A Review of Key Cases and New Laws Affecting Employers (US Employment Litigation Round-Up for October 2014)

New California Employment Laws Impose Additional Responsibilities On Employers

Development: California Governor Jerry Brown has signed a series of bills aimed at increasing protections for California workers. Most notable are the implementation of a paid sick leave requirement in California and a new law that imposes statutory joint employer liability on companies that use staffing agencies.

Mandatory Paid Sick Leave (AB 1522): As of July 1, 2015, employers are required to provide paid sick leave to all employees, both exempt and non-exempt, who work in California for 30 or more days after commencing employment. Below are some of the key provisions of the new legislation:

Employees must accrue paid sick leave at a rate of no less than one hour per 30 hours worked. Employees may use accrued paid sick days beginning on the 90th day of employment. The employer may limit the use of accrued paid sick leave to 24 hours or three days in each year of employment. Employers may limit an employee's total accrual of sick leave to 48 hours or six days. A paid-time-off policy that provides the full amount of required leave at the beginning of each year will satisfy the requirement. Employers must notify workers in pay statements or separate documents each time they are paid of the amount of sick leave they have accrued. Employers are not required to compensate employees for accrued, unused paid sick days upon termination of employment. If the terminated employee is rehired within one year, the employee shall be entitled to use those previously accrued and unused sick days. Under the new law, for every sick day unlawfully withheld, treble damages are available up to a maximum of $250, not to exceed an aggregate penalty of $4,000.

Joint Employer Liability For Violations of Labor Provider (AB 1897): The new law createsLabor Code section 2810.3, which imposes joint liability on companies whose labor contractors or staffing agencies violate wage and workplace safety laws. The new law provides that a business entity with a workforce of more than 25 workers (including both employees and temp hires), or five or more temporary workers at any given time, that obtains or is provided with workers to perform labor within its usual course of business from a labor contractor will share responsibility and liability with the labor contractor for payment of wages and failure to secure valid workers' compensation coverage. The law does not apply when the workers provided...

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