Newly enacted laws that affect California employers.

  • By:admin

Governor Jerry Brown has signed off on numerous laws affecting California employers.  Among the new laws are the following:

A.B. 22- Credit reports

An employer or prospective employer (except financial institutions) may not obtain a consumer credit report for employment purposes with the exception that the information the employer sought is for a managerial position and is “substantially job related.” This means that the employment position for which the credit report is sought is one in which the employee would have access to the employer’s money, assets or propriety information.

If the employee is not or will not be in a managerial position, an employer can still obtain a credit report only if the position is either a law enforcement position, a position with the state Department of Justice or a position wherein the information is legally required to be disclosed by the employee or obtained by the employer.

S.B. 299- Health Insurance During Pregnancy Leave

 This new law prohibits employers from refusing to maintain or pay for health insurance coverage for an employee who takes pregnancy disability leave for up to four months.

A.B. 1396-Written Employment Agreement

Any employer doing business in California is now required to have a written contract with its employees if the employment involves commissions as a method of compensation. The written employment contract must set out the method by which the commissions would be imputed and paid.

S.B. 459-Independent Contractors

Employers are prohibited from “avoiding employee status for an individual by voluntarity and knowingly misclassifying that individual as an independent contract.” In other words, employers cannot willfully misclassify a worker as an independent contractor with knowledge that the worker should be classified otherwise.  An employer that is found in violation of this provision is subject to a civil penalties from $5,000.00 to $25,000.00 per violation.

Want to learn more about new California employment laws to protect your business? Contact our office today.

****The opinion above is not intended to be legal advice and absolutely does not create any attorney-client relationship between its author and the readers. Please consult an attorney for information or advice specific to your legal issue.****

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