In speaking to a few groups of California employers this week, a common question kept coming up about what are the essential employment policies California employers must have? While there are more than five, this week’s Friday’s Five starts with what I consider to be critical policies that every California must have in place.
1. At-will policy
Under California law, it is presumed that all employment is terminable at-will. California Labor Code section 2922 provides: “An employment, having no specified term, may be terminated at the will of either party on notice to the other.” The at-will doctrine means that the employment relationship can be terminated by either party at any time, with or without cause, and with or without advanced notice. There are some major exceptions to this rule, but generally California law recognizes that employers and employees may, at any time, and for any legal reason, terminate the employment relationship.
2. Anti-harassment, discrimination and retaliation policy
California’s Fair Employment and Housing Council published new regulations pertaining to anti-discrimination and anti-harassment requirements effective April 1, 2016. Employers need to review and potentially update their policies in order to meet the new requirements. The full text of the regulations can be obtained here.
3. Timekeeping policy
California law requires employers to track start and stop times for hourly, non-exempt employees. The law also requires employer to track the start and stop times for the employee’s thirty minute meal periods. The time system needs to be accurate, and the employer needs to be involved in the installation and setup of the system. Do not simply use the default settings for the hardware and software. Understand what the system is tracking and how it is recording the data. Since the statute of limitations for California wage and hour violations can extent back four years, it is recommended that employers take steps to keep these records at least four years. Employers should also have a complaint procedure in place and regularly communicate the policy to employees in order to establish an effective way to remedy any issues.
4. Meal and rest break policy
As I’ve written about many times previously, employers must have a compliant meal and rest break policy. Indeed, given the California Supreme Court’s ruling in Augustus v. ABM Security Services in December 2016, employers should review their rest beak policy to ensure it complies with this ruling.
5. Paid sick leave policy
Many local governments in Southern California have passed laws increasing the minimum wage and amount of paid sick leave that must be provided to employees. Employers must ensure they are complying with the law that provides the most benefits to employees. Here is a brief summary of some of the local laws in Southern California:
|State/City||Minimum Wage||Paid Sick Leave|
|1) California||$10/hr January 1, 2016; $10.50 January 1, 2017; $11/hr January 1, 2018; $12/hr January 1, 2019; $13/hr January 1, 2020; $14/hr January 1, 2021; $15/hr January 2022*||Current: 3 days or 24 hours|
|2) Los Angeles – City (click here for more information about Los Angeles City’s minimum wage and paid sick leave laws)||July 1, 2016: $10.50/hr; July 1, 2017 $12; July 1, 2018 $13.25; July 1, 2019 $14.25; July 1, 2020 $15.00 * (click here for more information about Los Angeles’s minimum wage ordinance)||July 1, 2016: 48 hours*|
|3) Los Angeles – County (applies to unincorporated cities in LA County)||Same as LA City (see above)||No specific requirement – state law applies|
|4) San Diego City||July 2016: $10.50 (date not set yet – likely effective in first half of July 2016); January 1, 2017 $11.50; January 1, 2019 $11.82; January 1, 2020 $12.15; January 1, 2021 $12.49; January 1, 2022 $12.84||5 paid sick days|
|5) Santa Monica (click here for Santa Monica’s website for details of the law)||$10.50 July 1, 2016; July 1, 2017 $12.00; July 1, 2018 $13.25; July 1, 2019 $14.25; July 1, 2020 $15.00*||January 1, 2017: 32 hours for small businesses, 40 hours for large businesses; January 1, 2018: 40 hours for small business, 72 hours for large businesses*|
|*Employers with 25 or fewer employees the implementation is delayed one year.|
Happy Memorial day weekend!