Civil Law

Seyfarth Synopsis: The Legislature concluded its 2023-24 session in the wee hours of its August 31, 2024, deadline to pass bills. Now it’s up to Governor Newsom to call the plays as to what employment bills he will sign into law. The bills for his consideration read intersectionality into FEHA protected categories, recast victims’ time off provisions, adjust paid family leave, and impact protections for freelance workers and whistleblowers.

At the conclusion of its August 31, 2024, deadline, the Legislature passed the proverbial football (bills – not those from Buffalo) to Governor Newsom. By September 30, he’ll decide which employment bills scored a touchdown and will become laws effective January 1, 2025.  Contenders include bills that read intersectionality into FEHA protected categories, recast victims’ time off provisions, adjust paid family leave, and impact protections for freelance workers and whistleblowers. Keep reading for our summary of key employment bills that may soon become law.

Who’s On The Team – Bills That Made The Cut

SB 1137– Protected Characteristics: Intersectionality

SB 1137 would make California the first jurisdiction to explicitly adopt the concept of intersectionality and clarify how courts should assess overlapping claims under the state’s anti-discrimination laws. As stated in the bill, intersectionality “captures the unique, interlocking forms of discrimination and harassment experienced by individuals in the workplace and throughout society, particularly Black women, as compared to Black men and White women.”

If signed into law, FEHA will expressly protect the intersection, or any combination of the currently-enumerated protected characteristics from discrimination. 

The bill would amend Sections 12920 and 12926 of the Government Code (also amend the Unruh Act and Education Code).

SB 1022– CRD Enforcement – Group/Class Civil Action Filing Extension

SB 1022 would make a variety of changes to FEHA administrative timelines, including most notably changes to tolling rules and an extension of the deadline for the Civil Rights Department (CRD) Director to file a group or class complaint to within seven years from the date of the alleged violation. This will tack years onto the CRD’s current time limits to bring systemic complaints. 

The bill would amend Sections 12926, 12960, 12965, 12980, and 12981 of the Government Code.

AB 2499– “Victims” Time Off

AB 2499 seeks to expand and recast jury, court, and victim time off provisions as unlawful practices under FEHA (previously addressed in the Labor Code), which would place them under the CRD’s enforcement authority. Specifically, the bill would prohibit the discrimination/retaliation/discharge of an employee who: takes time off for jury service; takes time off to appear in court as a witness under court order; is a victim and takes time off to obtain relief for their/their child’s health, safety, welfare; and (for employers with 25 or more employees) is a victim/has a family member who takes time off to assist the family member for various reasons related to a qualifying act of violence (instead of crime/crime or abuse). 

Additionally, the bill would expand eligibility for reasonable accommodations to include an employee who is a victim/has a family member who is a victim of a qualifying act of violence.  Employees would be able to use vacation, personal, and paid sick leave for leaves granted as reasonable accommodations under this provision. Such leave would run concurrently with CFRA/FMLA, and be subject to time use limitations. Employers would be required to inform employees of their rights in writing at hire and upon request.

The bill would amend Section 214 of the Code of Civil Procedure, Section 48205 of the Education Code; add Section 12945.8 to the Government Code, and amend Section 246.5 of, and repeal Sections 230 and 230.1 of the Labor Code (among other things).

SB 1100 – Discrimination: driver’s license

SB 1100 would prohibit statements in employment materials (such as a job advertisement, posting, or application) that an applicant must have a driver’s license. The only exceptions would be if the employer reasonably expects the position’s duties to require driving and reasonably believes that an alternative form of transportation would not be comparable in travel time or cost to the employer. Alternative forms of transportation may include a ride hailing service, taxi, carpooling, bicycling, or walking.

The bill would amend Section 12940 of the Government Code.

SB 399– Captive Meetings Ban

SB 399 would prohibit an employer from subjecting or threatening discrimination or adverse action against any employee who declines to attend or participate in, receive, or listen to an employer-sponsored meeting or communications regarding the employer’s opinion about religious or political matters. The bill would require an employer to continue to pay an employee who refuses to attend such a meeting, and would impose a civil penalty of $ 500 per employee for each violation. Opponents of the bill have been vocal that it is preempted by the NLRA.

