New California Laws Affecting Businesses and Employers Jan. 1

The California State Capitol building in Sacramento on April 18, 2022. (John Fredricks/The Epoch Times)

Certain businesses, employers, and employees face several changes as hundreds of new laws go into effect Jan. 1 affecting minimum wages, time off for the death of a family member, no more tax on women’s hygiene products, and more. Here’s a quick look at a handful of the most notable:

Minimum Wage Raise (SB 3)

California’s minimum wage will increase—regardless of the business or its number of employees—by 50 cents to $15.50 per hour.

Currently, the minimum wage is $15 per hour for companies with 25 or more employees and $14 per hour for those with 25 or fewer employees.

This 3.33 percent increase is less than half of the 7.9 percent inflation increase between 2021 and 2022 calculated by California’s Department of Finance.

Although the latest minimum wage hike will happen on Jan. 1, the law was signed by then-Gov. Jerry Brown in 2016. According to the law, if annual inflation increases by more than 7 percent, it triggers the minimum wage to increase.

Bereavement Leave (AB 1949)

This new law will make it illegal for employers to refuse bereavement leave of up to five days for an employee upon the death of a family member, including a spouse, child, parent, sibling, grandparent, grandchild, domestic partner, or parent-in-law.

The law amends the California Family Rights Act—which provides employees with time off for certain life events—allowing up to five days off which do not have to be taken consecutively, within three months of the date of the family member’s death.

Employers will be allowed to request documentation—such as a death certificate,  or published obituary proving the death.

“Pink Tax” (AB 1287)

Businesses will no longer be able to charge the “pink tax”—an upcharge on care products for women only—due to discrimination against gender-based products.

The new law prohibits businesses and manufacturers from charging more for a female-based product than a parallel product intended for men. Those in violation can now be given a civil penalty by the State Attorney General.

Termination Notices (AB 1601)

Existing law requires businesses to provide 60 days’ notice to employees when a plant will close or be relocated. This new law adds the same protections for employees at businesses with call centers—where employees provide customer service in the event of a relocation to a foreign country.

Union Deterrent Violation (SB 931)

Existing law already prohibits businesses from discouraging or deterring employees from becoming or remaining members of a union.

This new law allows a union to bring a claim before the state’s Public Employment Relations Board to report an employer violating this law.

If the board finds the claim is valid, the business can be subject to a civil penalty of up to $1,000 for each employee affected, not to exceed $100,000 total.

Human Trafficking in Hotels (AB 1788)

Hotels can now be held liable for sex trafficking if an employee knew and failed to report an incident to authorities within 24 hours or if an employee knowingly benefited from sex trafficking occurring in the hotel.

Existing law only requires hotels to provide a minimum of 20 minutes of staff training on how to identify human trafficking.

Civil penalties for hotels are $1,000 for the first violation increasing up to $10,000 for repeated infractions within a calendar year.