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  • On September 1st, 2023, California Governor Gavin Newsom took a step toward bolstering employee rights by signing Senate Bill 699 into law. This legislation reaffirms and strengthens the state’s long-standing commitment to employee freedom in pursuing their chosen professions, trades, or businesses. The bill reiterates California’s Business and Professions Code Section 16600 and introduces new provisions that have far-reaching implications for employers and employees. Continue reading to delve into the details of SB 699 and explore the broader impact of this legislation.

    California’s Commitment To Employee Freedom

    California has long been a trailblazer in protecting the rights of its workforce. The cornerstone of this commitment is Business and Professions Code Section 16600, which boldly declares, “Every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind is to that extent void.” California courts have consistently upheld this provision, making it clear that contracts prohibiting post-employment noncompetition, nonsolicitation of customers, and nonsolicitation of employees are generally unenforceable, with only a few exceptions.

    SB 699: Strengthening Existing Protections

    While SB 699 reaffirms the existing law, it also extends the state’s protections. The following are critical aspects of the bill:

    1. Extraterritorial enforcement: SB 699 clarifies that any contract void under Section 16600 is unenforceable, regardless of where or when it was signed. This means that even if you signed a restrictive covenant outside of California or were employed elsewhere, you’re still protected by the state’s employee-friendly laws.
    2. Ban or noncompete clauses: This bill takes a firm stance against noncompete clauses and other restrictive covenants that violate Section 16600. Employers are now prohibited from entering into such contracts with employees or prospective employees.
    3. Enforcement rights for employees: One of the most significant changes brought by SB 699 is the explicit granting of enforcement rights to employees. This means that if an employer attempts to enforce a contract restricting an employee’s ability to pursue their lawful profession, trade, or business, the employee has a legal recourse to challenge it.

    Consequences For Employers

    Employers must take note of the implications of SB 699. Violations of this legislation could result in civil penalties. This means that businesses operating in California should review their existing contracts and employment practices to ensure compliance with the strengthened employee protection laws.

    The Effective Date

    SB 699 is scheduled to take effect on January 1st, 2024, with regard to the new enforcement rights it creates. This grace period allows employers and employees to adjust to the new legal landscape and ensure they comply with the law.

    How A PEO Can Be Your Small Business’s Strategic Partner

    In the midst of these changing legal landscapes, small businesses in California may find navigating the complexities of employment contracts and compliance challenging. If you’re a small business in California, have you considered partnering with a professional employer organization (PEO)? A PEO like Group Management Services (GMS) acts as a guiding light. GMS specializes in human resources, employee management, and compliance. By partnering with GMS, small businesses can access expertise that helps them stay on the right side of the law while focusing on growth and success. In this dynamic environment, where the protection of employee rights takes center stage, GMS acts as a valuable partner, ensuring that your business thrives while maintaining a steadfast commitment to the welfare of your employees. As the tides of employment law continue to shift, a PEO can be your anchor, providing stability and peace of mind for your business in California. Interested in learning more about how GMS can help your business? Get a quote from us today.

  • If you’re a California employer who’s only just adjusted to a $15.50 minimum wage, brace yourself for more change. The Golden State is gearing up for yet another hike, with the minimum wage set to rise to $16.00 per hour, effective January 1st, 2024. This move, driven by an inflation adjustment, is part of California’s commitment to ensuring fair compensation for its workforce. But what exactly does this mean for employers, and how can you prepare for the upcoming shift? Continue reading to prepare you and your business for this change.

    Beyond The Bottom Line: A Broader Impact

    The ripple effect of the minimum wage increase extends beyond those directly affected by it. While the primary focus is on workers earning minimum wage, the adjustments are bound to have a domino effect throughout the employment landscape. As wage structures shift, companies must reassess pay scales, maintain internal equity, and possibly revisit employee benefits to ensure their workforce remains motivated and engaged.

    White Collar Exemption Gets A Boost

    The minimum annual salary requirement for employees classified under the California white collar exemption will jump to $66,560, or $5,546.57 per month. This change prompts employers to review the classification of these employees, ensuring that both their duties and compensation align with exemption requirements. This meticulous audit will help maintain compliance with the evolving regulations.

    Tools Of The Trade: A Pricier Proposition 

    Industries that rely on employees to provide and maintain their own tools, such as tradespeople and technicians in various sectors, will feel the impact of the wage increase. The minimum wage for these employees will increase from $31 to $32 per hour. Business owners must consider how this change will affect their workforce and budgets, as this shift could lead to reevaluating compensation packages to retain skilled employees.

