The California legislature continued its focus on expanding legal remedies for employees in California. Many of the new laws for 2016, such as the Fair Pay Act and expanded Labor Commissioner powers, make significant changes to California’s employment law landscape.
All of the new laws are effective on January 1, 2016, unless otherwise noted.
Wage & Hour
California Fair Pay Act – SB 358
Governor Brown has referred to this new law as “the strongest equal pay law in the nation.” Amending California’s existing equal pay law, the new Fair Pay Act lowers the burden of proof for plaintiffs claiming gender-discriminatory pay practices, by prohibiting an employer from paying lower wage rates for “substantially similar” work, rather than “equal” work as used in existing law. The Fair Pay Act also increases the burden of proof for employers in defending such claims, requiring employers to directly demonstrate that a wage differential is based on a bona fide factor other than the employee’s gender. Notably, the new law provides broader coverage than its Federal counterpart, the Equal Pay Act (29 USC § 206(d)). Unlike the Equal Pay Act, California’s Fair Pay Act even provides employees an ability to challenge their pay based on wages paid to employees at other work locations of the same employer.
PAGA Amendments – AB 1506
Amendments to the Private Attorneys General Act of 2004 (PAGA), which are effective immediately, provide some relief to employers relating to claims under Labor Code § 2699. Based on the amendment, employers now have a limited right to cure a violation of failing to provide its employees with a wage statement containing the inclusive dates of the pay period and the name and address of the legal entity of the employer.
Expanded Labor Commissioner Enforcement Powers – SB 588 and AB 970
In SB 588, the California legislature authorized the Labor Commissioner to file a lien on real estate, or a levy on an employer’s property, or impose a stop order on an employer’s business to assist an employee in collecting unpaid wages where there is a judgment against the employer. Additionally, employers, or individuals acting on behalf of employers, who violate any provision regulating minimum wages or hours and days of work in any order of the Industrial Welfare Commission, or who violate other related provisions of law, may be held liable as the employer for such violation. A bond of up to $150,000 may be required of an employer who does not promptly pay a judgment for unpaid wages.
In AB 970, the California legislature authorized the Labor Commissioner to issue citations to enforce local minimum wage and overtime laws.
IWC Wage Orders 4-2001 and 5-2001 and Health Care Employees – SB 327
In an effort to negate the California Court of Appeal opinion in Gerard v. Orange Coast Memorial Medical Center, 234 Cal. App. 4th 285 (2015), the California legislature enacted SB 327, making meal period waivers for health care employees valid and enforceable (reaffirming the validity of Section 11(D) of Industrial Welfare Commission Wage Orders 4-2001 and 5-2001).
Piece-Rate Compensation – AB 1513
The California legislature clarified the statutory requirements for piece-rate compensation and provided an affirmative defense and safe harbor for employers who, by December 15, 2016, fully compensate their specified employees for all under-compensated or uncompensated rest periods, recovery periods, or unproductive time between July 1, 2012 and December 31, 2015.
Kin Care: More Kin; More Care – SB 579
This Act was amended to better coordinate with California’s paid sick leave law. Effective January 1, 2016, employees may take kin care leave to care for grandparents, grandchildren, and siblings. Also, the amendment clarifies and expands the reasons an employee may take for leave. While the prior version covered “leave to attend to an illness,” the new version covers: the diagnosis, care, or treatment for an existing health condition, or for preventive care (prior law specified “illness” only), certain absences resulting from domestic violence, sexual assault, or stalking.
Family School Partnership Act – SB 579
The school-related leave law is expanded to broaden the reasons employees may take job-protected leave from work without the fear of reprisal. This allows workers to take time off work to: (1) find, enroll, or re-enroll children in a school or with a licensed child care provider, and (2) to address issues with a child care provider or school emergency.
Grocery Store Workers Protection – AB 359 and 897
Certain large grocery store establishments now have obligations to retain certain grocery store workers for a limited period of time following the sale of the grocery store to another entity.
Discrimination and Retaliation Laws
New California laws extend employee protection in both the retaliation and discrimination context.
California law protects employees from retaliation and discrimination based on the employee having engaged in protected conduct. AB 1509 amends Labor Code section 98.6, 1102.5, 2810.3, and 6310, and extends that protection with regard to retaliation by extending it to a family member of a person who engaged in, or was perceived to engage in, the protected conduct. The bill also gives an exemption to household goods carriers from some liability provisions.
Meanwhile, AB 987 extends retaliation and discrimination protections under the Fair Employment and Housing Act (FEHA) to include employees requesting accommodation based on disability or religious beliefs, regardless of whether the request was ultimately granted. The purpose of the law is to clarify part of the holding in the published decision Rope v. Auto-Clor Sys. Of Washington, Inc., 220 Cal. App. 4th 635 (2013).
