Governor Gavin Newsom signed numerous employment-related bills during the 2020 legislative session. This article provides an overview of key changes taking effect in the near term and highlights new compliance obligations affecting employers with California operations in the coming year.

Sequoia One clients are encouraged to reach out to their dedicated HR Business partner with any questions and to discuss updating their policies as necessary.

Regulation/Effective DateNew RequirementsEmployer Action Items
AB 1867

Statewide Supplemental Covid-19 Paid Sick Leave (Supplemental Sick Leave)

September 4, 2020		1. Employers with 500+ employees nationwide must provide up to 80 hours of COVID-19 paid sick leave to covered workers;
2. Provides COVID-19 paid sick leave to healthcare providers or emergency responders (regardless of employee count);
3. Requires an employee’s wage statement or paystub to reflect an employee’s accrued hours of Supplemental Sick Leave;
4. Requires employers to provide a notice of employee rights. If employees do not frequent a physical workplace, it may be provided to employees electronically.

For more information see our blog post.		1. Review any existing sick leave policies and determine whether adoption of revisions are necessary;
2. Ensure payroll records and wage statements are in compliance.
Regulation/Effective DateNew RequirementsEmployer Action Items
SB 1159

Presumption of Workers Compensation Coverage for COVID-19

September 17, 2020		For employers with 5+ employees in California:
1. Creates a temporary “rebuttable presumption” that certain cases of COVID-19-related illness arise out of the course of employment and are compensable;
2. Requires employers provide certain information in their notice to claims administrators.

For more information see our blog post.		1. Employers should develop a procedure for requesting and collecting specific information about positive COVID-19 cases in the workplace from July 6, 2020 onward;
2. Employers should ensure appropriate and timely reporting to their claims administrator.

Sequoia One Clients: Please contact your HRBP for claims reporting forms within 24 hours of being notified. Your HRBP will provide the forms to you to complete then forward to the claims administrator for review/processing.
Regulation/Effective DateNew RequirementsEmployer Action Items
AB 685

Notices of COVID-19 Workplace Exposures

January 1, 2021		1. All employers with a California workplace must notify employees of a potential COVID-19 exposure in the workplace within one business day of being notified of such exposure;
2. Employers must notify the public health authorities within 48 hours of a COVID-19 outbreak at a worksite;
3. Cal OSHA now has the authority to prohibit certain workplace activities or entry into workplaces that pose an imminent risk of COVID-19 infection to employees.

For more information see our blog post.		1. Determine how employees will be notified of a COVID-19 exposure. Employers may utilize this sample notice and customize it, as needed;
2. Design procedures that would enable contact tracing of potential COVID-19 exposures;
3. Train employees on the new notice requirements and procedures to follow if they are notified of a potential COVID-19 exposure.
Regulation/Effective DateNew RequirementsEmployer Action Items
SB 1383

Expansion of California Family Rights Act (“CFRA”)

January 1, 2021		1. Expands the CFRA requirements to employers with 5+ employees in California;
2. Incorporates the baby bonding requirements of the New Parent Leave Act (“NPLA”) into the CFRA framework which means baby bonding leave requirements now apply to employers with 5+ employees in California;
3. Expands the definition of who is a “family member” for whom employees can take leave;
4. Allows parents who work for the same employer to both be allowed 12 weeks of baby bonding leave;
5. Eliminates availability of the “key employee” exception to CFRA’s reinstatement rules (which previously permitted an employer to refuse reinstatement for a top 10% salaried employee on the basis of economic hardship).

For more information see our blog post.		1. Employers who previously were not covered by the CFRA should develop policies and procedures implementing and administering these new leave requirements;
2. Employers already covered by CFRA should review and update their policies and procedures in light of the new provisions and expanded definition of “family members.”
3. Employers may want to review and remove policies as they relate to the NPLA, which is now redundant.
4. Employers should update internal human resources and leave administration personnel on the new CFRA regulations.