    Inside Sales Exemption Raises The Bar

    Employees eligible for the inside sales exemption from overtime must now meet a minimum annual compensation of $49,920, up from $48,360. As this exemption allows employers to avoid overtime pay for specific roles, companies should analyze their salesforce’s structure to ensure they remain compliant and avoid potential legal pitfalls.

    Fine-Tuning Premium Calculations

    Minimum wage increases necessitate recalibrating various premium calculations. From split-shift premiums to rates of pay for meal and rest period premiums, paid sick leave, and more – each aspect of compensation intertwined with the minimum wage needs to be reevaluated. This process ensures that employees receive fair and legal compensation while safeguarding employers from potential compliance issues.

    Looking Into The Future

    It’s important to note that this wage increase affects small businesses, not just large corporations. Regardless of size, all employers across the state must adapt to this change. From retail outlets to tech startups, the new minimum wage landscape will impact every aspect of California’s business environment.

    Employers should be prepared for additional adjustments as the state moves forward with its commitment to fair compensation. In October 2023, an announcement is expected to raise the minimum wage for the computer professional exemption from overtime, further shaping the employment landscape. Moreover, the interplay between state and local ordinances complicates matters. Employers must stay vigilant to local wage ordinances exceeding the state minimum, such as the recent increase in Los Angeles to $16.78 per hour.

    Partnering With A PEO: Your Bridge To Navigating California’s Wage Changes

    As California’s employment regulations continue to evolve, the challenges for small business owners multiply. Navigating the intricacies of wage adjustments, compliance nuances, and exemption requirements demands considerable effort and resources. Have you considered partnering with a professional employer organization (PEO)? A PEO like GMS can provide the expertise and support needed to navigate the changing landscape seamlessly. From managing payroll intricacies to staying updated on local ordinances and ensuring accurate exemption classification, a PEO offers the knowledge and resources that small business owners require. By partnering with GMS, businesses can confidently address the impending minimum wage increase and other regulatory changes, allowing them to focus on growth, productivity, and building a resilient workforce in the dynamic California market. Contact us today to learn more.

  • In a significant stride towards enhancing the rights and protections of freelance workers, the city of Los Angeles, California, has enacted a groundbreaking ordinance poised to redefine the landscape for independent contractors in the city. The Freelance Worker Protections Ordinance, which took effect on July 1st, 2023, is a resounding win for freelance workers and is aligned with the city’s commitment to ensuring fair treatment and equitable compensation for all workers.

    Defining Freelance Workers

    Under the new ordinance, the term “freelance worker” has been meticulously defined, encompassing individuals and entities engaged as independent contractors to provide services in exchange for compensation. The ordinance explicitly excludes certain professions requiring written compensation agreements, such as attorneys, architects, and engineers. Similarly, app-based transportation and delivery drivers, who have been the subject of much debate in recent times, are also exempt from the scope of this ordinance.

    At its core, the ordinance aims to establish fundamental rights and safeguards for freelance workers in Los Angeles. The following are key provisions that promise to reshape the freelancer landscape in the city:

    1. Basic written contract requirement: The ordinance mandates that a basic written contract between the freelance workers and the hiring entity must be in place. Even in cases where an oral contract exists, the hiring entity must provide a written contract. This contract must detail essential information, including contact details of both parties, services provided, compensation terms, and payment schedule.
    2. Timely payment assurance: The ordinance sets a clear standard for timely payment. If the contract specifies a payment date, the hiring entity must fulfill the payment in full by that date. In cases where no specific date is mentioned, payment must be issued no later than 30 days after completion of the work.
    3. Record keeping: Freelance workers and hiring entities must maintain written records for at least four years. These records must include contracts, payment documentation, and other evidence demonstrating adherence to the contract terms.
    4. Protection from retaliation: The ordinance safeguards freelancers from any form of punishment, retaliation, or adverse action by the hiring entity in response to exercising their rights under the law.
    5. Addressing violations: Freelancers are empowered to take action against violations. They can file a civil lawsuit seeking damages or file a complaint with the Bureau of Contract Administration. The ordinance affirms their right to pursue both avenues.
    6. Accountability for hiring entities: The ordinance outlines the responsibilities of hiring entities to respond to complaints and requests from the Bureau of Contract Administration. Failure to comply within the stipulated time frame can result in legal repercussions.
    7. Damages and remedies: Successful freelance worker litigants are entitled to a range of damages, depending on the nature of the violation. These include reasonable attorneys’ fees, injunctive relief, and other remedies deemed appropriate by the court.

