The following are some of the new laws that will impact employers in 2023:
Increase in Minimum Wage: California minimum wage increased to $15.50 on January 1, 2023. Some cities have even higher minimum wages. For example, Los Angeles City minimum wage is $16.04. The minimum wage for employees working in Malibu, Santa Monica or unincorporated portions of Los Angeles County is $15.96. Pasadena minimum wage is $16.11. Starting July 1, 2023, minimum wages in these locations will increase again based on the Consumer Price Index.
Contraceptive Equality Act: Employers may not discriminate against an individual based on their “reproductive health decision making.” This new protected category includes an employee’s decision to use any device, drug, or medical service for reproductive health. Employers cannot require employees to disclose information relating to their reproductive health as a condition of employment, or discriminate against an employee based on the employee’s reproductive health decision.
New Protections under CFRA and Paid Sick Leave: Employees may now use CFRA leave or Paid Sick Leave to care for an individual who is either related by blood or any other “designated person”.
Bereavement Leave: Employers with five or more employees are now required to offer an employee five days of unpaid bereavement leave following the death of an employee’s family member. Employees must have worked at least 30 days to be eligible. The leave does not have to be taken all at once, but must be completed within three months.
Pay Transparency: Upon request, all employers are now required to provide pay scale information to an applicant or a current employee. Pay scale information would include the hourly or salary range for each position. Employers must also maintain the job title and the wage rate history for each employee during their employment and for three years thereafter. Employers with 15 or more employees must provide pay scale information in job advertisements or postings.
Pay Data Reporting: Employers with 100 or more employees must submit an annual “pay data report” to the Civil Rights Department (formerly known as the Department of Fair Employment and Housing or DFEH). The reports must include median and mean hourly rates based on race, ethnicity, and sex within each job category.
Protections in Emergency Conditions: Employers may not take or threaten any adverse action against an employee who refuses to report to work due to an “emergency condition” such as a natural disaster. Emergency condition does not include a health pandemic.
Covid Exposure Notification: The law requiring employers to notify employees of a possible COVID-19 exposure has been extended through the end of 2023. Employers may now post the notification in any place where notices are routinely posted, including an online portal. The notification must be posted within one day from when the employer learns of a potential COVID-19 exposure and must remain posted for at least 15 calendar days.
CalSavers: Employers with one or more employees are required to participate in CalSavers (California’s retirement savings plan) by December 31, 2025 if the employer does not sponsor its own retirement plan.
Employers should review and revise their current policies and forms to ensure that they are compliant with these new laws.
