New CA Employment Laws 2021
There are several significant changes to employment laws in California for 2021. Employers should update policies and procedures, including their Employee Handbooks, and have them ready to go by January 1, 2021.
These new laws affect nearly every California employer regardless of size or industry. Here are some of the highlights of the new provisions.
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New Minimum Wage and Minimum Salary Levels; Increase for Computer Professionals
The new minimum wage in CA is $14 per hour for employers with 26 or more employees and $13 per hour for employers with 25 or fewer employees. Many counties may also have local ordinances with higher minimum wages that employers will need to comply with.
The minimum salary level is based on the CA state minimum wage, not the minimum per any local ordinance. It is increasing to $58,240 annually for employers with 26 or more employees or $54,080 for employers with 25 or fewer employees.
Also, CA has a separate minimum salary for certain computer professionals. The new minimum annual salary is $98,907.70. Employees designated as computer professionals must also still satisfy the CA duties test, which is different from federal FLSA standards.
Family and Medical Leave Expanded (CFRA)
The existing CFRA laws apply to employers with 50 or more employees. The significantly expanded CFRA (SB 1383) contains these new provisions:
Employers with 5 or more employees must provide up to 12 weeks of unpaid leave for an employee for family care and medical leave purposes.
Eliminates the requirement that employees work within 75 miles of the worksite.
Expands the definition of “family members” beyond what is covered under current CFRA and FMLA and now includes siblings, grandparents, and grandchildren. The definition of “child” is expanded to cover adult children.
Provides individual leave for both parents if they work for the same employer.
The New Parent Leave Act, which applied to employers of 20 or more employees and provided for baby bonding is eliminated. Baby bonding leave is covered under CFRA.
ABC Test for Independent Contractors
Amendments were made to the “ABC” test used to determine if a worker should be classified as an employee or independent contractor. AB 2257 clarifies existing provisions and creates additional industry exceptions to the ABC test. There are now over 100 varied exceptions that employers must be aware of.
Leave for Victims of Crime and Abuse
AB 2992 expands the prohibition on discrimination and retaliation against employees who are victims of crime or abuse and need time off. Employers with 25 or more employees must also allow crime victims to take off for medical care or counseling and must provide employees with written notice of their rights.
Paid Family Leave (PFL)
Paid Family Leave provides wage replacement benefits to workers who take time off work to care for a seriously ill family member to bond with a child within one year of birth or placement. AB 2399 updates PFL to include time off for a qualifying exigency for the call to active duty of an employee’s spouse, domestic partner, or parent.
Paid Sick Leave Designation
AB 2017 provides employees the sole discretion to designate days taken as sick days. If an employee has paid sick leave and calls out sick, you cannot automatically deduct the employee’s sick leave bank time. However, you can count the day as an unexcused absence and treat it per your absence policy.
Harassment Prevention Training Requirements Expanded
CA has expanded the requirement to provide harassment prevention training to all employers with 5 or more employees. Employers are required to provide one hour of training to nonsupervisory employees and two hours of training to supervisors. Training must take place within six months of hire or promotion.
Workers Compensation COVID-19 Presumption
SB 1159 presumes that employees who test positive for COVID-19 caught it at work if an employee tests positive within 14 days of working at the place of employment or during an “outbreak” at the place of employment. An “outbreak” is defined as 4 or more employees test positive for COVID-19 within a 14 day calendar day period. This provision does not apply to remote employees working from home.
Reporting Requirements to Workers’ Compensation
Employers are also required to inform their workers' compensation carrier within three business days and provide detailed information regarding the infection regardless of whether the employee makes a workers’ compensation claim or not.
Reporting Requirements to Employees
AB 685 has strict recording and reporting when employers are informed of any COVID-19 exposure and require employers to provide various “notice of potential exposure to COVID-19” within a specific timeframe. Also, employees must be informed of any COVID-19 related benefits they may be entitled to including workers’ compensation, company or state sick leave, and keeping records of such notifications for three years.
California Consumer Privacy Act (CCPA)
This new regulation provides consumers in CA rights over how and whether any personal data provided to the business is collected, retained, and sold. This includes employee data that employers collect from an applicant or employee, including contact and demographic information. Employers are required to provide a notice to applicants and employees specifying the type of information that will be collected and how it may be used.
*Actions for Employers*
Ensure your minimum wage and salary levels are in compliance with state and local ordinances.
Employers with 50 or more employees should implement separate CFRA and FMLA policies and track leave taken separately.
Update your Employee Handbook with the new CFRA regulations and remove references to New Parent Leave.
Review the new exceptions to the AB5 regulations and determine if any reclassifications are needed.
Update your leave and absence policies for victims of crime or abuse, the new PFL regulation, and new Paid Sick Leave regulations.
Ensure your employees receive harassment prevention training and that you retain a record of such training.
Ensure you have written policies and practices in place to protect workers and mitigate the spread of COVID-19 and have the appropriate notices ready to go if needed.
Update your data collection policies and procedures to comply with CCPA.
How FutureSense HR Can Help
FutureSense can assist you navigate these new laws and update your Employee Handbook. If you need help on any of this – or any HR, Compensation, Recruitment, or Organizational Development – we are your first-class choice. Contact us today at info@futuresense.com or 888-336-0909
