Employment Law & Compliance Highlights from Paul P. Cheng & Associates

Employment Law & Compliance Highlights from Paul P. Cheng & Associates

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California employers face a wave of new legal updates this November, highlighting the state’s continued focus on worker protections and fair compensation. From the implementation of tiered minimum wages for healthcare workers under SB525 to significant amendments to the Private Attorneys General Act (PAGA), businesses must act swiftly to ensure compliance. Understanding these changes is crucial to avoiding penalties and maintaining a strong workforce. Here’s what you need to know to stay ahead.

CALIFORNIA

California Increases Focus on Fair Compensation with SB525

California continues its push for equitable compensation with the recent implementation of the healthcare worker minimum wage under SB525, effective October 15, 2024. This law mandates tiered minimum wages for employees at covered healthcare facilities, ranging from $18 to $23 per hour, depending on the facility type and size. Over the next few years, wages will incrementally increase until reaching $25 per hour, with annual adjustments tied to inflation thereafter.

Employers in the healthcare sector should review their payroll systems and budget forecasts to ensure compliance. Failure to meet these wage standards could result in steep penalties and reputational damage. Legal counsel can assist with interpreting which facilities and roles fall under the law’s coverage.

PAGA Amendments Create Opportunities for Compliance

The Private Attorneys General Act (PAGA), a longstanding challenge for California employers, saw significant updates with the passage of AB2288 and SB92. The Department of Industrial Relations has clarified these amendments through an updated FAQ, outlining new options for employers, including:

1. Cure Provisions: Employers now have more defined steps to address and rectify violations, such as unpaid overtime or improper wage statements, before facing litigation.
2. Early Resolution Options: Smaller employers (fewer than 100 employees) may leverage early evaluation conferences with the Labor and Workforce Development Agency, enabling disputes to be resolved more efficiently.
3. Updated Penalty Guidelines: The amendments also redefine certain penalty structures, offering clarity and reducing ambiguity for businesses.

Given PAGA’s complex nature, businesses are strongly encouraged to work closely with their attorneys to assess potential liabilities and implement proactive compliance measures.

Action Steps for Employers

1. Review Payroll Practices: Audit your wage and hour compliance, particularly if you operate in healthcare or other industries heavily regulated under California law.
2. Update Employee Handbooks: Incorporate changes in minimum wage and PAGA compliance procedures into your workplace policies.
3. Consult Legal Counsel: Partner with an experienced employment law attorney to navigate these changes and minimize potential exposure.

For tailored advice and assistance with compliance, contact the Law Offices of Paul P. Cheng & Associates. We provide comprehensive legal support to help California employers adapt to evolving workplace regulations.

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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