Rules Affecting California Employers in 2019
Happy New Year! Below is a summary of the 2019 changes that will affect California employers. Employment Law updates!
California Minimum Wage Increasing
California’s minimum wage increases on January 1, 2019. Specifically, employers with 26 or more employees must pay $12 per hour. Meanwhile, employers with 25 or fewer employees must pay $11 per hour. A new minimum wage poster has been released with this update. Therefore, make sure you post it.
The increase applies to exempt employees as well. In addition, an exempt employee must meet duties requirements and earn at least $960 weekly, $4,160 monthly, or $49,920 annually (for employers with 26 or more employees).
Lactation Accommodation
State law requires employers to provide a location, other than a toilet stall, for employees to express breast milk. The location must be private and close to the employee’s work area. Effective January 1, 2019, employers must provide a space other than a bathroom or toilet stall. Importantly, employers cannot designate a bathroom as the lactation space. Employment Law updates!
Salary History
New guidance clarifies the 2018 changes regarding salary history. Employers may no longer ask about prior salaries. However, they may inquire about an applicant’s salary expectations for the position. Only external applicants—not current employees—are entitled to a pay scale upon request. Also, employers must provide the pay scale only after the initial interview. The scale only needs to show salary or hourly wage ranges.
Confidentiality Clauses in Settlement Agreements (Senate Bill 820)
This law limits “secret settlements.” It prohibits settlement agreements in cases of alleged sexual harassment, assault, or discrimination from including confidentiality clauses that prevent disclosure of factual information regarding the claim. The only exception is the claimant’s identity, provided it is not a government agency or public official.
As a result, this law prohibits and voids any provision that prevents disclosure of information related to civil or administrative complaints of sexual assault, sexual harassment, and workplace harassment or discrimination based on sex.
Women on Boards (Senate Bill 826)
California-based publicly held corporations must have at least one female director. Female directors are people who self-identify as women, regardless of sex assigned at birth. Corporations may need to increase the total number of directors to comply. Moreover, minimum seat requirements must be filled by women, proportional to the total number of seats, by December 31, 2021. Employment Law updates!
In addition, the Secretary of State must publish a report by July 1, 2019, listing corporations with at least one female director. Beginning March 1, 2020, annual reports must show:
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Corporations that complied with requirements in 2019.
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Corporations that moved headquarters in or out of California.
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Corporations subject to these provisions but no longer publicly traded.
Corporations that fail to fill a seat with a female director for any portion of the calendar year will face fines: $100,000 for the first violation and $300,000 for subsequent violations. Also, late filing of board member information with the Secretary of State carries a $100,000 fine. Compliance deadline: December 31, 2019.
New Mediation Disclosure Requirement
Lawyers must provide clients with a printed disclosure describing mediation confidentiality rules. Additionally, the disclosure must be provided as soon as reasonably possible before the client agrees to participate in mediation.
Paid Family Leave
Effective January 1, 2021, Paid Family Leave applies to employees taking time off related to covered active duty status of the employee’s spouse, registered domestic partner, child, or parent who serves in the U.S. Armed Forces.
These situations, called qualifying exigencies, include official ceremonies, briefings, childcare changes, financial or legal arrangements, counseling, and spending time with the service member during rest and recuperation leave.
Sexual Harassment Training
Currently, employers with 50 or more employees must provide supervisors with two hours of sexual harassment training within six months of hire or promotion.
However, effective January 1, 2020, all employers with five or more employees must train supervisors for two hours and all other employees for one hour within six months of hire or promotion. Training must repeat every two years. Temporary and seasonal employees must complete training within 30 days of hire or after 1,000 hours worked, whichever comes first. Furthermore, temporary service agencies must train employees they place with clients.
Finally, the Department of Fair Employment and Housing (“DFEH”) will provide an online training course that meets the new requirements.
Updated FMLA Forms
The federal Department of Labor (“DOL”) released updated forms for managing leave under the Family and Medical Leave Act (“FMLA”). The forms expire August 31, 2018. Therefore, employers should use only the current forms.
In California, do not use the DOL medical certification forms for FMLA or California Family Rights Act (“CFRA”) leave. These forms request medical information, which California law prohibits.
Questions
If needed, contact Amanda J. Heitlinger or Raquel A. Hatfield to discuss these changes or for employment law assistance. They can be reached (209) 876-8886.