Navigating the 2024 Employment Law Updates: A Comprehensive Overview

The landscape of employment laws in California has undergone many big changes in 2024. In some ways reshaping the dynamics of workplaces and employer-employee relationships. Today we will be reviewing these updates as they encompass pivotal areas that businesses must carefully navigate to ensure compliance and foster fair, supportive work environments.

Mandatory Workplace Violence Prevention Plan & Training (SB 553)
Starting on July 1, 2024, California has put new guidelines into place mandating the implementation of in-depth workplace violence prevention plans within Injury Illness Prevention Programs (IIPP).

These plans demand careful attention to various important components. Identifying the job roles and employees who are responsible for executing the plan is a crucial aspect of these new workplace safety measures. Additionally, employees should have an involvement with the development and implementation of the plan. It is also important to establish coordination protocols with other employers in the vicinity of the workplace.

These regulations require robust procedures to promptly address workplace violence reports while strictly prohibiting any retaliation. To successfully implement these changes, employers will need clear communication channels for reporting and investigations. In addition, extensive training protocols should be put into place.

Ensuring success involves after-incident response steps as well as regular checks. Keeping records on violent events and hazard checks for a minimum of five years is a must. Also, first training sessions after plan start are crucial, from then on yearly refreshers and more training for new risks or changes should be provided.

Employee Non-Compete Agreements
Moving onto legislative developments, recent changes, particularly SB 699 and SB 1076, have transformed the landscape of non-compete agreements in California. SB 699 stands as a key measure that renders non-compete agreements null and void, regardless of their initial execution location. This substantial change requires a proactive step from employers, to inform affected employees about voided non-compete clauses within their employment contracts. On the other hand, SB 1076 introduces exceptions aligned with required criteria under the Business & Professions Code. This legislative shift supports the NLRB memoranda, underscoring potential conflicts between such clauses and employee rights.

This revision prompts businesses to reassess their contractual terms and obligations, emphasizing the need for a careful review and potential adjustment of existing agreements to comply with these updated legal standards.

Severance Agreements
Regarding severance agreements, the recent ruling in McLaren Macomb 372 NLRB No. 58 2/21/23 sparked notable changes. This case brought attention to the potential risks linked with standard non-disparagement and confidentiality clauses within severance agreements.

While this ruling doesn’t extend to supervisors, it serves as a stark reminder of the need for carefully crafted agreements that align with legal standards. In light of this, it is imperative to craft nuanced agreements tailored to the individual context and legal requirements for businesses navigating severance agreements.

Software Developers/IT Employee Pay Requirements
Software Developers and IT employees pay requirements have changed. Significant revisions have been introduced to the classification and compensation criteria for these positions. Under the “computer software professional” exemption, minimum salaries and hourly rates have been increased, effective January 1, 2024. This exemption includes an array of roles, such as software engineers, developers, analysts, and related positions.

Notably, the minimum annual salary for an exempt computer software professional has surged from $112,065.20 annually to $115,763.35 annually, in correlation with an increase in the minimum hourly rate from $53.80/hour to $55.58/hour.

Employers are now obligated to carefully assess the duties of exempt employees to ensure they meet the exemption criteria. It’s important to note that this exemption doesn’t apply to entry-level software professionals or employees lacking the requisite expertise for independent work. Furthermore, the statewide minimum wage rise to $16.00/hour impacts salary benchmarks for exempt white-collar employees, increasing the threshold to $66,560 annually. These revisions require employers’ thorough attention and strict adherence to the updated guidelines.

Recent Settlements & Verdicts
There have been many recent legal settlements and verdicts against prominent corporations like Marriott, Google, Equinox, and HP. These cases underscore the significant financial burden that can arise from discrimination, wage disputes, and alleged biases in layoffs. These high-profile instances highlight the importance of fair practices. As well as regular audits and thorough investigations into discrimination complaints when making employment decisions.

