Major California Employment Law Updates For 2023
Every year, the California Legislature enacts several laws that affect the workplace environment. At the Dias Law Firm, Inc. we understand that both employers and employees have busy schedules that may interfere with the ability to stay afloat of all the new laws, rules and regulations that take effect. As such, the Dias Law Firm, Inc. has provided a selective summary of laws that have gone into effect as of 2023, and laws that you will need to be aware of to ensure compliance therewith in the foreseeable future.
MINIMUM WAGE INCREASE
California now requires that the minimum wage for non-exempt employees be set at $15.50 per hour, despite the size of the employer. Originally, under California Labor Code § 1182.12(c)(3)(B), employers who had 25 or less employees were only required to raise their minimum wage to $15 per hour if the rate of inflation remained under seven (7) percent. From July 1, 2021 to June 30, 2022, the Department of Finance determined that the rate of inflation surpassed seven (7) percent, leading to the elimination of the distinction between the size of employers for the minimum wage standard to be set.
Although $15.50 per hour may be the standard, it does not necessarily mean it is the standard set for your city or county. For example, the City of Oakland will increase its minimum wage to $15.97 per hour, and the City of Santa Rosa will increase their minimum wage to $17.06 per hour. As such, it is critical for you to check your local city or county ordinance to comply with the minimum wage increase.
This further impacts ‘exempt’ employees who must now be compensated with a salary of at least $64,480 annually.
WAGE TRANSPARENCY
Under California Labor Code § 432.3, current employees are now entitled to pay scale information for their position. “Pay scale” is defined as “salary or hourly wage range that the employer reasonably expects to pay for the position.” The pay scale information for job positions must also be included in job postings where employers have at least fifteen (15) employees. Where employers have less than fifteen (15) employees, the pay scale must be provided to applicants when it is requested.
This Labor Code has also been amended to require employers to maintain job title and wage history records for every employee during their employment and an additional three years after that.
Failure to comply with Labor Code § 432.3 will expose an employer to civil penalties that can range from $100 to $10,000.
PAY DATA REPORTING
California Government Code § 12999 provided that private employers with 100 or more employees who are required to submit an Employer Information Report would also be required to deliver a pay data report to the Civil Rights Department. As a result of S.B. 1162, additional requirements have been implemented for employers to abide by. The code now requires that all private employers with 100 or more employees file the same. An additional report will be required to be submitted by employers who hired 100 or more employees through labor contractors.
Information that must be included within these reports consists of pay and hours-worked data by job category, sex, race and ethnicity.
Failure to comply with these reporting requirements will subject employers to civil penalties.
DISCRIMINATION AND RETALIATION
The Fair Housing and Employment Act (FEHA)—through S.B, 523—now prohibits employers from discriminating, harassing, or retaliating against any employee for their choice in using or relating to any reproductive health decision-making or requiring the disclosure of such information as a condition of employment, continued employment, or a benefit of employment from employees or applicants. This means that an employee or applicant who participates in using or accessing a drug, device, product, or medical service in relation to their reproductive health is protected.
FEHA will further expand protection for discrimination against employees who participate in marijuana use outside of the workplace. However, this law does not prevent an employer from operating a drug-free workplace and being able to reprimand employees who may possess or be under the influence of marijuana use, nor does it prevent the ability to drug-test for impairment as long as the tests are not focused on “nonpsychoactive” chemicals in the body. Although this law will not take effect until January 1, 2024, employers should start preparing how best to incorporate this policy change into their workplace.
California has also implemented safeguards to prevent employers from retaliating against employees who refuse to report to work or left the workplace as a result of the area affected by an “emergency condition.” S.B. 1044 defines “emergency condition” as conditions of disaster and extreme peril but excludes health pandemics.
WORKPLACE LEAVE
A.B. 1949 allows eligible employees to take bereavement leave from the workplace for up to five (5) days after the death of a “family member.” To be deemed as eligible, an employee must have been employed for at least thirty (30) days. The law applies to private employers with (5) or more employees where there is an absence of a collective bargaining agreement. This law would be an additional layer of protected leave that is distinct from leave under the California Family Rights Act (CFRA).
The CFRA has also been amended to allow employees the ability to take a leave of absence to care for a “designated person.” A “designated person” has been defined to mean any person who is related by blood to or is in close, familial association with the employee requesting the leave. However, an employee may be limited to one “designated person” per 12-month period.
CONCLUSION
Should you have any questions regarding the changes that have gone or will go into effect, the knowledgeable staff and attorneys at Dias Law Firm, Inc. can help with you in navigating your employment law issues. Contact them today for a consultation!
