We have turned the page on a new year and much like previous years, January 1st brings with it a slew of new employment laws. This article provides a brief summary of some of the most pertinent employment laws employers should get up to speed on for 2021.
Attorneys Fees for
Whistleblower Retaliation Claims and Extension of Filing Period for DLSE Claims
(AB 1947)
AB 1947 expressly authorizes a
court to award reasonable attorneys fees to a plaintiff who prevails in a
“whistleblower” action under Labor Code Section 1102.5. In addition, this new
law lengthens the period of time in which employees can file complaints with
the California Division of Labor Standards Enforcement (DLSE). Employees who
believe they have been wrongfully discharged or discriminated against in
violation of any law enforced by the Labor Commissioner now have one year to
file a DLSE complaint.
Workplace Exposure Reporting
Due to COVID-19 (AB 685)
AB 685 imposes new employer
reporting requirements and allows the state to track COVID-19 cases in the
workplace. AB 685, which went into effect on January 1, 2021, requires
employers to notify their employees, employees of subcontracted workers and
union representatives of suspected and diagnosed cases of COVID-19.
Specifically, employers are required to provide written notice to employees
(and subcontracted employees who were at the worksite and may have been
exposed) and employee representatives of their exposure within one business day
of a “potential exposure” based on a positive confirmed case of COVID-19 in the
workplace. The notice must also provide information regarding COVID-19-related
benefits that employees may receive, including workers’ compensation benefits,
COVID-19 leave, paid sick leave, and the company’s anti-discrimination,
anti-harassment and anti-retaliation policies. Moreover, the notice must provide
employees information related to the company’s disinfection protocols and
safety plan to eliminate any further exposures, per Centers for Disease Control
and Prevention guidelines.
If there is an “outbreak” of
COVID-19 cases at the same worksite within a 14-day period, the employer must
also report the outbreak to the local health department within 48
hours. More information about AB 685 can be found here in our prior blog post.
Expansion of Paid Family Leave
(AB 2399)
Prior to AB 2399, the Paid Family
Leave (PFL) program provided wage replacement benefits for workers who took
time off work to care for a seriously ill family member or to bond with a minor
child within one year of birth or placement. Effective January 1, 2021, PFL
will be expanded to provide wage replacement benefits to workers who take time
off to participate in a qualifying exigency related to the covered active duty
or call to covered active duty of the worker’s spouse, domestic partner, child
or parent in the Armed Forces of the United States.
Independent Contractor Law has
New and Expanded Exemptions (AB 2257)
Most employers know that AB 5
adopted the ABC test from the case Dynamex v. Superior Court in
order to determine whether workers are properly classified as employees or
independent contractors. Under the ABC test, workers in California are presumed
to be employees unless the business benefiting from the worker’s services can
prove all three prongs of the ABC test. This is still the test for
independent contractor classification in California; however, AB 2257 expanded
the universe of available exemptions from the ABC test. AB 2257, which went
into effect on September 4, 2020 upon being signed into law, makes it easier
for entertainers, freelance writers and photographers, and digital content
aggregators to maintain independent contractor status. The law also amended
certain existing exemptions under AB 5, including the business-to-business,
referral agency and professional services exemptions.
Kin Care and Sick Leave (AB
2017)
AB 2017 amends Labor Code Section
233, which permitted employees to use half of their annual accrual of sick
leave to care for a family member. The amendment now gives employees the
sole discretion to designate leave taken to care for a family member as sick
leave.
Small Businesses Now Covered by
Expanded CFRA (SB 1383)
Prior to this year, the California
Family Rights Act (CFRA) made it an unlawful employment practice for any
employer with 50 or more employees who work within 75 miles of the work site to
refuse to grant a request by an eligible employee (i.e. worked 1,250 hours
during the previous 12 months) to take up to 12 workweeks of unpaid job
protected leave during any 12-month period to bond with a new child of the
employee or to care for themselves, a child, a parent or a spouse.
Effective January 1, 2021, SB 1383
now makes CFRA apply to all employers with five or more employees. It also
expands the definition of “family care and medical leave” to now include
grandparents, grandchildren and siblings as well as a child of any age. Under
the amended law, an employer who employs both parents of a child now must also
grant CFRA leave to each employee for that child’s health condition, birth or
placement. Finally, SB 1383 makes it an unlawful employment practice for any
employer to refuse to grant a request by an employee to take up to 12 workweeks
of unpaid protected leave during any 12-month period due to a qualifying
exigency related to the covered active duty or call to covered active duty of
an employee’s spouse, domestic partner, child or parent in the armed forces of
the United States. For more information about this law, see our prior blog
post here.
Minimum Wage Increases
As of January 1, 2021, California’s
minimum wage increased to $14 per hour for employers with 26 or more employees
and $13 per hour for employers with 25 or fewer employees. Employers should
keep in mind that this increase also affects minimum salary requirements for
exempt employees. In addition, employers should take note of any local
minimum wage increases because whatever rate is higher – state or local – will
control for purposes of providing the proper minimum wage.
Permissible No-Rehire
Provisions in Settlement Agreements (AB 2143)
Before AB 2143, the law prohibited
“no rehire” provisions in settlement agreements under California Code of Civil
Procedure Section 1002.5. AB 2143 amended this law to permit no-rehire
provisions in settlement agreements when the “aggrieved person” did not bring
the claim in good faith. Further, the law clarifies that the prior no-rehire
exception for sexual harassment and sexual assault claims required that the
employer made a documented and good-faith determination that the subject
individual engaged in sexual harassment or sexual assault before the aggrieved
person filed a claim. Additionally, AB 2143 expands the sexual harassment and
sexual assault exception to allow no-rehire provisions in instances where the
employer determined the employee engaged in criminal conduct.
Annual Reporting Pay Data to
the DFEH (SB 973)
SB 973 expands the reporting
requirements for employer Information Reports (EEO-1). Private employers with
100 or more employees that are required to file an annual EEO-1 under federal
law are now also required to submit payroll data to the Department of Fair
Employment & Housing (DFEH). This report must contain information about
employees’ race, ethnicity and gender in various job categories. The report is
due on or before March 31, 2021.
Disputable Workers’
Compensation Presumption (SB 1159)
On September 17, 2020, Governor
Newsom signed SB 1159 into law, which went into effect immediately for all
employers. SB 1159 provides that a “disputable presumption” exists for an employee
who suffers illness or death resulting from COVID-19 on or after July 6, 2020
through January 1, 2023. The presumption is that the illness or death related
to COVID-19 is an occupational injury such that the employee is entitled to
workers’ compensation benefits. The employer may dispute this presumption
with evidence that it had measures in place to reduce potential transmission of
COVID-19 in the employee’s workplace and/or evidence of the employee’s
non-occupational risks of COVID-19 infection.
Victims of Crime or Abuse
Receive Further Protections (AB 2992)
Effective on January 1, 2021, AB
2992 amends California Labor Code sections 230 and 230.1 by prohibiting an
employer from “discharging, or discriminating or retaliating against, an
employee who is a victim of crime or abuse[,] for taking time off from work to
obtain or attempt to obtain relief.” AB 2992 expanded upon the exiting law
which provided protected leave for employees who were victims of domestic
violence, sexual assault or stalking to now include leave for victims of other
crimes or offenses “that caused physical injury or that caused mental injury
and a threat of physical injury.” The new law also provides protected leave for
an employee “whose immediate family member is deceased as a direct result of a
crime” and extends the types of documentation required for leave eligibility to
verify that a crime or abuse occurred.
This publication is general in nature and
is not intended to replace professional legal advice. Questions regarding
specific matters or circumstances should be discussed with legal counsel.