medical leave requirements will extend to small businesses with five or more employees, regardless of the size of any employer worksites. First, it creates a presumption of compensability for certain first responders and healthcare workers (listed in Labor Code § 3212.87) who test positive for COVID-19 within 14 days of a workday occurring at a worksite that is not their home. When an employee leaves their job, whether they quit or get fired, they have a right to cash out any unspent vacation hours. Dwight has also handled numerous trade secret, no-solicitation and unfair competition cases. Stephanie Elder is a litigation associate in the firm’s Los Angeles office. 2020 has been an unprecedented year in many ways, but one thing that remains constant is the legislature's enactment of new laws that impact employers. AB 3075 – Expansion of Successor Liability for Labor Code Judgments. In last year’s alert, we noted that AB 51, codified as Labor Code section 432.6, would prohibit employers from requiring employees to enter into arbitration agreements covering claims under the Fair Employment and Housing Act (FEHA) and the Labor Code as a condition of employment. Labor Commissioner's Office; Overtime for Agricultural Workers. Unless otherwise indicated, each of the following new laws will take effect on Jan. 1, 2021. AB 685 also requires that employers provide notice to their local health department in situations of an "outbreak" or "major outbreak." This poster contains information over the minimum wage laws and rates for the city of Petaluma, California.Includes the current minimum wage - which is $15.20 per hour effective January 1, 2021 - and covers details regarding what employers are subject to the ordinance, what employees are eligible, wage adjustments, retaliation, lawsuits and complaints, and penalties. AB 1947 expands this deadline to one year after the alleged violation. California’s ever-changing employment laws will have employers scrambling to keep up in 2021! Discrimination, Harassment & Retaliation Mandatory Minority Representation on Your Board of Directors (AB 979): This bill takes effect "no later than the close of the 2021 calendar year." An employer has only 30 days after the claim form is filed to deny the claim (as opposed to the typical 90 days) and otherwise may rebut the presumption only with evidence obtained after that 30-day period. SB 1159 effectively requires employers to promptly investigate and address cases of COVID-19 among employees. Violation of Section 1102.5 is currently a misdemeanor and may lead to actual damages (Labor Code §1105) and/or a civil penalty of $10,000 for each violation (Labor Code § 1102.5(f)). “I find the newsfeeds to be extremely helpful and relevant to my practice area and to the issues facing my company. Unless otherwise noted, each of the laws listed below is effective on Jan. 1, 2020. Under existing law, individuals have six months to make complaints to the DLSE. On September 30, 2020, Governor Newsom signed SB 973, which requires certain employers to collect and submit compensation data to the California Department of Fair Employment and Housing (DFEH). There are several new 2021 California employment laws of which employers must be aware, as they may affect daily business operations, policies and employees. The NLR does not wish, nor does it intend, to solicit the business of anyone or to refer anyone to an attorney or other professional. Labor Code section 1102.5 broadly prohibits whistleblower retaliation. Numerous employment-related bills were passed in California in 2020 to provide workers with COVID-19 protections and expand family leave. AB 2992 defines "crime" as "a crime or public offense as set forth in Section 13951 of the Government Code, and regardless of whether any person is arrested for, prosecuted for, or convicted of, committing the crime.". Within 48 hours of learning that 1) three or more COVID-19 cases have occurred within a 14-day period at the workplace (an outbreak) or 2) 20 or more COVID-19 cases have occurred in a 30-day period at the workplace (a major outbreak), the employer must notify the local health department of such occurrences. AB 2143 slightly modifies California Code of Civil Procedure section 1002.5. The provision is not to be used in a manner that would interrupt the performance of critical government functions essential to ensuring public health and safety functions or the delivery of electrical power or water. The content and links on www.NatLawReview.com are intended for general information purposes only. Many of the notice requirements in the Cal/OSHA emergency regulations mirror the requirements implemented by AB 685, including requiring that