Pen Down, Governor Newsom: California's Newest Employment Laws

• Published date: 05 October 2020
• Law Firm: Seyfarth Shaw LLP
• Author: Ms Kristina Launey and Scott P. Mallery

Seyfarth Synopsis: September 30 was Governor Newsom's last day to sign or veto bills the Legislature passed by its August 31 deadline. Some new laws-including COVID-19 supplemental paid sick leave and workers' compensation presumption-became effective immediately upon signing. Others-such as an expansion of CFRA and other leave rights, an EEO-1-like annual pay data report, and (believe it or not!) rest break relief to security guard employers-take effect January 1, 2021.

As we summarized here, Monday, August 31st (or, really, the wee hours of September 1) marked the Legislature's last day to pass bills to Governor Newsom's desk for approval during the second year of the 2019-2020 Legislative Session. Those thirty days are up, and Governor Newsom used almost every minute of his time, issuing final veto messages late on September 30th. Despite the oddities of 2020-a truncated legislative calendar, a smaller number of bills considered, and COVID-related bills crowding out bills introduced in January, before most folks knew what a coronavirus is-California's governing bodies somehow found a way to create a whole new host of employment compliance challenges.

Below is our annual summary of the most significant employment-related bills approved or vetoed by the Governor. Check out our end-of-session wrap-up for bills that did not make it to the Governor's desk (and may be back in 2021). All approved bills will be effective January 1, 2021, unless otherwise noted.

Governor-Approved Bills

Bills Effective Immediately Upon Signing
(If you haven't already taken compliance actions, the best time to do it is now.)

Supplemental Paid Sick Leave & Small Employer Family Leave Mediation. AB 1867 creates new Labor Code section 248.1, which, no later than September 19, 2020, requires COVID-19 supplemental paid sick leave for workers employed by private businesses of 500 or more employees nationally (and certain health care providers and emergency responders). This bill essentially covers all workers in California who may not be entitled to supplemental paid sick leave covered by the Emergency Paid Sick Leave Act established by the federal Families First Coronavirus Response Act ("FFCRA").

The bill also codifies Executive Order N-51-20, providing supplemental paid sick leave for food sector workers, in new Labor Code section 248. Both new sections require hiring entities to provide a number of hours of COVID-19 supplemental paid sick leave to workers who are unable to work due to specified reasons relating to COVID-19, but only Section 248.1 requires the sick pay balance be stated on those employees' wage statements. The bill also requires employers to post a notice (available here and here) in the workplace (or distribute it via mail, e-mail, etc.). These provisions expire on December 31, 2020, or upon the expiration of the FFCRA, whichever is later.

AB 1867 went into effect immediately upon the Governor's September 9, 2020 approval. A similar budget trailer bill, SB 822, did not make the cut. Read our in-depth article on AB 1867 here.

AB 1867 also requires the Department of Fair Employment and Housing (DFEH) to create a small employer family leave mediation pilot program, authorizing small employers and their employees to request mediation through the DFEH's dispute resolution division within a specified timeframe. Under the program, employers or employees may require DFEH mediation if: (1) the DFEH issues a right-to-sue notice based on a DFEH complaint that is related to family leave and (2) the named employer has between 5-19 employees. AB 1867 prohibits employees from pursuing civil actions until the mediation is complete, and tolls the statute of limitations, including for additional related claims, from receipt of a request to participate in the program until the mediation is complete. These provisions will be repealed on January 1, 2024.

Workers' Compensation: COVID-19. For employers of five or more, SB 1159 creates a rebuttable presumption that an employee contracted COVID-19 in the workplace if certain circumstances are met for purposes of workers' compensation. It also requires reporting to workers' compensation claims administrators and has stiff fines for non-compliance. Effective immediately upon the Governor's September 17, 2020, signing. Read our analysis of the bill here.

OSHA: COVID-19 Awareness. AB 2043 requires Cal-OSHA to disseminate information on best practices for COVID-19 infection prevention in English and Spanish, together with other awareness and prevention measures, targeted at and to be easily understood by agricultural employees from various ethnic and cultural backgrounds. These provisions expire when the Governor or Legislature terminate the state of emergency. AB 2043 went into effect immediately upon the Governor's signing, on September 28, 2020.

Security Officers: Rest Periods. AB 1512 provides some relief-through January 1, 2027-from rest period laws for the security industry, possibly paving the way for later legislation benefitting other...