Employment Law Bulletin | January 2020

In this month’s Employment Law Bulletin we bring you our 2020 Employment Law Update Action Items checklist. Employers can use this handy checklist to help ensure their organization is in compliance with new laws that took effect in January 2020. Please reach out to an SMT employment attorney if you have questions. We are here to help.

2020 Employment Law Update Action Items

REQUIRED LABOR LAW POSTINGS
 Update CA Labor Law Poster

MINIMUM WAGE IN CALIFORNIA
 Review hourly pay rates and increase as needed
 Review pay for EEs where minimum wage is used as a threshold and increase as needed:

o Wage Order 16 EEs who provide their own hand tools/equipment
o EEs paid minimum wage for travel, waiting time, etc.
o Commissioned sales people (to maintain overtime-exempt status)
o EEs in the construction industry exempt from paid sick leave law based on CBA that provides for pay at least 30% > minimum wage
o EEs exempt from state overtime law based on CBA that provides for regular hourly pay at least 30% > minimum wage

 Review exempt EE salaries and increase as needed
 Since the new minimum wage laws are triggered by ER size, pay attention to fluctuation in EE counts throughout the year and adjust the minimum wage accordingly
 Make sure you have the current minimum wage posting
 Check local ordinance if you have a CBA

OVERTIME FOR AGRICULTURAL WORKERS
 ERs with > 25 EEs: implement new 9/day; 50/week overtime standard now and plan for future changes
 ERs with 1-25 EEs, first change is not effective until 1/1/2022, but now is a good time to review future overtime exposure and develop plans to address (limiting overtime exposure by hiring more EEs vs. keeping the same number of EEs who work more hours and are owed overtime)
 The new OT law is triggered by ER size, so pay attention to fluctuation in EE counts to be sure to apply the correct overtime rule

MINIMUM WAGE CHANGE/LOCAL ORDINANCES IN NORTHERN CALIFORNIA
 If you have EEs who work any hours in these other cities, check to see if they fit the definition of EE such that the minimum wage ordinance applies to them
 Review hourly pay rates and raise if necessary

REPORTING TIME PAY
 Review your call-in and on-call policies, procedures and enforcement to ensure EEs receive all legally required compensation

IRS MILEAGE RATE FOR 2020
 Ensure EEs using personal vehicles for business are being properly reimbursed for business-related mileage
 Inform your payroll/finance department of the mileage rate change so EEs are properly reimbursed

LACTATION ACCOMMODATION
 Update EHB and policies
 Ensure that EEs have a room or location other than the restroom to use for lactation breaks
 Distribute lactation policy with other pregnancy-disability leave documents

NATURAL HAIR AND TRAITS HISTORICALLY ASSOCIATED WITH RACE – CROWN ACT
 Check all written and unwritten policies and practices to ensure compliance: job descriptions and EHBs, recruitment advertising content, training materials for in-house recruiters, workplace dress codes, and performance and disciplinary documents

STATUTE OF LIMITATIONS EXTENDED FOR FILING FEHA COMPLAINT
 Check EE count to ensure proper leave and EE rights management
 Implement best practices to protect against claims and improper leave management

GUN VIOLENCE RESTRAINING ORDER
 Prepare protocols for dealing with violence or potential violence in the workplace
 Designate responsible person who knows what to do if a restraining order is needed

OSHA REPORTING REQUIREMENT
 Update reporting procedures and policies

AB 5 EMPLOYEES OR INDEPENDENT CONTRACTORS?
 Review accounts payable records and identify every person paid on a 1099 basis
 Apply the “ABC Test”
 If any fail the “ABC Test”, contact SMT to discuss strategically reclassifying them as EEs, or analysis of ABC Test exceptions

ARBITRATION AGREEMENTS (BEFORE Chamber v. Becerra DECIDED)
 Don’t include ARB in any AGM modified, extended or entered into after 1/1/2020
 Think carefully before modifying or extending any existing AGM with ARB clause
 Stay tuned because part of these new constraints will likely be overturned; until then, don’t become the test case

NEW LAWS (AND OTHER KEY ISSUES) IMPACTING RELEASES
 Review any form Releases for compliance
 Review any Severance Plan documents for compliance

SEXUAL HARASSMENT TRAINING
 All ERs of 5 or more EEs: Implement training protocol to ensure compliance with timing requirements
 Construction ERs: watch for industry-specific harassment and discrimination prevention policy and training standards and implement

OCCUPATIONAL SAFETY & HEALTH TRAINING FOR VALLEY FEVER
 Determine if the law applies to you, and if so, provide awareness training

ORGAN DONOR LEAVE
 Train HR personnel regarding change in the law

PAID FAMILY LEAVE INSURANCE
 Watch for publication of new PFLI pamphlet in June 2020

NO MATCH NOTICES
 Designate point person who is – or who can get – familiar with different notices
 Develop step-by-step protocol on how to handle no match situations

No Se Habla Español?

SMT’s employment attorneys can provide your company with employment policies, forms and employee disciplinary documentation in Spanish.  Providing such important information to employees in the language they understand is critical to employee performance, providing a welcoming diverse work environment, and protecting your company against employment claims.  Contact an SMT attorney today to get started.

Spaulding McCullough & Tansil LLP
Employment Law Group

Jan Gabrielson Tansil [1]  | Lisa Ann Hilario [2] | Kari Brown [3]