On September 18, 2019, California Governor Gavin Newsom signed into law A.B. 5, solidifying a tighter standard of rules for classifying a worker as an independent contractor. The new standard, known as the Dynamex standard, codifies and expands the earlier California Supreme Court decision, Dynamex Operations West, Inc. v. Superior Court of Los Angeles. It replaces the former Borello test, and puts in place a more simple three-pronged ABC test. The significant effect is that many workers in California will now be classified as employees instead of independent contractors (also informally known as “1099” workers). This change is one of the most significant disruptions to California employment law in decades. The law took effect on January 1, 2020. FIND OUT how to comply with this law by downloading our easy-to-understand instructions.Continue reading
On September 4, 2019, Jennifer Grady, Esq. was featured on episode 31 “Legally Speaking: Handling Tough Legal Situations” of The AutoVitals Digital ShopTalk Radio, with host Tom Dorsey, to discuss a myriad of legal situations that can arise in a workplace from Sexual Harassment to record-keeping and what new business owners and employers need to know to be successful.Continue reading
California employment law now requires that employers with 5 or more employees provide one (1) hour of training to employees at least once every two years; and two (2) hours of training to managers within six months of hire or promotion, and every two years thereafter. This training must be completed by January 1, 2020, even if employees were just trained in 2018. A recent professional association survey found that over 80% of Human Resources and Operations Managers are aware of the new training requirements, but have not booked training for their employees. This means that there will likely be a rush to find suitable training options in November or December, and training professionals may already be booked for the end of the year.
To avoid the Fourth Quarter rush, The Grady Firm has a solution. Now through May 20th, The Grady Firm is offering $150 off our full-day, and $50 off our half-day, on-site Sexual Harassment Prevention Training program*.
The Grady Firm provides on-site, classroom-style training in
English and Spanish, and includes custom-drafted materials, such as our
Proprietary Power Point Presentation, Certificates of Participation, Quizzes, and Anti-Harassment Policy. Don’t let your employees fall asleep or tune-out with traditional online training!
As companies grow and evolve over time, it soon becomes clear that they will outgrow their employee and operations policies–that is, if they even had any in the first place! The best time for a CEO, COO, CFO, and Human Resources Department is to reassess these policies is at the end of the year, and to roll out new policies at the start of a new year. Every January, there are changes that will take place anyway (such as updated IRS mileage reimbursement rates and local minimum wage rates), so it’s a good time to include policy updates when you provide this information to employees all at once. There are numerous policies you can begin revising now to issue to your staff in January. Read further to begin your end of year action plan:
1. Employee Handbook
The first item that should be addressed is the company Employee Handbook. If your company does not have one, or has not updated an existing one in more than a year, it’s time to speak with an attorney about creating or updating your Handbook. In fact, for companies that have more than 5 employees, a Handbook is a no-brainer because it will have clauses in it that you are required to provide to employees (for example, Pregnancy Disability Leave is available for employees at companies with 5 or more employees, and the Employee Handbook is the best place to provide this information to employees). Besides using the Handbook as the opportunity to explain all of the California mandatory leave-laws, paid sick leave time, and cell phone reimbursement policy, you can use this as a forum to explain the company’s social media, use of technology, dress code, tardiness, absentee, and drug/alcohol use policies. You can also outline which behaviors will result in discipline or termination. Continue reading
On April 19, 2016, the Los Angeles City Council approved a measure that would require employers in the City of Los Angeles to provide their employees with six days, or 48 hours, of paid sick leave. Pending an approved ordinance drafted by the City Attorney, the requirement will become effective on July 1, 2016. This would be three days more per year than the State of California’s paid sick leave requirements which took effect on July 1, 2015.
The ordinance would apply to employees who who work for the same employer in the City of Los Angeles for thirty days or more per year , and would begin on the first day of employment, or July 1, 2016, whichever is later. Employers who contract with the city of Los Angeles will still be required to give their employees twelve days, or 96 hours, of paid sick leave. Workers in Los Angeles would not be paid for unused sick days, but accrued time could be carried over to the next year. Businesses could cap that accrued time at 72 hours, or set a higher cap or none at all.
Beginning April 1, 2016, California employers with five or more total employees (whether or not all of those employees live in California) must update their anti-discrimination, anti-harassment, and complaint-investigation policies, and distribute them to employees for signature. These policies must be in compliance with recent amendments to California’s Fair Employment and Housing Act (FEHA), and must be distributed to all employees.
The new regulations include the following:
- Provides for additional protected classes under the FEHA;
- Clarifies harassment liability;
- Updates legal standards and legal remedies of discrimination;
- Revises complaint procedures;
- Clarifies the investigation process;
- Expands record-keeping requirements; and
- Expands the rights of pregnant employees and employees with service animals.
New Year’s has come and gone, and we are now six weeks into 2016! Haven’t had time to update your Employee Handbook, policies and procedures, or personnel files? The Grady Firm is here to help!
