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Sacramento's Bumper Crop: New Labor and Employment

Laws for Private Sector Employers in 2014 and Beyond

Michael J. Lotito • Rebecca M. Aragon • Christopher E. Cobey October 23, 2013

Presented by:

Michael J. Lotito, Shareholder Littler Mendelson, P.C. San Francisco Office MLotito@Littler.com 415.677.3135

Rebecca M. Aragon, Shareholder Littler Mendelson, P.C. Los Angeles Office RAragon@Littler.com 213.443.4283

Christopher E. Cobey, Of Counsel Littler Mendelson, P.C. San Jose Office CCobey@Littler.com 408.795.3425

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The Political Context

The 2012 general election of the Legislature – The redrawn districts

– The “top two” (“jungle”) primaries

– The results: supermajorities

– 12-year option

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The Political Context

The Governor The situation in Washington The result: Labor rides

high in Sacramento

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The Big Results Affecting Private Sector Employers

Minimum wage Immigration-related statutes

– New and increased penalties

– Driver’s licenses

Expanded scope of paid family leave New or clarified discrimination laws Amended wage statutes

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The New Minimum Wage (AB 10)

Two-step increase: – July 1, 2014

– January 1, 2016

From $8 to $9 7/1/14; to $10 1/1/16 No automatic increases

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Immigration-Related Statutes

Driver’s licenses for undocumented residents (AB 60) – Who can obtain

– When they can be obtained

– What documentation must be presented

– What the license will look like

– What the documentation

cannot be used for

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Immigration-Related Statutes

New and expanded penalties for consideration of immigration status in employment (SB 666) – Business license suspension for violation of immigration

restrictions; suspension or disbarment for attorneys to report suspected immigration status; no retaliation or adverse action against an employee engaging in protected conduct, including claiming being owed unpaid wages; exhaustion of administrative remedies not required

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Immigration-Related Statutes

New and expanded penalties for consideration of immigration status in employment (AB 263) – Creates “unfair immigration-related practice”

– Allow private right of action; creates new crime

– Retaliation

– Updating personal information

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Expanded Leaves of Absence

Paid family leave extended to care of siblings, grandparents, grandchildren, and parents-in-law (SB 770)

Victim’s leave for court appearance (SB 288) Training leave for some first responders (AB

11; employers of 50 or more)

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New or Clarified Discrimination Laws

“Military and veteran” status as a protected category under FEHA (SB 556)

Use of prior convictions in employment decisions (SB 530)

Protections for victims of stalking (SB 400)

Sexual harassment (SB 292)

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Prevailing Wage and Other Labor-Related and Wage Statutes

Prevailing wages: extent of public subsidy triggering prevailing wage obligation; employer payment credits; charter cities; public works prevailing wage determinations (AB 1336; SB 7, 377)

Oil refineries -- a union turf dispute (SB 54)

Liens on Labor Commissioner awards (AB 1386)

Addition of recovery periods to meal periods and rest breaks for employees (SB 435)

Criminalizing failure to remit wage withholdings (SB 390)

Inclusion of liquidated damages award in Labor Commissioner citation (AB 442)

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Other New Laws Applicable to Some Private Sector Employers

Farm labor contractors (SB 168) Domestic work employees (AB 241) Garment manufacturing: civil penalties

(AB 1384) Home Care Services Consumer Protection Act

(AB 1217) Reporters’ shield law (SB 558) Increase in car wash

employer’s bond (AB 1387)

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What Failed, and What We’ll See in 2014

Vetoed: – “Mixed motives” in discrimination cases (SB 655)

– Union agent-union member evidentiary privilege (AB 729)

Next year? – Foreign labor contractors (SB 516)

– Familial status (SB 404)

– Criminal convictions (like AB 218,

except applicable to private

sector)

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What We’ll See in 2014

2014 elections: – Brown up for re-election

– State Legislature (100 seats)

– Congress

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Who’s Paying for This?

Pensions! – The rise of voter concern about public pensions

– California Public Employee Pension Reform Act (PEPRA) of 2013

– AB 1222: PEPRA exemption for transit workers

– Governor Brown sues the U.S. Department of Labor (10/4/13) over California public transit system pensions

– Pension Reform Act of 2014 (initiative proposed by San Jose Mayor Chuck Reed)

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Outside Sacramento

Living wage ordinances Work centers US Supreme Court cases for

2013-14 term

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What You Need To Do:

Update employee handbooks Update policies

and procedures Train supervisors and

managers on the new laws, including their effective dates

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For More Info:

ASAPS: – minimum wage

– immigration

– annual summery of private sector legislation

WPI Cal leg blog Littler’s GPS service (multi-state legislation/laws)

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Questions?

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THANK YOU

Michael J. Lotito, Shareholder MLotito@Littler.com, 415.677.3135

Rebecca M. Aragon, Shareholder RAragon@Littler.com, 213.443.4283

Christopher E. Cobey, Of Counsel CCobey@Littler.com, 408.795.3425

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