The October 15, 2017 deadline has come and gone for Governor Jerry Brown to weigh the bills passed by the California legislature this year. Governor Brown has now signed into law a jaw-dropping number of bills that pertain to labor and employment issues, ranging from teacher retirement funding to hazardous materials notification.

Now that the dust has settled in Sacramento, we briefly review several of the most significant developments applicable to private employers operating in California. On the whole, and unless otherwise indicated, these new laws will take effect on January 1, 2018, leaving employers precious little time to prepare.

Antidiscrimination Protections. With Governor Brown’s approval, the Golden State has taken steps to enhance employment protections for veterans. AB 1710 expanded protections for military personnel by prohibiting discrimination in all “terms, conditions, or privileges” of employment.

Antiharassment Training. Certain California employers must adapt to coming changes in state antiharassment training requirements. First, under SB 396, employers with five or more employees must prominently post a workplace notice, to be developed by the state Department of Fair Employment and Housing, regarding transgender rights. In addition, employers with 50 or more employees—employers who are already required to provide sexual harassment training—must include training addressing harassment based on gender identity, gender expression, and sexual orientation. Such training must be conducted by educators with knowledge and expertise in these topics and must include practical examples.

Second, farm labor contractors must contend with changes to the law concerning sexual harassment training. To be issued a farm contractor license, such entities must (among other things) provide sexual harassment training to all personnel, including supervisory and agricultural employees. Under SB 295, this training must be conducted in or interpreted into the language understood by the employee. Additional application requirements also will apply, including an obligation to provide a list of all antiharassment training materials or resources used in the prior calendar year.

Construction Contractor Liability. For certain construction contracts entered into on or after January 1, 2018, AB 1701 provides that direct contractors must assume and are liable for unpaid wages, benefits, or contributions that a subcontractor owes for labor connected to the contract. AB 1701 further requires subcontractors to provide required payroll records upon a direct contractor’s request. Governor Brown issued a memo upon signing AB 1701, explaining that the sponsors of the law committed to sponsoring legislation next year to clarify any confusion over the scope of this new law. Accordingly, direct contractors in this industry should not only familiarize themselves with AB 1701, but should stay tuned for future revisions.

Criminal History. As expected, Governor Brown approved a broadened, statewide “ban-the-box” provision, in AB 1008. Pursuant to AB 1008, all employers in California with five or more employees are forbidden from asking an applicant to disclose conviction information until the applicant is determined qualified for the position. Consideration of an applicant’s criminal history will be permissible only after the employer has made a conditional offer of employment.  Once that offer has been made and the criminal history obtained, AB 1008 further provides that the employer cannot deny an applicant a position solely or in part because of conviction history until the employer performs an individualized assessment. Employers that use criminal records to screen applicants should act promptly to review and update their applicant screening procedures.¹

Enforcement Actions. Under SB 306, the state Division of Labor Standards Enforcement can initiate an investigation of employers it suspects discharged or otherwise discriminated against an individual in violation of any law under the department’s jurisdiction—with or without receiving any complaint from an allegedly aggrieved employee. The department can proceed without a complaint when suspected retaliation occurred during the course of adjudicating a wage claim, during a field inspection, or in instances of suspected unlawful immigration-related threats.

Human Trafficking Posting Requirements. California law currently requires certain types of employers (i.e., alcohol retailers, airports, emergency rooms, and adult or sexually-oriented businesses) to post notice concerning human trafficking and the hotlines available for assistance. AB 260 extends this requirement to hotels, motels, and bed and breakfast inns. In addition, SB 225 will require the necessary notice to state that an individual may text a specific number to access support and services.

Immigration Enforcement. Consistent with California’s developing role as a “sanctuary state,”² AB 450 generally restricts public and private employers from voluntarily permitting federal immigration officials to enter nonpublic areas of a workplace. Access is nonetheless required if otherwise required by federal law or if the immigration agent has a judicial warrant. This new law imposes certain duties as well, including a notice requirement.³

Parental Leave. Under SB 63, the New Parent Leave Act, certain California employers must provide employees with 12 weeks of unpaid, job-protected parental bonding leave. This new statute applies to private, state, and municipal employers that directly employ 20 to 49 employees within 75 miles of each other. To be eligible, employees must have more than 12 months of service and at least 1,250 hours of service with the covered employer during the 12-month period prior to commencing leave. Employees are entitled to utilize any type of accrued paid time off, such as paid vacation and sick leave, during the parental leave. In addition to providing 12 weeks of leave, employers must maintain and pay for the employee’s continued coverage under a group health plan at the level and under the same conditions that coverage would have been provided had the employee continued to work.⁴

Salary History & Equal Pay. Governor Brown also approved a couple of measures concerning equal pay. First, AB 168 bans employer inquiries into an applicant’s prior salary history. Under AB 168, no employer may rely on an applicant’s prior salary history “as a factor in determining whether to offer employment . . . or what salary to offer an applicant.” Moreover, an employer cannot—orally or in writing, directly or indirectly—seek this type of information about an applicant. Accordingly, employers and their agents can no longer ask candidates, or their current or former employers, what candidates have earned in the past. An employer must, upon reasonable request, provide an applicant with the pay scale assigned to the position sought. Salary history may be discussed if an applicant “voluntarily and without prompting” discloses his or her history to a potential employer.⁵

Second, AB 46 extends the coverage of the equal pay statute (Cal. Labor Code § 1197.5) to all employers, both public and private. That being said, the law also stipulates that Labor Code § 1199.5, which imposes penalties and damages, applies only to private employers.

Workplace Safety. Another new law affects manufacturers of certain consumer products (air care, automotive, cleaning, or polish or floor maintenance products) as well as employers that may have these products in their workplaces. Under SB 258, the Cleaning Product Right to Know Act of 2017, employers that are required to maintain and provide safety data sheets must also make available information prepared by manufacturers about the products specified in this act.

Finally, while not summarized in any detail, additional recently-enacted labor and employment related bills are identified below. All in all, employers in the Golden State have numerous compliance challenges to tackle before they ring in the new year.