Employment-Related Recap for 2017 Melissa Irwin, SPHR-CA, SHRM-SCP TPO – The HR Experts
New CA Laws and Regulations (effective 1/1/2017 unless noted) 1. Minimum Wage Increases (SB3) – Increases from the current $10.00 per hour to ultimately $15.00 per hour on 1/1/2022 through yearly increases. Employers with 25 or fewer employees have an extra year to comply with the increase. •
NEW Poster: https://www.dir.ca.gov/IWC/MW-2017.pdf
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CA Salary Threshold Increases: To meet the exemption from overtime, breaks, meals and other wage and hour provisions, employees in Administrative, Executive and Professional exemptions must earn a weekly salary equivalent to at least 2 times the current minimum wage. As of 1/1/2016 at $10.00 per hour, that amounts to $800.00 weekly, $3,466.66 monthly, or $41,600 annually. Subsequent increases: 1. 2. 3. 4. 5. 6.
$10.50 $11.00 $12.00 $13.00 $14.00 $15.00
1/1/2017 1/1/2018 1/1/2019 1/1/2020 1/1/2021 1/1/2022
$ 840.00 weekly, $ 880.00 weekly, $ 960.00 weekly, $1,040.00 weekly, $1,120.00 weekly, $1,200.00 weekly,
$3,640.00 monthly, $3,813.33 monthly, $4,160.00 monthly, $4,506.66 monthly, $4,853.33 monthly, $5,200 monthly,
$43,680 annually $45,760 annually $49,920 annually $54,080 annually $58,240 annually $62,400 annually
2. State-run Retirement Plan (SB1234) – A state-run retirement program for workers who don't have an employer-sponsored plan. It requires employers with 5 or more employees to automatically enroll workers and deduct money from each paycheck, though workers can opt out or set their own savings rate. The account could also be carried from job to job, allowing them to accumulate larger balances in a single account. Due to many prerequisites that must be met before this program is ready to roll-out, the implementation date is not yet known. 3. Equal Pay, Gender Salary History (AB1676) – Prohibits that prior salary, by itself, as a justification of any disparity in compensation under the bona fide factor exception to the prohibition on gender pay discrimination. 4. Equal Pay, Race or Ethnicity (SB1063) – Expands CA’s equal pay statute, prohibiting an employer from paying any of its employees at wage rates less than the rates paid to employees of another race or ethnicity for substantially similar work. 5. New-Hire Notice Requirements (AB 2337) – Requires that employers provide a written notice to new-hires and employees upon request that provides information on leave rights (for medical treatment or legal proceedings) as a possible victim of domestic violence, sexual assault, or stalking. The Labor Commissioner is charged with providing an appropriate form by 7/1/2017 and employers are not required to comply until the form is available. 6. All-Gender Toilet Facilities (AB 1732) – Starting 3/1/2017, all single-user toilet facilities in any business establishment, place of public accommodation, or government agency to be identified as all-gender toilet facilities. Make sure to update your signage! 7. Juvenile Criminal History (AB1843) – Prohibits employers from inquiring into any “adjudication” made by the juvenile court. “Adjudication” is a final determination by a court as to whether the juvenile committed the crime of which he or she is accused. Exceptions for health care facilities exist. 8. E-Cigarettes and Vaping (SBX2-5) – The new legislation will treat the use of e-cigarettes and vaping devices that contain nicotine as “smoking” – thus extending existing smoking bans to cover such products. 9. Arbitration (SB1241) – Employers cannot require employees who primarily reside and work in California to 1) adjudicate a claim in another state when the claim arises in CA, or 2) apply another state’s law to a controversy that arises in CA. ©TPO - The HR Experts 46 | THE BULLETIN | JANUARY / FEBRUARY 2017
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