California, long a pioneer in progressive labor laws, is once again mixing it up and proposing some pivotal bills to shape worker protections and employer responsibilities in the state. If these bills pass, companies big and small need to be ready to make some big changes, and have a strategic plan in place with their HR partners for implementation and execution of new policies. In the 2023 legislative session, several pivotal bills have been introduced, including SB 616, SB 497, SB 525, AB 1228, AB 1356, and additional FEHA discrimination bills. Governor Newsom has until October 14, 2023 to sign these bills into law, approve the bills without signing them, or veto the bills. These proposed laws promise to usher in a new era of rights and responsibilities for employees and employers in the Golden State. While much more is included in the actual bills- we put together some quick summaries of some of these bills each below.

SB 616: Increase in Minimum Number of Sick Days

This bill would increase the minimum number of annual sick days to five days or 40 hours for full-time employees and the accrual cap from six days to 10 days.

SB 497: Presumption of Retaliation

This bill mandates a presumption of illegal retaliation if an employer takes particular disciplinary actions against an employee who has made a wage claim or complaint within the prior 90 days. This bill also would set a penalty not exceeding $10,000 per employee for each violation, among other options.

SB 525: Minimum Wage for Health Care Workers

This will gradually raise the minimum wage for workers in health care facilities to $25 per hour over the next several years. The rate of the raise varies based on the size of facility, as well as the amount of Medicare and Medicaid patients as well as location. 

AB 1228: Minimum Wage for Fast Food Workers - SIGNED!

This bill will raise the hourly minimum wage for fast food restaurant employees who work at chains with at least 60 locations nationwide to $20 per hour as of April 1, 2024.  What makes this bill even more meaningful is that it will bar cities and counties from setting a separate minimum wage for the fast food industry.

AB 1356: Notice Period Changes for Layoffs, Relocation or Termination

This bill will expand the amount of days’ notice an employer must give prior to a mass layoff, relocation, or termination at a covered establishment from 60 days to 75 days. Under California law, a mass layoff includes the layoff of 50 or more employees at a single location within a 30-day period.

In addition to all of these bills, several other bills on Governor Newsom’s desk for signature would expand the state’s Fair Employment and Housing Act (FEHA). If signed, these bills would impact items such as:

  • The notice period and required documentation allowing request for accommodation that employers must give to employees to require them to return to work in person after being allowed to work from home

  • Prohibit employers refusal to grant bereavement for reproductive loss and instead entitle employees to take a five-day leave of absence following reproductive loss

  • Prohibit discrimination of an employee based on caregiver status

  • Prohibit discrimination for an employee’s use of cannabis off the job, depending on state laws.

The employment and labor bills currently under review in California represent a significant step forward in protecting worker rights and promoting fair and inclusive workplaces. If passed, these bills will undoubtedly reshape the employment landscape in the state. Employers and employees alike should closely monitor these developments and prepare for potential changes in their rights and responsibilities. And unlike Vegas, what happens in California does not usually stay in California- the state continues to lead the way in progressive labor laws, setting a powerful example for other states to follow in the future. Retain is keeping a close eye on the outcomes of these proposed bills and we are working with our legal partners to be ready to draft necessary policies, training programs, and communication plans for our clients so they can be compliant before the deadlines. Stay tuned!!