Earlier this year, the California legislature introduced several new employment bills focusing on workplace surveillance, employee training, pay transparency, family-paid leave, and more. While these laws haven't been passed yet, they could impact your employees and business operations if passed. Read this blog for a brief summary of several proposed policies and what California business owners can expect if they are signed into law.
Key Bills Being Introduced
Senate Bill 642
This bill mandates that wage scales in job advertisements must be within 10 percent of the average pay rate for the specified salary or hourly wage range. It also clarifies that employers cannot pay employees less than those of “another sex” for similar work, replacing the previous terminology of "opposite sex” in the final text.
- How employers can prepare: If this bill is passed into law, employers must ensure they post the correct pay scales in both physical and online job advertisements.
Assembly Bill 1018
This would regulate the development and use of automated decision systems for hiring, performance evaluation, termination, and promotion purposes. Standard automated decision systems include artificial intelligence (AI) systems, facial recognition software, and more. Employers must also allow their workers to opt out of using these systems and provide an appeals process for adverse outcomes.
- How employers can prepare: If this bill is enacted, employers should clearly communicate the use of these technologies and inform employees of their option not to participate. Depending on the number of individuals affected by these technologies, employers may have to undergo annual audits.
Assembly Bill 1331
This bill aims to limit the use of workplace surveillance technologies. Workplace surveillance tools are systems, applications, instruments, or devices that collect or facilitate the collection of worker data, communications, actions, or behaviors by means other than direct observation. These technologies can include electromagnetic tracking, geolocation monitoring, biometric scanning, video surveillance, and more. Employers would also be prohibited from monitoring their workers during off-duty hours or in private areas in the workplace, such as a locker room, bathroom, breakroom, cafeteria, lounge, or a worker’s personal vehicle.
- How employers can prepare: Since this bill has a broad scope and far-reaching implications, employers should follow it through its legislative process. Employers will need to assess how they currently use these tools and prepare to make potential revisions.
Senate Bill 590
This bill would expand employees' eligibility to take time off to care for a sick family member. It would allow employees to take paid family leave to care for someone who is seriously ill and has a relationship similar to that of a family member. This includes caring for a foster child, stepchild, parent, sibling, grandchild, grandparent, child, or spouse.
- How employers can prepare: Business owners should carefully review their paid family leave policies to ensure they comply with state standards. Employers can also seek advice from third-party companies or agencies to ensure no discrepancies slip through the cracks.
How GMS Can Help California Business Owners
Failure to comply with federal, state, and local laws can lead to costly fines, monetary penalties, and reputational harm. Being a business owner is hard enough; between managing your employees, ensuring a safe workplace, and administering benefits, finding the time to ensure regulatory compliance is difficult. Consider utilizing a professional employer organization (PEO) like Group Management Services (GMS) to simplify your business operations.
Our team of experts will help you stay informed about changing regulations, assist with ensuring compliance, and streamline your operations. With a PEO, you have a reliable partner. We can advise you on performance management strategies, recruitment, improving productivity, and more. Are you interested in learning how GMS can help your business remain compliant? Contact us today!