Fall marks the end of California’s legislative session and Governor Newsom’s review of employment-related bills. Below is a brief summary of the key laws affecting California employers that will take effect on January 1, 2025, or later.
Discrimination
AB 1815 The California Fair Employment and Housing Act previously defined race to include traits “historically” associated with race, including, but not limited to, hair texture and protective hairstyles, as defined. This bill removes the word “historically” from that definition. This minor change clarifies that an employee does need not to prove a “historical” connection between the trait and their race, just that the trait discriminated against is closely enough related to race. Employers will need to update their policies to reflect this change.
AB 2499 expands time off for victims of violence, including time off for employees to assist a family member who is a victim of violence. Employees may use any accrued paid sick leave if they or a family member is a victim of violence and they are taking time off for medical care, counseling, legal relief, counseling, or one of several other activities.
If the employee does not have accrued sick leave, they may still be entitled to unpaid time off to seek legal relief to ensure their own and/or their child’s health, safety, and welfare. Employers with 25 or more employees must also allow unpaid time off for employees to assist family members who are victims of violence.
Employers may cap the amount of unpaid time off for different purposes. Employees are entitled to 10 days off if the employee is not a victim but is assisting a family member who is, and five days if the employee is helping the family member secure or relocate to a new residence. The total amount of unpaid time off taken by a single employee for any of these reasons can be capped at 12 weeks, and that time off can run concurrently with any FMLA or CFRA leave if they would otherwise apply.
The bill also requires employers to provide reasonable accommodations to an employee who is a victim, or whose family member is a victim, for the safety of the employee while at work, unless the accommodation would impose undue hardship on the employer. Employers must engage in the interactive process and may request certification of the need for an accommodation.
Most employers will need to revise their policies to ensure compliance and will need to meet new notice requirements about informing their employees about these rights.
SB 1100 prohibits employers from requiring a driver’s license to be eligible for a job. There are a few exceptions: (1) the employer reasonably expects driving to be one of the job functions for the position; and (2) the employer reasonably believes that satisfying the job function through an alternative form of transportation would not be comparable in travel time or cost to the employer. SB 1100 is consistent with a general movement towards permitting employers to consider only information about employment candidates that is directly relevant to the position for which they are applying.
SB 1137 clarifies that, under FEHA, protected characteristics may include a combination of two or more protected traits (“intersectionality”).
SB 1340 allows local authorities to enforce local anti-discrimination ordinances that are stronger than protections afforded under FEHA. Previously, the Civil Rights Department was the only governmental agency that could enforce California discrimination laws. With this bill, local authorities can only begin enforcement actions once the CRD issues a right-to-sue letter. Local enforcement actions toll the one-year time limit for employees to file suit (which can greatly expand the time for a lawsuit to be filed)
In other words, the Civil Rights Department is no longer the only agency that may receive such complaints.
Labor Relations
SB 399 limits employers’ ability to communicate with employees regarding political or religious matters during mandatory meetings (“captive audience meetings”). The California Worker Freedom from Employer Intimidation Act prohibits an employer from subjecting, or threatening to subject, an employee to discharge, discrimination, or retaliation because the employee declines to attend a “captive audience meeting,” or refuses to participate in, receive, or listen to any communications with the employer about the employer’s opinion on religious or political matters. Importantly, the legislation’s definition of “political matters” includes union organizing.
Private Attorneys General Act (PAGA)
AB 1034 extends until January 1, 2038, the current exemption from the provisions of PAGA for employees in the construction industry who are covered by a collective bargaining agreement that meets certain conditions, including providing for employees to receive a regular hourly pay rate of not less than 30% more than the state minimum wage rate and a grievance and binding arbitration procedure to redress violations that would have been remedied under PAGA.
Disability and Leave
AB 2123 eliminates an employer’s ability to require employees to use up to two weeks of accrued vacation before receiving benefits under California’s Paid Family Leave Program.
SB 1105 expands existing paid sick leave provisions to allow agricultural employees who work outside to use their currently entitled paid sick days to avoid smoke, heat, or flooding conditions created by a local or state emergency.
Wage and Hour
AB 2299 requires the Labor Commissioner to develop a model list of employees’ rights and responsibilities under existing whistleblower laws for employer use to meet existing posting requirements.
AB 3234 requires an employer that voluntarily subjects itself to a social compliance audit to post on its business website a report detailing the findings of that audit including specific findings regarding child labor.
SB 988 establishes the Freelance Worker Protection Act to impose minimum requirements relating to contracts between a hiring party and a freelance worker, as defined. Among other things, the Act requires a hiring entity to 1) provide a written contract to the freelance worker; 2) pay a freelance worker the compensation specified by such contract, as provided; and 3) authorizes an aggrieved freelance worker or a public prosecutor to bring a civil action to enforce these provisions.
Employers Should Plan Now
As with every new year, employers should plan now for next year’s new rules. Several of the new laws require employer handbook and policy changes. Supervisors and managers also will need training.