Accuchex Blog

5 Top California Labor Law Issues in 2015

Posted by Tristan Ruhland on Apr 2, 2015 9:30:00 AM

california-labor-laws-2015California labor law tends to become the benchmark for the rest of the nation and compliance is often more complex compared to most other states. During the Society for Human Resource Management’s 2015 Employment Law & Legislative Conference in Washington, D.C. held last month, attorney Joseph Beachboard made this comment, "“California is unique. We could spend all three days of the conference talking about what makes this true.” 

California Labor Law and Compliance

Mr. Beachboard, of Ogletree Deakins in Torrance, California, noted a number of compliance "hotspots", as he called them. Here are the top five issues that concern employers in California:

Disability Claims

According to Beachboard, statistics from the Equal Employment Opprotunity Commission reveal that of the top three federal charges of discrimination filed in 2013, disabilty was third after race and then sex discrimination. However, in California in 2013, disability bias claims made up the number one category filed with the Department of Fair Employment and Housing.

Employers would do well to recognize that California defines "disability" as a medical condition that "limits" a major life activity. Federal law, on the other hand, stipulates that it must "substantially limit" activity. This means that, in practice, California law can allow almost any medical condition to qualify as "disability" and, as an employer, you must provide reasonable accommodation.

Paid Leave Law

On July 1 of this year the new Paid Leave Law takes effect. Essentially, this law requires that employers provide paid sick time for their staff who work 30 or more days in a calendar year. The formula provides one hour of paid sick leave for every 30 hours worked and employees can begin taking this leave after their first 90 days as an employee.

Contracted Liability

Among the many new laws that went into effect for 2015 was AB1897. This contractor liability law extends liability for a contractor's wage and hour violations to the contracting entity. This applies despite lack of evidence that the contracting entity controlled the working conditions or wages of the contractor's employees. 

What this means for an employer with more than 25 employees, and you are using a staffing firm, is that you can now be liable for any wage and hour violations by the staffing firm affecting employees that work for your company.

Unlimited Liability

Currently, there are no caps on the damages that can be awarded for most employment-related lawsuits under California law. This was recently illustrated by a decision in a pregnancy discrimination lawsuit in San Diego. In that case, the plaintiff was awarded approximately $873,000 in compensatory damages in addition to another $185,000,000 in punitive damages.

For many employers, damages of this magnitude can be catastrophic for their businesses.

Mandated Training

California is one of only three states that require a minimum of two hours of mandatory sexual harassment training once every two years. This training applies to supervisory employees and to employers with 50 or more employees. In addition, the law was recently expanded to require "abusive conduct training" which is defined as conduct done with malice that is offensive and unrelated to business interests. 

Being Well Informed Is The Best Defense

Unfortunately, ignorance of the law is never a good defense when it comes to California labor law. While no employer deliberately or maliciously violates the law, lack of information or failing to stay up to date can lead to serious issues.

Having professional help is always a plus and HR managers and staff can use all the help they can get in today's increasingly complex work environment. 

Considering a Third Party Ally

An updated compliance strategy will help your organization meet its obligations, while providing accuracy and timeliness. So take time to understand the law and prioritize accurate record keeping. In this way, you will make compliance a sure thing.

Another key step in maintaining HR compliance and increasing your company's cost-effectiveness is to consider outsourcing. A professional agency such a Accuchex can provide much-needed help with Human Resources needs and questions. Accuchex is a full spectrum Payroll Management Services provider offering expertise in Time Management, Insurance and Retirement issues, as well.

If you are looking for reliable resource for your HR issues, we can help. And you can get your Free Download: Payroll Outsourcing Guide to help you make an informed decision, or call Accuchex Payroll Management Services at 877-422-2824.

 

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Topics: ca labor laws, policies and procedures, HR compliance

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