The California Supreme Court issued its opinion in Ramirez v. Charter Communications, affirming in part that the arbitration agreement contained some substantive unconscionability but remanding the case to determine whether the agreement could be salvaged by severing the unconscionable provisions. In doing so, the California Supreme Court clarified its view on the enforceability of several common arbitration provisions – including those limiting discovery in arbitration – and the standard courts should apply when deciding severability. The Case Angelica Ramirez was hired by Charter Communicati ..read more

On July 15, 2024, Governor Newsom signed Assembly Bill (AB) 1870, which mandates that employers include information in their notices about an injured employee’s right to consult with a licensed attorney for advice about workers’ compensation law and that attorneys’ fees may be paid as part of the injured worker’s award.    In California, employers have specific obligations to ensure their employees are well-informed about their rights and benefits under the workers’ compensation system. Employers must post a workers’ compensation informational poster in a conspicuous location frequen ..read more

California’s Governor signed Assembly Bill (AB) 2299 on July 15, 2024, which requires the state’s Labor Commissioner to develop a model list of employee rights and responsibilities under existing whistleblower laws. Employers will be required to post this notice beginning January 1, 2025. The notice must be written in a font larger than 14 point and contain the telephone number of the whistleblower hotline. Under existing California law, employers are required to post certain workplace notices, including a list of employees’ rights and protections under whistleblower laws. However, the current ..read more

On June 29, 2024, California’s Governor signed Senate Bill (SB) 159, a budget bill pertaining to healthcare. Within this budget bill were revisions to California’s health care worker minimum wage, further delaying the implementation. On the last day of May, the Governor signed an urgency bill to delay the implementation of California’s health care worker minimum wage until July 1, 2024.   SB 159 delays the implementation of the minimum wage until at least October 15, 2024. The amendments put in place by SB 159, delay the implementation of the health care minimum wage until one of the foll ..read more

On June 20, 2024, the California Occupational Safety and Health Standards Board (Cal/OSHA) unanimously adopted a new standard for Heat Illness Prevention in Indoor Places of Employment. A prior attempt to pass the regulation failed on procedural grounds. Covered Employers The new standard will apply to all indoor work areas where the temperature equals or exceeds 82 degrees Fahrenheit when employees are present. However, the standard does not apply to employees who telework from a location of their choosing that is outside the employer’s control. In addition, the standard does not ap ..read more

Most California employers must adhere to both federal and state minimum wage laws.  Recent developments at the state and local level have ushered in new changes to California minimum wage laws. At the state level, California raised the minimum wage to $16.00, subject to certain industry- and locality-specific requirements.  This new minimum wage—which applies to most California employers—took effect on January 1, 2024.  California also imposed two new industry-specific minimum wage requirements this year.  A new minimum wage requirement for the fast food industry took effec ..read more

On May 31, 2024, Governor Newsom signed Senate Bill (SB) 828, which delays the effective date of the healthcare minimum wage statute by one month. Last October, Governor Newsom signed SB 525, which enacted a multi-tiered statewide minimum wage schedule for healthcare workers. However, in light of a significant budget shortfall, the Governor called for changes to the statute including a delay in the effective date. Although the law was set to take effect June 1, the legislature only proposed a potential delay on May 20th, which was quickly moved through the legislature to the Governor. Under SB ..read more

With a state as large and diverse as California, it appeals to businesses. However, the state’s unique employment law requirements can pose challenges to employers new to the state. The following are some action items employers need to complete before their first employee starts working in California. California Employer Identification Number (EIN) All employers in California must obtain an EIN by filing a DE-1 Registration Form with the Employment Development Department (EDD). The EIN serves as the state equivalent of the federal tax identification number. The EIN is essential for reporting e ..read more

Recently, the Los Angeles County Board of Supervisors passed the Fair Workweek Ordinance, similar to the ordinance passed by the City of Los Angeles last year. The ordinance takes effect July 1, 2025. Covered Employers The ordinance applies to retail employers who: Are identified as a retail business in the North American Industry Classification System (NAICS) within the retail trade categories and subcategories 44 through 45; or any business, including non-profit organizations, whose revenues are generated mainly from the sale to end users of tangible products that are primarily for personal ..read more

For the second time, the California Supreme Court issued a ruling in Naranjo v. Spectrum Security Systems in May. In May 2022, the California Supreme Court issued its first decision in Naranjo v. Spectrum Security Systems, which considered the issue of whether failure to pay premium wages for meal and rest period violations gave rise to claims for waiting time penalties or violations of wage statement requirements. The underlying action was a class action brought by former and current employees of Spectrum Security for meal period violations. The class sought waiting time penalties a ..read more