Outline and Employment Law Updates 2024

© 2023 and 2024 – Watkins Firm

Minimum wage increase in CA: $16.00 hourly, $66,560 exempt salary minimum

California Sick Pay: Increases sick pay to 40 hours for use.

 – Sick leave must accrue at a rate of not less than 24 hours or 3 days by the 120^th calendar day of employment, and no less than 40 hours or 5 days by the 200^th calendar day of employment.

a: Part time employees will still accrue 1 hour for every 30 hours worked and don’t need to hit these minimums if they can’t get there in the time allotted

 – Minimum accrual cap = 80 hours.

 – Frontloading is optional per employer; if you frontload you don’t have to do a rollover since you’re already frontloading 80 hours beginning of each year

 – The rule for use 40 hours or 5 days. Must use which is greater – hours or days. So if EE’s work 10 hour days, they will actually get 50 hours.

Non Compete Agreements (SB 699) – currently unenforceable. Now it is UNLAWFUL for employers to enter into or attempt to enforce NCA’s.

1. 1. 1. If EE signed agreement out of CA but then goes into CA, agreement is void. EE must primarily reside in CA for this to apply. But each state has its own laws and EE’s location must be governed by that state’s laws.
      2. Prohibits non-solicitation of customers
      3. But still can prohibit competition/solicitation using trade secrets
      4. Employees can sue for signing an agreement and get damages, attorneys fees and costs and injunctive relief.
      5. AB 1076 – makes it unlawful to include non compete clauses in employment agreements/contracts. EE’s must notify EE’s by 2/14/24 that non complete clause or agreement is void. Document timeline is signed from 1/1/22-present. Notify EE at their last known address in EE file. If wanting to email that’s fine, but still need to physically mail. No language or form provided, just inform EE what agreement or clause you are referring to. Only need to give notice to people who have left the company, probably not applicable to current EE’s.
         1. What about non solicitation or employees rather than customers? Law isn’t clear on that.

 

Fast Food Restaurant – $20 minimum wage beginning April 2024:

1. 1. Defined as “organization with 60 or more standard restaurants across the nation” 

 

SB476 mandates that training courses are compensable hours worked – must pay wages AND for the cost of the training. Cannot make having existing card as a condition of hire.

 

SB497 – Presumption of Retaliation: Makes it easier for EE’s to establish prima facie. If taking action within 90 days of an employee engaging within protected activity, it’s retaliation. Unless you can prove with your own evidence there is no connection between protected act and action against EE. Guilty until proven innocent. Document everything you can.

SB 553 – Workplace violence protection. Must have workplace violent prevention plan.

1. 1. Doesn’t cover teleworkers/remote work. Excludes small business with 10 or less EE’s that has an office that isn’t open to the public.
   2. Must have:
      1. Written plan
      2. Person responsible for plan
      3. Plan available to EEs
      4. Evaluate hazards
      5. Implement plan with engineering controls & administrative controls
      6. Training
      7. Recordkeeping (Violent Incident Log)
         1. Government is supposed to be provide a template but they haven’t yet

 

SB 428 – TRO & EE harassment: Not effective until 2025 but will allow EE’s to seek harassment TRO against someone at the workplace. Current law is only for physical violence, this new law will include harassment. Employer can bring this claim on behalf of someone being harassed by another EE, a client, a vendor, etc.

 

SB 700 – Cannabis: Off duty cannabis use now allowed. If they show to work with substance or using, then the employer can take action. Protection is for off duty use only.

1. 1. Drug tests can’t be for nonpsychoactive cannabis metabolites because it is detecting residue of possible old use. New tests will have ability to screen for active THC and that’s what you have to use.
   2. Law doesn’t apply to building & construction trade EEs
   3. Can’t ask applicants if they are marijuana users

 

Criminal Background Check revisions: Must evaluate nature & gravity of offense, time that has passed, nature of the job sought.

1. 1. If not passing check, must send applicant an Adverse Action Letter with details. They have 7 days to response to the adverse action letter if emailed. Personal hand delivery = 5 days. Regular mail = 10 days. Regular mail outside of CA = 15 days. Regular mail outside US = 20 days.
   2. Many factors must be considered – Age/maturity, addiction, mental impairment, trauma, domestic abuse, sexual assault, etc. Need to listen and consider those things before making final decision.

 

Displaced hospitality workers from COVID (SB723) – recall law was set to reapply for those roles which was supposed to sunset end of 2024 and now is extended to 12/31/25. Restaurants, hotels, building services, private clubs, event centers.

 

SB 848 – Reproduction Adoption Loss Leave: 5 days of protected unpaid leave for EE’s with 30 days of employment. Employees can use sick leave. Covers multiple events but total leave shall not exceed 20 days within 12 month period.

 

SB 525 – healthcare workers minimum wage

1. 1. 25+ physicians only
   2. Covers most employees at these facilities, even non-medical roles

13.