On Friday, California Governor Gavin Newsom signed SB 399, the “California Worker Freedom from Employer Intimidation Act” (the “Act”) that should be of interest to any company with employees in the state. The Act, which takes effect on January 1, 2025, adds a new section to the California Labor Code to prohibit employers from taking or threatening adverse employment action against an employee because the employee refuses to attend employer meetings about, or to participate in, receive, or listen to, any communications about the employer’s opinion on religious or political matters. The law is similar to, but broader than, laws in several other states that attempt to decrease the influence of “captive audience” meetings communicating an employer’s political or religious opinions.Continue Reading California Joins Growing List of States Prohibiting Employer Action Against Employees Who Refuse Political or Religious Communications
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California’s New Workplace Violence Prevention Plan and Training Requirements Take Effect on July 1, 2024; How to Get Ready
As previewed in our prior post regarding new California employment laws from the 2023 legislative session, employers must implement a comprehensive workplace violence prevention plan (WVPP) and provide employee training on the WVPP by this coming July 1, 2024. The WVPP requirement (under new California Labor Code Section 6401.9), augments the existing obligation for California employers to create and maintain an injury and illness prevention plan and is intended to combat incidents of workplace violence, which is the second leading cause of fatal occupational injuries in the United States according to OSHA. The new compliance requirements are described below, along with steps employers can take to get ready.Continue Reading California’s New Workplace Violence Prevention Plan and Training Requirements Take Effect on July 1, 2024; How to Get Ready
2023 Legislative Session Wrap-Up: New California Workplace Laws for 2024 and Beyond
As we enter the final months of 2023, California employers should turn their attention to the employment-related bills that Governor Newsom recently signed into law, many of which take effect on January 1, 2024. Summaries of key developments are below.Continue Reading 2023 Legislative Session Wrap-Up: New California Workplace Laws for 2024 and Beyond
California Doubles Down with Yet Another Law on Employee Non-Competes
On the heels of approving SB 699, which heightened the protections and reach of California’s prohibition of employee non-competes under California Bus. & Prof. Code Section 16600 (“Section 16600”) (see our blog post here), Governor Gavin Newsom has now signed AB 1076. AB 1076 further increases the litigation risk for employers that use employee non-competes and, most notably, requires employers to provide notice of any non-competes to current and former employees by early next year. Together, these two new laws, which take effect on January 1, 2024, reinforce California’s strong public policy against employee non-competes and specify new consequences for employers who seek to enforce or enter into such agreements.
As a reminder, SB 699 adds new Bus. & Prof. Code Section 16600.5 to: (1) prohibit an employer or former employer from attempting to enforce a contract (e.g., a non-compete) that is void under Section 16600; (2) grant current, former, and even prospective employees a private right of action for damages and injunctive relief, and to recover attorney’s fees and costs; and (3) expand the territorial reach of California’s prohibition of employee non-competes to apply “regardless of where and when the contract was signed.”Continue Reading California Doubles Down with Yet Another Law on Employee Non-Competes
Will California’s SB 699 Shake Up Non-Compete Law Everywhere?
California non-compete law has just been shaken-up—and the ripples are likely to travel across the country. For decades and save for narrow exceptions, California Business and Professions Code § 16600 has made post-employment non-competes unenforceable due to their potential to unduly restrain an individual’s business or profession. Effective January 1, 2024, however, Senate Bill 699 (“SB 699”) drastically expands both the protections and the reach of California’s prohibition on employee non-competes.
Specifically, SB 699:
- prohibits an employer or former employer from even attempting to enforce a contract that is void under Section 16600;
- grants current, former, and even prospective employees a private right of action for damages and injunctive relief—and to recover attorney’s fees and costs; and
- applies to all non-competes “regardless of where and when the contract was signed.”
Continue Reading Will California’s SB 699 Shake Up Non-Compete Law Everywhere?
