New Laws Affecting California Businesses in 2020

This year alone, 1,042 bills were sent to Governor Gavin Newsom’s desk to be either vetoed or signed. These bills span from environmental policy, education, and most notably: employment law. With so much to keep up with, we’ve covered a few laws that we think will affect your business in the coming year and ways we think you can prepare for the incoming changes to California law.

ASSEMBLY BILL 9 – Extension of Statute of Limitations

A statute of limitations is the window of time an employee has to file a claim with the Department of Fair Housing and Employment over acts of discrimination, harassment, or retaliation that occur within California. Previously, this statute of limitations would require you to report a claim within 1 year of the reported act. This new law extends that time frame from one year to three years. Senate Bill 778 – Harassment Prevention Training

California law requires that organizations with five or more employees take Harassment Prevention Training by January 1, 2020. Employees are required to take one hour of Harassment Prevention Training while supervisors must take two hours of training. This new law pushes back the deadline by one year and now requires employees and supervisors be certified by January 1, 2021. This training certifies you and your employees for two years.

The Greater Conejo Valley Chamber of Commerce offers online Harassment Prevention Training at a discounted price for Chamber Members and can be accessed at ConejoChamber.org/memberdiscounts.

Senate Bill 83 – Extension of Paid Family Leave

Beginning July 1, 2020, individuals benefiting from Paid Family Leave will have their maximum duration of Paid Family Leave extended from 6 weeks up to 8 weeks.

Paid Family Leave encompasses the following circumstances: • Caring for seriously ill family members • Bonding with a minor child within 1 year of birth • During placement of child via foster care or adoption

Assembly Bill 51 – Banning of Mandatory Arbitration Agreements

An arbitration agreement is a written contract in which two or more parties agree to settle a dispute outside of court. Arbitration agreements can benefit both the employer and the employee allowing both parties the opportunity of avoiding costly litigation expenses. They are generally included as a clause in a standard employee contract.

The bill specifically prohibits an employer from requiring an applicant or employee to waive any right, forum or procedure for any employer violations of the Federal Housing and Employment Act and the Labor Code.

It’s worth noting that a similar bill was vetoed last year By Governor Brown stating that this new bill “plainly violates federal law,” in reference to the Federal Arbitration Act. This bill would not apply to arbitration agreements entered into prior to January 1, 2020.

Your business should consider amending future agreements and refer to legal counsel in the new year.

The information in this article is made in partnership with CalChamber, California’s largest business advocacy organization, and in reference to the State of California’s bill search database. If you’d like to stay informed on new laws affecting your business, visit our website at ConejoChamber.org to receive our Capitol Connection Newsletter. Capitol Connection highlights public policy issues concerning businesses at the local, state, and federal level and features articles from trusted news sources.