ASAP
California Imposes New Compliance Obligations on Employers
The COVID-19 pandemic resulted in the closure of the California Legislature for long stretches of time this year. The work of the body continued on, however, and at the end of the session it passed the usual flurry of labor and employment bills and sent them to Governor Newsom. Now in his second year in office, the governor has had to deal with one crisis after another, including health and safety issues relating to the pandemic, the impact of COVID-19 on the state’s economy and tax revenues, and historic wildfire activity. Nevertheless, the governor did sign into law approximately 20 new bills that will impact those businesses with operations in the Golden State.
Here, we very briefly summarize some of the more significant developments applicable to employers operating in California. Unless otherwise indicated, these new laws will take effect on January 1, 2021, leaving employers with little time to prepare. In some cases, links are provided to our publications that provide additional detail and information. 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 complimentary webinar on October 6, 2020.
COVID-19 in the Workplace | |||
Law | Main Topic | Summary | Effective Date |
| AB 685 | Notification to Employees | Allows the state to track COVID-19 cases in the workplace more closely. Expands Cal/OSHA’s authority to issue Stop Work Orders for workplaces that pose a risk of an “imminent hazard” relating to COVID-19. Requires notice in the event of a COVID-19 exposure in the workplace, including providing written notice to “all employees” who were at the worksite within the infectious period who may have been exposed to the virus. See Littler’s ASAP for additional information. | January 1, 2021 |
| AB 1867 | Supplemental COVID Sick Leave | Requires up to 80 hours of COVID-related paid leave for workers at “hiring entities” with more than 500 workers. Applies to contractors of “food sector” businesses. Includes requirements for recordkeeping and reporting available leaves on wage statements. See Littler’s Insight for additional information. | September 19, 2020 through December 31, 2020 (unless extended due to FFCRA being extended) |
| AB 1867 | Food Sector Workers – Handwashing | A food employee working in any food facility shall be permitted to wash their hands every 30 minutes and additionally as needed. | September 19, 2020 |
| SB 1159 | Workers’ Compensation – Presumption | Creates a “disputable presumption” of workers’ compensation coverage for employee illness or death resulting from COVID-19 on or after July 6, 2020 through January 1, 2023. Claims must be rejected within 30 or 45 days (not the usual 90 days) or the injury is presumed compensable. Requires specific notice to claims administrators. See Littler’s ASAP for additional information. | September 17, 2020 |
| AB 2537 | Acute Care Hospital PPE Supplies | Acute care hospitals must supply PPE to employees who provide direct patient care, and ensure that employees use PPE. Beginning April 1, 2021, acute care hospitals must maintain a three-month supply of PPE, and provide an inventory of PPE to the Division of Occupational Safety and Health upon request. See Littler’s ASAP for additional information. | January 1, 2021 and April 1, 2021 |
Independent Contractors | |||
Law | Main Topic | Summary | Effective Date |
| AB 2257 | ABC Test, Exceptions | Maintains the ABC test for independent contractor status, but adds 26 new exceptions. Broadens the “referral agency” exception. Somewhat clarifies the “business to business” exception. See Littler’s Report for additional information. | September 4, 2020 |
| AB 323 | Newspaper Carriers – One-Year Exception | Extends for one year the exception from the ABC test for newspaper carriers. See Littler’s ASAP for additional information. | January 1, 2021 |
Leaves of Absence | |||
Law | Main Topic | Summary | Effective Date |
| AB 1867 | Supplemental Paid Sick Leave (COVID) | Requires up to 80 hours of COVID-related paid leave for workers at “hiring entities” with more than 500 workers. Applies to contractors of “food sector” businesses. Includes requirements for recordkeeping and reporting available leaves on wage statements. See Littler’s Insight for additional information. | September 4, 2020 |
| AB 1867 | Small Employer CFRA mediation | Coinciding with expansion of California Family Rights Act (CFRA) to small employers (SB 1383), creates Department of Fair Employment & Housing (DFEH) “small employer family leave mediation pilot program” for employers with between 5 and 19 employees. | September 4, 2020 |
| AB 2017 | Kin Care Leave | Provides that the designation of sick leave taken for kin care shall be made at the sole discretion of the employee. | January 1, 2021 |