New California Workplace Laws for 2023
Come the new year, California employers will need to comply with a host of new workplace-related laws. Here is an overview of key new laws, along with recommendations for compliance. The laws take effect on January 1, 2023, unless otherwise specified.Continue Reading New California Workplace Laws for 2023
New Pay Transparency Laws Taking Effect
To promote pay transparency and equity, an increasing number of states and localities are requiring employers to disclose salary data in job advertisements or postings. The trend started in Colorado in 2021, and now a number of other jurisdictions have followed suit, including New York City and the states of California and Washington. The New York City law took effect on November 1, 2022, and the California and Washington laws go into effect on January 1, 2023. Similar laws have recently been enacted in other areas as well, including Jersey City, New Jersey (effective June 15, 2022), the City of Ithaca, New York (effective September 1, 2022), and Westchester County, New York (effective November 6, 2022).
This post will provide an overview of the New York City, California, and Washington laws, and discuss steps that employers can take to comply with the new requirements.Continue Reading New Pay Transparency Laws Taking Effect
California’s AB 685 Expands Employers’ COVID-19 Notification Requirements, Effective January 1
Effective January 1, 2021, California employers will be required under Assembly Bill (AB) 685 to provide detailed notices to employees when there is a COVID-19 case in the workplace and to notify local public health departments of COVID-19 “outbreaks” in the workplace. California employers should begin assessing their practices now to ensure that they will be ready to comply with AB 685 come January 1.
Below is a summary of the key requirements under AB 685 and recent California Department of Public Health (CDPH) guidance on AB 685, including FAQs and definitions.Continue Reading California’s AB 685 Expands Employers’ COVID-19 Notification Requirements, Effective January 1
California to Require Annual Pay Data Reporting to DFEH
In an effort to close gender and racial pay gaps, California Governor Gavin Newsom recently signed Senate Bill (SB) 973 to require certain California employers to submit an annual pay data report to the Department of Fair Employment and Housing (DFEH) starting next year. The new law largely mirrors the EEO-1 “Component 2” pay data reporting requirement, which was imposed by the Obama administration and has been suspended by the Trump administration.
Under SB 973, private employers that have 100 or more employees and are required to file an annual Employer Information Report (EEO-1) must submit a pay data report to the DFEH covering the prior calendar year. The report must include: (1) the number of employees by race, ethnicity, and sex in each of ten job categories (the same job categories used in the EEO-1); (2) the number of employees by race, ethnicity, and sex whose annual earnings fall within each of the pay bands used by the United States Bureau of Labor Statistics; and (3) the total number of hours worked by each employee counted in each pay band. Employers with multiple establishments in California must submit a report for each establishment and a consolidated report that includes all employees. Employees include all individuals on payroll, whether full- or part-time, for whom the employer must withhold federal social security taxes and include in an EEO-1 Report.Continue Reading California to Require Annual Pay Data Reporting to DFEH
New California COVID-19 Workers’ Comp Bill Creates Disputable Presumption and New Reporting Requirements
California Governor Gavin Newsom recently signed Senate Bill (SB) 1159, which adds COVID-19-related illness or death to the list of injuries covered under the state’s workers’ compensation program and creates new employer reporting responsibilities. The law codifies and extends Executive Order N-62-20, which was issued on May 6, 2020 and created a rebuttable presumption that employees with a COVID-19-related illness on or before July 5, 2020 contracted the virus at work and were eligible for workers’ compensation. The new law is retroactive to July 6, 2020 and expires on January 1, 2023.
Disputable Presumption for COVID-19 Cases During Workplace “Outbreaks”
Workers’ compensation generally provides benefits for employees who are injured or become ill in the course of their employment. Given the wide reach of COVID-19, however, it may be difficult to identify where the employee was exposed to the coronavirus for the purposes of showing that their exposure was caused by and arose out of their employment. In California, however, SB 1159 creates a “disputable presumption” that a COVID-19-related illness arose out of and in the course of employment, and is thus compensable, for employees who test positive during a COVID-19 “outbreak” at the employee’s “specific place of employment,” and whose employer has five or more employees. The new law specifies that workers’ compensation awarded for COVID-19 claims includes “full hospital, surgical, medical treatment, disability indemnity, and death benefits.”Continue Reading New California COVID-19 Workers’ Comp Bill Creates Disputable Presumption and New Reporting Requirements