California Governor Signs Multiple Employment-related Bills Into Law | Practical Law

California Governor Signs Multiple Employment-related Bills Into Law | Practical Law

California Governor Jerry Brown signed multiple employment-related bills into law in September 2012, covering such areas as wage payment laws and notification requirements, anti-discrimination laws and social media laws.

California Governor Signs Multiple Employment-related Bills Into Law

Practical Law Legal Update 3-521-7192 (Approx. 6 pages)

California Governor Signs Multiple Employment-related Bills Into Law

by PLC Labor & Employment
Published on 08 Oct 2012California
California Governor Jerry Brown signed multiple employment-related bills into law in September 2012, covering such areas as wage payment laws and notification requirements, anti-discrimination laws and social media laws.
In September 2012, California Governor Jerry Brown signed into law multiple bills affecting private employers in the state, which take effect on January 1, 2013 (unless otherwise noted). The bills cover, among other areas, wage payment laws and notification requirements, anti-discrimination laws and social media issues, and include:
  • Religious dress and grooming practices. A.B. 1964 includes religious dress or grooming practices as a belief or observance covered by the Fair Employment and Housing Act's (FEHA) protections against religious discrimination, and also addresses reasonable accommodation in this context. For more information, see Legal Update, Ogletree Deakins: California Expands Protection for Religious Dress and Grooming Practice in the Workplace.
  • Breastfeeding and related conditions. A.B. 2386 expands FEHA's prohibition against discrimination on the basis of sex to include breastfeeding or medical conditions related to breastfeeding.
  • Access to personal social media accounts. A.B. 1844 generally prohibits an employer from asking or requiring an employee or job applicant to provide access to personal social media accounts, except in limited circumstances. For more information, see Legal Update, Jackson Lewis: California Becomes Third State to Limit Access to Employees' and Students' Social Media Accounts.
  • Copies of wage statements and personnel files. A.B. 2674 clarifies that a "copy" of the itemized wage statement required by Section 226 of the California Labor Code includes a duplicate of the itemized statement provided to an employee or a computer-generated record that accurately shows all the required information. It also requires employers, with some exceptions, to give employees, former employees and their representatives access to and copies of their personnel files within 30 days of their request. Employers must also retain personnel files for three years after an employee's termination of employment and develop a written form for employees to use when requesting access to and copies of their records. Employers may be subject to a $750 penalty for failure to comply with the law. Employees may also obtain injunctive relief and attorneys' fees.
  • Failure to provide sufficient wage statement. S.B. 1255 penalizes an employer's knowing and intentional failure to provide a wage statement by adding that failure to the definition of an "injury" an employee can suffer under Section 226 of the California Labor Code. Employees may also suffer an injury under the law if the employer fails to provide accurate and complete information and the employee cannot promptly and easily determine the gross or net wages paid during the pay period or other specified information from the wage statement alone.
  • Temporary services employers. A.B. 1744 requires temporary services employers to include the name, physical and mailing address and telephone number of the main office of the legal entity for which the employees work in the Wage Theft Protection Act notice provided at the time of hire. These employers must also provide additional itemized information on wage statements concerning the rate of pay and total hours worked for each assignment, effective July 1, 2013. These changes do not apply to security services companies.
  • Payment of fixed salary to nonexempt employees. A.B. 2103 provides that payment of a fixed salary to a nonexempt employee comprises compensation only for the employee's regular, non-overtime hours, notwithstanding any private agreement to the contrary. The law overturns a California Court of Appeal's 2011 decision in Arechiga v. Dolores Press, Inc., which held a nonexempt employee's salary could provide compensation for more than 40 hours of work in a week.
  • California False Claims Act. A.B. 2492 expands the definition of a claim under the state's False Claims Act and also defines "obligation" under the Act. The new law increases the civil penalty for violations and modifies the statute of limitations in certain civil actions.
  • Willful failure to pay final judgment or order. S.B. 1144 increases the fine for employers that willfully fail to pay, and can pay, a final court judgment or order issued by the Labor Commissioner for all wages due an employee who was discharged or left employment within 90 days of the date judgment was entered or the order became final.
  • Clarification of "commissions." A.B. 2675 exempts temporary, variable incentive payments that increase but do not decrease payment under a written contract from the law requiring commission payment arrangements to be in writing.
  • Depositions. A.B. 1875 restricts depositions to seven hours of total testimony, except in employment cases.
  • Child Performer Services Permit. A.B. 1660 prohibits anyone other than licensed talent agents and other specified persons from representing or providing specified services to a minor artist without first applying for and receiving a Child Performer Services Permit from the Labor Commissioner. Applicants must renew their permits on a biennial basis.
  • Farm labor contractors. A.B. 1675 subjects violators of the requirement that a farm labor contractor be licensed to citations issued by the Labor Commissioner and increased civil penalties for increasing numbers of citations for violations. Civil penalties collected will be deposited into the Farmworker Remedial Account and be available to regulate farm labor contractors.
  • Warehouse contractors. A.B. 1855 adds warehouse contractors to the list of specified contractors with whom a person may not enter into a labor or services contract if that person knows or should know that the contract does not include sufficient funds to allow the contractor to comply with applicable laws or regulations. The law also requires the person entering the agreement to provide the Labor Commissioner with a copy of the agreement and related documentation on request.
  • Prevailing wages and employer payment contributions. A.B. 2677 provides that increased employer payment contributions resulting in a lower hourly straight time or overtime wage are not considered a violation of the applicable prevailing wage determination if specified conditions are met.
  • California Secure Choice Retirement Savings Trust Act. S.B. 1234 requires eligible employers to offer a payroll deposit retirement savings arrangement so eligible employees may contribute a portion of their wages to a retirement savings account in the California Secure Choice Retirement Savings Program.
Other laws previously signed by Governor Brown that are also effective January 1, 2013 (unless otherwise indicated) include:
  • Driving and texting. A.B. 1536 permits persons using an electronic wireless communications device specifically designed to allow voice-operated and hands-free operation to dictate, send or listen to text-based communications while driving.
  • Wage garnishment. A.B. 1775 amends the Wage Garnishment Law to define "disposable earnings" as the portion of an individual's earnings that remains after deducting all amounts that are legally required to be withheld. The law also increases the amount of wages exempt from garnishment from the federal standard to a higher state standard. This law takes effect July 1, 2013.
  • Intellectual disability. A.B. 2370 amends various state statutes to substitute the term "intellectual disability" for "mental retardation."
  • Medical certification of infant performer. A.B. 2396 requires medical certification of an infant performer under one month old before an entertainment work permit for the infant may be issued.
  • Commercial drivers. A.B. 2659 allows the California Department of Motor Vehicles to waive the federally-required driving skills test for a commercial motor vehicle driver with military commercial motor vehicle experience who is currently licensed with the US Armed Forces and who meets other requirements.
  • Elimination of Fair Employment and Housing Commission. S.B. 1038 eliminates the California Fair Employment and Housing Commission (FEHC). The FEHC's duties of rulemaking and administrative adjudication of discrimination claims will be mainly assumed by the Department of Fair Employment and Housing (DFEH), which will include a Fair Employment and Housing Council.