On October 10, 2023, Governor Newsom signed Senate Bill (SB) 723, which moves the expiration the right of recall rights for employees in the hospitality and service industry from December 31, 2024, to December 31, 2025. The bill adds a presumption that a separation due to a lack of business, reduction in force, or other economic, non-disciplinary reasons is due to a reason related to the COVID-19 pandemic.

In 2021, Newsom signed Senate Bill (SB) 93 which required certain employers in hospitality and service industries to rehire employees laid off due to the COVID-19 pandemic.

SB 93 applied to the following industries:

  • Hotels
  • Private clubs
  • Event Centers
  • Airport Hospitality Operations
  • Airport Service Providers
  • Building Services to office, retail, or other commercial buildings

Previously SB 93 was set to sunset at the end of 2024, but SB 723 extends the sunset until the end of 2025.

If you have questions about SB 723, or related issues contact a Jackson Lewis attorney to discuss.

On October 8, 2023, California’s Governor signed Assembly Bill (AB) 647, which revises recall rights for grocery workers when there is a change of control in a grocery establishment.

Under the bill, the definition of “grocery establishment” includes a “distribution center owned and operated by a grocery establishment and used primarily to distribute goods to and from its owned stores,” regardless of its square footage. It also excludes from the definition a retail store that ceased operations for 12 months or more.

Existing law establishes grocery worker retention provisions requiring the buyer of an existing grocery store to retain employees for a 90-day transition period during which an employee may only be discharged for cause, as specified, and considered for continued employment at the end of the transition period.

The bill also adds an enforcement mechanism for violations of the law.

The revisions to the recall rights take effect January 1, 2024.

If you have questions about AB 647, or related issues contact a Jackson Lewis attorney to discuss.

On October 7, 2023, Governor Newsom signed Senate Bill (SB) 700, which makes it unlawful under the Fair Employment and Housing Act (FEHA) for an employer to discriminate against a job applicant based on information regarding prior use of cannabis that is learned from a criminal history.

However, SB 700 does not preempt state or federal laws requiring an applicant to be tested for controlled substances, nor is an employer prohibited from asking about an applicant’s criminal history as long as in compliance with state law requirements.  

This change takes effect on January 1, 2024.

As a reminder, in 2022, the California legislature passed Assembly Bill (AB) 2188, which makes it unlawful for an employer to discriminate against a person in hiring, termination, or any term or condition of employment based upon: (1) a person’s use of cannabis off the job and away from the workplace, or (2) an employer-required drug screening test that has found the person to have non-psychoactive cannabis metabolites in their hair, blood, urine, or other bodily fluids. AB 2188 also takes effect on January 1, 2024.  There is an exemption for the building and construction trades.

If you have questions about SB 700 or related issues, contact a Jackson Lewis attorney to discuss.

On October 4, 2023, California’s Governor signed Senate Bill (SB) 616, which increases the amount of paid sick leave employers are required to provide to California employees.

Beginning on January 1, 2024, employers must increase the amount of sick leave provided to California employees from three days/24 hours to five days/40 hours.

Accrual

Under California’s existing paid sick leave statute, employees who work in California for the same employer for 30 or more days must accrue no less than one hour of paid sick leave per every 30 hours worked. Current law allows employers to use alternative accrual methods (other than the one hour of paid sick leave per every 30 hours worked), so long as employees have three days/24 hours of available paid sick leave by the employee’s 120th calendar day of employment or each calendar year. Under SB 616, employers may continue to use different accrual methods other than one hour per every 30 worked but must also ensure employees have no less than five days/40 hours of accrued paid sick leave by the 200th calendar day of employment or each calendar year.

Moreover, SB 616 modifies existing law by stating that an employer may satisfy the accrual requirements of the statute by providing three days/24 hours of paid sick leave that is available to the employee to use by the 120th calendar day of employment, and no less than five days/40 hours of paid sick leave by the 200th calendar day of employment.

Use Limits

SB 616 increases the amount of sick leave that an employee may use in each year of employment, calendar year, or 12-month period, from three days/24 hours to five days/40 hours.   

Accrual Cap and Carryover

SB 616 also requires that employers increase the accrual and carryover cap to ten days/80 hours. However, no accrual or carryover is required if the employer provides five days/40 hours of paid sick leave upfront each year of employment, calendar year, or 12-month period.

In-Home Supportive Service Providers and Employees Covered by CBAs

The bill also amends the schedule for in-home supportive service providers (IHSS) to increase their paid sick leave accrual to five days/40 hours in each year of employment.

In addition, SB 616 extends certain procedural and anti-retaliation provisions in existing paid sick leave law to employees covered by valid collective bargaining agreements that are otherwise exempt from other provisions of the paid sick leave law.

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The changes to California’s paid sick leave statute take effect January 1, 2024.

If you have questions about SB 616 or issues related to paid sick leave, please contact a Jackson Lewis attorney to discuss.

On September 30, 2023, Governor Newsom signed Senate Bill (SB) 553, which will require employers to establish, implement, and maintain an effective workplace violence prevention plan (WVPP).

The WVPP will require the maintenance of a violent incident log, training on workplace violence hazards, and periodic reviews of the plan. Some controversial provisions from earlier versions of the bill—including those that would prohibit retailers from “confronting” suspected shoplifters except through “dedicated safety personnel”—were deleted.

The following types of entities are exempted from the WVPP requirement:

  • Healthcare facilities (already covered by Cal/OSHA’s Violence Prevention in Health Care standard)
  • Facilities operated by the Department of Corrections and Rehabilitation
  • Employers that law enforcement agencies, including being in compliance with the Commission on Peace Officer Standards and Training Programs
  • Employees who are teleworking
  • Places of employment where there are fewer than 10 employees working at the place at any given time, that are not accessible to the public and are in compliance with the requirement to develop and maintain an Injury Illness Prevention Plan (IIPP).

