California Employment Law Updates in 2024

There are several new and updated California employment laws that will take effect in 2024. Below is a brief overview of the new and updated laws, which will take effect on January 1, 2024, unless indicated otherwise:

Minimum Wage Increased

California’s state minimum wage will increase to $16 per hour for all employers. Some cities and counties in California have a local minimum wage that is higher than the state rate.

Pursuant to Assembly Bill 1228, the minimum wage will increase to $20 per hour for fast food employees. “Fast food restaurant” is defined as a limited service restaurant in the state that is part of a national fast food chain. “National fast food chain” refers to limited service restaurants consisting of more than 60 establishments nationally that share a common brand.

Pursuant to Senate Bill 525, the minimum wage for healthcare providers with 10,000 or more full-time equivalent employees will increase to $23 per hour starting on June 1, 2024.

Mandatory Sick Days Increased

Under Senate Bill 616, the number of mandatory paid sick days for employees has increased from three days (24 hours) to five days (40 hours). The Bill also increases the cap on an employee’s accrual of paid sick leave from six days (48 hours) to 10 days (80 hours).

Reproductive Loss Leave

Pursuant to Senate Bill 848, employees may take unpaid leave up to five days for a single reproductive loss event, including failed adoption, failed surrogacy, miscarriage, stillbirth, and unsuccessful assisted reproduction. This applies to employers with 5 or more employees, and the employee must work for at least 30 days in order to qualify. Employers may limit this leave to 20 days per year.

Workplace Violence Prevention Plan

Senate Bill 553 requires all employers to design, implement, and maintain Workplace Violence Prevention Plans (“WVPP”) by July 1, 2024. Employers must designate the person responsible for implementing the program, identify and correct hazards through periodic inspections, train employees on hazards, and maintain records of incidents. WVPPs will be a mandatory portion of an employer’s injury and illness prevention program.

Noncompete Agreements

Senate Bill 699 prohibits employers from entering into noncompete agreements with California employees. Employers are prohibited from attempting to enforce such noncompete agreements against California employees regardless of whether the employee signed the agreement in another state or worked in another state when signing the agreement. Assembly Bill 1076 creates noncompete notice requirements for employers requiring them to notify current and former employees about unlawful noncompete covenants in their employment agreements.

Cannabis Use Rights

Assembly Bill 2188 prohibits employers from discriminating against an employee or applicant based on the employee’s use of cannabis off the job and away from the workplace. Cannabis use while on the clock is still restricted. Employers may still conduct pre-employment drug testing and can still refuse to hire someone based on the results of such testing, but only for valid drug testing methods that look only for psychoactive cannabis metabolites. Employers must adopt testing procedures that screen only for active impairment, and must discontinue testing for non-psychoactive metabolites.

The related Senate Bill 700 sets forth the rules for cannabis usage questions for job applicants. Employers may not request information from a job applicant about their prior use of cannabis, including information obtained from their criminal history. Notably, these new laws regarding cannabis use do not apply to employees in the building or construction trades, and they do not preempt state or federal laws that require applicants or employees to be tested for controlled substances.

Notice Requirements for New Employees

Labor Code section 2810.5 requires employers to provide a wage and employment notice to new hires. Assembly Bill 636 requires employers to provide information about federal and state emergency declarations applicable to any counties in which employees are employed. Additionally, employers will be required to provide information about rights and protections under California law to H-2A employees. The California Labor Commissioner will create a template notice that meets the new requirements.

Earned Income Tax Credit (EITC) Notification Requirements

Employers must notify all employees that they may be eligible for the federal and California EITC. This notification must take place within one week of when employers provide an annual wage summary such as a Form W-2 or a Form 1099. Employers will also need to send a second notification during the month of March of the same year.

Food Handler’s Certification

California has long required food handlers in restaurants to obtain certification. Under Senate Bill 476, it is now the employer’s responsibility to pay for training, testing, and food handler cards.

Wage Theft Enforcement

Assembly Bill 594 permits public prosecutors to independently prosecute certain wage and hour violations that occur within their jurisdiction. Previously, only the Labor Commissioner’s office had this power. A public prosecutor may seek injunctive relief to prevent continued violations of the Labor Code as well as monetary penalties.

Equal Pay and Anti-Retaliation Act

Senate Bill 497 amends the California Labor Code to create a rebuttable presumption of retaliation if an employer takes an adverse action against an employee within 90 days of the employee engaging in certain protected activities. The employee must show engagement in a protected activity, an adverse action such as discharge, demotion, threat of discharge or demotion, suspension, pay cut, or reduced hours, and a connection between the protected activity and the adverse action.

Gender Neutral Toy Section

Under Assembly Bill 1084, department stores with at least 500 employees in California are required to have a gender-neutral section of children’s toys.

Work From Home Notice Requirement

Senate Bill 731 requires an employer to provide a 30-day advance written notice before requiring remote employees to return to an in-person setting. The notice must also explain the employee’s right to remain remote as an accommodation for their disability, if applicable.

California employers and human resources administrators are encouraged to contact our office if they have any questions or need clarification for any of the above employment law updates.