California: Important Legislative Updates for 2018

APPLIES TO

Select Employers with CA Employees

EFFECTIVE

January 1, 2018

QUESTIONS?

Contact HR On-Call

(888) 378-2456

Recently, Governor Brown signed a number of employment-related bills that affect employers of California employees. Significant changes are highlighted below.

  • SB 63 – Employers of 20-49 employees must provide eligible employees with 12 weeks of unpaid, job-protected parental bonding leave. See details here.
  • AB 168 – Employers are prohibited from inquiring about a job applicant’s salary history, and from relying on salary history information when determining whether to offer employment or what salary to offer. However, applicants may voluntarily (without prompting) disclose their salary history. Employers must also provide applicants with the position pay scale upon request.
  • AB 1008 – California enacted a state “ban-the-box” rule. Employers (with 5 or more employees) are prohibited from inquiring about criminal history prior to making a conditional offer of employment. If an employer intends to deny a position because of a conviction history, the employer must (1) make an individualized assessment of whether the applicant’s conviction history has a direct and adverse relationship to the position’s job duties, and (2) notify the applicant of the preliminary decision in writing. The applicant then has 5 days to respond to the notice before the employer may make a final decision. After responding to the initial notice with an intent to dispute, the applicant has an additional 5 days to obtain evidence to dispute the accuracy of the conviction report. If the employer makes a final decision to deny an application due to the conviction history, it must do so in writing to the applicant. There are limited exceptions to these requirements.
  • AB 450 – Employers are prohibited from providing federal immigration enforcement agents with access to or permission to search (1) nonpublic areas of a business, or (2) employee records (except Form I-9s subject to a Notice of Inspection), without a judicial warrant. However, employers may allow an enforcement agent in a nonpublic area, where employees are not present, for the purpose of verifying whether the agent has a judicial warrant, provided no consent to search nonpublic areas is given in the process. Employers must notify employees within 72 hours of receiving a notice of inspection of Form I-9s, or other employment records, from federal immigration enforcement. The Labor Commissioner will be issuing a posting to comply with the notice requirement. Within 72 hours of receiving the results of an inspection, employers must also provide notice to each individual employee affected by an inspection of their specific results. Finally, employers may not re-verify the employment eligibility of a current employee at a time or in a manner not consistent with Form I-9 requirements. Employers who violate these rules may be subject to penalties up to $10,000 per violation.
  • SB 396 – Statutory harassment training must include harassment based on gender identity, gender expression, and sexual orientation. Training must be presented by trainers with knowledge and expertise in those areas. Employers must display a DFEH issued poster regarding transgender rights in a prominent and accessible location in the workplace.

Action Items

  1. Have managers and other appropriate staff trained on updated hiring and leave procedures, as well as responding to federal immigration enforcement agent requests.
  2. Have employment applications and hiring procedures updated consistent with the new requirements.
  3. Have job descriptions updated consistent with the new requirements.
  4. Display required postings.
  5. Subscribers can call our HR On-Call Hotline at (888) 378-2456 for further assistance.

Disclaimer: This document is designed to provide general information and guidance concerning employment-related issues. It is presented with the understanding that ManagEase is not engaged in rendering any legal opinions. If a legal opinion is needed, please contact the services of your own legal adviser.

© 2017 ManagEase, Incorporated.

California’s Small(er) Businesses Now Subject to Parental Bonding Leave

APPLIES TO

All Employers of 20-49 CA Employees

EFFECTIVE

January 1, 2018

QUESTIONS?

Contact HR On-Call

(888) 378-2456

Last month, Governor Brown signed SB 63, which provides up to 12 weeks of unpaid parental bonding leave to employees of businesses with as a few as 20 employees.  This new leave follows similar eligibility requirements as the existing California Family Rights Act (“CFRA”), and may provide significant amounts of time off when combined with other available state and federal leaves.

Illinois: Responsible Job Creation Act Imposes New Requirements for Staffing Agencies

APPLIES TO

All Employers of IL Employees

EFFECTIVE

June 1, 2018

QUESTIONS?

Contact HR On-Call

(888) 378-2456

The Responsible Job Creation Act (the “Act”) creates new obligations for staff agencies, including the requirement to place temporary workers into permanent positions, new notice requirements regarding work placements, changes to itemized wage statements, and more.  The Act amends the Day and Temporary Labor Services Act and includes the following provisions:

Minnesota: Employers Cannot Fire Employees for Refusing to Share Tips

APPLIES TO

All Employers of MN Employees

EFFECTIVE

October 11, 2017

QUESTIONS?

