On September 24, 2019, the Department of Labor issued a rule to extend mandatory overtime. The final rule updates the earnings thresholds necessary to exempt executive, administrative, or professional employees from the FLSA's minimum wage and overtime pay requirements and allows employers to count a portion of certain bonuses (and commissions) towards meeting the salary level. In the final rule, the Department is:

The agency has issued revised fact sheets addressing various aspects of the final white-collar overtime rule and other resources that may be found on the Agency’s website. 

 

SB 778 was signed into law and was effective immediately. The law extends the deadline to January 1, 2021 for employers with 5 or more employees to provide at least 2 hours of classroom or other effective interactive training and education regarding sexual harassment to all supervisory employees and at least 1 hour of classroom or other effective interactive training and education regarding sexual harassment to all nonsupervisory employees in California within 6 months of their assumption of a position.

The governor signed AB 5. This legislation will effectively codify the California Supreme Court's decision in Dynamex Operations West Inc. v. Superior Court, which held that workers would be presumed employees and could only be classified as independent contractors if they satisfied a three part (ABC) test. There are exceptions for specific industry areas (e.g. licensed insurance brokers, certain medical professionals, direct salespeople, commercial fisherman, accountants, etc.) within the bill. However, the exemptions do not cover gig economy transportation companies. The law will be effective on January 1, 2020.

AB 1223 was signed into law. Under existing CA law, private employees and those employed by the State of California must provide employees with 30 days of paid leaves of absence for a worker who is donating organs to another individual. AB 1223 will provide an additional unpaid 30-day leave of absence for organ donors. The new law is effective January 1, 2020.

AB 406 was signed and effective January 1, 2025 to require the EDD to make the application for paid family leave available in all languages spoken by a substantial number of applicants.

AB 170 which will exempt a newspaper distributor working under contract, as defined, and a newspaper carrier working under contract, as defined, from the three-part Dynamex test as codified in AB 5 was signed. While AB 5 will be effective on January 1, 2020, the newspaper distributor and carrier exemption will apply until January 1, 2021.

SB 142 was signed, which will require that a lactation room be safe and free of hazardous materials (as defined), contain a surface to place a breast pump and personal items, include a place to sit, have access to electricity or alternative devices needed to operate an electric or battery-powered breast pump, not be a bathroom and be in proximity to the employee's work area, shielded from view, and free from intrusion. It also requires employers to develop and implement a policy that educates employees on these rights, including the process to request such an accommodation. Further, the bill prohibits retaliation and imposes a fine of $100 for each day that the employee is denied reasonable break time or adequate space to express milk. The law is effective January 1, 2020.

AB 51 was signed and effective January 1, 2020. The legislation prohibits an employer from requiring any applicant for employment or any employee to waive any right, forum, or procedure for a violation of any provision of the state labor code as a condition of employment, continued employment, or the receipt of any employment-related benefit.

AB 9, will extend the current time to file a claim of discrimination, harassment, and/or retaliation with the California Department of Fair Employment and Housing ("DFEH") from one to three years and is effective January 1, 2020.

AB 547, effective January 1, 2020 establishes requirements for a biennial sexual violence and harassment prevention training in the janitorial industry.

AB 673, effective January 1, 2020 provides that penalties for late payment of wages shall be recovered by the Labor Commissioner (LC), payable to the affected employee, as a civil penalty or by the employee as a statutory penalty in a hearing pursuant to the LC's authority under the Labor Code.

The California Department of Industrial Relations adjusted two overtime exemption amounts: the computer software employee exemption and the licensed physicians and surgeon exemption. The computer software employee’s minimum rate will rise to a minimum of $46.55 per hour, with a minimum monthly salary of $8,080.71 and a minimum annual salary of $96,968.33. The licensed physician and surgeon exemption will rise to a minimum of $84.79 per hour. The changes to the exemptions are effective January 1, 2020.

The California Department of Fair Employment and Housing published an updated Employer FAQ that addresses SB 1343. As previously reported, SB 1343 requires that all employers of 5 or more employees provide 1 hour of sexual harassment and abusive conduct prevention training to non-managerial employees and 2 hours of sexual harassment and abusive conduct prevention training to managerial employees once every two years. Supervisory employees must still be trained within six months of assuming their supervisory position. All employees must now receive training by January 1, 2021.