2020 Labor Law Changes, Quick Look

After a relatively quiet year in 2018 with regards to labor law changes, 2019 is shaping up to be a banner year. Several new laws, or changes to existing laws are on the books and slated to take effect January 1. Here’s a quick peek at only the most notable changes coming down the pike. More detail and a more complete listing of new law changes in future editions of HR Minute:

Minimum Wage

California continues its climb to a minimum wage of $15 an hour. On Jan. 1, 2020, the minimum wage will increase to $12 an hour for employers with fewer than 26 employees, and $13 an hour for employers with more than 26. It will continue to increase by $1 every January until 2023, when all employers regardless of size will be required to pay employees at least $15 an hour.

This increase also affects exempt salaried employees who might be at the minimum and certainly anyone below $15 currently.

AB5 – Independent Contractors

Expands and codifies the rules surrounding independent contractors and whether or not workers are employees. It adopts the “ABC” test for classifying independent contractors that the California Supreme Court set forth in 2018 in in the Dynamex case.

1. The person is free from the control and direction of the hiring entity in connection with the performance of the work.
2. The person performs work that is outside the usual course of the hiring entity’s business.
3. The person is customarily engaged in an independently established trade, occupation or business of the same nature as the hiring entity.

All employers are encouraged to evaluate any current independent contractor relationships.

SB 188 – Discrimination and Harassment

Amends the definition of race to protect against discrimination in employment based on traits historically associated with race, including, but not limited to, “…hair texture and protective hairstyles” (which are defined to include, but not be limited to, “such hairstyles as braids, locks and twists”). Employment practices must not be made based on such hairstyle traits unless based on a bona-fide occupational qualification or applicable security regulation.

AB 9 – Statute of Limitations

Extends the time period an employee has to file a complaint with the Department of Fair Employment and Housing (DFEH) for alleged FEHA violations, such as claims for unlawful discrimination, harassment and retaliation, from one year after the date on which the unlawful practice occurred to three years.

Terminating employees should always include an assessment of potential issues related to FEHA violations, even more so now.

SB 83 – Paid Family Leave

Amends the CS Paid Family Leave program by increasing paid benefits and increases potential time off from six to eight weeks, beginning July 1, 2020. Current leave policies should be reevaluated for 2020.

SB 142 – Lactation Requirements

Expands the requirements of AB 1976 (passed in 2018), which requires employers to provide a room or location, other than a bathroom, in close proximity to the employee’s work area, to express breast milk. Additional requirements include providing a seating area, table, accessible refrigeration, running water, extension of normal rest breaks to accommodate and limitations to the hardship requirements for employers.

Again, this is not an exhaustive list of the new laws, rather a quick overview of the most impactful to small business. We’ll detail more in the future and as always, assist our clients in complying with these changes. If you would like more information or need a consultation on labor law compliance, please don’t hesitate to contact the experts at Infinium at 951-816-6434 or info@infiniumhr.com