2004 California Employment Law Survey

This year has been quite a significant legislative year in the State of California. The following is a brief summary of new legislation affecting employers with California operations.

Naturally, the interpretive applicability of these newly enacted laws will be further molded, and challenged, through the California judicial system. Nevertheless, employers should review, understand and alter their policies as needed in order to conform to the laws, as written, until further clarification is provided.

AB 205 - Domestic Partner Rights and Responsibilities Act

This newly enacted statute goes into effect in January 2005 and provides extended benefits for registered domestic partners of employees. Bill 205 and provides a broad range of benefits and protections to registered domestic partners. Most notably, employee-related benefits traditionally reserved for spouses are expanded, as well as coverage under the California Family Rights Act.

AB 76 - Third Party Harassment

Bill 76 extends the obligations of employers under California's Fair Employment and Housing Act ("FEHA") to include the prevention of harassment of an employee by any person, including third parties. Accordingly, under these circumstances, employers may now be liable for the conduct of customers and clients. The amendment to the Government Code holds an employer responsible for failing to take immediate and appropriate corrective action to prevent harassment of an employee by any person, including third parties, once the employer knows or should have known of the offensive conduct. This bill was a direct attempt by the legislature to reverse Salazar v. Diversified Paratransit, Inc., 103 Cal.App.4th 131 (2002) which was under review with the California Supreme Court. The Salazar decision held that an employer's duty to prevent harassment did not extend to harassment by an employer's customers or clients. Bill 76 was signed by outgoing Governor Davis on October 3, 2003.

AB 196 - Gender Identity Discrimination

Bill 196 extends the provisions of FEHA to protect against gender identity discrimination by including "gender" in the Act's definition of "sex." While the new law allows employers to require employees to comply with reasonable work place appearance, grooming and dress standards, it explicitly permits employees to appear in dress consistent with their gender identities. Bill 196 was signed by outgoing Governor Davis on August 2, 2003.

SB 179 - Labor Contracts

Senate Bill...