With the new year comes new employment laws that will effect your business. Dozens of new employment-related bills that were signed into law go into effect on January 1, 2020.
While this post does not discuss every law passed in 2019 that may impact California employers, you can find an overview of three of the most notable below:
California Assembly Bill 5 – Employees and Independent Contractors
Is the legislature’s response to the California Supreme Court’s opinion in Dynamex West, Inc. v Superior Court. California employers will be faced with a redefined standard for whether or not they can classify a person performing services for compensation as an independent contractor. For the most part, it will be extremely difficult to classify a person as an independent contractor rather than an employee under AB5. While the law does not automatically change workers’ status when it goes into effect, California employers should evaluate their workforce and reclassify workers as appropriate.
Click here to read the bill in full AB 5
California Assembly Bill 9 – Fair Employment and Housing Act
Extends the current period an employee is required to file a verified complaint with the Department of Fair Employment and Housing (DFEH) for alleged FEHA violations from one (1) year to three (3) years. California employers should ensure employment documents are retained for an appropriate period of time with this expanded statute of limitations for such claims taking effect.
Click here to read the bill in full AB 9
California Assembly Bill 51 – Unilateral Pre-disputed Arbitration
Effectively bans employers from entering into mandatory arbitration agreements for nearly all types of employment law claims in California. AB 51 applies to contracts entered into, modified, or extended on or after January 1, 2020. California employers should contact DuFord Law to discuss whether to continue to include mandatory arbitration agreements in employment contracts, and whether existing contracts need to be modified.
Click here to read the bill in full AB 51
All California employers should be aware of these new laws and the potential impact they will have on operations. Contact DuFord Law today to set up a consultation for all your compliance questions.