February is off to a fast start for employers on a state and on the Los Angeles local level. This Friday’s Five covers updates on California pay data reporting site, and LA City and County minimum wage announcements, deadline for employers to provide notices to employees who have noncompetition agreements, and updates to the required Notice to Employee under Labor Code 2810.5:
1. California’s payroll data reporting site opened for employers to meet the May 8, 2024 reporting deadline.
The California Civil Rights Department (CRD) opened the Pay Data Reporting portal on February 1, 2024 for California employers to submit their 2023 payroll reports. California employers with 100 or more employees and/or 100 or more workers hired through labor contractors must submit reports annually. This year the reports are due by May 8, 2024.
The CRD updated the User Guide, templates, and the FAQs for California employers. It is critical for employers to start gathering the information as soon as possible in order to meet the May 8th deadline.
2. Los Angeles City minimum wage will increase to $17.28 per hour on July 1, 2024.
Los Angeles City announced on February 1, 2024, that the City’s minimum wage will increase to $17.28 per hour on July 1, 2024. More information and the required posters for employers are available on the City’s website here.
3. Los Angeles County minimum wage will increase to $17.27 per hour on July 1. 2024.
The County of Los Angeles maintains its own minimum wage, and the county recently announced that as of July 1, 202, its minimum wage will increase to $17.27 per hour. The County’s website with more information and updated workplace posters is available here.
4. February 14, 2024 deadline for employers to give notice regarding noncompetition agreements.
Two new companion laws drastically expanded California’ ban on noncompetition agreements in most employment contracts. These new laws bar employers from entering into or attempting to enforce noncompete agreements and require employers to give written notice to current and former employees revoking any existing noncomplete agreements. SB 699 expands the prohibition on noncompete agreements in employment contracts to contracts signed out-of-state, voiding noncompliant provisions regardless of where or when the contracts were signed.
In addition, SB 1076 requires employers to provide individualized written notice to all current employees and all former employees (employed after January 2022) stating that any existing noncompetition clause in an employment agreement or noncompete agreement with the employer is void. Employers who have utilized a noncompetition clause have until February 14, 2024 to provide this required notice to employees.
5. Agricultural employers will be provided updated Notice to Employee by March 1, 2024.
Labor Code § 2810.5 requires employers to provide a Notice to Employees to all new hires that includes specific information. Effective January 1, 2024, AB 636 requires employers to include “the existence of a federal or state emergency or disaster declaration applicable to the county or counties where the employee is to be employed, and that was issued within 30 days before the employee’s first day of employment, that may affect their health and safety during their employment.” The Labor Commissioner published an updated Notice to Employee that incorporated this and the State’s increased paid sick leave requirements in the notice available here.
Starting on March 15, 2024, employers with employees admitted pursuant to the federal H-2A agricultural visa, employers must include specific information in the 2810.5 notice about their rights as agricultural workers. The Labor Commissioner is required to publish the updated sample notice by March 1, 2024.