AI in the Workplace
By Marco A. Lucido
The rise of AI and the speed at which employers are implementing AI into the workplace have inspired federal and state regulators to enact new laws in this area. The U.S. Equal Employment Opportunity Commission (EEOC) recently issued guidance on the use of AI systems in a range of HR-related tasks. The main takeaway from this guidance is that an AI-driven process may inadvertently discriminate against protected groups. In its guidance, the EEOC puts the burden of compliance on employers, meaning an employer may be liable for the effect of an algorithm created by a third-party vendor.
New Federal Salary Threshold for Exempt Employees: Impact on California Employers
By Ashley E. Cameron
The recent changes to the federal salary threshold for classifying employees as exempt from overtime pay will have minimal impact on California employers. On April 23, 2024, the U.S. Department of Labor announced an increase in the federal salary requirements for exempt employees, effective July 1, 2024, with a further increase on Jan. 1, 2025. Despite these changes, California’s higher minimum salary requirements for exempt employees, currently set at $5,546.67 per month ($66,560 annually), remain in effect. To be properly classified as exempt, California employees must meet both the salary and specific job duties criteria, which are more stringent than the federal standards.
New Model Template for Workplace Violence Prevention Plans
By Marco A. Lucido
Starting July 1, 2024, new Cal/OSHA rules require most businesses in California to establish a workplace violence prevention plan. The plan, which can be part of an existing Injury and Illness Prevention Program (IIPP) or a separate document, must be in writing, accessible to employees, and include specific procedures for reporting and responding to workplace violence, among other elements. Cal/OSHA published a model plan and fact sheet to assist employers, which can be accessed here.
In addition to creating the plan, employers must provide annual workplace violence training and maintain a log of all incidents of workplace violence, including details such as the date, location, description, and response.
Happy Anniversary Fenton & Keller!
Happy one-year anniversary to Fenton & Keller’s King City office at 218 Bassett St., Suite A! The grand opening on June 12, 2023, featured a ribbon-cutting ceremony, a special presentation from Sen. Anna Caballero’s office, local food, wine, office tours, and a meet-and-greet with our team.
Led by attorney and long-time South County resident John E. Kesecker, the office includes a reception area, four offices, a conference room, and a kitchen. John, Stefanie King, Kerry Kesecker, and Lesly Valdez are dedicated to serving the King City community, with John spending three to four days a week there. Fully networked with our Monterey office, we are proud to be a convenient local presence for South County residents.
“We are so proud to be part of the King City community,” said John. Here’s to many more years of service!
Update on Worker Classification Rule
On Jan. 10, 2024, the U.S. Department of Labor published a final rule that impacts the classification of workers as independent contractors or employees. Effective March 11, 2024, this rule reinstates a pre-2021 multi-factor test under the Fair Labor Standards Act, replacing the simpler two-factor test. This change makes it harder to classify workers as independent contractors under federal law.
For California employers, this federal rule won’t change the approach to classifying workers because California uses the stricter “ABC” test, pursuant to which workers must generally meet each of the following requirements to qualify as an independent contractor: (A) the worker is free from the control and direction of the hiring entity in connection with the performance of the work; (B) the worker performs work that is outside the usual course of the hiring entity’s business; and (C) the worker is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed. Multi-state employers should review their classification procedures to ensure compliance with both federal guidelines and state-specific standards.