Employment Law & Compliance Highlights from Law Offices of Paul Cheng

Employment Law & Compliance Highlights from Law Offices of Paul Cheng

– NEW UPDATES –

California has passed several new laws that will significantly impact businesses and workers, with changes ranging from freelance worker protections to enhanced rights for employees in various industries. As these laws approach their effective dates, it is essential for employers to familiarize themselves with the new requirements to ensure compliance and avoid potential penalties. Below are some key legislative updates to be aware of:

CALIFORNIA

Freelance Worker Protections Bolstered Under New Ordinance

Starting January 1, 2025, the Freelance Worker Protection Act (SB988) introduces robust protections for freelance workers performing services valued at $250 or more within a 120-day period. Employers must now provide freelance workers with a detailed written contract, outlining specific terms of the agreement. Failure to comply can result in fines, and employers must ensure payment is rendered within 30 days of service completion. Additionally, retaliatory actions against freelancers who assert their rights under this law will be prohibited, with penalties imposed for violations. This law extends earlier protections established by the City of Los Angeles and underscores the importance of maintaining fair and transparent business relationships with freelance professionals.

Digital Replica Agreements Face New Restrictions

The entertainment industry is also seeing significant changes, especially regarding the use of digital replicas. Under AB2602, signed into law on Sept. 17, 2024, provisions in contracts concerning the creation and use of a digital replica of an individual’s voice or likeness will become unenforceable unless specific conditions are met. This law aims to protect performers from unauthorized use of their digital likeness in place of live performances. Starting Jan. 1, 2025, any contract allowing for digital replicas must include a clear description of the intended use, and individuals must have legal counsel to address these terms. This move safeguards performers from being replaced by technology without proper oversight.

New Posting Requirements for Voluntary Social Compliance Audits

Employers who choose to undergo voluntary social compliance audits to demonstrate adherence to child labor laws will soon face new obligations under AB3234, effective Jan. 1, 2025. The law requires companies to post the findings of their audits on their websites, including when the audit was conducted and relevant policies and procedures related to child labor compliance. By promoting transparency, this legislation helps hold businesses accountable and allows the public to easily access this important information.

Expanded Employee Leave Rights for Crime Victims and Jurors

Employee protections for victims of crime and those involved in legal proceedings have been expanded under AB2499, signed on Sept. 29, 2024. The new law broadens the definition of a “victim” and extends protections to employers with one or more employees. It ensures that crime victims or employees summoned for jury duty can use their available vacation, sick leave, or personal leave while taking time off for these purposes. The bill also requires employers to provide reasonable accommodations for employees who are victims of violence. These changes will come into effect on Jan. 1, 2025.

Paid Sick Leave for Agricultural Workers Expanded

Effective Jan. 1, 2025, agricultural workers in California will be entitled to additional protections under SB1105. The law amends the Healthy Workplaces, Healthy Families Act of 2014 to provide paid sick days for outdoor agricultural workers when local or state emergencies—such as extreme weather events—pose a risk to their health. This change ensures that agricultural employees have the necessary time off to protect their health and safety during emergency situations without risking job security.

Amendments to Consumer Credit Reporting Agencies Act

California has updated the Consumer Credit Reporting Agencies Act (SB1061), which will prohibit credit reporting agencies from including medical debt on consumer credit reports or investigative consumer credit reports. However, an exception is made for investigative reports required by a government regulatory agency to assess an individual’s employment qualifications. These changes take effect on Jan. 1, 2025.

Protections for Child Content Creators Expanded

On Sept. 26, 2024, Governor Newsom signed AB1880, which extends California’s existing protections for unemancipated minors to cover content creators. Under the new law, employers working with minors in digital content creation (such as influencers, podcasters, or streamers) must allocate 15% of the minor’s earnings into a trust. These protections, which already apply to child actors, will be effective from Jan. 1, 2025.

PAGA Exemption for Construction Employees Extended

Governor Newsom signed AB1034 on Sept. 28, 2024, extending an existing exemption from penalties under the Private Attorneys General Act (PAGA) for certain construction workers. The exemption, initially set to expire on Jan. 1, 2025, will now remain in effect until Jan. 1, 2028. This exemption applies to workers earning at least 30% more than the state minimum wage under a collective bargaining agreement that includes specific provisions.

New Anti-Discrimination Rules Regarding Driver’s Licenses

As of Sept. 28, 2024, with the signing of SB1100, it is now illegal under California’s Fair Employment and Housing Act for employers to require job applicants to possess a driver’s license unless the job specifically requires driving. Employers must also reasonably believe that alternative transportation options, such as ride-sharing, carpooling, or biking, would not be feasible in terms of time or cost. This law takes effect on Jan. 1, 2025.

Changes to Paid Family Leave Requirements

Governor Newsom signed AB2123 on Sept. 29, 2024, which removes the ability for employers to require employees to use up to two weeks of earned vacation before receiving Paid Family Leave benefits. This amendment will take effect on Jan. 1, 2025, simplifying access to family leave for California employees.

Employer Restrictions on Political or Religious Meetings

On Sept. 27, 2024, Governor Newsom signed SB399, which prohibits employers from forcing employees to attend meetings or receive communications on the employer’s political or religious views. Employers who violate this law can face penalties of $500 per violation, and employees will have the right to pursue a private lawsuit. The law will come into effect on Jan. 1, 2025.

Expanded Anti-Discrimination Protections for Hairstyles

Governor Newsom signed AB1815 on Sept. 26, 2024, which expands California’s anti-discrimination laws to protect traits associated with race, such as hair texture and protective hairstyles. This amendment updates both the Fair Employment and Housing Act and the Unruh Civil Rights Act and will take effect on Jan. 1, 2025.

These developments highlight the evolving landscape of employment regulations on both federal and state levels. Employers should stay updated and ensure compliance to avoid legal pitfalls and potential penalties. Legal counsel is recommended to navigate any complex changes effectively.

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