    Diving Deeper Into The New Ordinance

    Los Angeles’ Freelance Worker Protections Ordinance transcends mere regulation, a testament to the city’s commitment to fostering a fair and equitable work environment for all. With a wide application encompassing many businesses and freelance workers, its significance cannot be underestimated. The ordinance underscores the need for companies to be proactive in reviewing their practices, ensuring compliance with its provisions, and upholding the rights and dignity of freelance workers.

    This ordinance sets a powerful precedent for other jurisdictions in an age where the freelance economy is rapidly evolving. It signals a paradigm shift towards recognizing the vital contributions of freelance workers and valuing their rights on par with traditional employees. Los Angeles’ stride towards worker empowerment is not just commendable, it’s a blueprint for a more inclusive and just future of work.

    Partner With A PEO

    Amidst the transformative landscape shaped by Los Angeles’ pioneering Freelance Workers Protections Ordinance, businesses should consider partnering with a professional employer organization (PEO). PEOs like Group Management Services (GMS) specialize in providing comprehensive HR solutions, ensuring compliance with ever-evolving labor regulations. Businesses can streamline their administrative processes by partnering with GMS, efficiently manage freelance worker contracts, and maintain meticulous records.

    As the ordinance ushers in a new era of freelancer empowerment, a PEO can serve as a strategic partner, helping businesses navigate the complexities and intricacies of the regulation while fostering an environment where freelance workers and hiring entities thrive harmoniously. With GMS’ expertise, businesses can confidently embrace the spirit of the ordinance and build a foundation of fairness, transparency, and compliance in their freelance engagements. Contact us today to learn more.

  • In a resounding vote of 34-1, the California Senate has taken a historic stride towards furthering anti-discrimination laws by considering the protection of caste within its legal framework. Senate Bill 403, once a proposal to introduce caste as a distinct category of protected characteristics, has evolved to redefine the boundaries of ancestry within the state’s anti-discrimination statutes. This legislative move is not only a leap for California but could potentially ignite a nationwide movement against caste-based discrimination.

    Understanding Caste

    Caste, a complex system of hereditary classes deeply rooted in certain societies and cultures, is a topic both intricate and sensitive. Its impact resonates across ethnic, linguistic, and religious divides, making the California Senate’s decision to consider its legal protection an undeniable call for societal transformation. The concept has been in the U.S. since at least the mid-1960s when more immigrants arrived from South Asia. Individuals in the lowest social and religious class were long called “untouchables.”

    At work, individuals in lower castes say those in higher castes give them less pay, fewer promotions, and tougher assignments. In social settings, caste can limit relationships and marriages and lead to isolation. In the most extreme cases, it has led to harassment or even violence.

    What Would This Bill Do?

    Senate Bill 403 would add caste as a legally protected category to the state Unruh Civil Rights Act, the California Fair Employment and Housing Act, and the state anti-discrimination policy in public schools. The bill bans discrimination based on caste, whether the person is in a high or low position.

    Since California has expanded protections to other disadvantaged groups, and discrimination based on caste is becoming increasingly common, businesses and schools need clarity on what the state law requires.

    The Evolution Of Senate Bill 403

    Initially, the bill proposed the inclusion of caste as a standalone safeguard against discrimination. However, a significant amendment on July 10th, 2023, saw caste incorporated into the definition of ancestry, reaffirming its connection to an individual’s perceived place within a social stratification system based on inherited status. This amendment underscores California’s commitment to building on existing anti-discrimination laws rather than crafting entirely new avenues of protection.

    While the immediate scope of the bill centers around employment practices within California, its implications resonate far beyond state lines. This pivotal moment could inspire other jurisdictions to follow suit, thus reshaping the anti-discrimination landscape on a broader scale. Employers nationwide should recognize the potential transformation of the legal and social framework surrounding caste-based discrimination.

    The bill’s measured approach, abstaining from naming specific countries or regions where caste systems originate, speaks to a profound commitment to addressing this issue globally. This stance aims to eliminate discrimination regardless of an individual’s country of origin, championing unity in the face of cultural diversity.

    Behind this legislative drive lies the undeniable urgency to combat caste-based discrimination, a concern that transcends borders. Spearheaded by State Senator Aisha Wahab, Senate Bill 403 signifies a commitment to fostering a more inclusive society free from the shackles of caste prejudice. As the United States continues to evolve into a mosaic of cultures and identities, acknowledging and dismantling caste-based discrimination only grows more critical.