Sequoia One Clients: Please work with your HR Business Partner to update your handbook policies, as needed.
Regulation/Effective DateNew RequirementsEmployer Action Items
SB 973

CA EEO Pay Data Reporting

January 1, 2021		1. California employers with 100+ employees who are required to file an annual EEO-1 report under federal law are now required to submit a pay data report to the California Department of Fair Employment and Housing;
2. The new report requirements are similar to the federal requirements of the EEO-1;
3. Reporting is due annually by March 31st of each year.
4. Pay data filing rules and instructions have not yet been issued.		California employers should begin evaluating whether they are in a position to generate the required data by the March 31, 2021 deadline.
Regulation/Effective DateNew RequirementsEmployer Action Items
AB 2017

Kin Care Leave

January 1, 2021		1. Provides an employee has the sole right to designate sick leave for kin care;
2. Employers are prohibited from discriminating against employees using, or attempting to use, sick leave for kin care.		Employers should consider revising sick leave policies to ensure employees are aware of their right to designate sick leave for kin care.
Regulation/Effective DateNew RequirementsEmployer Action Items
AB 2992

Victim of Crime Leave

January 1, 2021		Cal. Labor Code §230 prohibits all employers from firing or discriminating against employees victimized by domestic violence, sexual assault or stalking for missing work to seek judicial relief, including seeking a restraining order.

Extends protections to any employee who is:
1. the victim of a crime that either caused physical injury or that caused mental injury and included a threat of physical injury; and
2. any employee whose immediate family member died due to a crime.

The new law also requires employers with 25+ more employees to provide job-protected leave for victims of crimes time in order to:
1. seek medical attention for injuries caused by the crime or abuse;
2. obtain needed services as a result of the crime or abuse;
3. obtain psychological counseling or mental health services related to the crime or abuse; or
4. participate in safety planning or take other actions to increase safety from future crime or abuse.		1. Revise applicable policies;
2. Train and educate supervisors, managers and human resources personnel on these changes.

Sequoia One Clients: Please work with your HR Business Partner to update your handbook policies, as needed.
Regulation/Effective DateNew RequirementsEmployer Action Items
AB 2399

Extension of California Paid Family Leave

January 1, 2021		1. Extends the Paid Family Leave (PFL) program so that employers must now provide time for absences due to a family member’s military service. Employers should review existing policies and update them to include the additional reason for PFL if necessary.

Sequoia One Clients: Please work with your HR Business Partner to update your handbook policies, as needed.
Regulation/Effective DateNew RequirementsEmployer Action Items
AB 1963

Mandated Child Abuse Reporting

January 1, 2021		For California employers with 5+ employees that employ any minors:
1. Adds human resource employees and adults whose duties require direct contact and supervision of minors to the list of individuals who are mandated reporters
-Requires employers to provide employees who are “mandated reporters” with training on identification and reporting of child abuse and neglect. 1

Note: AB 1963 does not indicate whether the 5+ employee count is based on California employees only or nationwide.		1. Prepare to provide training on identification and reporting of child abuse and neglect to the new classes of mandated reporters;
2. The training requirement may be met by completing the general online training for mandated reporters offered by the Office of Child Abuse Prevention in the CA Department of Social Services.

Additional Resources

Disclaimer: This content is intended for informational purposes only and should not be construed as legal, medical or tax advice. It provides general information and is not intended to encompass all compliance and legal obligations that may be applicable. This information and any questions as to your specific circumstances should be reviewed with your respective legal counsel and/or tax advisor as we do not provide legal or tax advice. Please note that this information may be subject to change based on legislative changes. © 2020 Sequoia Benefits & Insurance Services, LLC. All Rights Reserved

Lizet Ramirez – Lizet is a Client Compliance Manager for Sequoia One, where she works with our clients to optimize and streamline benefits compliance. In her free time, Lizet enjoys live music, travel, hiking and spa days.