Question: I try my best to stay up to date on new employment laws. I just realized that it’s already July and I’m wondering if there have been any recent changes and what I should expect heading into 2024.
Answer: In California, there is no off-season for employment law. This year, the Legislature, the Courts, and state and local regulators have been busy crafting new laws and regulations that may affect many employers. Below is a list of some recent developments, as well as some new potential laws on the horizon.
• Minimum Wage Rate Increases: Effective January 1, 2023, the minimum wage for all employers is $15.50. Many cities and counties have ordinances with higher minimum wage rates than California’s state minimum wage. Many cities and counties update their minimum wage rates mid-year. Effective July 1, 2023, the following localities will see increases to their minimum wage rates: Alameda, Berkeley, Emeryville, Fremont, Los Angeles City, Los Angeles County, Malibu, Milpitas, Pasadena, San Francisco, Santa Monica, and West Hollywood.
• Arbitration: Federal and state courts have been busy issuing numerous decisions affecting the enforceability of arbitration agreements for employees. Earlier this year, the federal Ninth Circuit Court of Appeal held that California’s ban on mandatory arbitration agreements was preempted by federal law. In the state court system, several Courts of Appeal have weighed in on the extent to which employers can limit employees from pursuing representative claims under California’s Private Attorney Generals Act. This fall, the California Supreme Court is expected to issue an important decision to give employers some clarity on the scope of enforceable arbitration agreements.
• Senate Bill 553 (Occupational safety: workplace violence: restraining orders and workplace violence prevention plan): If approved, this legislation would establish new workplace violence prevention standards in California. Specifically, it would require most employers to establish, implement, and maintain a workplace violence prevention plan. It would also require covered employers to record information in a violent incident log about every incident, post-incident response, and workplace violence injury investigation. These requirements would be separate from and in addition to employer requirements under the current Cal/OSHA Injury and Illness Prevention Program (IIPP).
• Revival of the Industrial Welfare Commission: The current State budget bill contains a provision that would potentially revive the California Industrial Welfare Commission (IWC). The IWC was created over 100 years ago to regulate the wages, hours, and conditions of employment in California. It was disbanded in 2004 as part of the 2004-2005 budget agreement. If revived, the oversight of the IWC would impact nearly every employer in California. The commission would have the power to convene industry-specific wage boards to regulate the wages, hours, and working conditions in various industries through new orders, and the authority to issue subpoenas and conduct discovery.
• Senate Bill 403 (Discrimination on the Basis of Caste): If passed, this bill would amend the Fair Employment and Housing Act to include “caste” status as a characteristic that is protected from discrimination and harassment. The bill defines “caste” as an individual’s perceived position in a system of social stratification on the basis of inherited status.
Because the laws affecting employers in California are ever-changing, employers and human resource professionals should monitor these developments and consult their employment counsel to ensure they remain up to date on their legal obligations.