information regarding available leave and benefits be provided. There are no requirements that parties resolve the claim at mediation. Under SB 1159, if an employee 1) tested positive for or was diagnosed with COVID-19 within 14 days of being at work, and 2) the employee was at work between March 19, 2020, and July 5, 2020, or the employee was at work during a period of "outbreak" (as defined by Labor Code section 3212.88(m)(4)) after July 6, 2020, the COVID-19 illness is presumed to be an injury arising out of and in the course of employment, therefore qualifying the employee for Workers' Compensation benefits. California Passes New Employment Laws for 2021. ); and. If an outbreak occurs, the employer must provide testing to all employees at the workplace, except to those not present during the 14-day outbreak period. AB 2992 expands these protections by broadly defining "victim" as 1) a victim of stalking, domestic violence or sexual assault, 2) a victim of a crime that caused physical injury or that caused mental injury and a threat of physical injury, and 3) a person whose immediate family member, as defined, died as the direct result of a crime. Attorney Advertising Notice: Prior results do not guarantee a similar outcome. AB 2399 – Expansion of California State Paid Family Leave Benefits. Gavin Newsom issued an Executive Order on March 17, 2020, suspending California's Worker Adjustment and Retraining Notification Act's (Cal-WARN) 60-day notice obligation retroactive to March 4, 2020, subject to certain conditions. In response, the California legislature acknowledged the impact of AB 5 on certain industries and effectively rewrote the law to address these concerns through the passage of AB 2257. Expanded Labor Code Retaliation Protections (AB 1947-Effective January 1, 2021) Labor Code Section 98.7 enables workers to file retaliation claims with the Labor Commissioner when they believe they have been discharged or otherwise discriminated against in violation of laws enforced by the Labor … In response to some of these concerns, the California Legislature enacted AB 2257, which amended AB 5 and created additional exemptions for certain occupations and contractual relationships. AB 1947 authorizes a court to award reasonable attorneys' fees to a plaintiff who brings a successful action under Section 1102.5. All laws discussed in this post go into effect on January 1, 2021, unless otherwise noted. On January 1, 2021, various new and amended employment laws will go into effect in California. AB 5 (Section 2750.3 of the Labor Code) was signed into law on September 18, 2019, by Governor Gavin Newsom. Protect your business by preparing for the new 2021 legislation. Proposed Regulations Provide New Rules for Allocating and... EPA Releases Report Compiling Letter Peer Review Comments on Revised... Front and Center: New SBA Grant Program for Shuttered Venue Operators. The California Labor and Workforce Development Agency (LWDA) has published guidance to employers regarding these notice requirements. In response, Uber, Lyft, DoorDash, InstaCart, and Postmates spent more than $200 million in lobbying efforts for a ballot initiative that would override AB 5 and AB 2257, and classify drivers as independent contractors. She defends employers in matters involving harassment, discrimination, retaliation, wrongful termination, wage and hour, and whistleblower claims. Referral Agency Exemption: AB 2257 expands the referral agency exemption by adding additional services, including consulting, youth sports coaching, caddying, wedding or event planning, services provided by wedding and event vendors, and interpreting services, among others. Any employee may file a workers’ compensation claim for COVID-19 with causation to be determined in due course. The NPLA will become unnecessary once CFRA's leave rights, which already include baby bonding leave, are extended to small employers. 8 / 40. AB 5 codified and expanded the scope of the “ABC” test established in Dynamex. Since 2017, California has been working its way up to an eventual $15 minimum wage. Dfeh is continuing to publish guidance to employers on a rolling basis action under Section 1102.5 Foreign companies Accountable signed. To promptly investigate and address cases of COVID-19 among employees as employees purposes. Disability benefits are not exempt this prohibition against `` no-rehire '' provisions does not extend to which! Of Crime or Abuse would ike to contact us via email please click here as the. And labor & employment litigation drugs or alcohol, and employers will required! Employees need to understand for 2021 Appears Positive, Driven in Part by.! 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