    Seattle’s Precedent And Nationwide Impact

    Seattle’s precedent-setting inclusion of caste in its list of protected categories was the first domino to fall, prompting discussions and actions nationwide. As the California Senate makes bold strides, other states and institutions contemplate similar measures. The echoes of this legislative movement have reached the halls of Oregon and Vermont, with universities nationwide championing policies against caste-based discrimination.

    Workplace Transformation: Implications For Employers

    As this issue comes under the spotlight, some argue that existing protected classes could sufficiently cover caste-based discrimination. Senate Bill 403’s nuanced inclusion of caste within the ancestry category reflects a thoughtful approach that honors the unique nature of this complex issue.

    For California employers, the potential enactment of Senate Bill 403 would necessitate a thorough evaluation and revision of policies and training programs. Employers would contribute to a more inclusive and equitable workplace environment by integrating caste discrimination discussions into equal employment initiatives.

    Navigating the intricacies of caste-based discrimination demands sensitivity and expertise. Employers must acknowledge the complexities, including the potential pitfalls of identifying specific regions as origins of caste, which could inadvertently exacerbate discrimination.

    How PEOs Navigate California’s Changing Landscape

    As the journey towards a caste-discrimination-free society gains momentum, California’s resolute stance sets an inspiring example. For businesses in the state, the evolving legal framework and sensitivities surrounding caste protection can present unique challenges. In such a transformative time, partnering with a professional employer organization (PEO) becomes a strategic move for business owners. PEOs like GMS offer HR expertise and a deep understanding of the shifting legislative landscape.

    With our guidance, businesses can navigate the complexities of integrating caste-discrimination discussions into policies and training programs, fostering a workplace that embraces diversity and equity. As California forges ahead on this path of progress, GMS stands ready to empower business owners with the knowledge and tools to champion inclusivity, ensuring this change reaches every corner of the workplace. Interested in learning more? Contact us today.

  • As temperatures continue to rise, the impact of heat on indoor workspaces has prompted California regulators to take action. The Cal/OSHA Standards Board proposal to introduce a comprehensive heat illness standard for indoor work areas triggered at 82 degrees Fahrenheit has sparked discussions and debates among employers, especially those operating in warehouses, distribution centers, and manufacturing plants. While the proposal presents significant challenges, a recent revision released on August 4th, 2023, brings some relief for employers by addressing concerns and providing more practical solutions. Continue reading to explore the intricacies of the proposed standard, the challenges it poses, and the positive changes introduced in the latest revision.

    Understanding The Proposed Standard

    The Cal/OSHA Standards Board proposed indoor heat illness standard aims to ensure the safety and well-being of employees working indoors when temperatures reach 82 degrees Fahrenheit. If adopted, this standard will necessitate a range of measures employers must take to prevent heat-related illnesses among their workforce.

    Key Requirements Of The Proposed Standard 

    1. Written prevention program: Employers must establish and maintain a written indoor heat illness prevention program detailing procedures for water access, cool-down areas, and emergency response measures. 
    2. Training: Effective training on heat illness prevention will be mandatory for employees and supervisors. 
    3. Cool-down areas: Access to cool-down areas maintained below 82 degrees, protected from direct sunlight and radiant heat, will be required. 
    4. Additional rest periods: Encouraging and monitoring employees to take preventive cool-down rest periods during high-temperature periods will be essential. 
    5. Observation obligation: Close observation of new employees during a 14-day acclimation period and monitoring employees during heat waves without effective engineering controls will be necessary. 

    Challenges Presented By The Proposed Standard

    1. Temperature monitoring and control: One of the major hurdles for employers will be measuring the temperature and heat index at specific thresholds. Temperature readings must be taken when the threshold is suspected to be met and when it’s expected to be 10 degrees higher than previous measurements. 
    2. Hierarchy of control measures: The strict hierarchy of control measures presents a complex challenge. Employers must prioritize engineering controls, then administrative controls, and if neither is feasible, provide personal heat-protective equipment. 

    Recent Revisions: A Breath Of Relief For Employers

    Recognizing the concerns raised by stakeholders, the August 4th, 2023 revision of the proposed standard offers several improvements that alleviate some of the compliance burdens.

