New Employment Laws in California: What HR Pros Need to Know

We all know California for its sunny beaches and Hollywood studios, but did you know that if the Golden State were its own country, it would have the fifth largest economy in the world? The only countries that would top it are the United States, China, Japan, and Germany. Up-to-date labor laws and regulations are essential for protecting the rights of California’s 19 million workers.

For employers, ignoring these updates can have serious consequences. Non-compliance can result in lawsuits, financial penalties, and damage to the business’s reputation. Additionally, non-compliance with new regulations can negatively impact employee satisfaction and retention, which is important to maintain in a competitive job market. For employees, compliance protects their wellbeing and job security, which helps create a positive work environment that boosts productivity and employee satisfaction.

California has released new 2024 labor law updates to ensure all workers are protected and treated fairly, and we have all the details outlined for you.

At BambooHR, we know how hard it can be to keep up with changing labor laws. Our easy-to-use HR software helps you manage these changes, keeping your business running smoothly and helping your employees feel appreciated. Find out how BambooHR can simplify compliance and set your people free to do great work by scheduling a free demo.

California Labor Statistics

• Top industries (by % GDP):
  1. Finance and insurance
  2. Trade, transportation, and utilities
  3. Professional and business services
• $3.9 trillion GDP
• Large, demographically diverse workforce (19 million)
• 5.3% unemployment rate (US rate 4%)
• $14.3 trillion Silicon Valley market cap
• More than 28,000 jobs created in March 2024

5 California Labor Laws Employers Need to Know

Agricultural Labor Laws

H-2A Wage Standards

The agricultural labor law updates impact both H-2A employees and overtime regulations. Starting March 15, 2024, agricultural employers will be required to provide H-2A employees with a separate notice on their first day of work. This helps create clarity and compliance from the start of employment.

For H-2A workers, the contract rate is determined by the highest of several standards, including the Adverse Effect Wage Rate, which is set at $19.75 per hour for most jobs in 2024.

Changes to Overtime Pay

Starting 2024, agricultural workers will be entitled to overtime pay after working 8.5 hours per day or 45 hours per week, a lower level than the previous 2023 standard of 9 hours per day and 50 hours per week.

Paid Breaks

Workers are also now to be paid for all their time, including breaks and any downtime directed by the boss. Plus, everyone gets their fair share of rest and meal breaks.

Transparency Is Everything
With the new rules, paychecks must come with a clear breakdown. No more mysterious deductions from employees’ wages, and for those on H-2A visas, living conditions must be safe and sanitary—absolutely on the house!

Safety First, Always
Workplaces must be safe, complete with excellent training, the right gear, and emergency support. And for those commuting, safe rides with seatbelts and well-maintained vehicles are a must.

Healthcare Worries? No Stress
You now have new affordable options for your employees through Employee-Paid Health Insurance under Covered California.

Child Labor

If you're employing minors, every young worker needs to have a work permit in hand.

The process of obtaining a work permit is a team effort: the minor, their employer, and their parent or guardian must complete the necessary form, which is then submitted by the minor or guardian to the minor's school for the permit to be issued. This makes sure all parties are aware of and consent to the employment terms.

It's important for HR to monitor this process to ensure all employed minors have the necessary documentation as required by law.

The California Family Rights Act (CFRA)

California's federal standard currently provides employees with up to 12 weeks of unpaid, job-protected leave. However, the new regulations expand the range of qualifying events that allow employees to take this leave. Whether it’s welcoming a new child through birth, adoption, or foster care, caring for a seriously ill child, parent, or spouse, or dealing with their own serious health conditions, employees can take the time they need.

While employers aren't required to pay during this leave, arranging for some level of paid extended leave is an attractive benefit.

Now, for the newest updates:

• These CFRA updates apply to companies with just 5 or more employees (the federal standard is 50 employees and over).
• Caretaker protections now extend to a broader circle of loved ones: grandparents, grandchildren, siblings, parents-in-law, friends, or domestic partners.

As you continue to support your people through life’s significant moments, make sure your policies are up-to-date and your team knows about these new CFRA regulations.

Minimum Wage

Starting January 1, 2024, California minimum wage increased to $16.00 per hour.

Additionally, there are specific increases for those working in fast food and healthcare. From April 1, 2024, fast food workers at chains with more than 60 locations must earn at least $20.00 per hour. Healthcare workers will see their minimum wages increase to between $18.00 and $23.00 per hour starting June 1, 2024, depending on the facility's size and type. And salaries must be at least 150% of the healthcare worker minimum wage or 200% of the state minimum wage, whichever is higher.

These changes will require updating employment contracts and adjusting payroll systems for all eligible employees to ensure compliance.

Pay Transparency

Changes to California's salary transparency laws increase transparency and fairness in hiring and compensation practices. Here’s a quick overview:

• For businesses with 15 or more employees, it's now required that all job listings clearly state the pay scale, whether it's a salary or hourly wage range.
• Employers must provide the pay scale to current employees for their specific positions upon request.

It's important for HR to update job postings to comply with these new requirements and to be prepared to efficiently handle pay scale questions from current employees. Compliance with these regulations not only meets legal requirements but also promotes an open and positive workplace environment.