California Employment Law Changes You Need To Know

A raft of legislative changes affect hiring practices, employment agreements, employee classification, training, and more. Here's a handy summary.

Nondisclosure Prohibition (SB 820). After January 1, 2019, any settlement agreement that prevents the disclosure of factual information related to a claim of sexual assault, sexual harassment, or gender discrimination filed in a civil or administrative action is void as a matter of law. The law does provide exceptions for nondisclosure of (i) the amount paid in settlement and (ii) the claimant's identity and any fact that could reveal the identity, so long as the claimant has requested anonymity and the opposing party is not a government agency or public official.

Nondisparagement Prohibition (SB 1300). This change prohibits companies from requiring their employees to agree to nondisparagement clauses as a term or condition of employment or in exchange for a raise or bonus. More significantly, it essentially forecloses employers' motions for summary judgment in harassment cases by providing that, "a single incident of harassing conduct is sufficient to create a triable issue regarding the existence of a hostile work environment if the harassing conduct has unreasonably interfered with the plaintiff's work performance or created an intimidating, hostile, or offensive working environment."

Gag Order Prohibition (AB 3109). Citing the "secret settlements" that "allow perpetrators to escape any public shame and to limit the consequence they face for their actions," after January 1, 2019, any contract or settlement agreement that attempts to bar a person from testifying in an administrative, legislative, or judicial proceeding about alleged criminal conduct or sexual harassment is void and unenforceable in California.

Mandates for Female Board Members (SB 826). By the end of 2019, every publicly held company whose principal executive offices are located in California must have at least one female member on its board of directors. By the end of 2021, companies that have five directors must have at least two female members and companies that have six or more directors must have at least three women on their board. Fines for violating these requirements may be $100,000 for the first violation (failure to have a female board member for at least a portion of the calendar year) and $300,000 for the second and third violations.

Expansion of Workplace Sexual Harassment Training (SB 1343). Currently, California...