    1. Short-duration exception: The revision includes an exception for indoor work areas where employees spend less than 15 minutes in any one-hour period, as long as the location isn’t usually occupied. This addresses the worry of applying the rule to brief indoor activities such as equipment retrieval.
    2. Compliance for outdoor-indoor transition: Employers no longer have to comply with two separate heat illness rules when employees transition between indoor and outdoor work, simplifying compliance efforts.
    3. Clothing-specific control triggers: For employees wearing heat-restrictive clothing, the trigger temperature for control measures is lowered to 82 degrees. Exceptions are provided for clothing materials that are air and water-vapor permeable.
    4. Feasibility exception for cool-down areas: The revision acknowledges feasibility challenges, making it more practical for employers to provide shaded and radiant-heat-shielded cool-down areas.
    5. Training integration: Employers can integrate indoor heat illness training with existing outdoor heat illness training, streamlining the education process.

    Simplifying Compliance Through Expertise

    Amidst the changing landscape of workplace regulations, small businesses in California are confronted with the dual challenge of ensuring compliance with the proposed indoor heat illness standard while maintaining operational efficiency. This is where a professional employer organization (PEO) emerges as a strategic partner. A PEO like GMS provides comprehensive HR solutions that encompass the complexities of the new heat illness regulations and a range of employment-related tasks.

    From drafting and implementing the required written prevention programs to conducting employee training, a PEO can alleviate the administrative burden on small businesses. By partnering with GMS, businesses can confidently navigate the evolving regulatory landscape, allowing them to focus on what truly matters: fostering a safe and productive work environment for their employees. As the indoor heat illness standard journey continues, the role of a PEO becomes increasingly vital, ensuring that small businesses remain compliant, competitive, and caring employers. Contact us today to learn more.

  • In a groundbreaking move aimed at advancing workers’ rights and improving working conditions, California has re-established the Industrial Welfare Commission (IWC). This long-awaited decision, part of the 2023 budget bill signed by Governor Gavin Newsom on July 10th, 2023, brings renewed hope for employees across various industries, especially for those in the fast-food sector and gig workers. As the IWC prepares to reconvene by January 2024, employers must grasp the significance of this development and how it may impact their operations.

    A Historic Return With A Clear Mission

    Founded in 1913, the IWC was initially created to protect and enhance the well-being of workers. Despite closing in 2004 due to funding issues, the commission’s wage orders have remained in effect, encompassing 17 different industries and occupations. Now, with a dedicated budget of $3 million, the IWC will reconvene and adopt final recommendations by October 2024.

    Empowering Workers And Raising Industry Standards

    The IWC’s revival signifies a potent tool for California’s Democratic-controlled Legislature to advance its pro-worker goals. By designating wage boards to recommend fair pay, appropriate working hours, and improved working conditions, the commission will actively support industries with a high concentration of low-income workers. In particular, the focus will be on sectors with over 10% of employees living at or below the federal poverty level.

    Addressing Key Industry Challenges 

    With the IWC’s return, lawmakers aim to tackle two pressing issues: 

    • Regulations in the fast-food industry
    • Classifications of gig workers

    The fast-food sector has resisted stricter regulations, including AB 257, a law designed to elevate the industry’s pay rates and working conditions. Business groups have opposed the law, leading to a ballot measure seeking its repeal. Similarly, the classification of gig workers has been a contentious topic, with AB 5 imposing stringent requirements on companies to classify workers as employees. Proposition 22, a 2020 ballot measure that allowed Uber, Lyft, and other platforms to classify their workers as independent contractors rather than employees, exempted certain companies from AB 5, but legal battles persist.

    IWC’s Implications For Employers And Industries

    Employers must acknowledge the magnitude of the IWC’s return. With its ability to influence California’s regulatory landscape, the agency will likely prioritize industries regulated by Wage Order 5, such as restaurants and hotels. Under the current provisions of Wage Order 5, if an employee works a 50-hour workweek of two 20-hour shifts and one 10-hour shift, the employer will pay daily overtime workweek because the employee’s workweek schedule is more than 40 hours.

    However, as the commission potentially gains more funding in subsequent years, its impact may extend to a broader array of sectors. This development may also pave the way for other states to establish their own IWCs, further reshaping workers’ rights nationally.

    Collaboration And Concerns

    While labor groups such as the Service Employees International Union (SEIU) applaud the IWC’s revival for its potential to combat poverty and inequality, employment lawyers harbor concerns about the scope of its power. The agency follows a unique rulemaking process not subject to the Administrative Procedure Act, which raises questions about transparency and accountability. Employers are advised to stay vigilant, as a small group of appointed members may hold significant sway over industry regulations.

