2017 END-OF-SESSION BILLS SIGNED BY GOVERNOR BROWN; CA COMPUTER SOFTWARE EMPLOYEE OVERTIME EXEMPTION RATES; SF LACTATION IN THE WORKPLACE ORDINANCE

• 2017 End-of-Session Employment Laws Signed by Governor Brown
• New California Overtime Exemption Rates for Computer Software Employees
• New San Francisco Lactation in the Workplace Ordinance

2017 END-OF-SESSION EMPLOYMENT LAWS SIGNED BY GOVERNOR BROWN

At the close of the 2017 legislative session, California Governor Jerry Brown signed into law several important employment bills. Below is a summary of signed bills that apply generally to private employers.  All bills are effective January 1, 2018, unless otherwise indicated. Please feel free to contact us with any questions about the new requirements or necessary policy revisions.

Salary History Information: AB 168

On October 12, 2017, Governor Brown signed AB 168, adding Section 432.3 to the Labor Code, prohibiting employers from seeking an applicant’s salary history information. The law also prohibits employers from relying on salary history information as a factor in determining whether to offer employment or what salary to offer. Employers will be required, upon reasonable request, to provide to an applicant the pay scale for a position. The law does not prohibit an applicant from voluntarily disclosing salary history information and does not prohibit an employer from considering or relying on voluntarily disclosed salary history information in determining salary.

Immigration Worksite Enforcement Actions: AB 450

On October 5, 2017, Governor Brown signed AB 450, adding Sections 7285.1-7.285.3 to the Government Code and adding Sections 90.2 and 1019.2 to the Labor Code. The law prohibits employers, unless otherwise required by federal law, from voluntarily allowing an immigration enforcement agent to enter any nonpublic areas of the employer’s premises without a judicial warrant; or to access, review, or obtain the employer’s employee records without a subpoena or judicial warrant.

The law also requires employers to post/provide specified written notices related to immigration agency inspections of I-9 records.

Employers are prohibited from reverifying the employment eligibility of a current employee, except as required by federal law.

Penalties for violations of the law range from $2,000 to $10,000.

Criminal History Use: AB 1008

On October 14, 2017, Governor Brown signed AB 1008, adding Section 1252 to the Government Code and repealing Section 432.9 of the Labor Code. The law prohibits employers from including criminal history questions on applications and from asking about or considering criminal history until after a conditional offer has been made. The law also requires employers who are considering denying employment based on a conviction history to conduct a specific individualized assessment and provide specified notices to the applicant.

See our legal update on Employer Use of Criminal History in California for more detailed information.

Prohibited Discrimination Against Service Members: AB 1710 and SB 266

On October 8, 2017 and October 5, 2017, Governor Brown signed AB 1710 and SB 266, respectively, amending Section 394 of the Military and Veterans Code. Existing law prohibits discrimination against a member of the military with respect to employment. The amended law specifies that the scope of prohibited employment discrimination includes discrimination in “terms, conditions, or privileges” of employment.

New Parent Leave Act: SB 63

On October 12, 2017, Governor Brown signed SB 63, amending the California Family Rights Act to expand employee leave entitlements by adding Section 12945.6 to the Government Code (the New Parent Leave Act). The law allows employees who work at worksites where at least 20 employees are employed within 75 miles, to take up to 12 weeks of parental leave for new child bonding purposes within one year of the child’s birth, adoption or placement. To be eligible, employees must have more than 12 months of service and at least 1,250 hours of service with the employer during the previous 12-month period.  Employers are required to maintain the employee’s group health coverage during parental leave at the level and under the same conditions that coverage would have been provided if the employee was not on leave. The New Parent Leave Act does not apply to employees who are subject to both the California Family Rights Act (Gov. Code Section 12945.2) and the federal Family and Medical Leave Act.

Retaliation Actions: SB 306

On October 3, 2017, Governor Brown signed SB 306, amending Section 98.7 of the Labor Code and adding Sections 98.74, 1102.61 and 1102.62 to the Labor Code. The new law authorizes the Division of Labor Standards Enforcement (DLSE) to commence a wage discrimination or retaliation investigation even without a complaint being filed, when specified retaliation or discrimination is suspected during a wage claim or field inspection, or in instances of suspected immigration-related threats.  In addition, temporary injunctive relief may be sought by the Labor Commissioner, and will be ordered by a court upon a showing that reasonable cause exists to believe an employee was discharged or faced adverse action for raising a claim of retaliation or asserting rights under any law under the Labor Commissioner’s jurisdiction.

Gender Identity, Gender Expression, and Sexual Orientation: SB 396

On October 15, 2017, Governor Brown signed SB 396, amending the California Fair Employment and Housing Act (specifically Sections 12950 and 12950.1 of the Government Code) as well as certain sections of Unemployment Insurance Code.  The law requires employers with 50 or more employees to include, as a component of supervisor harassment training under the FEHA, training to prevent harassment based on gender identity, gender expression and sexual orientation. The training must include practical examples and must be presented by trainers or educators with knowledge and expertise in harassment based on gender identity, gender expression and sexual orientation.

In addition, employers with five (5) or more employees are required to post, in a prominent and accessible location in the workplace, a poster developed by the Department of Fair Employment and Housing (DFEH) regarding transgender rights.

NEW CALIFORNIA OVERTIME EXEMPTION RATES FOR COMPUTER SOFTWARE EMPLOYEES

Below are the new overtime exemption wage rates for California software employees which will go into effect on January 1, 2018:

• Minimum hourly rate of pay exemption will be $43.58
• Minimum monthly salary exemption will be $7,565.85
• Minimum annual salary exemption will be $90,790.07

NEW SAN FRANCISCO LACTATION IN THE WORKPLACE ORDINANCE

The San Francisco Lactation in the Workplace Ordinance, which will be in effect as of January 1, 2018, goes beyond existing federal and California law regulating lactation accommodations.  The ordinance requires employers to provide employees breaks and a location for lactation and to have a policy regarding lactation in the workplace that specifies a process by which an employee will make a request for accommodation. The ordinance also defines minimum standards for lactation accommodation spaces, requires that tenant improvements in buildings designated for certain uses include lactation rooms, and outlines lactation accommodation best practices. Finally, the ordinance amends the Building Code to specify the technical specifications of lactation rooms for tenant improvements in buildings designated for certain uses.

 

Please note that this summary is not intended to constitute legal advice. If you have questions regarding compliance with these new California laws or other employment laws, please feel free to contact either Kristin Pedersen or Maki Daijogo at Daijogo & Pedersen, LLP through our website, www.dpemploymentlaw.com, or by calling us at 415.924.9400.