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Independent Contractor Classification Greatly Restricted

Today, the California Legislature passed AB 5, a landmark bill that will require companies to treat workers as employees and not independent contractors if the companies exert control over how the workers perform their tasks or if their work is part of the companies’ regular business. Governor Newsom is expected to sign the bill. The new law, which goes into effect January 1, 2020, codifies the California Supreme Court’s 2018 ruling in Dynamex Operations West, Inc. v. Superior Court of Los Angeles, and will have major ramifications for employers operating in the gig economy.

Update: Governor Newsom signed the bill on September 18.

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Statewide Ban on Salary History Questions To Take Effect

On October 12, 2017, Governor Jerry Brown signed AB 168 into law. This new law, which applies to all employers regardless of size, prohibits inquiries into an applicant’s salary history. In addition, employers will now also be required to disclose the relevant pay scale for an open position upon reasonable request. There are a few exceptions to the new law. Employers may consider salary history information that is “disclosable to the public pursuant to federal and state law,” as well as salary history information that is disclosed by an applicant “voluntarily and without prompting.”

The new law goes into effect on January 1, 2018. In the interim, employers should review their hiring practices for compliance and should consider revisions to all aspects of their recruitment process, including but not limited to job postings, applications, and interview questions.

New California Regulations on Transgender Identity and Expression Take Effect

Under California’s Fair Employment and Housing Act (FEHA), employers may not discriminate on the basis of the gender identity or gender expression of an employee or applicant. On July 1, 2017, newly amended California FEHA regulations on transgender identity and expression (which can be found here) took effect, specifically interpreting and expanding upon protections for transgender employees in a number of ways, including the following:Continue reading

Chairs

The California Supreme Court Clarifies Suitable Seating

In a highly anticipated ruling, the California Supreme Court recently answered three questions certified to it by the Ninth Circuit Court of Appeals in the case of Kilby v. CVS Pharmacy Inc. The questions related to Section 14 of California Industrial Welfare Commission (“IWC”) Wage Orders 4-2001 and 7-2001, which provide that “employees shall be provided with suitable seats when the nature of the work reasonably permits the use of seats.”

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California Minority Counsel Program

Managing Partner: Reflections on Diversity

I had the privilege recently of attending a conference organized by the California Minority Counsel Program.  The purpose of the conference was to promote the development of minority attorneys in the legal community.  Several hundred attorneys throughout the state attended.   Continue reading