California Worker Status, Leave Bills Sent to Governor

Worker-status, local labor standards enforcement, and family leave were among several payroll-related items that passed the California legislature and were sent to Gov. Gavin Newsom (D) for consideration.

The bills include a measure that would clarify add and amend worker-status exemptions under a California law, which took effect Jan. 1, 2020. Under the law, workers are considered employees unless they satisfy a three-part test. Exempt services may be subject to a broader worker-status test that more easily could find workers to be independent contractors.

Worker classification (A.B. 2257): Exemptions contained in a worker-status bill that took effect Jan. 1, 2020, were clarified, particularly as it relates to businesses that contract with one another, referral services, and professional services. Additional services also were added to the list of those exempt from the worker-status tests that generally considers workers to be employees unless all three parts of the test are satisfied. These additional services include individual musicians, songwriters, lyricists, composers, photographers, and videographers. A limit would be lifted on how many times in a year that certain photographers, writers, editors, and illustrators may submit their work and remain exempt, but additional requirements are specified.

Rest periods (A.B. 1512): Guards covered by collective bargaining agreements with wage and hour provisions may, if told to return to their duties during a rest break, be allowed to restart the interrupted rest break as soon as possible. Guards who are not allowed to take an uninterrupted rest period would have to be paid an extra hour of compensation at the regular base hourly pay rate. Rest periods are to be at least 10 minutes for every four hours worked. These requirements would not apply to existing cases filed before Jan. 1, 2021, and would remain in effect until Jan. 1, 2027.

Employment violations (A.B. 1947): The amount of time that employees have to file complaints with the state Division of Labor Standards Enforcement would be doubled to one year from the date that they are discharged or discriminated against in violation of any law that is under the labor commissioner’s jurisdiction. Employees now have six months to file a complaint. Reasonable attorneys’ fees also could be awarded in successful lawsuits by employees claiming retaliation.

Wage enforcement (A.B. 3075): Municipalities could enforce labor standards that are more stringent than state standards. Localities already may enforce wage and hour laws that are more stringent than state standards.

Written notice (S.B. 1102): Employers would have to provide employees when they are hired and immigrant agricultural workers with written notice of any federally or state declared disaster that was declared within 30 days and applies to the county where the workers are employed. Employers of immigrant agricultural workers also would have to provide written notice in Spanish and, if requested, in English, about information about federal and state laws related to overtime wage rates, pay periods, and rest and meal periods, as well as information about on-site hazards and night-work equipment, such as reflective clothing and headlamps.

Hospitality worker reinstatement (A.B. 3216): Employers operating hotels, event centers, airport hospitality, or retail buildings would have to extend reinstatement opportunities to certain laid off employees who lose their jobs during a declared state of emergency.

Family leave (S.B. 1383): The California Family Rights Act would be expanded to provide leave to small employers with at least five employees. The law generally now applies only to employers with at least 50 employees, except for a parental-leave component that applies to employers with 20 to 49 employees.

Additionally, a provision within the California Family Rights Act would be changed to allow spouses who work at the same company to each have 12 weeks of leave, rather than providing them with a total of 12 weeks, as is provided under existing laws. Leave to care for domestic partners, grandparents, grandchildren, siblings, and parents-in-law would be allowed, and the term child would be revised to include children of a domestic partner.

Family leave also would be allowed for reasons related to caring for a spouse, domestic partner, child, or reasons related to a family member’s covered active military duty, such as arranging for child care, school-related meetings, making legal or financial arrangements, seeking military benefits, attending counseling, attending military events, or issues related to a family member’s death.