2018 California Labor Law Update

California Small business employers will face significant 2018 labor law changes. Several new laws have been enacted that may affect your business’s day-to-day operations in 2018 and beyond
For the purposes of this communication, we will be offering just a preview of the most significant new laws that pertain to small business with a more detailed description and plan of action in the coming weeks.

Minimum Wage
The minimum wage for employers with 25 or fewer employees will increase to $10.50 per hours on January 1, 2018. For employees with 26 or more employees, the minimum wage will be $11.00 on January 1, 2018. For more details on the minimum wage with regards to specific cities and counties, please see California 2018 Minimum Wage.

Parental Leave for Small Employers
Important new law requiring employers with more than 20 employees to provide up to 12 weeks of protected, unpaid leave to employees. Employers with 50 employees were affected by this leave law previously, but now this requirement will extend to employers from 20 – 49 employees. Employers will be required to guarantee reinstatement at the same or comparable position, and maintain group health at the same level and conditions during the leave. Leave must be taken within 1 year of the birth of a child.

Criminal History Inquiries in Pre-Hire Process
AB 1008 prohibits employers with 5 or more employees from asking about criminal history information on job applications or during interviews at any time before a job offer has been made. Once you have made a formal job offer, you may request criminal history, but before employment is denied because of criminal history, an assessment as to whether the conviction will adversely affect the employee’s job duties.  Additionally, a written notice must be given to the employee and allow them the opportunity to respond. Final decision to deny employment requires an additional written notice.

Salary History During Pre-Hire Process
AB 168 bans employers from asking about an applicant’s prior salary history, compensation or benefits during the course of a pre-offer interview or applicant process. Employers will also be prohibited from using any salary history as a factor in determining whether to hire an applicant or how to set their wages. AB 168 further requires employers to provide a job applicant with a set pay range for the open position.

Worksite Immigration Protection
AB 450 prohibits employers from giving federal immigration enforcement agents access to non-public areas of a business without a judicial warrant. Employers may provide access to I-9’s forms in their possession, but not other employment records unless a warrant or subpoena has been provided.

Gender Identity Clarification
AB 1556 revises California’s Fair Employment and Housing Act by deleting gender specific personal pronouns anti-harassment, pregnancy disability and family medical leave laws by changing the terms used from “he” or “she” to “person” or “employee”.

These are just the most significant law changes as they relate to small businesses. There are several other more industry specific legal changes, Infinium will contact effected clients directly on these changes.

We will be assisting clients with strategies and form changes to deal with these new laws in the coming month before we hit 2018. If you have any questions in the meantime, please contact our HR experts at info@infiniumhr.com.