The bill provides that successorship is established upon meeting any of the following criteria: Expanded Protections for Victims of Crime or Abuse (AB 2992): This law expands current protections for victims of domestic violence, sexual assault, or stalking to include protections for victims of crime or abuse. In response, Uber, Lyft, DoorDash, InstaCart, and Postmates spent more than $200 million in lobbying efforts for a ballot initiative that would override AB 5 and AB 2257, and classify drivers as independent contractors. California voters were definitive in their support of Proposition 22, with nearly 10 million voters approving the Proposition. SB 973-Mandatory Pay … Since its enactment, AB 5 has been the subject of criticism, litigation, and lobbying efforts from a number of “gig” industries, freelancers, and independent contractors that did not find the legislation workable for their industries. Contrary to prior law, AB 5 presumed that all workers are employees, rather than independent contractors. If you live or work in California, you’re lucky! However, film and television unit production crews, still photographers and cinematographers, are not exempt. Think Twice Before Signing an Outsourcing Agreement! Professional Services Exemption: AB 2257 expands the professional services exemption set forth under AB 5 for still photographers, photojournalists, freelance writers, editors, and newspaper cartoonists who had more than 35 submissions in a year. Any legal analysis, legislative updates or other content and links should not be construed as legal or professional advice or a substitute for such advice. Operates a business in the same industry, and the business has an owner, partner, officer, or director who is an immediate family member of any owner, partner, officer, or director of the judgment debtor. The California labor law takes effect January 1, 2021. Below are … First, it creates a presumption of compensability for certain first responders and healthcare workers (listed in Labor Code § 3212.87) who test positive for COVID-19 within 14 days of a workday occurring at a worksite that is not their home. UK Supreme Court on Law Governing the Arbitration Agreement (Enka v.... FDA Proposes Revocation of Frozen Cherry Pie Standards of Identity... Supreme Court to Weigh in College Sports: The Intersection of... Don’t Get Confused: Despite Recent Ruling, Calls to Residential Cell... Federal Court Provides Soothing Comfort for Spa’s COVID-19 Business... V.C. These policies provide workers with minimum compensation levels, health insurance subsidies, medical costs for on-the-job injuries, and prohibits drivers from working more than 12 hours in a 24-hour period unless the driver has been logged off for 6 uninterrupted hours. COVID-19: US State Policy Report – December 17, 2020, Introduction to the Pharma & Healthcare Podcast Series [PODCAST]. AB 5 also exempted certain occupations, industries, and contractual relationships from the “ABC” test, and continued to allow those hiring entities to use the less-stringent, pre-Dynamex test established in G. Borello & Sons, Inc. v. Department of Industrial Relations (1989) 48 Cal.3d 341 (Borello). Miscellaneous Exemptions: Subject to certain requirements, AB 2257 also adds exemptions for individuals engaged in underwriting inspections and other services for the insurance industry; manufactured housing salespersons; certain individuals engaged by international exchange visitor programs; and competition judges. Additionally, musicians and vocalists who do not receive royalties are to be treated as employees for purposes of receiving minimum wages and overtime. Business-To-Business Exemption: AB 2257 maintains the exemption for “bona fide business-to-business contracting relationships” where a contractor “acting as a sole proprietor, or a business entity formed as a partnership, limited liability company, limited liability partnership or corporation contracts to provide services to another such business.” AB 2257 also extends the business-to-business exemption to include a “public agency or quasi-public corporation” that has retained an independent contractor. CCP 1002.5 does not apply to standard severance agreements; only to settlement agreements when an employee has filed a claim against the employer in court, before an administrative agency, or through some form of ADR or employer internal complaint process. Accordingly, hiring businesses who wanted to classify a worker as an independent contractor had the burden of establishing that the worker either (1) fell under one of the exemptions set forth in AB 5; or (2) could meet each element of the stringent “ABC” test, set forth in Dynamex Operations West, Inc. v. Superior Court (2018) 4 Cal. For an in-depth analysis of how each law might affect your organization, contact your Hanson Bridgett labor and employment lawyer and join us for our Annual Client Seminars in January. Laster Says Stockholder Approval Is Not Required, What Would... What Were the Three Biggest Labor Law Developments In 2020? 