A New Year Brings New Resolutions (not to mention Regulations)

Welcome to a new year and a new decade – the 2020’s are almost here! Artemiste has compiled our annual list of resources to help you start the New Year right!

HR is becoming more complex than ever – we’ve got that for you!

Labor Posters - a must have to ensure you are in compliance with state and federal notices.

Employee Handbook– a handbook is a valuable resource for employers to communicate policies and company expectations but it’s crucial to keep up to date. We’ve identified a few areas to pay particular attention to that are new for 2020 including:

• Lactation policy expanded to accommodate the needs of new mothers (SB 142)

• Privacy disclosure on the collection and use of personal information (AB25)

• Organ Donation Leave expanded to provide an additional 30 days (AB1223)

• Race discrimination expanded to include certain types of hairstyles (SB 188)

• Paid Family Leave increased to 8 weeks (SB 83) effective July 1, 2020

Minimum Wage and Exempt Salary Levels

Effective January 1, 2020, the new CA minimum wage for small employers (25 employees or less) is $12 per hour and for large employers (26 employees or more) the new wage is $13 per hour.

Many cities including Los Angeles, San Diego and San Francisco and others have enacted higher minimum wages and employers must pay their employees the highest applicable wage rate.

The minimum salary level for exempt employees is also increasing. In CA exempt employees must be paid the equivalent of two times the state minimum wage. Small employers (25 or fewer employees) must pay a salary of at least $49,920 annually while large employers (26 or more employees) must pay a salary of $54,080 annually.

AB5 - New Regulations on Independent Contractors

Times are changing for gig workers in CA. In a sweeping new regulation AB5 creates strict limits on workers that can be classified as independent contractors.

Under the new law, workers will be considered to be an employee if (A) the job forms part of the company’s core business, (B) if the company directs the way the work is being done or (C) if the worker does not have their own independent business. Many companies rely on freelance, contract or gig work in ride sharing, app-delivery services, technology, and janitorial as well as professional services.

This new “ABC test” replaces the existing standard for determining independent contractor status. Under AB5 workers classified as employees must be provided with worker’s compensation insurance, unemployment and disability insurance, paid sick days and paid family leave.

Next Steps:

• Employers must increase pay according to the wage new rates.

• Check to see if any higher city wage rates apply to your business based on location.

• Order new labor posters for 2020 and post in a conspicuous area where all employees can see – if you have multiple locations you are required to post in all locations.

• Update your Employee Handbook.

• Companies who use freelance or contract workers should quickly examine if these workers are included or exempted from the provisions and if not, take steps to reclassify accordingly.

Discover Our Expertise - Artemiste offers a wide range of Human Resources services to help your business needs. We understand the challenges employers are facing and will work with you to ensure you have the best guidance and tools available. Contact us today for a complimentary consultation.

Aisling Byrne, SHRM-SCP, CEBS, CMS, CPLP is the CHRO and CLO at Artemiste where creating great places to work is our passion. Ms. Byrne is a frequent contributor to the Artemiste blog on many topics including onboarding, talent development, performance management, compensation planning, employee engagement, total rewards and learning and development.