11/17/2021
It’s November! That means the legislature and the governor are finished making new laws to go into effect on January 1. Do you know what’s in store for your business next year? Just a few highlights (there are more):
1. If you are tempted to intentionally skirt wage and hour laws (a risky and potentially expensive proposition at any time), willful “wage theft” by an employer is not just expensive now, it’s a crime. See new Penal Code section 487m.
2. Small employers 5-19 employees) who are facing a DFEH complaint can elect mediation through the Department (a good idea, usually). New law requires the department to advise employers about that option.
3. Separating or settling an employee’s claim and want a release agreement? Obtaining a release from an employee in exchange for a raise, promotion or continued employment? The list of things that can’t be confidential has expanded. Make sure you know what those are (or consult an attorney) and don’t just use a form you’ve used before as it can affect the enforceability of that agreement. See Code of Civil Precedure section 1001 and Gov’t Code section 12964.5.
4. Facing a Labor Commissioner audit? Received a citation or calculation of wages and penalties due? If you own real property the Commissioner’s office can now place a lien on your property without getting a court judgment first. (Labor Code section 90.
5. AB5 exemptions have been tweaked again for certain relationships and industries (mostly extending sunset provisions but a few changes). Never heard of AB5? Where ya’ been?😊
6. All CA employers (even those with a single employee) should review whether they have all the required posters (Cal Chamber and others have combined posters for sale) and that all the blanks are filled in. If your employees are virtual, you still have to post but you can now send them those notices electronically (Labor Code section 1207).
7. If you are a contractor on public works projects, your reporting requirements just got a bit more complicated. See AB1023.
8. All contractors: you could be liable if your subs don’t pay their employees properly so you may want to add an indemnity provision and warranty that subs are properly paying employees to your subcontract agreements. See Labor Code sections 218.7 and 218.8. You’re still liable but may be able to collect from the subs more easily. To protect yourself, you can insist on reviewing subs’ payroll and practices.
9. Have an arbitration agreement that requires you to pay some or all costs? If you don’t pay them within 30 days after they’re due, you could lose your right to compel arbitration. (SB 762). Is your employment arbitration requirement enforceable? A question requiring an entire post, or several, even.
The good news is, there are fewer job killer laws this year than in years past, but CA employers cannot sit back and expect things to stay the same year over year. We’re here if you have questions: (805) 225-1773; [email protected].