415-995-3459 The California 2020 legislative session has closed, and employers should be preparing for 2021 by updating policies and procedures. Amended Section 1205 goes further to expressly address local laws that relate to the payment of wages, and authorizes local jurisdictions to enforce such laws, so long as they are more stringent than state law. It must be in English as well as the language understood by the majority of the employees. California’s worker classification laws are rapidly developing and businesses operating in California must understand and adapt to these developments, in order to fit their workers into this ever-changing classification scheme. Posted by onepoint-admin on Dec 17, 2020 9:51:46 AM Tweet; This fall, the California legislature responded to the COVID-19 pandemic with several new laws … California’s ever-changing employment laws will have employers scrambling to keep up in 2021! On January 1, 2021, various new and amended employment laws will go into effect in California. Share This Page. Read more in last year's alert. As stated, it seems that employers cannot deny an employee the use of their sick leave for whatever reason they deem is necessary of sick leave. Entertainment/Music Industry Exemptions: AB 2257 also creates several new entertainment industry exemptions, which are largely focused on the music industry. On Dec 16, 2020 Several new or amended employment laws take effect in California on January 1, 2021, including mandatory child abuse reporting, expanded crime victim leave, and increased minimum wages and exempt employee salaries. The covered worker is subject to a federal, state, or local quarantine or isolation order related to COVID-19; The covered worker is advised by a health care provider to self-quarantine or self-isolate due to concerns related to COVID-19; and. Employment / Age Certification. The notice can be provided in any manner that is likely to be received (e.g. AB 1947 changes this by adding Section 1102.5(j), which authorizes courts “to award reasonable attorney’s fees to a plaintiff who brings a successful action for a violation of these provisions.” This change will likely lead to more whistleblower claims, as more often than not, attorneys’ fees provisions are a driver of litigation. On September 17, 2020, Governor Newsom signed into law SB 1159, which codified parts of his prior executive order establishing a rebuttable presumption of compensability for some employees who receive a COVID-19 diagnosis. This new law gives employees the power to use their sick leave at "their sole discretion." Also beginning January 1, 2021, and until January 1, 2023, if OSHA alleges that there has been a “serious violation” due to COVID-19, it need not deliver to the employer a standardized form containing the alleged violation descriptions prior to issuing its citation as would otherwise be required. Quick Index. Under Labor Code section 98.7, the Division of Labor Standards Enforcement (DLSE) has jurisdiction to investigate complaints of discharge or discrimination in violation of any law within the jurisdiction of the DLSE. Some of the significant exemptions that AB 2257 creates or amends are set forth below. There is no definition of good faith determination in the statute, so employers act "at their peril" and will have to wait for some case law to flesh out that meaning. California Employment Law 2021 Update. The main changes that AB 2257 makes are (1) modifying and clarifying the business-to-business, referral agency, and professional services exemptions set forth in AB 5; and (2) exempting additional occupations and business relationships. An employer has only 30 days after the claim form is filed to deny the claim (as opposed to the typical 90 days) and otherwise may rebut the presumption only with evidence obtained after that 30-day period. California’s work laws … The first category mirrors the federal EEO-1 and requires employers to report the number of employees by race, ethnicity, and gender in 10 federally identified job categories: executive or senior-level officials and managers; first or mid-level officials and managers; professionals; technicians; sales workers; administrative support workers; craft workers; operatives; laborers and helpers; and service workers. Annual California Employment Law Update: New Laws for 2021 Provide COVID-19 Protections and Expand Family Leave Alice Kwak , Jennifer Nutter , David Prager , Mary Vu Epstein Becker & Green Under the … Grant's practice encompasses a wide range of employment litigation matters including the representation of employers facing wage and hour class actions, as well as claims of discrimination, harassment, misappropriation of trade secrets, and wrongful termination. On Dec 16, 2020 Several new or amended employment laws take effect in California on January 1, 2021, … Notably, AB 2257 also grants district attorneys the ability to file injunctive relief actions against businesses