Aunt Ann’s labor attorney, Lisa Weinberger filled us in on the most recent updates regarding employment law in California. Below you’ll find updated information pertaining to minimum wage, mileage rates, and more.
INCREASED MINIMUM WAGE, SALARY BASIS THRESHHOLD, AND IRS MILEAGE REIMBURSEMENT RATES
As of January 1, 2024, please be aware of the following increases:
Minimum Wage
In California, the minimum wage for all employers will be $16.00 per hour.
Please keep in mind that many cities throughout California have local minimum wages that are higher than what the state of California requires. Most local minimum wage ordinances increase in July, but some go up on January 1st, including these cities (not an exhaustive list): Burlingame ($17.03), Los Altos ($17.75), Menlo Park ($16.70), Oakland ($16.50), Palo Alto ($17.80), Redwood City ($17.70), San Diego ($16.85), City of San Mateo ($17.35), County of San Mateo (unincorporated areas) ($17.06), and City of Sonoma for employers with less than 26 employers ($16.56).
Salary Basis for Exempt Employees
In order for California employees to be properly classified as exempt (which means that they are not entitled to overtime pay), they must be paid on a salary basis and that salary must be at least two times the state minimum wage for full-time work. As such, each time the state minimum wage increases, the salary basis increases, as well. With this in mind, in order for a California employee to be classified as an exempt employee, he or she must be paid a salary of at least $66,560.
*Please note: in order for employee to be properly classified as an exempt employee, in addition to meeting the salary basis threshold, the employee must also meet the other criteria for the relevant exemption. These are fact-specific inquiries and should often be made with the advice of counsel.
Mileage Reimbursement Rate
The business mileage reimbursement rate for 2024 will be 67 cents per mile.
ADDITIONAL DAYS ADDED TO CALIFORNIA’S PAID SICK LEAVE LAW
It has been almost 10 years since the state of California enacted the Healthy Workplace Healthy Family Act of 2014, which mandated paid sick leave for most California employees. The requirements have been increased to provide additional hours of paid sick leave for employees:
- If employers use an accrual method, eligible employees must continue to accrue at least one hour of paid sick leave for every 30 hours worked. An employer must allow accrued unused paid sick leave to be carried over to the next year, but the hours must now be capped at no less than 80 hours or ten days, whichever is greater.
- If employers advance paid sick leave, eligible employees must be advanced at least 40 hours or the equivalent of five days – whichever is greater – at the beginning of each 12-month period.
- An employer may limit the amount of paid sick leave an employee can use in one year to 40 hours or five days, whichever is more.
Additional information and FAQs about the paid sick leave law, can be found here. An updated paid sick leave poster can be downloaded here.
LEAVE FOR REPRODUCTIVE LOSS
In recognition of the toll that reproductive loss has on families, California employers with 5+ employees will now be required to provide most employees with up to 5 days of unpaid leave if they experience any of the following: failed adoption, failed surrogacy, miscarriage, stillbirth, or an unsuccessful assisted reproduction. (Please note that the term “failed” tracks the statutory language and is not the descriptive term that I would personally use in such situations.) Reproductive loss leave may be taken by any employee who would have been the parent.
Similar to the law on bereavement leave, which went into effect last year, leave for reproductive loss must be completed within three months of the loss and the days can be taken on an intermittent basis. Employees must be allowed to use any available paid leave, including accrued paid sick leave. Should an employee experience multiple losses, employers may cap leave at 20 days in a 12-month period.
WORKPLACE VIOLENCE PREVENTION PLAN
Effective July 1, 2024, nearly all California employers will be required to develop and implement a Workplace Violence Prevention Plan (“WVPP”), which can either be a standalone document or integrated into the required Injury and Illness Prevention Plan. Of particular relevance to my clients, two of the four exceptions to this law apply to (1) employees teleworking from a location of the employee’s choice, or (2) places of employment where fewer than 10 employees are working at the place at any given time and are not accessible to the public.
For those employers who will be covered under this new law, the WVPP requirements are comprehensive, addressing 13 different topics. Employers will also have extensive recordkeeping and training obligations. We are hopeful that more information about the WVPP will be forthcoming within the next six months, but in the meantime, affected employees should consult with counsel to discuss compliance with this new law.
UPDATED WAGE THEFT NOTICES
Since 2012, California employers have been required to provide Wage Theft Notices to non-exempt employees at the time of hire. Effective January 1, 2024, new Wage Theft Notices should be used, which contain additional information on “the existence of a federal or state emergency or disaster declaration applicable to the county or counties where the employee is to be employed, and that was issued within 30 days before the employee’s first day of employment, that may affect their health and safety during their employment.”
While the Department of Labor Standards Enforcement have not yet provided guidance on what constitutes an “emergency or disaster declaration,” the legislative history suggests that this law was prompted by the COVID-19 pandemic. Employers should begin to use the new Notice and should contact counsel if they are unsure how to complete it.
NEW LAW ON NON-COMPETITION AGREEMENTS AND NOTICE OBLIGATIONS
It has been well established in California that non-competition agreements are generally unenforceable as a matter of public policy. A new law specifically codifies California case law to that effect and creates a notice obligation whereby employers must notify any current and (certain) former employees who are subject to an unlawful noncompete agreement that such agreement is void. Such notices must be provided in writing by February 14, 2024. Employers who have non-competition language or non-solicitation language in any employment document should consult with counsel to determine whether any notices are required for their employees.
PROTECTION FOR OFF-DUTY CANNABIS USE
As we reported last year, it is now unlawful for California employers to discriminate against applicants and employees for their use of marijuana off the job and away from the workplace. Employers may still preclude employees from possessing, being impaired by, or using cannabis on the job; however, off-duty use cannot be the basis for any adverse employment action.
ACTION ITEMS
In order to remain in compliance with all legal updates, please consult with counsel to take the following actions:
- Ensure that all employees are earning at least the current minimum wage;
- Ensure that all exempt employees are earning at least the increased salary basis threshold;
- Update Employee Handbooks, employment agreements, and policies, as applicable, to include reproductive loss policies, protections for off-duty cannabis use, and revised paid sick leave policies;
- Confirm that the updated Wage Theft Notice is being used for new hires;
- Prepare notices regarding void noncompete agreements for any affected individuals; and
- Begin preparing a Workplace Violence Protection Plan for applicable employees