Minimum wage:

California's minimum wage will increase from $15.50 per hour to $16 per hour.

The minimum salary threshold for overtime exemption will also increase. As of January 2024, exempt employees must earn at least $66,560 annually.

Off-Duty Cannabis Use/Testing

AB 2188 prohibits employers from discriminating against employees for off-duty cannabis use. This means that employers can no longer rely on drug testing that identifies non-psychoactive metabolites, but rather must use testing that identifies actual impairment. As of the date of this article, there are not any drug tests available that meet this criterion.

Employers can still require a drug-free and alcohol-free workplace and may prohibit employees from possessing, being impaired by, or using marijuana on the job. Employees in the construction and building trades are not covered by AB 2188.

Workplace Violence Prevention Program

Section 6401.9 requires virtually all employers to implement a Workplace Violence Prevention Plan ("WVPP") by July 1, 2024. These are structured similarly to Injury and Illness Prevention Plans and require employers to (1) designate a person responsible for implementing the plan; (2) identify and correct hazards through periodic inspections; (3) train employees on hazards; (4) maintain records of incidents.

Paid Sick Leave

SB 616 expands California's Healthy Workplaces, Healthy Families Act ("HWHFA") and increases the minimum number of paid sick leave days per year to 40 hours/5 days (whichever affords the employee more leave). Employees covered by a valid collective bargaining agreement ("CBA") are exempt, provided the CBA meets certain conditions: (1) expressly provides for the employees' wages, hours, and working conditions; (2) expressly provides for paid sick days, paid leave, or paid time off; (3) requires final and binding arbitration of disputes concerning paid leave; (4) provides premium wage rates for all overtime hours worked; and (5) establishes a regular hourly rate of pay of at least 30% more than the state minimum wage. It is important to note that the procedural and anti-retaliation provisions of the HWHFA do apply to all employees, including those covered by a CBA. Construction industry CBAs with a clear and unmistakable waiver remain exempt from the paid sick leave law.

Wage Theft Protection Act Notice

Employers must roll out updated Wage Theft Notices and include information about any federal or state emergency/disaster declaration issued within 30 days before hire that applies to the county or counties in which the employee will work. The Labor Commissioner has prepared a new 2810.5 notice template to meet the new requirements. These notices are not required for employees covered by a valid CBA. 

30 Days' Notice to Return to Work In Person

Employers must now provide at least 30 days' notice before requiring an employee to return to work in person. The notice must include certain language regarding the employee's right to request remote work as an accommodation for a disability.

No Non-Compete Agreements

SB 699 strengthens California's restrictions on non-compete agreements and other restrictive covenants. Effective January 1, 2024, non-compete agreements are unenforceable and void, regardless of where the agreement was signed or where the employee worked at the time the agreement was signed. This marks a big departure from the previous standard, which permitted non-competes if they were valid in the jurisdiction where the agreement was signed.

By February 14, 2024, employers must notify current and former employees employed after January 1, 2022 that any non-compete clauses previously signed are void. Each notice must be individualized and delivered to the individual's last known address and email address.

Reproductive Loss Leave

Effective January 1, 2024, employers with five (5) or more employees must provide qualified employees with up to five (5) days of unpaid job-protected leave following a "reproductive loss event." This is defined as the day, or for multiple day events, the final day, of a failed adoption, failed surrogacy, miscarriage, stillbirth, or unsuccessful assisted reproduction. Employers may not request documentation of the event. Leave need not be used consecutively, but must be used within three months of the reproductive loss event. Each employee is limited to a maximum of twenty (20) days over a 12-month period if multiple reproductive loss events occur. Employees must be permitted to use sick, vacation, or other paid time off.