For instance, Marriott faced a $20 million verdict for disability discrimination, prompting the need for an interactive process to adequately accommodate disabled employees. Google encountered a $1.1 million verdict due to alleged sex discrimination and pay disparities, amplifying the necessity of periodic pay audits and in-depth discrimination investigations.

Equinox settled for $36 million over pre-shift work issues, emphasizing the importance of proper compensation for non-exempt employees and ensuring adequate rest periods. As for HP, they settled an $18 million case involving alleged age bias in layoffs, stressing the significance of running an impact analysis to avoid discrimination based on age, gender, and race.

These cases serve as critical reminders for employers to prioritize compliance, fair practices, comprehensive investigations, and equal treatment to prevent costly litigations and foster inclusive workplace environments.

Reproductive Loss Leave (SB 848)
A critical amendment effective January 1, 2024. SB 848 grants unpaid leave following a reproductive loss event, such as miscarriage, stillbirth, or failed adoption. This approach aims to support individuals during sensitive times without imposing the burden of documentation requirements.

The introduction of this ruling signifies a noteworthy recognition of the emotional and physical toll associated with such experiences. This amendment advocates for workplace policies that prioritize empathy and understanding in challenging situations.

California Fair Chance Act Revised Regulations
There are newly revised regulations under the California Fair Chance Act. These updates signify a shift in handling criminal history inquiries and conditional employment offers. The amendments redefine entities falling under employer classification to include those evaluating an applicant’s conviction history on behalf of an employer.

These restrictions curb potential biases in hiring processes by imposing limits on considering voluntary disclosures regarding an applicant’s criminal history. Employers are now mandated to follow explicit procedures before denying or rescinding conditional offers based on an individual’s criminal history. Hopefully ensuring a fair and equal processes in hiring.

Cannabis Use
Effective January 1, 2024, a significant amendment has impacted employers with five or more employees, prohibiting discrimination based on off-job cannabis use or positive non-psychoactive cannabis metabolites drug screenings. Notably, it prohibits possession, impairment, or on-job use of cannabis. Despite these prohibitions, certain industries and positions requiring federal background checks or security clearance, remain exempt. Employers can still prohibit the use of any cannabis products if these requirements apply to the position.

Additionally, employers are prohibited from seeking information on an applicant’s past cannabis use or using cannabis-related data from criminal history records, unless explicitly permitted under federal law. These new provisions aim to protect employee rights regarding off-work cannabis activities while upholding fair hiring practices and maintaining on-job cannabis restrictions.

California Paid Sick Leave (SB 616)
The California Paid Sick Leave regulations effective January 1, 2024, have significant changes, introducing two primary accrual methods: the front-loaded method and the accrual method. Employers can offer either 40 hours or five days upfront or allow employees to accrue one hour of sick leave for every 30 hours worked, with a minimum cap of 80 hours or ten days. Additionally, the annual usage cap has been increased to 40 hours or five days.

Employers can opt to substitute PTO for separate paid sick leave. Given the policy aligns with necessary accrual and carryover criteria. Complying with these updates involves a careful review of existing sick leave policies and a review of amendments to labor code notices. It is also a requirement for sick leave accrual to be represented on wage statements.

Vacation and PTO Payouts
Lastly, recent legal developments underline the importance of clarifying vacation policies. Especially those presenting as “unlimited” while implicitly capped. The McPherson v. The EF Intercultural Foundation case mandated significant payouts for unused vacation time.

The case emphasizes the need for clear guidelines in seemingly unlimited vacation policies to prevent misunderstandings. Ultimately ensuring fair and transparent treatment of employees.

These 2024 employment law updates in California signal a significant shift in business operations and require that your employee handbook needs to be updated. Understanding and complying with these changes are crucial not just for meeting compliance but also for fostering equitable, supportive, and legally compliant workplaces.

Please reach out and let us know if you’d like for us to update your employee handbook to include these new 2024 updates. If you’re not already working with us, take advantage of a free 60-minute consultation to see how we can enhance workplace compliance and navigate these evolving employment laws seamlessly.