A Dozen Major Employment Law Bills Wind Through The California Legislature

Author:Mr Christopher Olmsted
Profession:Ogletree, Deakins, Nash, Smoak & Stewart

The California State Senate and Assembly have been busy this year, moving a number of employment law bills through the legislative process. May 31, 2019, was the deadline for either the assembly or the senate to pass a bill and send it to the other house. A few employment-related bills failed to advance, but there are still a dozen major bills marching forward.

The following employment law bills of considerable significance have passed and are now pending in the second house. September 13, 2019, is the deadline for these bills to pass in the second house, and then the governor has until October 13, 2019, to sign or veto the bills.

AB 5: Independent Contractor Status

California Assembly Bill (AB) 5 seeks to codify a 2018 independent contractor decision out of the Supreme Court of California, which established the "ABC" test. Under this bill, the "ABC" test would be added to the California Labor Code and the Unemployment Insurance Code. A few industries have lobbied for exclusions, and the bill would exclude specified occupations, including certain insurance agents, medical doctors, investment advisors, real estate agents, licensed hairstylists and barbers, direct sales salespersons, and licensed professionals in the professions of law, dentistry, architecture, engineering, accounting, marketing, and human resources.

Status: Passed in assembly, pending in senate committee

AB 9: Extension of FEHA Statute of Limitations

AB 9 proposes to extend the statute of limitations from one year to three years for all Fair Employment and Housing Act (FEHA) discrimination, harassment, and retaliation claims.

Status: Passed in assembly, pending in senate committee

AB 25: Exclusion of Certain Employer Data From California Consumer Privacy Act

The California Consumer Privacy Act of 2018 (CCPA), which will go into effect on January 1, 2020, "grants consumers various rights with regard to their personal information held by businesses, including the right to request a business to disclose specific pieces of personal information it has collected and to have information held by that business deleted." Employers have been uncertain as to whether the CCPA applies to employment data. This bill would exclude certain employment data. Specifically, it would exclude from the definition of "consumer" a "natural person whose personal information has been collected by a business in the course of a person acting as a job applicant to, an employee of, a contractor of, or an...

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