January 12, 2021
This past year saw the enactment of a variety of new employment laws in California, including new disclosure requirements for employers and changes to the independent contractor landscape. In addition, the COVID-19 pandemic has touched nearly every sector of society, in nearly every corner of the world, and employment law in California is certainly no exception. The pandemic has ushered in a new legal landscape marked by heightened requirements for employers stretching from 2020 into 2023.
Below, we outline four new laws that require attention from California employers in the new year: (1) the new requirements for California employers in reporting wage and hour data; (2) the continuing evolution of the worker classification standard and the recent passage of Proposition 22; (3) the new COVID-19 notice requirements that will require employers to notify employees of possible exposure; and (4) the new Workers’ Compensation Disputable Presumption under SB 1159. We a
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The impact of the legal definition of “employee” versus “independent contractor” under the Fair Labor Standard Act (“FLSA”) and other employment laws cannot be understated. The FLSA’s minimum wage and overtime requirements along with a vast array of other legal obligations employers owe to employees simply do not apply to independent contractors. Unhelpfully, various regulatory agencies and courts have looked in the past to similar, but not quite identical, tests of independent contractor status. With so much riding on the right classification both in terms of lawsuits and dollars, any clarification of which test an employer should look to is absolutely critical guidance to U.S. businesses.
By now, you should all know about California’s
Dynamex Operations West, Inc. v. Superior Court decision, which was the impetus for changing the state’s worker classification law. If you need a refresher on
Dynamex and the ABC test, you may read more about it here.
When the California Supreme Court issued its
Dynamex decision in 2018, it adopted the ABC test for determining whether a given worker is properly classified as an independent contractor or an employee. However, the Court did not decide whether the ABC test applied to those cases that pre-dated the
Dynamex decision, or only applied prospectively. As such, its retroactive application has become a question for which nearly everyone is seeking an answer to the tune of several lawsuits and bills at the state Capitol.
[co-author: Crystal Miller-O Brien]
By any measure, 2020 presented novel, life-changing experiences for all of us. The resilience and focus required to endure the seemingly relentless wave of changes have helped to hone the skills of most workplaces and allowed them to pivot and survive.
In line with our hope that 2021 will afford a bit more stability and considerable success, here are some of the significant, non-COVID-19-related legal changes applicable to California employers that human resource professionals should be preparing to manage.
Annual Pay Data Reporting to DFEH (SB 973-Effective January 1, 2121, and Compliance Completion by March 31, 2021)
On or before March 31, 2021, private employers with 100 or more employees nationwide, with at least one employee performing work in California, must submit an annual pay data report to the Department of Fair Employment and Housing (DFEH). The report is similar to reports employers of the same size must file with the federal Equal
2021 California Employment Law Roundup Tuesday, December 22, 2020
As 2021 is quickly approaching, employers in California are reminded to make any necessary changes to their policies due to the expansion of the California Family Rights Act and other new legislation. We have set forth below a brief summary of some of the key new laws impacting many California employers in 2021.
SB 1383 – Expansion of California Family Rights Act
The current California Family Rights Act (“CFRA”), modeled largely after the federal Family and Medical Leave Act (“FMLA”), requires employers with 50 or more employees to provide protected leave rights to employees with at least one year of service, who have worked at least 1,250 hours during the past 12 months, and who are employed at a worksite with 50 or more employees within 75 miles. However, effective January 1, 2021, SB 1383 eliminates the requirement that employees work at a worksite with 50 or more employees within 75 miles