Attention California Employers! Many laws have been updated in 2024. If you have employees in California, here's what you need to know:
Minimum Wage: Minimum wages increased Statewide to $16 an hour (or more depending on the city).
Minimum Salary: Minimum salary for California exempt employees increased from $64,480 to $66,560.
Sick Leave: Companies must now provide five days (40 hours) of paid sick leave to employees instead of just three days.
If a company “front loads” sick leave, it must provide the five days at the beginning of the year.
If a company uses the accrual method, an employee must accrue no less than 24 hours by the 120th calendar day of employment and at least 40 hours by the 200th calendar day of employment. They must also allow sick days to carry over to the following year. This accrual may be capped at ten days (previously six days).
Reproductive loss event: If an employee suffers a "reproductive loss event," they may request up to five days leave. An employer with five or more employees may not refuse this request.
A “reproductive loss event” is defined as “the day or, for a multiple-day event, the final day of a failed adoption, failed surrogacy, miscarriage, stillbirth, or an unsuccessful assisted reproduction.” This type of leave is capped at 20 days within a 12-month period.
Non-compete Agreements: Non-compete clauses are not allowed in California. This law has now been expanded to include a prohibition on any non-compete agreements, even if signed outside of California. Employers must notify certain employees who have non-compete agreements that the provision is void via written notice.
Cannabis Use: Employers may not discriminate against employees for off-duty cannabis use. Furthermore, employers may not ask job applicants about prior cannabis use or obtain this information from a background check, unless otherwise permitted by law. However, employers are still permitted to prohibit employees from using or being impaired by cannabis use at work.
Whistleblower Protections: A presumption of retaliation is made if an employee is discharged or disciplined within 90 days of protected activities, such as (1) reporting wage and hour violations, (2) disclosing violations of state or federal laws, or (3) attempting to enforce rights to equal pay. The employer has the burden to show that some other legitimate, non-retaliatory reason caused the adverse employment action.
Fast Food Minimum Wage: On April 1, 2024, minimum wage for fast food restaurants increased to $20 per hour. This applies to chains with more than 60 establishments.
Healthcare Facilities Minimum Wage: On June 1, 2024, minimum wage in California healthcare facilities increased (ranging from $18 an hour up to $23 an hour, depending on the type of healthcare facility, the nature of your business and the number of employees). Salaried healthcare workers must earn at least 150% of the healthcare worker minimum wage or 200% of the state minimum wage, whichever is greater.
Workplace Violence: On July 1, 2024, employers will be required to develop, implement and maintain an effective workplace violence prevention plan, extensively train employees, and create and maintain certain records for a minimum of five years. This plan must be in writing and accessible to all employees. Employers may not retaliate against employees who file workplace violence reports. Companies must keep a log of workplace violence incidents.
Let us know if you need our firm to assist in answering any questions or implementing these updates to help you stay compliant.
