Several Critical New Employment Laws Will Begin in 2024
California employers need to be prepared for a wave of new employment laws coming into effect between January 1, 2024 and June 1, 2024. These laws cover a wide range of topics, from minimum wage increases to workplace violence prevention plans. In this article, we will provide an overview of the key changes and how they will impact employers in the state.
Minimum Wage Increases
Starting in 2024, the general statewide minimum wage in California will increase by 50 cents to $16 per hour. This increase will also affect the minimum exempt salary, which will rise from $64,480 to $66,560. However, it is important to note that many cities in California have their own minimum wage requirements that are higher than the state’s minimum wage. These increases are part of California law tying wages to rising inflation.
Increasing Minimum Wage for Fast Food Workers
One of the significant changes in employment laws is the increase in minimum wage for fast food workers. Assembly Bill 1228 mandates a minimum wage of $20 per hour for fast food workers, starting in April of 2024. Additionally, it establishes a fast-food council that will operate for five years, responsible for determining future wage increases and working conditions for fast food employees.
Raising Minimum Wage for Health Care Workers
Senate Bill 525 focuses on raising the minimum wage for health care workers. The law stipulates that by June 2024, nursing assistants, medical technicians, and janitorial workers in the health care industry will have a minimum wage of $23 per hour. The minimum wage will gradually increase by $1 each of the next two years until it reaches $25 an hour.
Expanded Sick Time Benefits
Recognizing the importance of providing adequate sick leave, Senate Bill 616 expands sick time benefits for all full and part-time California workers. Under this law, both hourly and salaried employees are entitled to a minimum of five paid sick days per year, an increase from the previous three-day requirement.
Enhanced Leave for Reproductive Loss
Senate Bill 848 introduces a crucial measure to support employees who experience reproductive loss. The law now mandates employers to provide five days of leave to employees who suffer a reproductive loss, including failed adoptions, miscarriages, stillbirths, unsuccessful embryo transfers, or artificial insemination.
Inclusive Restrooms
Assembly Bill 783 focuses on promoting inclusivity in restroom facilities. Businesses are now required to display signage on single-user restrooms indicating that they are available to all genders. This change ensures that individuals of all gender identities feel respected and included in public spaces.
Retirement Fund for MMA Fighters
Assembly Bill 1136 addresses the specific needs of mixed-martial arts (MMA) fighters in California. This legislation establishes a retirement fund for MMA fighters who have participated in at least 39 rounds in the state. Eligible fighters will be able to access retirement benefits starting at the age of 50.
Combating Human Trafficking and Slavery
Assembly Bill 1740 takes a proactive approach to combatting human trafficking and slavery. Child care facilities and other businesses providing pediatric care are now required to post information about human trafficking and slavery. The information must include resources available to individuals who may be forced into such work.
Protecting Workers’ Rights to Discuss Wages
Senate Bill 497 reinforces workers’ rights to discuss wages without fear of retaliation. This law prohibits employers from retaliating against employees who complain about their wages, engage in wage discussions with colleagues, or inquire about another worker’s wages.
Limiting Non-Compete Contracts
Senate Bill 699 and Assembly Bill 1076 take aim at non-compete contracts in California. SB 699 expands the prohibition of non-compete contracts by making them unenforceable by employers, even if the agreements were signed in another state. AB 1076 requires employers to notify employees hired after January 1, 2022, that non-compete clauses in their contracts are void.
Arbitration Enforcement
Senate Bill 365 is a bill that amends California’s Code of Civil Procedure to allow litigation to continue in trial court proceedings even if an appeal has been filed in a case involving a denied petition to compel arbitration. Under current rules, trial court proceedings are typically stayed until the appeal is fully briefed and ready to be heard by the appellate court. However, SB 365 removes the automatic stay on proceedings, allowing litigation to proceed while the appeal is pending. This change will impact employers involved in cases where a court denies their petition to compel arbitration.
Limits on Cannabis Use in Employment Decisions
Assembly Bill 2188 & Senate Bill 700 impose limits on how employers can consider cannabis use in employment decisions. Under AB 2188, employers are prohibited from discriminating against employees based on their off-duty, off-worksite use of cannabis. However, employers can still conduct pre-employment drug testing and refuse to hire applicants based on a valid pre-employment drug test.
SB 700 takes this a step further by prohibiting employers from requesting information from job applicants regarding their prior use of cannabis. Employers are also prohibited from using information about an applicant’s prior cannabis use obtained from criminal history records.
However, it is important to note that employers still have the right to maintain a drug-free workplace and can prohibit employees from using cannabis on the job.
Consideration of Criminal History in Employment Decisions
The Fair Chance Act, enacted in 2018, already limited the use of criminal history in employment decisions. However, new regulations that went into effect on October 1, 2023, provide further guidance on how employers should consider criminal history when making employment decisions.
Under the revised law, employers are prohibited from inquiring about an applicant’s criminal history prior to making a conditional offer of employment. If an employer intends to rescind a conditional offer based on an applicant’s criminal history, they must conduct an individualized assessment to determine if the criminal history has a direct and adverse relationship to the job position.
The revised law also clarifies that the definition of an applicant includes current employees seeking another position within the company and employees who may undergo a background check due to changes in management or policy.
Conclusion
The new employment laws coming into effect in California in 2024 will have a significant impact on employers. It is essential for employers to familiarize themselves with these changes and ensure compliance to avoid potential legal issues. By understanding and implementing the necessary adjustments, employers can navigate these new laws while maintaining a fair and compliant workplace for their employees.
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