It’s not a surprise there are employment law changes each year that may affect your company or employees; rather, it’s a question of how much each will affect you. While this is a fairly long list, there are more laws we didn’t list here. Unless otherwise noted, everything is effective 1/1/2017 and relates to California employees.
Federal Minimum Salary, eff. 12/1/2016 — We’ve been hearing about this all year but now it’s time to make plans. The new minimum will be $47,476 and next week’s article will be devoted to this major change.
Minimum Wage (SB3) — We knew this was coming but it’s time to budget increases for any minimum wage CA workers to $10.50/hour. Workers within San Diego city limits will increase to $11.50/hour. Please check your local area carefully because there are numerous cities with their own minimum wage.
Minimum Wage Contested Violations (AB2899) — Employers must post a bond when contesting a Labor Commissioner ruling that minimum wage wasn’t paid. The bond is equal to the unpaid wages and is issued in favor of the employee.
Payroll (AB1847) — You are already required to provide employees with a notice stating they may be eligible for a Federal Earned Income Tax Credit (EITC) but now you’ll also need to provide notice they may be eligible for a state EITC. These must be sent out within a week of when you provide an annual wage summary, such as a W2 or 1099 to workers.
Local Wage Enforcement (SB1342) — Local government officials may now issue subpoenas and report non-compliance to local superior court judges. The intent is to encourage cities and counties to create laws combating wage theft.
Janitorial Worker Protections (AB1978), eff. 7/1/2018 — This law provides new protections for janitorial staff, including employer registration with the Labor Commissioner and harassment prevention training.
Gender-Neutral Restrooms (AB1732), eff. 3/1/2017 — Who didn’t see this coming? You can no longer have your restrooms designated as “men” or “women” unless they have multiple stalls. If you have restrooms designed for one-at-a-time use, you must change the sign on the door so either gender may use it.
Overtime for School Teachers (AB2230), eff. 7/1/2017 — This bill increases the amount of pay certain teachers must receive to be exempt from overtime pay.
Hair/Nail Salon Licensure Requirements (AB2437, AB2025), eff. 7/1/2017 — All licensed establishments must post a notice regarding workplace rights and the wage and hour laws. In addition, license applicants must be provided with basic labor law education when being schooled.
Fair Pay Act (AB1676, SB1063) — AB1676 states prior salary alone cannot be used to justify compensation differences. SB1063 extends the original act to include racial and ethnic wage disparity.
Immigration-Related Protection (SB1001) — It is currently illegal under Federal law to ask for more or different documentation than is stated on the Form I-9 or to refuse documents that appear to be genuine. State law has now added its weight to these protections.
Paid Family Leave Benefits (AB908), eff. 1/1/2018 — Employees filing for Paid Family Leave supplemental pay may now receive up to 60-70% of their earnings, depending upon their income. In addition, the current 7-day waiting period will be removed.
Driving (AB1785) — This amends the current law regarding use of devices while driving. Drivers can use their hand to activate or deactivate a device with a single tap or single swipe of a device that is mounted in the vehicle. Otherwise, hands off!
There are a lot of legal changes and updates related to pay, in particular, this time. Let us know if you need help understanding how a particular law may affect, or be implemented in, your company.
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