As we reach the midpoint of 2024, it’s essential for California employers to take note of a few key legal updates that could impact their businesses. From increased minimum wages to new workplace safety requirements, the first half of the year has introduced important legal updates that require attention. This mid-year review offers five reminders on what employers should keep in mind to stay compliant with the latest laws and regulations:
1. Private Attorneys General Act (PAGA) Reform
California employers will be receiving immediate relief under the new Private Attorneys General Act (PAGA) reform law. The California Legislature passed AB 228 and SB 92 on June 27, 2024, and Governor Newsom signed both bills into law on July 1, 2024. Our analysis of the reform is set forth in our previous article here. This article focuses on what steps California employers should be considering in light of the new reform law. Because the new law applies to any PAGA cases file on or after June 19, 2024, employers should consider taking steps to limit the penalties that are available under PAGA (read our prior article here to learn more).
2. Naranjo v Spectrum Security Services, Inc. – California Supreme Court ruling in favor of employers
The California Supreme Court’s decision in Naranjo v. Spectrum Security Services, Inc. represents a significant win for employers across the state, providing much-needed clarity on wage statement requirements and the categorization of premium pay for missed breaks. While this ruling alleviates some of the complexities surrounding California’s stringent labor laws, it also serves as a reminder that vigilance in wage and hour issues remains crucial. The California Supreme Court ruled that if an employer reasonably and in good faith believed it was providing complete and accurate wage statements in compliance with section 226 of the Labor Code, then it has not knowingly and intentionally failed to comply with wage statement requirements.
3. Fast food minimum wage increase July 1, 2024
The minimum wage for California’s fast-food operators will increase to $20 per hour on April 1, 2024 under AB 1228. The new law applies to national fast food chains, which are defined as “limited-service restaurants consisting of more than 60 establishments nationally that share a common brand, or that are characterized by standardized options for decor, marketing, packaging, products, and services, and which are primarily engaged in providing food and beverages for immediate consumption on or off premises where patrons generally order or select items and pay before consuming, with limited or no table service.
4. Many local cities and counties across California increased their minimum wage requirements on July 1, 2024
For example, here is a list of a few local cities and counties new minimum wage requirements effective July 1, 2024:
- West Hollywood – $19.08
- Los Angeles City – $17.28
- Los Angeles County – $17.27
- Malibu – $17.27
- Pasadena – $17.50
- San Francisco – $18.67
- Santa Monica – $17.27
See here for full list of the city and county minimum wages across California.
5. July 1, 2024 – Deadline for California employers to implement workplace violence prevention plan
As of July 1, 2024, California employers are required to implement additional measures for workplace safety. This legislation compels most non-health care related businesses to review and develop certain workplace violence measures by mandating the creation, execution, and ongoing maintenance of a Workplace Violence Prevention Plan (WVPP). For more information, read our prior article about the new requirement here.