California’s Senate Bill 1162, a pay transparency law aimed at identifying pay disparities based on gender, ethnicity, and race, went into effect on January 1, 2023. Last week, the California Civil Rights Department (CRD), the state agency tasked with enforcing California’s civil rights laws, updated their Frequently Asked Questions (FAQ) to reflect the resulting changes to the state’s pay data reporting requirements.

Continue Reading California Civil Rights Department Updates FAQs on New California Pay Transparency Law

During the COVID-19 pandemic, California and several local jurisdictions implemented COVID-19 sick leave laws. Many of these laws are now expiring. California’s state COVID-19 supplemental paid sick leave expired on December 31, 2022 and Governor Newsom announced that the COVID-19 state of emergency will end on February 28, 2023.

Continue Reading City of Los Angeles COVID-19 Supplemental Paid Sick Leave Is Ending

The Illinois legislature, on January 10, 2023, passed the Paid Leave for All Workers Act (PLFAW), which Governor Pritzker announced he will sign into law. Should the bill be enacted, Illinois would become the third state (after Maine and Nevada) to require private employers to provide employees with earned paid leave to use for any reason. A further description of the PLFAW can be found here. Perkins Coie will continue to monitor these legislative developments and provide additional guidance if/when the law is enacted. In the meantime, employers should begin to prepare for this likely change to the Illinois employment landscape.

The city council of Mountain View, California, adopted Chapter 42 Article IV of the Mountain View City Code on September 13, 2022, establishing, in part, the Wage Theft Ordinance (the Ordinance) effective January 1, 2023.

The Ordinance applies to all employers who are required to have a City of Mountain View business license. Mountain View employers are required to complete a Wage Theft Affidavit at the time the employer applies for a business license and when the employer submits business license renewals to the tax administrator.

The City of Mountain View provides a model Wage Theft Affidavit. As explained in the model affidavit, the employer must affirm either that (1) the employer has not been found in violation of any federal, state, or local wage-and-hour laws or that (2) the employer is in compliance with or has fully satisfied any final judgment, order, or administrative decision issued against the business operator for violation of applicable federal, state, or local wage-and-hour laws.

The City of Mountain View encourages employers with recent business license renewals to submit the Wage Theft Affidavit no later than January 15, 2023. An employer’s failure to submit a Wage Theft Affidavit, or submission of a false affidavit, may subject an employer to administrative citations, fines, and penalties.

Companies with operations in Mountain View, California should closely review the Ordinance. Employers with questions regarding the new ordinance should contact experienced counsel.

Starting in November 2023, covered employers in Berkley, California will need to be prepared to comply with the Berkeley Fair Workweek Ordinance (the Ordinance). The Ordinance requires covered employers to provide work schedules to employees at least 14 calendar days in advance of a shift and provide 11 hours of rest between shifts, among other requirements.

Continue Reading Berkeley, California, Adopts a Fair Workweek Ordinance

Over the past several years, California has gradually increased the state’s minimum wage rate, resulting in the most recent increase, effective January 1, 2023, to $15.50 per hour for all employers. This minimum wage rate applies to all employees, subject to a few limited exceptions. This increase also affects the minimum annual salary requirement for exempt employees. Under California law, exempt employees must be paid a threshold annual salary of two times the state minimum wage for full-time employment. Accordingly, effective January 1, 2023, the minimum salary for otherwise exempt employees increased to $64,480.00 a year.

Continue Reading California Minimum Wage Requirements Effective January 1, 2023

On January 5, 2023, in an announcement that could have sweeping implications for employers across the country, the Federal Trade Commission (FTC) proposed a new rule that would ban employers from imposing noncompete clauses on their workers and invalidate all existing noncompetes currently in effect. The proposed rule would apply to independent contractors and anyone else working for an employer, whether paid or unpaid. The proposed rule would also require employers to rescind existing noncompetes and actively inform workers that these restrictions are no longer in effect.

Continue Reading FTC Proposes National Ban on Noncompete Clauses

Employers who utilize the Internal Revenue Service’s (IRS) standard mileage reimbursement rates should be aware that the IRS has updated its standard mileage rates, effective January 1, 2023. This update includes three types of rates, including the business use rate, which is now 65.5 cents per mile driven. This rate represents an increase of three cents per mile. Employers with questions about reimbursement should contact experienced counsel with questions.

Last fall, California Governor Gavin Newsom signed a new pay transparency law effective January 1, 2023. A description of the law can be found here. This new law includes reporting requirements for employers with 100 or more employees and, for employers with 15 or more employees, requires pay scale disclosures to be provided in job postings. It also requires employers to, upon request, provide employees with the pay scale for the position in which the employee is currently employed. The California labor commissioner released new FAQs to address these requirements. In FAQ #29, the labor commissioner states that “the pay scale must be included within the job posting if the position may ever be filled in California, either in-person or remotely.” In FAQ #34, the labor commissioner states that employers cannot link to the salary range in an electronic posting or include a QR code in a paper posting. The pay scale shall be included within the posting. Further, the labor commissioner provides in FAQ #30 that the 15-employee requirement to provide pay scale disclosures applies to employers if the employer has 15 or more total employees and “at least one employee [is] currently located in California.”

California employers should contact experienced counsel for guidance regarding the California pay data and salary disclosure requirements that went into effect January 1, 2023.

In November 2022, the Los Angeles City Council passed the Fair Work Week Ordinance, which requires retail businesses in Los Angeles with 300 employees or more to follow certain scheduling restrictions. The ordinance applies to businesses in the North American Industry Classification System (NAICS) within the retail trade categories and subcategories 44 through 45. It covers employees who work at least two hours per workweek within the city of Los Angeles and are entitled to minimum wage under California law.

Continue Reading Los Angeles Fair Work Week Ordinance Imposes New Wage and Hour Requirements for Certain Retail Businesses