Three Important Upcoming Employment Laws to Review!
Below are three upcoming laws that should be on your radar so you can take steps to prepare, if necessary. We will provide a detailed summary of each once we get closer to the end of the year.
- SB 1162 – Pay Transparency – Beginning January 1, 2023, private employers with 15 or more employees will be required to disclose the pay range for a position in all job postings and keep records of the job postings for hired employees for the duration of their employment plus three years. Additionally, private employers with 100 or more employees will be required to submit a pay data report on the second Wednesday of every May for the preceding calendar year to the state’s Department of Fair Employment and Housing. This pay data report will be separate from the required EEO-1 report.
- Minimum Wage Increase – Beginning January 1, 2023, the state minimum wage for all employers will be $15.50 per hour. This rate reflects a 3.5% increase over the slated $15/hour based on the law’s provision that allows this increase if the national Consumer Price Index is over 7%. Remember, just as important as the minimum hourly wage is the minimum salary threshold. With this new rate, that means the minimum salary for exempt employees will be $64,480. This is a big jump for smaller employers, where the 2022 minimum salary has been $58,240. Some municipalities will have higher minimum hourly rates than the state. Please confirm which rate will apply to your employees before January 1, 2023. For example, the minimum wage in Santa Rosa will increase to $17.06/hour. This is an 8% increase from the current $15.85/hour rate. Note, minimum salaries are tied to the state rate, not individual municipalities.
- AB 2199 – Cannabis Discrimination – Starting January 1, 2024, off-duty cannabis use will be a protected class under FEHA. The law specifically will prohibit any adverse employment actions to be taken against an employee for off-duty cannabis use and prohibit an employer from drug screening for cannabis. Employers may still prohibit on-duty possession, impairment or use. The law will also not apply to employees in the building and construction trades or those applying for positions that require a federal background check or positions where state or federal controlled substance checks are required.
Jennifer E. Douglas
Dickenson, Peatman & Fogarty
T: 707.524.7000 | D: 707.524.7004
VANTREO is here to help. If you have questions related to this article, let us know. Just reply here.