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This summary is provided to educate and inform the reader. It is limited to only changes in California law. Notnecessarily all new California laws are addressed. This does not constitute legal advice and no attorney-clientrelationship is created. Each circumstance is different and you should consult with an attorney or other employmentprofessional for your particular circumstances.
BRIAN M. MCDONALD
ATTORNEY AND COUNSELOR AT LAW
7755 Center Avenue, Suite 1100
Huntington Beach, California 92647
NEW CALIFORNIA EMPLOYMENT LAWS EFFECTIVE JANUARY 1, 2012
During Arnold Schwarzenegger's term of office relatively few employment law bills made it off his desk and intolaw. This has changed under Jerry Brown. As the first year of his term concludes Governor Brown has signedinto law several bills that will affect California employers on January 1, 2012.
AB 1236
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Prohibits local governments in California from requiring private employers to use the electronic employmentverification system (E-Verify) as part of their hiring practices.
SB 559
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Adds “genetic information” to the list of prohibited bases for discrimination under the Unruh Civil Rights Act and
the Fair Employment and Housing Act. This is largely duplicative of federal law. Applies only to employers who have five(5) or more employees.
AB 592
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Adds language to the California Family Rights Act (CFRA) and the Pregnancy Disability Leave Law (PDL) thatmakes it unlawful to interfere with or in any way restrain the exercise of rights under these laws.
SB 299
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Prohibits an employer from refusing to maintain and pay for health insurance coverage under a group healthplan for an employee who takes leave for pregnancy, childbirth, or a related medical condition for a reasonable time of upto four months. Employers can recover the cost of the insurance premiums paid if the employee fails to return to work forreasons within the employee's control.
AB 887
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Refines the definitions of the words “sex” and “gender” as they apply in several California anti
-discriminationlaws. These terms, as they are newly defined, will now prohibit discrimination on the bases of
a person’s gender identity
and gender-related appearance and behavior whether or not stereotypically related with his or her sex at birth.
AB 22
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Prohibits the use of credit reports in employment decisions unless the job in question is: (1) a managerialposition; (2) a law enforcement officer; (3) a position for which a credit report screening is required by law; (4) a positionthat requires regular access to confidential information; (5) a position in which the employee will be entitled to enter into
financial transactions on the company’s behalf;
or (6) a position that involves regular access to cash totaling $10,000 ormore. This law does not apply to financial institutions and other employers required by law to conduct credit checks.
SB 459
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rohibits the “willful misclassification” of indepe
ndent contractors and authorizes the Labor and WorkforceDevelopment Agency (LWDA) to assess civil penalties against employers who do so ranging from $5,000 to $25,000 foreach violation. Also requires employers found to have engaged in such willful misclassification to post for one yearfollowing the final decision on its website or in an area available to employees and customers a notice stating: (1) that theLWDA has found that the employer committed a violation of the law by engaging in the willful misclassification ofemployees; (2) that the company has changed its practice to avoid committing further violations; (3) that any employee
who believes that he or she is misclassified may contact the LWDA (along with the LWDA’s contact information); (4) that
the notice is being made pursuant to state order; and (5) the signature of an officer or owner of the company. Thesesame penalties will apply if the employer charges fees to a misclassified independent contractor where the fees wouldhave been unlawful had the individual been properly classified. Fees could include such things as space
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rental, material costs, license fees, and equipment rental. Lastly, the new law imposes joint and several liability on
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