| AB 2399 | Family Temporary Disability Insurance | Expands Family Temporary Disability Insurance (FTDI) program to include absences due to military service of family member. | January 1, 2021 |
| AB 2992 | Victim of Crime Leave | Expands leave for victims of domestic violence, sexual assault or stalking to include leave for the victim of any crime that caused physical injury or mental injury with a threat of physical injury. | January 1, 2021 |
| SB 1383 | CFRA expansion | Expands CFRA coverage to employers of five or more employees. Expands categories of family members covered by CFRA leaves. See Littler’s ASAP for additional information. | January 1, 2021 |
Wage and Hour | |||
Law | Main Topic | Summary | Effective Date |
| AB 1512 | Security Guards – Rest Breaks | Allows employer to require that security guards covered by collective bargaining agreements, paid at least one dollar more than minimum wage, remain on premises and on call during rest breaks. | January 1, 2021 |
| AB 1947 | Statute of Limitations for Wage/Hour Discharge – Discrimination Complaints | Lengthens from six months to one year the statute of limitations for bringing a claim of discharge of discrimination in violation of any law under the jurisdiction of the Labor Commissioner. | January 1, 2021 |
| AB 2231 | Public Works | Lowers threshold for qualifying as a public works project for purposes of minimum wage. See Littler’s ASAP for additional information. | January 1, 2021 |
| AB 2479 | Petroleum Facility Safety-Sensitive Employees– Rest Breaks | Allows employer to require that safety sensitive employees at petroleum facilities covered by collective bargaining agreements, paid at least thirty percent more than the state minimum wage, remain on premises and on call during rest breaks. | January 1, 2021-January 1, 2026 |
| AB 2588 | Health Care Worker Training | Requires acute care hospital to reimburse certain training expenses of employees and job applicants. See Littler’s ASAP for additional information. | January 1, 2021 |
| AB 3075 | Report of Wage and Hour Violations | Requires that corporations register with the state information regarding violations of the wage orders or Labor Code. | January 1, 2021 |
| SB 1384 | Representation of Financially Disabled Persons in Arbitration | Labor Commissioner will represent financially disabled persons when wage claims are referred to arbitration. | January 1, 2021 |
Unemployment Insurance – Work Sharing | |||
Law | Main Topic | Summary | Effective Date |
| AB 1731 | Unemployment – Work Sharing | Automates parts of California’s work sharing program. See Littler’s ASAP for additional information. | January 1, 2021 |
Equal Employment Opportunity | |||
Law | Main Topic | Summary | Effective Date |
| AB 979 | Corporate Boards – Diversity | Requires that a publicly traded corporation with principal executive office in California appoint members of underrepresented communities to Board of Directors. See Littler’s Insight for additional information. | January 1, 2021 |
| SB 973 | Pay Data Reporting | Requires businesses to report to DFEH pay data, for various categories of employees. See Littler’s ASAP for additional information. | January 1, 2021 |
Privacy | |||
Law | Main Topic | Summary | Effective Date |
| AB 1281 | One-Year Exclusion of HR Data from CCPA | Grants another one-year extension of the exclusion of certain Human Resources data from coverage under the California Consumer Privacy Act. See Littler’s Insight for additional information. | January 1, 2021 |
Human Resources | |||
Law | Main Topic | Summary | Effective Date |
| AB 1963 | Human Resources – Mandated Child Abuse Reporting | Human Resources professionals who work for businesses that employ minors, and employ five or more employees, are mandated child abuse reporters. Such persons must be given mandated reporting training, and a written statement describing their obligations. See Littler’s ASAP for additional information. | January 1, 2021 |
Notable Vetoes | |||
Law | Main Topic | Summary | Effective Date |
| AB 1066 | Unemployment – Presumption Of Eligibility | Would have presumed eligibility for UI benefits if employer failed to provide timely paperwork to EDD. | N/A |
| AB 3053 | Process For Unpaid Wages Claims | Would have created an online portal for filing wage claims. | N/A |
| AB 3216 | Right of Recall Following Layoff/Furlough | Would have required that certain employees laid off as a result of public health emergencies to be recalled in reverse order of seniority. | N/A |
| SB 1102 | Notice to H-2 A Employees | Would have required employers of H-2A employees to provide specified notices of public health emergency. | N/A |
| SB 1257 | Household Domestic Workers – Safety Standards | Would have imposed OSHA safety standards on homeowners who employ domestic help. | N/A |