suspected of misclassifying employees as independent contractors. Unless otherwise noted, attorneys are not certified by the Texas Board of Legal Specialization, nor can NLR attest to the accuracy of any notation of Legal Specialization or other Professional Credentials. The California Secretary of State Business Connect is an ongoing technology project aimed to help business owners automate their paper-based filings. Currently, California Code of Civil Procedure Section 1002.5, which went into effect on January 1, 2020, prohibits “no-rehire” provisions in settlement agreements, i.e., provisions that prevent, or otherwise restrict an employee from obtaining future employment with the employer or any related entity. These exemptions went into effect upon the signing of the bill on Sept. 4 and apply retroactively where applicable. May be paid once a month on or before the 26 th day of the month during which the labor … PDF Bio, 415-995-5045 This new law has been challenged as being preempted by the Federal Arbitration Act (FAA), and section 432.6 is currently enjoined from being enforced. CAL/OSHA Expanded Enforcement (AB 685): This bill expands Cal/OSHA's authority to issue Orders Prohibiting Use relating to COVID-19 hazards. Labor Commissioner May Now Represent Claimants in Connection with Arbitrations (SB 1384): This bill expands the Labor Commissioner's ability to represent claimants who are financially unable to afford representation to arbitral proceedings and/or in opposing a petition to compel arbitration. His experience also includes an internship with Hon. When notice is received, an employer must: Determine which employees, including subcontracted employees, were at the worksite at the same time as the individual during his or her “infectious period,” which the California State Department has determined includes “at minimum, the 48 hours before the individual developed symptoms.”  The “worksite” is limited to the same building or location where the individual was physically present. Notice of potential exposure may come to an employer from the employee, the employee’s representative, the employee’s emergency contact, the testing protocol, or the employer of a subcontracted employee that was on the worksite. Employers with multiple establishments must submit a consolidated report that includes all employees as well as a separate report for each establishment. Rest Periods Exemption for Petroleum Facilities Extended (AB 2479): Currently, employees who hold safety-sensitive positions at petroleum facilities are exempt from rest period requirements, provided they fulfill specific requirements. AB 979 expands on the diversification requirements by requiring that at least one director be from an underrepresented community by the end of 2021. ... 2021—and on or before March 31 each year thereafter—a private employer that has 100 or more employees to submit a pay data report to the DFEH that contains specified wage information. By Anh Shigekawa & Julia Y. Trankiem on November 16, 2020. The IRS Released the Final Regulations for Plan Loan Offset Rollovers, The Evolution of Cross-Border Restructuring Processes. California has enacted a number of new laws (some of these have been covered in more detail on this blog and are linked below). New Administration Could Provide Ideal Backdrop for Tribes Entering... FTC Cracks Down on Health Claims by CBD Companies. In addition, employers are prohibited from making, adopting, or enforcing any rule, regulation, or policy that prevents employees from such disclosures or participation. A corporation may increase the number of directors on its board to comply with this new law. OSHA’s authority will remain in effect until January 1, 2023. Retail Food Facility Handwashing Requirement (AB 1867): AB 1867 also requires employers to allow employees working in any food facility to wash their hands every 30 minutes and additionally as needed. California Employment Law Alert: New Employment Laws Effective On or Before January 1, 2021 Posted on December 18, 2020 by Laura P. Worsinger , Allison M. Scott California employers need … There’s a hefty … In response, the California legislature acknowledged the impact of AB 5 on certain industries and effectively rewrote the law to address these concerns through the passage of AB 2257. Provide written notice to the potentially exposed employees, their exclusive representative (if any), and the employers of any exposed subcontracted employees that includes the following: That they may have been exposed to COVID-19; What COVID-19 related benefits are available to them under law; Anti-retaliation and anti-discrimination protections; and. An employee would be prohibited from pursuing civil action until mediation is complete if said mediation is requested by the employer (or employee). The Utility Planning and Investment Cycle. AB 979 defines a "publicly-held corporation" as a corporation with outstanding shares listed on a major United States stock exchange and creates a timeline