Under the bill, a collective bargaining representative of an employee who has suffered unlawful violence from any individual may seek a temporary restraining order (TRO) and an order after hearing on behalf of the employee.

Many of the bill’s requirements (including the development of the WVPP) take effect on July 1, 2024, and will be enforced by the Division of Occupational Safety and Health (Cal/OSHA). 

SB 553 also requires Cal/OSHA by December 1, 2025, to propose standards for the WVPP, and by December 31, 2026, for the Standards Board to adopt such standards.

If you have questions about SB 553, or related issues, contact a Jackson Lewis attorney to discuss.

On September 30, 2023, Governor Newsom signed Assembly Bill (AB) 800, which will provide revisions to the requirements for the issuance of student work permits along with additional requirements for schools in conjunction with Workplace Readiness Week.

AB 800 requires that starting August 1, 2024, any minor seeking the signature of a verifying authority on a Statement of Intent to Employ a Minor and Request for a Work Permit-Certificate of Age, to be issued a document clearly explaining basic labor rights extended to workers, as provided, before or at the time of receiving the signature of the verifying authority.

Further, under the law, all public high schools would be required to observe Workplace Readiness Week by providing information to students on their rights as workers.

If you have questions about AB 800 or related issues, contact a Jackson Lewis attorney to discuss.

This summer the California Civil Rights Council approved modified regulations pertaining to California’s Fair Chance Act.

These modifications take effect on October 1, 2023.

Employers should remember the following as these changes take effect.

  • When notifying an applicant of a disqualification the notice must include all of the following:
    • Notice of disqualifying conviction that is the basis for the preliminary decision.
    • A copy of the conviction history report relied upon.
    • Notice of the applicant’s right to respond to the notice before the preliminary decision becomes final.
    • Explanation informing an applicant that they can submit either or both evidence to challenge the conviction history or evidence of rehabilitation or mitigation.
    • Notice of the deadline for the applicant to respond.
  • Individualized assessments must be “reasoned, evidence-based determination” and provide detail on what may be taken into consideration.
  • Labor contractors, union hiring halls, and client employers are deemed employers governed by the Fair Chance Act and they must comply with the requirements for workers who are admitted to a pool or availability list.
  • Employers may require applicants to complete the IRS form 8850 or equivalent before a conditional offer is made, as long as the information gathered is used solely to apply for the IRS Work Opportunity Tax Credit.

If you have questions about the changes to the Fair Chance Act regulations or related issues contact a Jackson Lewis attorney to discuss.

On September 28, 2023 , Governor Newsom signed Assembly Bill (AB) 1228, completing the agreement reached between business and labor in early September regarding the FAST Recovery Act.

On September 11, 2023, the coalition of California businesses announced its agreement with labor unions to withdraw their referendum challenging Assembly Bill (AB) 257, which created the FAST Recovery Act, from next year’s ballot.

AB 1228 repeals the FAST Recovery Act but establishes a modified version of the Fast Food Council (Council) until January 1, 2029. The bill further outlines the Council’s objectives, responsibilities, and constraints in relation to setting an hourly minimum wage and overseeing the adoption and evaluation of health, safety, and employment standards for the fast food restaurant employees.

However, there are carve outs for standards created by the Council under certain situations covered by a valid collective bargaining agreement.

The bill also sets forth the minimum wage increases for fast food workers, with an increase to $20.00 effective April 1, 2024. Thereafter, minimum wage for fast food workers shall increase annually on January 1.

If you have questions about AB 1228, or related issues contact a Jackson Lewis attorney to discuss.

On September 11, 2023, the coalition of California businesses announced its agreement with labor unions to withdraw their referendum challenging Assembly Bill (AB) 257, which created the FAST Recovery Act, from next year’s ballot.

Last year, Governor Newsom signed AB 257. The Act established a Fast Food Council comprising fast food employees, worker advocates, franchisors, franchisees, and government officials from the Department of Industrial Relations and the Governor’s Office of Business and Economic Development.

Almost immediately, a referendum effort was launched which would give California voters the opportunity to reject the measure.

While AB 257 was paused pending the referendum, the California legislature proceeded with reviving the Industrial Welfare Commission, seen as the state’s attempt to push through similar efforts to increase regulations and expansion of union involvement in industries such as the fast-food industry. In addition, another bill, Assembly Bill (AB)1228, was introduced. That bill would have imposed liability on franchisors for violations of the Fair Employment and Housing Act, the Labor Code, Cal/OSHA, and other workplace laws as well as exposing franchisors to liability under the Private Attorneys General Act.

In exchange for withdrawing the referendum on AB 257, AB 1228 was significantly revised. The amended bill does not include franchisor liability but instead resurrects the Fast Food Council that was originally included in AB 257.

As with AB 257, the amended AB 1228 would give the Fast Food Council the authority to set minimum employment standards for fast food restaurants, including wages, hours, health and safety, and other working conditions. It would set an initial minimum wage of $20 per hour effective April 1, 2024, and permit the Council to establish further increases based on increases to the Consumer Price Index. The bill as amended would also permit local jurisdictions to establish more protective labor standards but would preclude them from setting wages different from those set by the Council. The Council’s authority would sunset on January 1, 2029.

AB 1228 has not made its way out of the legislature and has only until midnight on September 14 to be sent to the Governor. However, in light of the agreement between the two sides, it is expected the bill will make its way to Governor Newsom and be signed.

If you have questions about the FAST Recovery Act or related issues, contact a Jackson Lewis attorney to discuss.