Public Policy

NAWBO National Advocacy Updates

HR Compliance in 2024: Essential Legal Changes and Trends

It’s crucial to be well-informed about these new regulations to ensure that our workplace policies and employee rights are in line with legislative changes. Seeking advice from a legal advisor will be instrumental in achieving full compliance.

To end your year in a good way, review 2024 regulations and adjust quickly.

1. New Workplace Violence Prevention Requirements (SB 553)

As of July 1, 2024, all Injury Illness Prevention Programs (IIPPs) must integrate a Workplace Violence Prevention Plan. This plan must include:

• Designated Personnel: Identify individuals responsible for the implementation of the plan.
• Employee Involvement: Develop effective procedures to engage employees in both the development and execution of the plan.
• Coordination: Establish methods for coordinating with other employers when applicable.
• Incident Response: Implement procedures to handle reports of workplace violence and ensure there is no retaliation.
• Compliance Monitoring: Develop procedures to ensure ongoing compliance.
• Communication: Set up communication methods with employees about the plan, I Including reporting mechanisms and investigation processes.
• Emergency Response: Create procedures for handling emergencies.
• Training: Develop and execute training procedures for employees.
• Hazard Management: Identify, evaluate, and correct workplace hazards.
• Post-Incident Protocols: Establish procedures for responding to and investigating incidents.
• Plan Review: Regularly review the plan’s effectiveness.
• State Requirements: Include other procedures mandated by the state.

Additional Requirements:

• Incident Log: Maintain a log of violent incidents.
• Record Keeping: Keep records of hazard identification, evaluation, and corrections for at least five years.
• Training Records: Retain training records for at least one year and provide initial and annual training, with additional sessions as new hazards are identified or the plan changes.

Recommendations:

• Ensure employees receive the required training by the new regulations

2.Non-Compete Agreements Updates

California Senate Bill 699

• Non-Compete Validity: Non-compete agreements are deemed invalid regardless of where they are signed, impacting California companies hiring out-of-state employees bound by non-compete clauses from other states.
• Legal Actions: This change may lead to increased legal disputes and “race to the courthouse” scenarios.
• Attorney’s Fees: Employees who prevail in disputes may recover attorney’s fees.

California Assembly Bill 1076

• Void Agreements: Non-compete clauses not falling under specific exceptions (e.g., sale of a business) are void.
• Notification Requirement: Employers must inform employees hired after January 1, 2022, that any non-compete clauses in their contracts are invalid.

NLRB Memorandum GC 23-08

• Section 7 Rights: Non-compete agreements may interfere with employees’ rights to engage in protected activities under the NLRA, potentially discouraging employees from changing jobs.

Recommendations:

• Review and justify non-compete agreements, especially for roles outside California, to identify any “special circumstances.”
• Stay informed about broader trends in states restricting non-compete clauses.

3. Severance Agreements

McLaren Macomb Case

• Ruling: The NLRB ruled that standard non-disparagement and confidentiality clauses in severance agreements violate federal law.
• Supervisors Excluded: The ruling does not apply to supervisors, who are not covered by Section 7 of the NLRA.

Recommendations:

• Consider separate severance agreement forms for supervisors versus non-supervisors.
• For non-supervisors: Work with legal counsel to adjust confidentiality and non-disparagement clauses or potentially remove the non-disparagement clause.
• For supervisors: Decide whether to use the same or a separate form of agreement.

Recent Settlements & Verdicts

• $20M Verdict Against Marriott: Disability discrimination for inadequate accommodations. Recommendation: Ensure a robust interactive process for accommodating disabled employees.
• $1.1M Verdict Against Google: Gender-based pay disparity and retaliation. Recommendation: Conduct periodic compensation audits and investigate discrimination complaints thoroughly.
• $36M Settlement by Equinox: Unpaid pre-shift work and missed meal periods. Recommendation: Ensure payment for all time under employer control and compliance with meal and rest period laws.
• $18M Settlement by HP: Age bias in layoffs. Recommendation: Perform disparate impact analyses for layoffs based on race, gender, and age, and scrutinize selection criteria.

4. Criminal History Regulations

California Fair Chance Act

• Inquiry Restrictions: Employers cannot ask about criminal history until after a conditional offer is made. Specific procedures are required for denying or rescinding offers based on criminal history.

Revised Regulations (Effective October 1, 2023)

• Expanded Definitions: Includes entities evaluating conviction history or acting as agents of employers.
• Individualized Assessment: Employers must consider various factors, including the nature of the offense and time elapsed since the offense.
• Disclosure Prohibitions: Employers cannot advertise that they will not consider applicants with criminal histories.

Recommendations:

• Update policies to comply with new definitions and requirements.
• Ensure adherence to the pre-adverse and final adverse action notice procedures.

Cannabis Use

Assembly Bill 2188 (Effective January 1, 2024)

• Discrimination Prohibition: Employers cannot discriminate based on off-job cannabis use or non-psychoactive cannabis metabolites.
• Exceptions: Employers can still enforce drug-free workplace policies and conduct pre-employment drug screens not testing for non-psychoactive metabolites. Does not apply to positions requiring federal security clearances or in building and construction trades.

SB 700 (Effective January 1, 2024)

• Inquiry Restrictions: Employers cannot request information about prior cannabis use unless required by law.

California Paid Sick Leave

SB 616 (Effective January 1, 2024)

• Sick Leave Increase: From 24 hours or 3 days to 40 hours or 5 days. Accrual caps are increased to 80 hours or 10 days.
• Annual Usage Cap: Increased to 40 hours or 5 days.
• PTO Policies: PTO can be used in place of separate sick leave if it meets accrual and usage requirements.

Recommendations:

• Review and update sick leave policies to align with new requirements.
• Update Labor Code notices and payroll practices to reflect the changes.

Reproductive Loss Leave

SB 848 (Effective January 1, 2024)

• Coverage: Applies to employers with 5 or more employees.
• Leave Entitlement: 5 days of leave following a reproductive loss event, such as miscarriage or failed adoption.
• Usage: Leave does not need to be consecutive but must be used within three months of the event.

Recommendations:

• Update leave policies to include reproductive loss leave.
• Ensure confidentiality and compliance with the new provisions.

Helpful articles:

• Labor Law Today – 2022 Year in Review
• Update: New California State Law Addresses Noncompete Agreements
• 2023 California Labor, Employment, and Independent Contractor Legislative Update