Shock And Awe! California Employers Face Onslaught Of New Regulations

With the usual flurry of activity at the end of the legislative session, California has enacted a slew of bills with labor and employment ramifications.1 Closing out his first year in office, Governor Gavin Newsom signed more than 40 such bills on a wide variety of topics, ranging from antidiscrimination and workplace safety measures to the much-debated worker classification bill (AB 5) codifying the ABC test from last year's Dynamex case.

Now that things have settled down in Sacramento, we briefly review some significant developments applicable to employers operating in California. Unless otherwise indicated, these new laws will take effect on January 1, 2020, leaving employers with little time to prepare. We will also highlight a few bills that fell short. For more in-depth discussion of these new laws, employers may wish to tune in to our upcoming webinar on October 22, 2019.

To jump to a particular topic, click on the heading below.

Antidiscrimination and Antiretaliation Antiharassment and Implicit Bias Training Apprenticeships Arbitration and Settlement Agreements Benefits and Leaves of Absence Entertainment Industry and Print Shoot Issues Health Care Lactation Accommodation Privacy Public Works Taxes Wage and Hour Worker Classification Workers' Compensation Workplace Safety Other Topics Vetoed or Failed Bills Antidiscrimination and Antiretaliation

Law

Main Topic

Summary

Effective Date

AB 9

Employment Discrimination Claims: Extension of Statute of Limitations

Extends the statute of limitations from one year to three years for complaints alleging employment discrimination under the Fair Employment and Housing Act (FEHA). For this measure, "filing a complaint" refers to filing an intake form with the Department of Fair Employment and Housing. Does not apply to previously lapsed claims. Leaves unanswered whether claims that arose in calendar year 2019 will be subject to a one- or three-year statute of limitations.

1/01/2020

AB 333

Whistleblower Protection: County Patients' Rights

Grants whistleblower employment protections to patients' rights advocates providing patient services at county mental health centers and creates a private right of action to enforce these protections.

1/01/2020

SB 1882

Racial Discrimination: Hairstyles

The CROWN Act expands the definition of prohibited racial discrimination, barring employers from banning racially associated hairstyles in dress codes or grooming standards.

1/01/2020

SB 229

Labor Commissioner: Judgments

Expands appeal and enforcement procedures for employer citations for retaliation, and imposes bond requirements and certain deadlines for seeking judicial enforcement.

1/01/2020

Antiharassment and Implicit Bias Training

Law

Main Topic

Summary

Effective Date

AB 543

Education: Sexual Harassment Policy

Requires that public and charter schools for grades 9-12 prominently display a poster—including display in restrooms and locker rooms—notifying students of the school's sexual harassment policy. Amends existing law that new students receive this policy to require schools to also provide it to continuing students.

1/01/2020

AB 547

Janitorial Workers: Harassment Prevention Training

Mandates that the Department of Industrial Relations establish a training advisory committee to create a list of qualified organizations that janitorial employers can engage to provide sexual harassment prevention training.

1/01/2020

SB 530

Construction Industry: Harassment Prevention Training

Instructs the Division of Labor Standards Enforcement (DLSE) to develop industry-specific harassment prevention policy and training standard. Delays harassment prevention training requirement for the construction industry, until 1/01/2021. Clarifies how employers with multi-employer CBAs may satisfy training duty.

1/01/2020

SB 530

Staffing Agencies, Temporary Workers: Harassment Prevention Training

Delays harassment prevention training requirement for seasonal, temporary, or other employees hired to work for less than six months, until 1/01/2021.

1/01/2020

SB 464

Certain Healthcare Providers: Implicit Bias Training

Requires hospitals providing perinatal care, alternative birth centers, and primary clinics serving as birth centers to create an implicit bias program for providers, including a refresher course every two years. Also instructs the department of health to track and publish information on pregnancy-related deaths. Requires hospitals to provide patients with information regarding their right to be free from racial discrimination and how to file a discrimination complaint.

1/01/2020

SB 7783

Harassment Prevention Training

Amends last year's SB 1343 to revise the deadline for expanded training requirements of new employees on antiharassment state law guidelines to 1/01/2021. Does not modify the training timeline for supervisory employees, or the threshold requirement that employers with 5 or more employees must provide training.

8/30/2019

Apprenticeships

Law

Main Topic

Summary

Effective Date

AB 1019

Opportunities for Individuals with Disabilities

Amends the Labor Code to establish an apprenticeship subcommittee to develop programs to help individuals with disabilities obtain job training.

1/01/2020

Arbitration and Settlement Agreements

Law

Main Topic

Summary

Effective Date

AB 51

Waiver as Condition of Employment

Bans employers from requiring employees or applicants to waive any right, forum, or procedure under the FEHA or Labor Code as a condition of employment. Further prohibits employers from retaliating or threatening employees who refuse to waive such rights. Applies to agreements entered into, modified or extended on or after 1/01/2020. Does not apply to postdispute settlement, or negotiated severance, agreements.

1/01/2020

AB 749

Settlement Agreements: Restraints in Trade

Prohibits employment settlement agreements from restricting a settling party from working for the employer or any parent, subsidiary, or affiliate ("no rehire" agreements), unless the employer has made a good faith determination that the person engaged in sexual harassment or assault. Applies to agreements entered into on or after 1/01/2020.

1/01/2020

SB 707

Enforcement of Arbitration Agreements

Provides consumers or employees remedies if a drafting party breaches an arbitration agreement by failing to pay costs and fees. For example, employees could move the matter to court, and would receive mandatory monetary sanctions for a drafting party's default. Further mandates arbitration companies to report demographic data related to race and gender of arbitrators.

1/01/2020

Benefits and Leaves of Absence

Law

Main Topic

Summary

Effective Date

AB 567

Long-Term Care Insurance

Creates a task force to study establishing a public long-term insurance plan program. The task force's options and feasibility report will be due 7/01/2021, and will then be subject to actuarial review.

1/01/2020

AB 1223

Living Organ Donation

Requires an employer to provide additional, unpaid leave time, of up to 30 days a year, to an employee who is donating an organ.

1/01/2020

AB 1033

State Employees: Pre-Hire Statement of Benefits

Mandates the Department of Human Resources to create an explanation of benefits of state service for applicants to state employment positions. Also requires applicants to sign an acknowledgment that they have received the benefits explanation.

1/01/2020

AB 1554

Flexible Spending Accounts: Annual Withdrawal Notice

Requires that employers provide two forms of notice to employees participating in a flexible spending account (including a health savings, dependent care, or adoption assistance account) of upcoming withdrawal deadlines toward the end of a benefit year.

1/01/2020

SB 834

Paid Family Leave

Increases paid family leave from six weeks to eight weeks beginning 7/01/2020, and creates a task force to develop a proposal for further job protections, including an increased wage replacement rate.

6/27/2019

SB 271

Unemployment Insurance

Amends definition of "employment" for unemployment benefits purposes to include all motion picture production work done outside the state if some part of the service is performed within the state.

1/01/2020

Entertainment Industry and Print Shoot Issues

Law

Main Topic

Summary

Effective Date

AB 267

and

AB 1622

Infant Labor Rules

AB 267 extends existing restrictions on employing newborns in motion pictures to their employment in the broader entertainment industry (recording, modeling...