California Employers: New Laws Effective in 2024 and How to Prepare

California Employers Face New Laws in 2024: What You Need to Know

As the new year approaches, California employers must be prepared for a slew of new laws that will come into effect in 2024. These laws cover a range of topics, from diversity data collection for venture capital companies to workplace violence and harassment protections, increased sick and reproductive loss leaves, and new presumptions of retaliation for protected activities. Here’s a breakdown of some key laws and what employers should do to prepare:

1. Collection of Diversity Data for Venture Capital Companies:
SB 54 requires venture capital companies meeting certain criteria to collect and maintain diversity data relating to their portfolio companies’ founding teams. Employers should determine if they are a “covered entity,” review data collection procedures, and begin collecting relevant diversity data for reporting by March 1, 2025.

2. Amendment to Non-Compete Law:
SB 699 makes noncompete agreements void and unenforceable in California, regardless of where the contract was signed or employment maintained. Employers should update employment agreement templates and provide training on the prohibition of out-of-state non-competes for compliance.

3. New Protections for Workplace Violence and Harassment:
SB 553 requires employers to establish workplace violence prevention plans, provide training to employees, and maintain records of incidents and trainings. Employers should create a prevention plan, provide training, establish record-keeping procedures, and review/update company policies.

4. Increased and Expanded Sick and Reproductive Loss Leaves:
SB 616 expands paid sick leave requirements to 40 hours or 5 days and increases the accrual threshold to 80 hours or 10 days. Employers should review and revise sick leave policies for compliance.

5. New Presumption of Retaliation for Protected Activities:
SB 497 creates a rebuttable presumption in favor of an employee if disciplined or discharged within 90 days of engaging in protected activity. Employers should reassess employee discipline procedures, review training materials, and ensure supervisors are properly trained.

6. Additional Prohibitions on Cannabis-Related Discrimination:
SB 700 prohibits employers from requesting information on an applicant’s prior cannabis use. Employers should update policies, train human resources personnel, and ensure compliance with drug-testing vendors.

California employers should take proactive steps to comply with these new laws and stay informed about any future developments. Mintz’s Employment Practice is available to assist employers in navigating these changes and other legal developments affecting California employers. Stay ahead of the curve and ensure your workplace is prepared for the new year.