    The Assistance Of A PEO

    In the face of California’s re-established Industrial Welfare Commission (IWC) and the potential changes it may bring to industry regulations, employers may find navigating the evolving landscape challenging. A professional employer organization (PEO) might be the solution you need. When you partner with a PEO like GMS, businesses can offload complex HR tasks, compliance management, and payroll processing, allowing them to focus on their core competencies. GMS acts as a co-employer, sharing employer responsibilities, which means we help employers adapt seamlessly to any industry-specific rules and regulations set forth by the IWC. Our expertise in HR compliance and industry best practices allows us to help employers remain compliant with evolving laws and can offer competitive employee benefits. Embracing the support of GMS during this transformative period ensures business continuity and empowers employers to prioritize their workforce’s well-being, ultimately leading to a more prosperous and harmonious working relationship for all. Contact us today to learn more!

  • Human resources (HR) is a critical function for any business, responsible for managing the relationship between employers and employees. It plays a key role in developing, reinforcing, and changing an organization’s culture. In California, however, HR can be one of the most challenging aspects of running a business. The state’s employment laws are some of the most employee-friendly in the country, which can make it challenging for small businesses to operate efficiently.

    With generous wage and hour laws and paid leave benefits, California is among the most employee-friendly jurisdictions globally. While this is great for employees, it’s quite the administrative nightmare for small business owners. So, what exactly makes California so different than every other state in the U.S.? Let’s dive into the world of HR in California and explore the factors that shape the decisions of HR professionals and business owners.

    Employment Laws

    One of the main reasons why HR in California is so challenging for businesses is due to the state’s complex employment laws. California has some of the most stringent employment laws in the country, covering everything from overtime pay to sick leave to discrimination in the workplace. Laws in California, such as the Fair Employment and Housing Act (FEHA), prohibit employers from discriminating and retaliating against employees in various protected classes. In addition, employers are required to:

    • Provide pregnancy accommodations 
    • Provide equal pay
    • Allow for wage discussions 
    • Allow employees to access personal files 
    • Protect whistleblowers

    These laws can be difficult for businesses to navigate, and the penalties for violating them can be expensive. 

    Overtime Rules

    The Fair Labor Standards Act (FLSA) entitles non-exempt employees to overtime pay for any hours worked over 40 a week. This is stricter than the federal standard of overtime pay after 40 hours in a week. It ultimately means that businesses must carefully manage their employees’ schedules and workloads to avoid costly penalties for overtime violations. On the flip side, employees can earn extra income for their hard work and dedication.

    Paid Sick Leave Benefits

    California’s paid leave benefits are a hot topic that every employee and employer should explore. These laws require employers to provide paid sick leave to all employees, which can be challenging for small businesses with limited resources. With California being one of the few states in the country to offer such generous benefits, employees can take time off from work to care for their health or that of a loved one without fear of losing their job or financial security.

    Paid family leave gives employees up to eight weeks to take time off work to:

    • Care for a seriously ill family member
    • Bond with a new child
    • Participate in a qualifying life event because of a family member’s military deployment 

    Anti-Harassment Requirements 

    Harassment in the workplace is a serious issue that can have devastating effects on employees and businesses. That’s why anti-harassment policies are critical to creating a safe and respectful work environment for all employees. Such policies clearly define what constitutes harassment and what steps will be taken if an incident occurs. Providing employees with a clear understanding of what is and isn’t acceptable behavior, anti-harassment policies help prevent harassment from occurring in the first place.

    Since California is employee-favored, the state requires all businesses to have a written anti-harassment policy, as well as a reporting and investigation procedure. All companies with over 50 or more employees in California are required to do the following:

    • Provide one hour of sexual harassment and abusive conduct prevention training to nonsupervisory employees
    • Provide two hours of sexual harassment and abusive conduct prevention training to supervisors and managers once every two years

    This training must occur within the employee’s first six months on the job. In addition to race, sex, and age, the training must also address harassment based on gender identity and sexual orientation.

    Timely Payment Of Wages

    In California, timely payment of wages isn’t just good practice; it’s the law! Employers must pay their employees’ wages on time and in full, including all overtime and bonuses earned. This means that employees can rest assured they’ll receive their hard-earned wages on time, without any delays or excuses.

    Failure to comply with timely payment laws can result in the following:

    • Costly legal penalties 
    • Damaged reputation 
    • Low employee morale 

    For each late paycheck, California’s Labor Code allows the recovery of up to $200 plus 25% of the amount unlawfully withheld, per employee, per payroll period.