by which a minimum number of directors from underrepresented communities must be achieved. Disability Discrimination (ADA) Discrimination Laws. Google Illegally Maintained Monopolies, Created Insurmountable... COVID-19 Vaccines: Addressing Novel Healthcare and Employment Issues... NMFS Demands More Mitigation for Nearshore Projects in The Puget... IRS Confirms PPP-Funded Expenses Are Non-Deductible, IAIS Annual Conference: Assessing Long-Term Risks and a Path Forward, Corporate Compliance: 10 Keys to a Successful Program. Nancy S. Fong, Peter A. Griffin, Baldwin J. Lee, Jennie L. Lee, Alexander Nestor, Annette M. Rittmuller, Nicholas J. Schuchert, Alana Thorbourne Carlyle, Amy Wintersheimer Findley, Melissa K. Zonne contributed to this article. We strongly encourage everyone with employees performing services in California to familiarize themselves with these developments as many of these new laws will affect day-to-day operations. New California Employment Laws in 2021 The new year is right around the corner, so we thought it might be a good time to dive into some of the new labor laws on California’s docket for 2021. SB 973-Mandatory Pay Data Report to be Submitted to the DFEH Non-compliance is costly. The California Family Rights Act (CFRA) was expanded to include businesses with at least 5 employees, as opposed to the current law, which only covers businesses with at least 50 employees. Employees Have Sole Discretion to Use Kin Care Leave (AB 2017): Currently, employees may use their accrued sick leave to tend to the illness of a family member. The ballot initiative also includes zero-tolerance policies for driving under the influence of drugs or alcohol, and requires criminal background checks for drivers. There are several other significant changes to the CFRA that employers need to consider in 2021. These changes — and AB 5's original provisions — are very fact-specific. The notice must include the date of the positive test, the address of the employee’s place of employment during the 14-day period preceding the test, and the highest number of employees who worked at the employee’s place of employment in the 45 days preceding the last day the employee worked at each location. As a result, employees may be eligible to take as much as 24 weeks of combined leave under the CFRA and FMLA depending on the reason for the leave. The ballot initiative defined app-based drivers as workers who (a) provide delivery services on an on-demand basis through a business’s online-enabled application or platform or (b) use a personal vehicle to provide prearranged transportation services for compensation via a business’s online-enabled application or platform. The employer must report: The employer will be required to continue notifying the local health department of any subsequent laboratory-confirmed cases of COVID-19 at the workplace. Under current law, workers alleging they were discriminated or retaliated against in violation of any Labor Commissioner-enforced law have six months to file a complaint with the Labor Commissioner, but beginning January 1, 2021… Notably, this bill expands employer coverage to include all employers with five or more employees, which is much fewer than the previous 50 or more employees’ … In a Busy Year of Health Care Antitrust Enforcement, DOJ’s First... California Expands the California Family Rights Act (CFRA). However, the bill does not provide companies with any guidance on how best to achieve these requirements. The strict three-part “ABC” test still applies when determining whether a California worker can be classified as an independent contractor unless there is an exemption, in which case the more lenient Borello test would be used. The employer’s disinfection and safety plan (per the guidelines of the federal Centers for Disease Control). If the hiring business fails to establish any of these factors, the worker will remain classified as an employee. This new law slightly modifies this ban on "no rehire" provisions and requires that the aggrieved person has filed the claim in good faith in order for the prohibition to apply, and the employer must have made the determination of sexual assault or sexual harassment before the grievant filed the claim. Employers covered by the expanded CFRA are required to provide unpaid, job-protected leave of up to 12 weeks during each 12-month period for employees to bond with a new child of the employee or to care for themselves or a family member with a serious medical condition. SB 1159 effectively requires employers to promptly investigate and address cases of COVID-19 among employees. Unless otherwise indicated, each of the following new laws will take effect on Jan. 1, 2021. SB 1383’s expansion of California Family Leave Rights Act (CFRA) leave to employers with 5 or more employees, effective January 1, 2021, and SB 973’s requirement for employers to report pay data to the state of California starting in March 2021. 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