From the signing of the Fair Pay Act and amendments to the Healthy Workplaces Healthy Families Act to changes to wage and hour laws, 2015 saw the adoption of a slew of legislation aimed at protecting both employees and employers.
The SLO Chamber has put together a condensed list of some new employment laws that took effect at the beginning of the year and one of the bigger amendments (Healthy Workplaces Healthy Families Act) that happened in July of last year.
For a complete list of legislation signed into laws click here.
As with most legislation there are many nuances to all new employment laws, so please consult an employment law professional if you have any questions on how these regulations apply to you.
Discrimination and Retaliation Protections
Gender Wage Equality
SB 358 The Fair Pay Act revises the current labor code which states that employers cannot pay an employee less than the rate paid to an opposite-sex employee in the same establishment for equal work.
This revises and expands the current prohibition and eliminates the requirement that the pay difference be “within the same establishment” and eliminates the use of the terms “equal work, effort, and responsibility.”
The bill prohibits an employer from paying any of its employees less than employees of the opposite sex for “substantially similar work, when viewed as a composite of skill, effort and responsibility.” Instead the bill prohibits an employer from paying any of its employees less than employees of the opposite sex for “substantially similar work, when viewed as a composite skill, effort and responsibility.” Additionally, the legislation places specific requirements on employers to affirmatively show that any wage differential is based entirely and reasonably upon one of more of the acceptable listed factors, including seniority and merit systems or other bona fide factors coupled with a showing of “business necessity,” as defined.
Wage and Hour
Piece-Rate Workers
AB 1513 sets forth new rules for employers with piece-rate employees. A piece-rate employee is someone who is paid a piece-rate for each unit produced or action performed regardless of time. The law requires employers to pay piece-rate workers for rest and recovery periods and other non-productive time at specified minimum hourly rates, separate from the piece-rate compensation.
The bill mandates that specific information, such as the total hours of compensable rest and recovery periods, must now be included on a piece-rate employee’s itemized pay stub.
The bill also contains a “safe harbor” provision for employers who, in the past, may not have properly paid piece-rate workers for rest and recovery periods of non-productive time and face liability. These employers will need to meet the statutory requirements by Dec. 15, 2016.
Public Works and Prevailing Wages
A number of bills signed last year relate to public works and prevailing wage. Employers who provide services or construction work on public works projects for the government or public-sector entities must pay the prevailing wage.
The bills include:
AB 219
AB 327
AB 852
Hiring
Unlawful use of E-Verify
AB 622 prohibits employers from using the federal E-Verify system at a time or in a manner not required by federal law to check the employment authorization status of an existing employee or of an applicant who has not received an offer of employment.
Employers can still use E-Verify to check the employment authorization status of a person who has been offered employment.
AB 622 also requires employers who use E-Verify to comply with specific employee notification requirements when they receive notice from a federal agency that the submitted E-Verify information does not match federal records.
Grocery Store Workers: Retention
AB 359 extends job protections to grocery store workers when a grocery store changes ownership – requiring the new owner to retain grocery workers employed by the previous owner for a specified period of time. AB 897 defines a grocery store establishment for purposes of law.
Workers’ Compensation
SB 623 ensures that all injured workers receive benefits by clarifying that workers cannot be denied benefits based on citizenship or immigration status.
AB 438 requires specified workers’ compensation forms, notices and fact sheets to be made available in additional languages by January 1, 2018.
SB 542 makes clarifications to medical provider network laws, including requirements about the information a medical provider network must post on its website.
SB 560 allows the Contractors State License Board to investigate and enforce the obligation of licensees to secure valid and current workers’ compensation insurance.
Leaves of Absence and Benefits
Mandatory Paid Sick Leave Amendments
The Healthy Workplaces Healthy Families Act was signed into law in 2014 and was enacted beginning July 1, 2015, but amendments were quickly made that went into effect on July 13, 2015. Just a reminder, the amendments include, among other things:
Clarify who is a covered worker;
Provide alternative accrual methods other than the one hour for every 30 hours worked;
Clarify protections for employers that already provided paid sick leave or paid time off before Jan. 1, 2015:
Provide alternative methods for paying employees who use paid sick leave.
The CalChamber has a free white paper on the Healthy Workplaces, Healthy Families Act amendments. Click here to read more.
For more information on these and other laws that took effect on Jan. 1, 2016 click here.