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New Employment Laws in 2021The California legislature and governor had a busy year responding to the COVID-19 pandemic and implementing employment laws for 2021. These new bills touch almost every facet of employment – including leave laws, COVID-19 prevention and reporting obligations, wage and hour, and more. We included some key highlights below, but be sure to sign up for our comprehensive Labor Law Update where our subject matter experts will cover best practices for employers and answer your questions! And – if you haven’t already – be sure to pre-order your updated Labor Law Poster for 2021 here!California Family Rights Act (CFRA) AmendmentsUnder SB 1383, effective January 1, 2021, California employers with as few as 5 employees will have to provide family and medical leave rights, which include up to 12 workweeks of unpaid job-protected leave, during a 12-month period, for certain covered reasons. This is a huge change as last year the threshold was 20 employees! Employers must also maintain and pay for an employee’s coverage under a group health plan during this leave.For all sized employers, this bill also expands the covered family members under the act, and removes the “key employee” exception to reinstatement and the 75-mile radius requirement for employee eligibility. What should employers do? Small employers who never worried about this in the past, must now adopt a CFRA policy, prepare required forms, and get ready to administer CFRA leave in 2021. Larger employers that have already been subject to FMLA/CFRA, need to update their forms to track the amendments. Employers with 20-49 employees should note that the New Parent Leave Act is now repealed and replaced with this bill. New COVID-19 Prevention and Reporting RulesEmployers have new reporting obligations when they learn about COVID-19 in their workplace, both under AB 685 (required reporting to your employees within one business day) and SB 1159 (required reporting to your workers’ compensation carrier within 3 business days). Additionally, on November 30, 2020, the California Occupational Safety & Health Standards (Cal/OSHA) Board’s new emergency rules went into effect regarding COVID-19 prevention in the workplace. These rules are applicable to most employers, regardless of size. You can find the details in our December newsletter article here. (Link)What should employers do? Implement a COVID-19 Prevention Plan.Develop a template form to notify employees of COVID-19 in the workplace.Reach out to your workers’ compensation carrier to find out if they have a sample form to report COVID-19 cases to the claims administrator.Watch out for CEA’s COVID-19 Exposure Toolkit (which will include template forms) and COVID-19 Prevention Plan that will be available to our members on our website soon! Pay Data Reporting RequirementsSB 973 requires most employers with 100 or more employees to submit annual information on employees’ pay data by race, ethnicity, and sex to the Department of Fair Employment and Housing (DFEH) by March 31, 2021, and each year thereafter by that date. The good news is that in November 2020, the DFEH released a Pay Data Reporting website, which provides employers guidance about the required information. What should employers do? Start reviewing the compliance obligations on DFEH’s website now. Additionally, DFEH is currently developing a sample report form and a submission portal for employers to use, so stay tuned! 2021 Minimum Wage & Exempt Employee Salary IncreasesStarting on January 1, 2021, the state minimum wage for employers with 25 or fewer employees is $13.00/hour and for employers with 26 or more employees is $14.00/hour. Because exempt employee salary requirements are tied to the state minimum wage, small employers (25 or fewer employees) must pay exempt employees an annual rate of at least $54,080, and large employers at least $58,240 in 2021. What should employers do?Review how many 2021 wage increases and salary adjustments will need to be made to comply. Reclassify any exempt employees to “non-exempt” status if you cannot satisfy the minimum salary requirements.Check the local minimum wage ordinances in your area. Proposition 22On November 3, 2020, California voters approved a ballot proposition (Proposition 22), which exempts app-based drivers – such as Uber and Lyft workers – from California’s arduous “ABC Test” for classification, and establishes that they are independent contractors. Prop 22 includes additional benefits for this new classification of worker, including: (1) healthcare contributions for drivers who work at least 15 hours a week; (2) occupational accident insurance to cover medical bills for injuries sustained during app-based driving or delivering; and (3) a minimum earning guarantee.What Else? Other notable changes for 2021 include new crime victims leave, paid sick leave designation, corporate board requirements, EDD Workshare Program updates, additional ABC Test exemptions, Hospital PPE stockpile requirements, and many more industry-specific requirements. We will cover all of this in our Labor Law Updates (LINK), starting in January 2021! ................
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