New features of California employment law that are set to go into effect in 2020 include arbitration restrictions, an extended statute of limitations, a prohibition against “no rehire” clauses in employment agreements, an increase in the minimum wage, a new way of distinguishing between an employee and an independent contractor, and other reforms.
California employment law is constantly evolving, and the consequences of failing to keep up with the law could be devastating to your business. The following is an abbreviated synopsis of a few of the new developments:
Restrictions on arbitration agreements
Under California Labor Code § 432.6, you cannot require either an employee or a job applicant to agree to arbitrate disputes as a condition of their employment. You are also prohibited from retaliating against an employee or applicant who refuses to agree to arbitration. This law might be subject to legal challenges, however.
Extension of the statute of limitations deadline for filing FEHA discrimination, harassment, and retaliation claims
The statute of limitations for filing a FEHA claim for discrimination, harassment or retaliation claim under the California Fair Employment and Housing Act (FEHA) has been extended to three years from one year. Once an employee has filed such a claim, however, he still has only one more year to file a civil lawsuit on that clam.
Increases in the minimum wage
The California minimum wage will increase to $12 per hour for employers with fewer than 20 employees and $13.00 per hour for employers with more than 25 employees. In Los Angeles, however, the minimum wage will be $14.25 per hour for employers with more than 25 employees.
A prohibition against “no rehire” clauses
Your employment settlement agreement may not include a “no rehire” provision unless you have a good-faith belief that the employee in question committed sexual harassment or assault.
A new way to distinguish between employees and independent contractors
This distinction is significant because employees are granted far greater rights to various benefits than independent contractors are. The California Superior Court’s 2018 decision in Dynamex v Superior Court changed the standards for how this distinction is made, in a manner that is likely to result in many more people being categorized as independent contractors. The effect on the commercial trucking industry could be particularly significant.
Accommodation for lactating mothers
California employers must develop and execute a lactation accommodation policy for employees who are lactating. Employers must provide a bathroom with electricity, a sink, a refrigerator, a place to sit and a place for a breast pump and other items. California law already requires employers to provide break time for lactating mothers.
We’re Waiting to Hear from You
If you are concerned about how to comply with California’s upcoming employment law reforms, contact CKB Vienna today. Call one of our offices in Rancho Cucamonga, Riverside, and Los Angeles, or contact us online to schedule a consultation. We serve clients in Rancho Cucamonga, San Bernardino County, Los Angeles County, Orange County, and Riverside County.