Attention Employers: California Enacts Several Labor and Employment Updates for 2024

California Governor Gavin Newsom recently signed into law several employment-related bills to take effect in 2024. Employers doing business in California will want to familiarize themselves with these new laws and update their policies and practices prior to the 2024 effective dates. Key changes to California employment laws include:

Prohibition of Noncompete Provisions

The new statutory law, effective January 1, 2024, will make it unlawful to include a noncompete provision in an employment agreement, or require an employee to enter into a noncompete agreement, that does not satisfy specified exceptions.

Expansion of California Paid Sick Leave Law

Among several expansions to the existing law, the new law, effective January 1, 2024, states that the annual amount of paid sick leave that an employee is entitled to will increase to five days or 40 hours per annum. Employers must ensure that each employee accrues at least five days or 40 hours of paid sick leave by the 200th calendar day of employment or in any 12-month period worked in addition to ensuring the employee accrues at least three days or 24 hours of paid sick leave by the employee’s 120th day of employment or in each 12-month period worked.

Increased Minimum Wage for Certain Fast Food and Health Care Workers

Fast food chains with more than 60 locations nationwide must pay their California-based fast food restaurant workers a minimum of $20 per hour beginning April 1, 2024. Employees working in health care facilities will receive a gradual increase in the hourly minimum wage to bring them to $25 per hour over the next several years.

Creation of Presumption of Retaliation for Certain Reported Workplace Violations

The new law imposes a presumption of retaliation where an employer takes certain disciplinary actions, such as demotion or termination, against an employee within 90 days of the employee engaging in certain activities protected by the California Labor Code.

Grant of Leave for Reproductive Loss

The new law provides bereavement leave to an eligible employee for a reproductive loss event, including a failed adoption, failed surrogacy, miscarriage, stillbirth or an unsuccessful assisted reproduction.

Protection for Prior Marijuana Use

The new law, effective January 1, prohibits employers from requesting information about an applicant’s prior use of marijuana. However, the bill provides that employers may consider or inquire about information related to a person’s prior cannabis use obtained from their criminal history if permitted under state or federal law. In addition, it will become unlawful for an employer to discriminate against a person in hiring, termination, or any term or condition of employment based upon the person’s use of cannabis off the job and away from the workplace.

Implementation of Workplace Violence Prevention Plan

Most California employers, with certain exceptions, must establish, implement and maintain a workplace violence prevention plan beginning July 1, 2024.

For more details regarding this legislation, see our Client Alert below.