1. Labor and Employment: 2017 CIOMA Legislative Update
Presented by: Katherine Sandberg Phone: (916)

2. Minimum Wage

3. California Minimum Wage (SB 3)
Six-step annual statewide increase of the minimum wage spanning from January 1, 2017 to January 1, 2022.
Increases delayed one year for employers of 25 or fewer employees.

4. Equal Pay Laws

5. Wage Discrimination: Race/Ethnicity (SB 1063)
California Fair Pay Act prohibits pay disparity based on gender/sex for “substantially similar work”
Applies even when employees being compared work at different facilities or different states
This law prohibits disparities among employees by race or ethnicity; became effective January 1, 2017
Preserves bona fide exception for disparity based on seniority/merit systems, education, training, experience, or other similar reasons

6. Wage Discrimination: Prior Salary (AB 1676)
Fair Pay Act Defense: Exceptions for bona fide factors other than sex
But now, prior salary cannot, by itself, justify any disparity in compensation under the bona fide exception

7. Fair Employment and Access Laws

8. Los Angeles Ban the Box
Passed in December 2016, the Los Angeles Ban the Box ordinance is one of the most restrictive in the entire country.
You must eliminate all questions on employment applications that seek information on an applicant’s criminal history.
You may not seek information regarding an applicant’s criminal history until after you have made a conditional offer of employment.     
Withdrawals of offer must include a written assessment linking the criminal history to the job duties

9. Los Angeles Ban the Box
Fair Chance Process” prior to taking any adverse action due to the conviction history.
You have to give the applicant written notification of the proposed adverse action, a copy of the written assessment described above, and any other information or documentation supporting the proposed adverse action.
You must then wait at least five business days after you give such notice to the applicant before taking the adverse action or filling the position.       
During that time, you must afford applicants the opportunity to provide you with documentation regarding the accuracy of the criminal history report or information that should be considered in your assessment.
Other requirements for job postings, retention of records, notices

10. Los Angeles Ban the Box What do you need?
Determination if you do business in the City of Los Angeles
Updated Application
Postings for workplace
Checklist for conducting assessment
Notices to provide to employee
for this information.

11. Single-Use Bathrooms (AB 1732)
Applies to all single-user toilet facilities in any business establishment, place of public accommodation, or government agency
All such facilities must be identified as all- gender facilities
Authorizes inspections for compliance
Law effective March 1, 2017

12. Benefits

13. State-Run Retirement Savings Plan (SB 1234)
Employees whose employers do not offer an ERISA-qualified retirement plan (such as a 401k plan) must enroll in a state-run retirement plan, the California Secure Choice Retirement Savings Trust
Covers employers of 5 or more employees
Employees contribute 3% of wages to trust via payroll deduction (may later be changed to 2% to 4%)

14. State-Run Retirement Savings Plan (SB 1234)
Employees may opt out
EDD penalty for employers that do not participate or offer another plan
Contributions are pre-tax
Becomes effective January 1, 2017 but not mandatory for employers until Secure Choice Program is operational

15. Prop 64’s Effect On Our Workplace
Legalized the recreational use of marijuana in California for adults over 21
Legalized growing of up to 6 marijuana plants for personal use
In short…
it is no longer illegal to use marijuana recreationally

16. Bring Mary Jane to Work? What Prop 64 does NOT do:
Does not supersede right of employers to maintain a drug-free workplace;
Does not require an employer to permit or accommodate the use, consumption, possession, transfer, display, transportation, sale, or growth of marijuana in the workplace.
Note:
Cannot take adverse action or test simply based on display of a medical marijuana card. Need reasonable suspicion at workplace.
Interactive process per ADA may be required

17. Work Authorization (SB 1001)
Prohibits employers from :
Requesting work authorization documentation not required by federal law;
Refusing to honor documents that reasonably appear to be genuine or documents/authorizations based upon specific status; or
Reinvestigate or re-verify an incumbent employee’s authorization to work
Applicants and employees can file a complaint for enforcement with penalties up to $10,000

18. Pending Legislation

19. Pending Legislation
AB 1008 (McCarty)- “Ban the Box”: enacts a statewide version of the L.A. ordinance
AB 353 (Voepel)- Veteran’s Preference: Authorizes private employers to establish and maintain a written veterans’ preference employment policy
Similar bill failed last year

20. Wait, There’s MORE Pending Legislation!
AB 5 (Gonzalez Fletcher) – “Opportunity to Work Act”: requires employers with 10 or more employees in state to offer additional hours of work to part time employees before hiring additional employee or subcontractor
Ordinances with similar provisions were recently enacted in S.F. and San Jose
AB 168 (Eggman) – Salary History: prohibits employers from requesting an applicant’s salary history
Salary = compensation and benefits

21. Questions
Presented by: Katherine Sandberg Phone: (916)