Key Employment Legislation Affecting California Businesses

By November 24, 2015 Blog No Comments
How Key Employment Legislation Would Affect California Businesses (Article 2)

On June 5, 2015, the California Legislature sent the last bills from their houses of origin to the Governor’s office with the anticipation of approval in the coming year. Much of this proposed legislation concerns employment procedures and matters and may have a significant effect on business operations if passed in its current forms. Below is a sample of some bills that will be decided upon in the area of employment law:

Wages and salary related restrictions. The minimum wage would increase to $11 per hour in 2016 and $13 per hour in 2017. Beginning January 1, 2019, the bill would automatically modify the minimum wage salary adjusted for inflation in the prior year (SB 3). In addition, proposed legislation would bar employers from inquiring about a prospective employee’s salary history or from revealing the salaries of current or former employees without written permission (AB 1017).

Employment equality provisions. One bill would prohibit an employer from paying an employee at a lower wage rate for work analogous to that of another employee of the opposite gender. The employer would be required to validate that a discrepancy in wages is based upon one or more reasonable factors, including the workplace’s seniority system, an implemented procedure for increasing compensation for higher quality work, or any other factor that demonstrates a legitimate business-driven purpose for the wage inconsistency (SB 358). Another proposed bill, Equal Pay for Equal Work Act of 2015, mandates that employers with over 100 employees seeking a contract position with the State of California present non-discrimination practices for employees and applicants along with periodic compliance reports. An employer with fewer than 100 employees would be required to submit a nondiscrimination report as well (AB 1354).

 Anti-retaliation in the workplace. A request by an employee for a reasonable accommodation based on religion or disability is protected from retaliatory measures under the Fair Employment and Housing Act (FEHA), regardless of whether the request was honored (AB 987). Similarly, employers cannot retaliate against employees who have family members who were involved in protected activities, such as filing complaints with governmental agencies (AB 1509).

Disclosure requirements. Employers would be forbidden from advertising for a position with the express requirement that current employment is a prerequisite to employment or from demanding disclosure of current employment status (AB 676).

For more information about current legislation, laws, regulations, and compliance, contact Shane Coons at 949-333-0900 or visit www.ShaneCoonsLaw.com to schedule a consultation.

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