    Layoffs And Business Closures

    The federal Worker Adjustment and Retraining Notification Act (WARN) in California is a vital piece of legislation protecting employees and their families during economic uncertainty. This act requires employers to provide advance notice to their employees in the event of a plant closure, mass layoff, or major relocation. This notice gives employees ample time to prepare for potential job loss and make necessary arrangements for their future. Employers who fail to comply with the WARN Act may face significant legal and financial penalties, including back pay penalties of up to $500 a day for each day of violation for a maximum of 60 days. This act isn’t just a legal obligation for employers but a moral responsibility to treat employees with dignity and respect.

    Consider Outsourcing Your HR Functions

    The intent of California’s HR laws isn’t to burden businesses but to protect the workers. HR in California is a dynamic and ever-evolving field that requires careful attention to legal compliance, employee well-being, and business success. From overtime rules, paid leave benefits, and anti-harassment policies, California’s HR landscape is filled with exciting and crucial topics that employers and employees must understand and navigate. While California’s employee-friendly laws and regulations can make it challenging for businesses to operate, they also create opportunities for companies to differentiate themselves as responsible and caring employers. By staying informed and proactive about HR issues, companies in California can attract and retain top talent, maintain legal compliance, and build a workplace culture that values and respects all employees.

    Have you considered outsourcing your HR functions to a professional employer organization (PEO)? Partnering with a PEO such as GMS is an excellent option for small business owners in California who want to streamline their HR functions and focus on their core business operations. Our HR experts are trained in the latest HR laws and regulations at GMS. We help business owners navigate complex employment laws in California, such as wage and hour regulations, anti-discrimination laws, and paid leave laws.

    Megan Croley, GMS’ Regional Client Services Manager, expressed, “From unique overtime rules and generous paid family leave benefits to the illegality of non-competes and the relatively new pay data reporting requirement, business owners are clearly navigating a complex set of rules and regulations in California. That can be intimidating! Knowing when to tap into the right resources for help makes all the difference. GMS has been serving clients in California since 2021. We assess your organization and provide guidance, policies, training, and more to avoid missteps.”

    HR functions are time-consuming and distract business owners from focusing on their core business operations. Investing in HR isn’t just a smart business decision; it’s a commitment to creating a better future for your employees. Contact us today to learn more.

  • The California Division of Occupational Safety and Health Standards Board (Cal/OSHA) published an official draft of an indoor health illness prevention standard. While heat illness regulations are already applicable to outdoor workers, this new regulation strictly applies to employees working indoors when the temperature reaches at least 82 degrees.

    Understanding The Proposed Regulation 

    Under this draft version, business owners must have written heat illness prevention plans. The plan would be necessary to include the following:

    • Access to water
    • Cool-down spots
    • Acclimatization for newly assigned workers
    • Emergency response procedures 
    • Control measures to minimize the risk of heat illness

    Heat illness is a severe medical condition resulting from the body’s inability to cope with a particular heat load, including heat cramps, exhaustion, and heat strokes. There are 67,512 emergency department visits yearly due to heat in the U.S. In addition, 702 heat-related deaths occur each year. What will you do to protect your workers?

    Nick Clark, GMS’ Safety Manager, emphasized, “As a business owner in California, it’s essential to prioritize indoor heat illness prevention in the workplace. With temperatures rising across the state, you must take extra precautions to ensure your employees’ safety and well-being. Heat-related illnesses such as heat exhaustion and heat stroke can be severe and, in some cases, even fatal. To prevent these illnesses, you should provide cool and shaded areas for workers to take frequent breaks and access to plenty of water. You should also schedule physically demanding work during the cooler parts of the day and provide appropriate protective clothing. By implementing heat illness prevention measures, employers can protect their employees and improve productivity, reducing the risk of heat-related accidents.”

    This proposed indoor heat illness regulation is currently in the 45-day comment period, and the Cal/OSHA Standards Board will hold a public hearing on the proposed regulation on May 18th, 2023.

    Partner With GMS

    While we wait to hear if this will become a law in California, consider partnering with GMS to ensure the safety of your workers. We work with thousands of businesses and help them comply with all regulations and laws. When you partner with us, we update your employee handbook to reflect the necessary changes. In addition, our team of safety experts will come out to examine your facility to ensure you have complied with the law. Whether you need help creating cool-down spots for your employees or writing a proper emergency response procedure, we do it all. Contact us today.

