January 1st in California: A Compliance Checklist for Employers
It's a new year, and for California employers, that means a fresh set of employment law updates to navigate. As of January 1st, 2024, several significant changes affecting your workplace have gone into effect. Here's a comprehensive guide to ensure you're in compliance and keep your employees happy:
1. Cannabis Protections: Say goodbye to discrimination based on off-duty cannabis use! Employers with five or more employees can't penalize anyone for consuming cannabis outside of work and away from the workplace, even if a drug test detects non-psychoactive metabolites. This opens the door for a more inclusive and respectful work environment.
Action Items:
Review drug screening policies: Update them to exclude non-psychoactive cannabis metabolites.
Update equal opportunity policies: Clearly state that off-duty cannabis use is not a factor in hiring or employment decisions.
Educate managers and HR: Ensure they understand the new law and can answer employee questions.
2. Reproductive Loss Leave: Supporting families in challenging times is paramount. The state now mandates five days of paid leave for employees experiencing reproductive loss, such as miscarriage, failed adoption, or unsuccessful surrogacy. This leave applies to individuals who would have been the parent and can be taken within three months of the loss, offering invaluable time for healing and support.
Action Items:
Develop a reproductive loss leave policy: Include details on eligibility, leave duration, and how to request leave.
Communicate the policy: Inform all employees about the new benefit through your employee handbook, website, or internal announcements.
3. Emergency Notice for New Hires: Keep your newcomers informed! Employers must now notify new hires about any recent federal or state emergency or disaster declarations affecting their work location. This ensures employees are aware of potential risks and can make informed decisions about accepting the job.
Action Items:
Download the updated "Notice to Employee" template: The Department of Industrial Relations has made it readily available.
Integrate the notice into your onboarding process: Deliver the information during new hire orientation or upon start date.
4. Sick Leave Reminder: More sick days, more happy employees! The annual accrual cap for paid sick leave has doubled to 40 hours or five days, providing greater flexibility for employee health and well-being. Remember, the hourly accrual rate remains unchanged at one hour per 30 hours worked.
Action Items:
Review your sick leave policy: Ensure it reflects the new accrual cap and clarifies any employee questions.
Track employee leave accrual: Implement effective systems to monitor available sick leave balances.
5. Minimum Wage and Salary Updates: Get ready for bigger paychecks! California's minimum wage hikes to $16 per hour for all employers, regardless of size. Additionally, minimum salary thresholds for exempt employees increase, ensuring fair compensation across various categories. Fast Food restaurants with 60+ location are required to pay $20 per hour.
Action Items:
Adjust your payroll systems: Update hourly rates and salary thresholds to reflect the new minimums.
Post minimum wage notices: Display updated signage reminding employees of the state's wage requirements.
Bonus Tip: Check for local minimum wage increases! Several cities in California have their own, potentially higher, minimum wage regulations. Research the specific rates applicable to your business location.
Staying compliant doesn't have to be overwhelming. By proactively reviewing your policies, updating procedures, and informing your employees, you can navigate these new regulations with ease and foster a supportive and compliant workplace environment in the new year. Remember, these changes are not just about following the law, but also about creating a fairer and more inclusive work experience for everyone.
This is just a summary of the most significant changes, so we encourage you to explore the official resources provided for detailed information and specific exemptions that may apply to your business. Let's all work together to make California workplaces thrive in 2024!
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