Wednesday, October 01, 2014

California Governor Brown Signing More New Employment Laws at End of 2014 Session (Part I)

The 2014 legislative session is over.  But employers will be remembering this one for a long time.  California Governor Jerry Brown signed a host of new laws at the end of the session.  Many deal with narrow-cast and public sector-related funding issues, which I won't cover here.  (You're welcome).

But there are several highlights among the new bills that merit your attention.  Thanks as always to Phyllis Cheng, on behalf of the California Bar's Labor and Employment Law section, for compiling the information and sending it out.

AB 1723 expands the Labor Commissioner's power to issue citations for under payment of wages to include waiting time penalties (not a new penalty, but a different method of enforcement).

AB 2617 appears to prohibit pre-dispute releases between employers and independent contractors that include waivers of claims under the "Ralph" and Bane Civil Rights Acts.  These are civil rights laws prohibiting hate crimes and violence based on protected criteria.  This law does not appear to apply to employees, but it's unclear because it's written so poorly.  But it only applies to provisions included in a contract for goods and services, and only prohibits waivers when "entering" into the contract (such as an independent contractor agreement (or offer letter if it applies to employees).  This law will take effect because the Governor also signed AB 2634.

AB 26 and AB 2272 expand prevailing wage law.  Prevailing wage is an inflated minimum wage rate that must be paid to "public works" contracts.  These laws expand what are "public works" and what is included in the term "construction" among other things. If you have state contracts, please review these with your lawyers.