Although uncertainty has plagued employers trying to understand the new administration, California remains the most employee-protective state in the country; that won’t change under the Trump Administration. While there will continue to be changes to federal employment laws, employers should focus on the more strict California laws that nearly always “trump” federal law when it comes to protection of California employees. At the same time, changes in immigration and health insurance laws can greatly impact California employers.

FEDERAL PROPOSALS AND CALIFORNIA PITFALLS – Changes in Overtime Standards and Exempt Status Tests: Federal proposals would limit overtime and lower exempt-status standards. These would NOT apply to non-exempt California employees if less employee-friendly. Check both state and federal law before classifying employees as exempt. – Changes in Discrimination Laws: Federal proposals may deny protections related to gender identification and sexual orientation. California employees retain protected status regardless, because California law is more protective. – Immigration/Legal Work Status: A federal issue with major California impact. Employers (especially in agriculture, hospitality, construction, manufacturing) should be prepared for a surprise ICE inspection. A new I-9 Form is required for employees hired after September 18, 2017. – Health Insurance / ACA: A legal and budgetary issue California employers must continue to watch.

CALIFORNIA “CERTAINTIES” REQUIRING ATTENTION – Final Pay: California employers must deliver final pay on the last day worked (or within 72 hours in limited circumstances) and include accrued vacation/PTO. Penalties up to 30 days’ pay. – Rest and Meal Breaks: California law is strict; employers must “authorize and permit” rest breaks and “provide” meal breaks, and document waivers. – Misclassifying Employees as Exempt: Both salary and duties tests must be met; California requires exempt employees to spend more than half their time on exempt duties. Misclassification risks unpaid overtime, penalties, interest and fees. – Misclassifying Workers as Independent Contractors: California agencies aggressively pursue misclassification; California presumes a worker is an employee and the burden is on the hiring party.

Originally distributed as a PDF bulletin. View the original PDF.