The bill would add Chapter 9 (commencing with Section 1137) to Part 3 of Division 2 of the Labor Code.

AB 2123 – Paid Family Leave  

AB 2123 would eliminate employers’ ability to require an employee to take up to two weeks of earned and unused vacation before the employee’s initial receipt of paid family leave benefits during any 12-month period in which the employee is eligible for these benefits.

The bill would amend Section 3303.1 of the Unemployment Insurance Code.

SB 988 – “Freelance Worker Protection Action Act”

SB 988 would require a “hiring party” (not limited to an employer) to pay an Independent Contractor (“IC”) on the date specified by the contract, or if unspecified, no later than 30 days after completion of the freelance worker’s services. The bill would prohibit requiring the freelance worker to accept less compensation than what is specified by the contract, to provide more goods or services, or to grant additional intellectual property rights as a condition of timely payment. The hiring party and IC would need to enter into a written contract that the hiring party must retain for no fewer than four years. The bill would also prohibit discrimination against an IC for asserting rights under these provisions, and creates a private right of action with injunctive relief, damages, fees, and costs available.

The bill would add Part 5 (Section 18100 et seq) to Division 7 of the Business and Professions Code.

Already Scored – Bills Signed Into Law

AB 2299 – Whistleblower Protections Posting

AB 2299 requires the Labor Commissioner to develop, and an employer to post, a model list of employees’ rights and responsibilities under the State’s whistleblower laws. An employer is considered compliant with the posting requirement set forth in Labor Code section 1102.8 if the employer posts the model list.

Governor Newsom signed the bill into law July 15, 2024, and it is effective January 1, 2025.

The bill amends Section 1102.8 and adds Section 98.11 to the Labor Code.

AB 2288 and SB 92 – PAGA Compromise

We previously detailed the sweeping PAGA reforms effectuated by AB 2288 and SB 92, which were signed into law on June 21, 2024 and are retroactively effective as of June 19, 2024.

The bills amend Sections 2699 and 2699.5 of the Labor Code, and amends, repeals and adds Section 2699.3 of the Labor Code.

AB 2049 – Summary Judgment Filing Deadlines

AB 2049, signed into law on July 15, 2024 and effective January 1, 2025, changes the deadline for a party to file a motion for summary judgment or summary adjudication from the current 75 days to at least 81 days before the hearing on the motion. The deadlines for filing an opposition are likewise extended from 14 days to at least 20 days before the hearing, and for filing a reply from 5 days to at least 11 days before the hearing. The new law prohibits a party from filing more than one motion for summary judgment against an adverse party (multiple motions for summary adjudication are excluded from this prohibition) without leave of court, and expressly prohibits the introduction of new facts or separate statement in a reply to an opposition to a motion for summary judgment that was not presented in the motion or opposition. 

This bill amends Section 437c of the Code of Civil Procedure.

Better Luck Next Game – Bills That Did Not Make the Cut

SB 1116 – Benefits for Striking Workers: After 2 weeks of an employee’s absence due to a trade dispute or strike, the employee would have been eligible for unemployment benefits under the Unemployment Insurance Code.

AB 2494 – Employer Notification: Would have required all employers, public and private, to provide employees with a written notice of coverage under COBRA, in-person and via email, following termination or reduction in hours.

AB 2930 – AI & Automated Decision Systems: Would have regulated the use of automated decision tools in employment pay, promotion, hiring, termination, or task allocation for purposes of determining employment terms or conditions. 

Workplace Solutions

We’re checking the Governor’s actions as thoroughly as our fantasy football teams’ stats, and will continue to keep you apprised of developments through the September 30, 2024 bill signing deadline. Stay tuned for our end of session blog and sign up for our October 2, 2024, webinar in which we’ll explore the roster of new laws. Please check back in with us here at Cal Peculiarities, and you can also check out our Policy Matters podcast and newsletter for regular check-ins on California (and national) policy and legislative updates.

Edited by Cathy Feldman and Elizabeth Levy

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