Contact HR On-Call

(888) 378-2456

The Supreme Court of Minnesota recently affirmed that employers cannot terminate an employee for refusal or failing to share gratuities.  In Burt v. Rackner, Inc., a bartender was instructed to share a greater portion of his tips with bussing staff.  Upon his failure to do so, the bartender was terminated, and he filed a lawsuit for wrongful termination.

Minnesota: Non-Compete Agreements Require Additional Consideration Other than Continued Employment

APPLIES TO

All Employers of MN Employees

EFFECTIVE

October 6, 2017

QUESTIONS?

Contact HR On-Call

(888) 378-2456

On October 6, 2017, a Minnesota federal district court emphasized the importance of appropriately presenting restrictive covenants.  Minnesota employers who require employees to sign restrictive covenants, such as a non-compete agreement, have certain obligations to the timing and type of consideration that must be offered with the restrictive covenant.  Specifically, new applicants must be provided the non-compete agreement before accepting the offer of employment, and currently-employed individuals must be provided something of value beyond continued employment as consideration.

Washington: Healthy Start Act Requires Accommodation for Pregnant Employees, With or Without Disability

APPLIES TO

All Employers of 15+ WA Employees

EFFECTIVE

January 1, 2018

QUESTIONS?

Contact HR On-Call

(888) 378-2456

Washington State’s Healthy Starts Act (the “Act”) requires covered employers to provide pregnant employees with reasonable accommodations.  In contrast to federal and other state anti-discrimination laws, some accommodations must be provided regardless of disability or medical certification, and regardless of whether such accommodations may cause the employer undue hardship.

The Act applies to employers of 15 or more Washington employees.  Key provisions of the Act are summarized below.

November Updates

APPLIES TO

Varies

EFFECTIVE

Varies

QUESTIONS?

Contact HR On-Call

(888) 378-2456

This Short List addresses the following topics:
  1. U.S. DOJ Reverses Obama-Era Stance on Transgender Workplace Protections
  2. IRS Releases 2017 Reporting Forms
  3. California: Bill Signed to Promote Fairness in Prop 65 Litigation
  4. New York: NYDOL Issues Emergency Regulation on In-Home Residential Care Worker Compensation
  5. New York City: City Issues Guidance on Salary Inquiry Prohibitions

Read more

Ninth Circuit: DOL’s 80/20 Tip Credit Rule is Invalid

APPLIES TO

All Employers of AK, AZ, CA, GA, HI, ID, MT, NV, OR, WA Employees

EFFECTIVE

September 6, 2017

QUESTIONS?

Contact HR On-Call

(888) 378-2456

The Department of Labor (“DOL”) permits employers to give a tip credit to tipped employees who spend no more than 20% of their time performing non-tipped duties. In Marsh v. J. Alexander’s, LLC, the Ninth Circuit noted that this rule is only found in the Field Operations Handbook used by the DOL as guidance for investigations by field officers, rather than in a statute or regulation; as a result, the court stated it was not valid.

Seventh Circuit: Additional Months of Leave after FMLA not a Reasonable Accommodation

APPLIES TO

All Employers of IL, IN, WI Employees

EFFECTIVE

September 20, 2017

QUESTIONS?

Contact HR On-Call

(888) 378-2456

Employers may already know that certain types of leaves of absence may qualify as a reasonable accommodation under the Americans with Disabilities Act (“ADA”).  However, the Seventh Circuit recently confirmed that an employee’s request to take additional months of leave after exhausting his FMLA allotment was not a reasonable accommodation under the ADA.

California: New Law Imposes Pay Data Reporting Requirements on Large Employers

APPLIES TO

All Employers of 500+ CA Employees

EFFECTIVE

July 1, 2019

QUESTIONS?

Contact HR On-Call

(888) 378-2456

UPDATE (10/23/17) – Although passed by the California State Legislature, this law was not signed by Governor Brown and therefore did not go into effect. Look for additional updates on this topic. 

While the Trump Administration has indefinitely blocked implementation of the EEO-1 form section that would have required reporting employee pay data, California has gone a step further in requiring employers to report information about gender wage differentials.  Effective July 1, 2019 and biennially thereafter, Labor Code Section 2810.6 will require employers of 500 or more CA employees to collect and report specific demographic and wage disparity information.