We are halfway through 2019, and while many employees prepare for summer vacation, California employers in various cities should brace themselves for an additional round of minimum wage increases on July 1, 2019.
Another raise, already?
As you may recall, on January 1, 2019, California raised the statewide minimum wage rate to $12.00 per hour for employers with 26 or more employees, and $11.00 per hour for employers with 25 or fewer employees. And the California minimum wage is set to increase to $15.00 per hour for all employers by January 2023. READ MORE
San Francisco recently added significant teeth to its “Fair Chance” ordinance, which is designed to give applicants who have criminal histories a chance to get their foot in the door without being automatically disqualified.
This is the next step in the “ban the box” movement, for which several cities, counties and states have passed laws restricting employers from inquiring about a job applicant’s criminal background. The term “ban the box” refers to questions on an employment application that ask a job applicant about past convictions. Proponents of “ban the box” laws argue they will help remove unfair employment barriers to job applicants with criminal histories.
In California, San Francisco and Los Angeles have instituted “Fair Chance” ordinances that require employers to state on their job postings that an arrest or conviction will not automatically disqualify a qualified application from consideration from employment. Recent amendments to the San Francisco Fair Chance Ordinance went into effect on October 1, 2018. These amendments:
- Expand the scope of the law to cover any employer with 5 or more employees. Previously, the law covered employers with 20 or more employees.
- Prohibit employers from inquiring about a person’s criminal history until after a conditional offer of employment has been made.
- Prohibit employers from considering any convictions for decriminalized behavior (e.g., marijuana related convictions). Previously, the law had allowed such inquiries for convictions that were seven years old or less.
- Increase penalties for non-compliance from a per-violation maximum of $100 to $2,000.
- Direct that penalties must be paid directly to affected employees. Penalties were previously paid to the City.
- Creates a new private right of action for any employee or applicant whose rights have been violated. Previously only the City Attorney could sue to enforce the law.
- Requires that covered employers display a new poster in the workplaces as of October 1, 2018.
In addition to fair chance ordinances like San Francisco’s, California employers must also be mindful of other recent legislation that will have an impact on the hiring process, including state-wide legislation enacted in July 2018 that prohibits employers from inquiring into the salary history of their applicants. More on that here.
As always, employers are well advised to reach out to Orrick counsel for assistance navigating this complex area of law.
Effective January 1, 2018, San Francisco will expand available protections for nursing mothers working within city limits. California law currently requires employers to provide lactating employees with a reasonable amount of break time and to make reasonable efforts to provide the employee with a room, other than a bathroom, in close proximity to the employee’s work area to express milk. Similarly, federal law requires employers to provide a reasonable break time for an employee to express breast milk for one year after the child’s birth in a place, other than a bathroom, that is shielded from view and free from intrusion from co-workers and the public. Signed into law by San Francisco’s Mayor Ed Lee on June 30, 2017, the “Lactation in the Workplace Ordinance” will expand these requirements for San Francisco employers in the following ways.
Staying true to form, earlier this month San Francisco passed the nation’s first fully-paid parental leave law known as the Paid Parental Leave for Bonding with New Child Ordinance (“Paid Parental Leave Ordinance”). California’s Paid Family Leave (“PFL”) program currently provides six weeks of partially-paid leave at 55 percent of an employee’s pay, up to $1,129 per week. The Paid Parental Leave Ordinance mandates that employers pay the difference up to a weekly maximum, meaning most employees will receive six weeks of bonding leave at full pay. Unlike PFL, which is funded through employee contributions to state disability insurance, benefits under the Paid Parental Leave Ordinance are employer-funded.
The proliferation of paid sick leave (PSL) laws has been well-documented in the last few years. California’s PSL statute has received particular attention in this blog, but Connecticut, Massachusetts, and Oregon have also adopted similar state-wide legislation. And it is not just the states that are rolling out requirements for PSL; dozens of cities and counties have also adopted PSL ordinances (oftentimes in states that already have similar laws in place). Major municipal adopters include New York City, San Francisco, Washington, D.C., Seattle, Newark, and Philadelphia.
As you brace for the New Year, don’t forget that California’s minimum wage will reach $10 per hour on January 1, 2016. This latest increase is the final stage of the two-step legislation that increased the minimum wage from $8 to $9 per hour on July 1, 2014, and now to $10 per hour effective January 1, 2016.