On October 12, California Governor Jerry Brown signed two bills which will have significant ramifications for employers in the state. AB168, which applies to all public and private sector California employers, prohibits companies from seeking or relying upon the salary history information of an applicant in employment decisions. While SB 63, or the “New Parent Leave Act,” extends job-protected (unpaid) parental leave requirements to employers with 20-49 employees. Both laws are set to go into effect on January 1, 2018, and here’s what businesses need to know:
California is now part of a growing number of jurisdictions, including San Francisco (effective July 2017) and New York City (effective October 31, 2017), that prohibit employers from requesting an applicant’s salary history during the hiring process. Under AB 168, employers may not rely on the salary history information of an applicant as a factor in their hiring or pay decisions.
NOTE: The bill does not preclude an applicant from voluntarily disclosing salary history information without prompting, or an employer, in turn, from relying upon this information in their decision.
The bill applies to all California employers, including state and local government employers.
Employers are prohibited from engaging in the following activities under the bill:
SB 63 (“The Act”) extends certain rights granted under the Family Medical Leave Act (“FMLA”) and California Family Rights Act (“CFRA”), to a new group of employees. Similar to CFRA and FMLA, SB 63 requires employers to grant eligible employees up to 12 workweeks of unpaid protected leave, over a 12-month period, to bond with a new child within a year of birth, adoption, or placement. However, while CFRA and FMLA both apply to employers with 50 or more employees, SB 63 will now cover employers with 20 or more employees within 75 miles of a worksite.
Private, state, and municipal employers that employ 20 or more individuals to perform services within 75 miles.
An employee is entitled to 12 weeks of unpaid parental leave, within a year of the birth, placement, or adoption of a new child if:
It is unlawful under the Act for a covered employer to refuse to grant a parental leave request by an eligible employee. Additionally, covered employers must:
When Do the New Parent Leave Act and Salary History Prohibition Go Into Effect?
January 1, 2018, which means that covered employers should revise their policies, and train their personnel accordingly.
Contact our HR Advisor team for further information on these and other regulations, and what you can do to further prepare your business.
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