It’s a new year and there are new laws that may affect your business. Here is a quick rundown of some highlights:

• AB5 – Classifying workers as employees vs. independent contractor.  There are significant changes in whom the law considers an employee vs. an independent contractor with substantial penalties for non-compliance. These new statutes are complex and riddled with difficult to understand exceptions. In addition, the rules can change depending upon the field you and/or your contractor(s) work.  If you currently utilize independent contractors, Framework can assist you in determining how the new law may change their classification.   

• AB9 – Changes the timing a worker has to file an employment discrimination claim with the Labor Commissioner.  You should maintain your HR records for at least five (5) years following cessation of employment.

• AB51 – Bans mandatory arbitration provisions in employment agreements entered into on or after January 1, 2020. This law is expected to be hotly challenged in court.  Companies are taking different approaches to how they manage compliance with this new law, some more aggressively than others.  If keeping mandatory arbitration provisions in your employment agreements is important to you, there may be some untested work arounds.

• SB142 – All companies are required to develop and implement a written policy regarding accommodation for breast feeding. The law is very specific on what the policy must contain, when it must be distributed, and the requirements for the room or location set aside for employees to breastfeed (a bathroom is not acceptable). 

• SB188 - Employment discrimination law now includes “hair texture and braids, locks, and twists” historically associated with race.

• SB778 – Companies with 5 of more employees must provide sexual harassment training, the deadline for initial compliance is January 1, 2021. Requirements for the duration and timing of such training depends upon whether the employee is managerial or non- managerial. There are ambiguities in the statute making it difficult to understand.

• CCPA - The California Consumer Privacy Act expands regulations on the collection and use of consumer data. These regulations primarily apply to companies with revenue in excess of 25MM , or who have the data of over 50,000 consumers, or who earn over half their revenue from selling consumer data.

• Others – The above list is by no means exhaustive.  Other changes in law involve: penalties for failure to pay wages (AB673 & SB688), restrictions on what may be included in a termination agreement (AB749), accommodation for living organ donation (AB1223), notification requirements for employee with flexible spending accounts (AB1154), Cal-OSHA notification requirements for occupational injury or illness (AB1804), paid family leave (SB83), and failing to pay required fees and costs waiving an employer’s right to arbitration (SB707).  

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This article is for informational purposes only and is not legal advice.