  • California State Senator Dave Cortese introduced Senate Bill 553 on February 15th, 2023, which discusses workplace violence. Workplace violence prevention regulations are only applicable to the health care industry. However, preventing workplace violence in every industry is also necessary. Workplace violence is any act or threat of physical violence, harassment, intimidation, or other threatening disruptive behavior at work. It can range from threats and verbal abuse to physical assaults and even homicide. It’s reported that 743 million, or 23% of employees worldwide, have experienced violence or harassment in their workplace.

    Understanding Senate Bill 553

    Senate Bill 553 would require California’s occupational safety and health regulator to broaden the scope of workplace violence prevention regulations and would cover most employers in California. If it passes, it will require the California Division of Occupational Safety and Health (Cal/OSHA) to adopt regulations requiring any employer not subject to the health care regulations to create a workplace violence prevention plan that’s part of the employer’s injury and illness prevention plan. Business owners would be required to do the following:

    • Violent incident log
    • Recordkeeping
    • Reporting of violent incidents to Cal/OSHA
    • A written violence prevention plan
    • Training

    GMS’ Safety Manager Nick Clark stated, “One of the most important aspects of maintaining a safe workplace is preventing workplace violence. There are several steps employers can take to prevent violent incidents in the workplace. First, creating a workplace prevention program that includes guidelines for reporting and addressing threatening or violent behavior is crucial. Furthermore, training employees to recognize warning signs of violence, de-escalation techniques, and how to respond to violent incidents can help prevent such incidents from occurring. Employers may also consider implementing security measures such as surveillance cameras, access control systems, and security personnel to prevent violence. Ultimately, taking proactive measures to prevent workplace violence can ensure employees’ safety and well-being and avoid legal issues.”

    Don’t Wait To Prevent Workplace Violence

    While there is no set time frame for when this bill would go into effect, it’s essential that you’re always trying to keep your employees safe and prevent workplace violence from occurring. Partnering with a professional employer organization (PEO) such as GMS can help employers by providing various services and resources to identify and manage potential threats. GMS’ HR experts work with you to create clear policies and procedures around prevention, including training, reporting, and response protocols. In addition, you gain access to our learning management system (LMS), where employees can be trained to identify potential warning signs of violence, report concerns, and respond to an active threat. Ultimately, we provide ongoing support to help you stay updated with the latest best practices and strategies for preventing workplace violence. Contact us today to prevent workplace violence from happening in your business.

  • In recent years, there has been a growing trend in the U.S. to provide paid sick leave for employees, with California being one of those states. While many states don’t require paid sick leave, California mandates it. Senate Bill 616 (SB 616) was introduced on February 15th, 2023, and would increase the number of paid sick leave days for California employees by amending Labor Code Section 246. Labor Code Section 246, also called the California Paid Sick Leave Law, requires employers to provide and allow employees to use at least 24 hours, or three days, of paid sick leave per year.

    Under the current law, employees must work for at least 30 days for the same employer in a 12-month period in order to qualify. The accrual begins on the employee’s hire date. Employers can limit the paid sick leave employees can use in one year to 24 hours or three days.

    Understanding SB 616

    If SB 616 passes, it would raise the employer’s authorized limit on paid sick leave to seven days or 56 hours. The current law in California allows an employer to limit an employee’s total accrual of paid sick leave to 48 hours or six days, provided that an employee’s rights to accrue and use paid sick leave are not otherwise limited. SB 616 would increase those accrual thresholds for paid sick leave to 112 hours or 14 days for unused sick time. In addition, SB 616 would increase the sick leave accrual rate for providers of in-home supportive services and waiver personal care services to 56 hours or seven days each year of employment. SB 616 applies to all employees who work in California for the same employer for at least 30 days within a year from the start of employment.

    You are not required to accrue or carry over paid leave if employees receive their full amount of leave at the beginning of each calendar year or 12-month period. In addition, you’re not required to compensate employees for their accrued, unused sick days upon termination, resignation, or retirement.

    If passed, SB 616 would go into effect beginning January 1st, 2024.

    Your Responsibility As A Business Owner

    As a new bill is waiting for approval, it’s essential as a business owner to take proactive steps to ensure you comply with the new law. If you’re a business owner in California, consider revising your current leave policies, if needed. The bill will require you to provide a written notice about the amount of paid sick leave available. At GMS, we understand this can be overwhelming and challenging to handle on your own. When you partner with us, we provide you with a hands-on approach and tackle these challenges together. Our HR experts will implement new HR policies in your handbook, write your written notice in reference to the updated paid sick leave bill, and so much more. Let us help you sleep peacefully at night and contact us today to get started!