CA Employer Legislative Update

January 26, 2017

All Single-User Bathrooms Must Be Designated All-Gender
Effective March 1, 2017, AB 1732 requires all single-user toilet facilities in any business establishment, place of public accommodation, or government agency to be identified as all-gender toilet facilities.

California Employers Issuing W-2 or 1099 Must Issue Earned Income Tax Credit Notice
Effective January 1, 2017, California law AB 1847 requires employers to notify employees that they may be eligible for the California Earned Income Tax Credit (“EITC”) within one week (before or after) that the employer provides an annual wage summary such as a Form W-2 or a Form 1099 to any employee.

San Jose Ordinance
Effective March 8, 2017, San Jose employers with 36 or more employees conducting business within San Jose’s city limits must offer additional work hours to qualified existing employees before hiring new employees, subcontractors or temporary workers. The work hours do not have to be offered to existing employees if it would require an employee to work overtime or be paid at a premium rate.

Applicable employers must also display a poster describing the requirements. Employers will also have to create and retain records proving that the hours new hires are scheduled to work were first offered to existing employees.

Los Angeles Enacts “Ban the Box”
Effective January 22, 2017, the Los Angeles Fair Chance Initiative for Hiring (Ban the Box) restricts private employers with at least 10 employees from asking a job applicant about his or her criminal history until a conditional offer of employment has been made.

Four common-sense exceptions to the prohibitions are:

  1. an employer is required by law to run a criminal background check on an applicant to obtain information on an applicant’s conviction; 

  2. the job sought requires the possession or use of a gun; 

  3. a person who has been convicted of a crime is prohibited by law from holding the position sought; and 

  4. an employer is prohibited by law from hiring an applicant who has been convicted of a crime. 

Prior to taking any adverse action against an applicant with a criminal conviction, the employer must:

  1. perform a “written assessment” that links the specific aspects of the applicant’s criminal history with the risks inherent in the duties of the position sought.

  2. provide the applicant with written notification of the proposed action, a copy of the written assessment, and any other information or documentation supporting the employer’s proposed adverse action; 

  3. wait at least five business days after the applicant is informed of the proposed adverse action before taking any adverse action or filling the employment position; and 

  4. if the applicant provides the employer with any information or documentation pursuant to the Fair Chance Process, the employer must consider that information and perform a “written reassessment” of the proposed adverse action. If the employer still elects to take the adverse action after such reassessment, it must notify the applicant of the decision and provide the applicant with a copy of the written reassessment.

Employers must post a notice about the law in a conspicuous place at every workplace, job site, or other City location under the employer’s control and visited by applicants. In addition, a copy of the notice must be sent to the appropriate labor unions. Employers must also retain documents related to applicants’ employment applications and any written assessment and reassessment performed for three years.

The Ordinance does not apply to the City of Los Angeles or another local, state, or federal government unit.



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