As promised last month, this is a brief summary of the new laws that will take effect on January 1, 2023 (unless stated otherwise):
1. California Family Rights Act (CFRA) leaves of absence must now be permitted to care for any person with whom the employee is in the "equivalent of a family relationship."
2. STATE MINIMUM WAGE FOR ALL EMPLOYERS $15.50/HOUR BUT MANY CITIES HAVE A HIGHER MINIMUM WAGE, SOME OF WHICH ONLY REQUIRE WORKING FOR 2 HOURS IN THAT CITY FOR THE HIGHER MINIMUM TO APPLY.
3. Because of the increased minimum wage, most exempt employees must be paid a salary of at least $64,480/year.
4. NEW: California Privacy Rights Act (CPRA). Employers covered by CPRA must comply with significant notice and disclosure requirements regarding personal information. Complex factors for determining which employers are subject to this law. Contact us for assistance
5. Unpaid bereavement leave is now a protected leave of absence for employers of five or more. Duration is up to five days, but employee must have been employed at least 30 days.
6. Fair Employment and Housing Act (FEHA) also now prohibits discrimination against employees or job applicants based on reproductive health decision-making, including the use of certain drugs, devices or medical services.
7. All employers must make pay scale information available to job applicants and employees upon request, and employers of 15 or more must automatically include pay scale information on job postings, including those postings made by others on behalf of the employer.
8. All employers must maintain a record of job titles and wage rate history for each employee during their entire employment and for three years after employment ends. Penalties for non-compliance range from $100 - $10,000.
9. In the event of an emergency condition, employees are permitted to leave or refuse to enter workplaces if they have a "reasonable belief that the workplace is unsafe." No adverse action may be taken against these employees, but this does NOT include COVID or other health pandemic.
10. .Fair Employment and Housing Act (FEHA) will prohibit discrimination against employees or job appllicants based on their use of cannabis off the job and away from the workplace. Many more details including use of pre-employment drug screening. Effective January 1, 2024.
11. CalSavers Retirement Savings Program (CalSavers) is expanding to reduce the employer size from at least five employees to at least one employee but excludes sole proprietorships and companies that only employ the owner. Employers covered by CalSavers must have their own employer-sponsored retirement savings program or be enrolled in CalSavers no later than December 31, 2025
Contact us with any questions or concerns. Don't forget you need your employee handbook updated.