In order to show love to our deserving customers, we are offering a discount of $150.00 off our employment law advising packages through February 29, 2016. To find out more about our services, book a time to speak with our employment law attorneys, or call 323-450-9010 by the end of the month, and mention this promotion.
As you may be aware, on July 1, 2015, a new law affecting millions of Californians went into effect requiring that employers – both public and private – provide paid sick leave to all their employees. Under the new law, employers will have to modify or update existing paid sick leave or time off policies, as well as payroll, record-keeping, wage statement, and employee notice procedures.
In addition, employers are required to provide most employees with an individualized Notice to Employee (required under Labor Code section 2810.5) that includes paid sick leave information.
Has your company been providing its employees with notice of the amount of paid sick leave its employees are entitled to on each wage statement in 2016?
If you have questions about an employer’s responsibility to provide sick leave and notice of hours earned to its employees, The Grady Firm attorneys can review your company’s policies to ensure they are in compliance. Schedule a time to speak with our employment law department today.
With just a few weeks until the end of 2015, employers are rapidly approaching the statutory California minimum wage increase set to take place on January 1, 2016. This increase means that employers must review their monthly and annual expenses to determine how the salary increase will affect their overall budget, and how it may impact the wages of workers that are already earning more than the minimum wage. Continue reading
The City of San Francisco has announced the 2016 rates for its employer health care spending law, under which employers must either contribute a specified amount toward their employees’ health care costs on a regular basis, or pay into a city health care fund for San Francisco residents. Employers with workers in San Francisco will have to pay more next year to comply with the city’s health care spending law.
Beginning January 1, 2016, the health care expenditure rate for employers with 100 or more employees will be $2.53 per hour, and the rate for medium-sized businesses with 20-99 employees will be $1.68 per hour.
The health care expenditures must be made on behalf of employees employed for more than 90 days and who regularly work at least eight hours per week in San Francisco. Businesses with 19 or fewer employees and nonprofits with 49 or fewer employees are exempt.
On July 1, 2015, a new law affecting millions of Californians went into effect requiring that employers – both public and private – provide paid sick leave to all their employees. Under the new law, employers will have to modify or update existing paid sick leave or time off policies, as well as payroll, recordkeeping, and employee notice procedures.
The “Healthy, Workplace, Healthy Families Act” (AB-1522) signed into effect by Governor Edmund G. Brown Jr. applies to all employees who work in California for thirty (30) or more days in a year. The law defines “employer” as any person employing another under any appointment or contract of hire” regardless of how many (or few) employees they have, and covers employees whether they are full-time, part-time, seasonal, or temporary. Specifically, the new provision provides that employees who work thirty (30) or more days within a year from commencement of their employment will earn a minimum of one hour of paid sick leave for every thirty (30) hours worked.
Employees become entitled to their sick leave beginning on the ninetieth (90th) date of employment. However, an employer may limit an employee’s use of paid sick days to 24 hours—or three (3) days—in each year of employment, which results in no carryover requirements. Click HERE for the full text of the new law. Continue reading
Employers with potential heat-related exposures are reminded that Cal/OSHA Heat Illness Prevention Standards were changed effective May 1, 2015. California employers at “all outdoor places of employment” are required to take steps to prevent heat illness in relation to training, water, shade, and planning in their business practices. There are additional requirements for certain industries during periods of high heat (over 95°F or above). Continue reading
The California Legislature was quite active in 2014, resulting in several substantial changes to the law for 2015 that are employee-friendly. Employers should take note of the changes to the law described below.
I. CHANGES TO WAGE AND LABOR LAWS
1. Minimum Wage Increases
The minimum wage increased statewide, with even higher increases in particular cities:
- California’s minimum wage of $9.00 will increase again to $10.00 on January 1, 2016;
- San Francisco wages will increase to $11.05 on January 1, 2015; then to $12.25 in May; wages will increase every year thereafter until the minimum wage reaches $15.00 in 2018;
- Oakland will increase to $12.25 on March 2, 2015;
- San Diego will increase to $9.75 on January 1, 2015;
- Note: exempt employees must meet new minimum wage laws
Internship programs provide great benefits to businesses and interns alike, but employers must comply with both California and Federal laws in order to avoid potential lawsuits and fines.
To clarify, a person hired as an unpaid intern must (1) be a student enrolled in an accredited academic program and receive academic credit for the internship, or (2) be enrolled in a program that provides training and is approved by a public agency. If the intern is not part of an accredited program, the employer must pay the intern at least minimum wage for all hours worked. Continue reading
Beginning on Jan. 1, 2015, the standard mileage rates for the use of a car, van, pickup, or panel truck will be:
–57.5 cents per mile for business miles driven
–23 cents per mile driven for medical or moving purposes
–14 cents per mile driven in service of charitable organizations
The business expense reimbursement rates have increased 1.5 cents from 56 cents per mile in 2014. The medical and moving expense rates will decrease one-half cent from the 2014 rates. The charitable rate is based on statute.
Taxpayers always have the option of calculating the actual costs of using their vehicle rather than using the standard mileage rates.
For more information, visit the IRS website.