Key Changes in California Employment Laws for 2024: What You Need to Know

Several new employment laws have impacted California workplaces significantly. Both employees and employers must stay informed to ensure compliance and understand their rights and responsibilities. Here’s an overview of the most significant changes and how they affect the California workforce.

1. Minimum Wage Increase

Change: The statewide minimum wage has increased to $16 per hour for all employees.

Impact: This change aims to provide a living wage to workers, particularly those in low-income brackets. Employers must adjust payroll systems to comply with the new rate, and employees can expect higher earnings.

With the increase in the minimum wage, the salary basis test for exempt employees has also been adjusted. To be considered exempt, employees must earn at least $66,560 annually.

2. Mandatory Bereavement Leave

Change: Employers are now required to provide up to 5 days of bereavement leave for the death of a family member.

Impact: Employees will have the necessary time to grieve without the stress of losing income. Employers should incorporate this leave into their existing leave policies and communicate the changes to their staff.

3. Wage Transparency and Reporting

Change: Employers with 100 or more employees must report pay data annually, categorized by race, ethnicity, and sex across various job categories.

Impact: This law aims to address wage disparities and promote pay equity. Employers need to implement data collection and reporting mechanisms to comply with the new requirements. Transparency in pay practices will also empower employees to understand and advocate for fair wages.

4. Workplace Safety Regulations

Change: Enhanced safety protocols are mandated, particularly in response to COVID-19 and other health emergencies.

Impact: Employers must ensure compliance with the updated Cal/OSHA standards, which may include providing personal protective equipment (PPE), ensuring social distancing in workplaces, and implementing health screenings. Employees can expect safer working environments and the right to report non-compliance without fear of retaliation.

5. Independent Contractor Classification

Change: The ABC test for classifying independent contractors has been reinforced, with stricter guidelines on who qualifies as an independent contractor versus an employee.

Impact: Many workers currently classified as independent contractors may need to be reclassified as employees, entitling them to benefits such as health insurance, unemployment insurance, and worker protections. Employers must reassess their workforce classifications to avoid legal penalties, and workers should understand their rights regarding employment status.

Conclusion

These key changes reflect California’s ongoing commitment to improving labor standards, promoting fair treatment, and ensuring the well-being of its workforce. Both employers and employees should stay informed and proactive in understanding these new laws to ensure smooth transitions and compliance.

Action Steps:

• Employers should review and update their policies and training programs.
• Employees should stay informed about their rights and benefits under the new laws.

For further information and detailed guidance, consulting with a labor law expert.

By staying informed and proactive, employees can navigate these changes effectively, fostering a fair and compliant work environment in 2024 and beyond.