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Collecting Unemployment After an Auto Accident
When a car accident occurs, the immediate concern is physical recovery. Yet, often lurking in the aftermath is the daunting reality of unemployment due to injuries sustained. For many, this is a predicament that compounds the physical pain with financial stress.
If you’re reading this, you or someone you know might be grappling with this exact situation in California. We understand the strain you’re under, and we’re here to help.
Understanding Unemployment Benefits
Unemployment benefits serve as a financial safety net for individuals who find themselves out of work through no fault of their own. These benefits are temporary wage replacements provided by the state to support people while they search for new employment.
To be eligible for unemployment benefits, you must meet certain criteria. Generally, you must be unemployed due to circumstances beyond your control, such as layoffs, and you must be actively seeking employment. However, what if you’re unable to work due to injuries from a car accident?
In California, the Employment Development Department (EDD) administers unemployment benefits. According to EDD, to qualify for these benefits, you must be physically able to work, available for work, and ready to accept work. But the law does provide some flexibility for those who are temporarily unable to work due to a physical condition, including injuries from a car accident.
If you’ve been injured in a car accident and can’t work, it’s crucial to understand how this situation interacts with your eligibility for unemployment benefits. If your injuries prevent you from performing your regular job duties but you are willing to accept suitable work considering your physical condition, you may still be eligible for benefits. For example, if you previously worked in construction but are now limited to desk jobs due to your accident, you could potentially qualify.
However, navigating these waters can be complex. California’s laws and regulations regarding unemployment benefits are intricate, and understanding the nuances related to your specific situation can be challenging. The state looks at factors like your medical condition, your previous job, your current ability to work, and the availability of suitable work in evaluating your eligibility.
Receiving unemployment benefits after a car accident involves more than just understanding the law. You’ll need to interact with insurance companies, possibly negotiate with your former employer, and navigate the EDD’s bureaucratic processes.
The Process of Claiming Unemployment Benefits After an Auto Accident
Step 1: Gather Your Information
Before you begin the application process, it’s essential to gather all necessary information. This includes your Social Security number, driver’s license number, details about your employment history, and medical documents pertaining to your car accident. Ensuring you have all relevant information at hand will streamline your application process.
Step 2: File Your Claim
In California, you can file your unemployment claim online, by phone, by mail, or by fax. The fastest way is usually online through the EDD’s website. Be prepared to provide details about your last employer, your earnings, and the reason for your unemployment. Remember to mention that you are unable to work due to injuries sustained in a car accident.
Step 3: Register with CalJobs
Registering with CalJobs, California’s online job search portal, is usually a requirement. However, if you’re temporarily unable to work due to your injuries, you may be exempt from this requirement. Make sure to clarify your situation when filing your claim.
Step 4: Wait for Your Notice of Determination
After you’ve filed your claim, the EDD will review your application and send you a Notice of Determination. This document will state whether you are eligible for benefits and, if so, how much you will receive.
During this process, it’s vital to be aware of potential challenges you might face. One significant hurdle is meeting the EDD’s criteria for being “able and available” to work. As mentioned earlier, if you’re willing to accept suitable work considering your physical condition, you may still qualify for benefits. However, proving this can be a complex task, requiring careful documentation of your injuries, your job search efforts, and any job offers you may have received.
Another challenge is dealing with the EDD’s bureaucratic processes. Mistakes on your application, delays in receiving your Notice of Determination, or disputes over your eligibility can all complicate your claim. It’s crucial to stay organized, keep copies of all documents, and follow up regularly on your claim’s status.
Legal hurdles can also arise during this process. If your former employer disputes your claim or if you face potential discrimination due to your injuries, you may need to seek legal advice.
How a Personal Injury Claim Can Impact Your Unemployment Benefits
When you’re out of work because of an auto accident, you may consider two distinct paths for financial support: unemployment benefits and a personal injury claim. Unemployment benefits exist to aid those who are jobless through no fault of their own and are actively seeking work. A personal injury claim is a legal dispute that occurs when one person suffers harm from an accident or injury, and someone else might be legally responsible for that harm.
So, how does filing a personal injury claim affect your eligibility for unemployment benefits?
Let’s start with a fundamental point: Compensation from a personal injury claim can impact your eligibility for unemployment benefits. The devil, as always, is in the details. If your personal injury compensation is classified as reimbursement for lost wages, it might be seen as income. This could, in theory, affect your unemployment claim. However, if the payment is for medical bills or pain and suffering, it is typically not considered income for unemployment benefit purposes.
Now, let’s add another layer of complexity: timing. If you receive a lump sum from your injury claim while you are also collecting unemployment benefits, you may need to report this to EDD. Depending on the specifics of your case and how the settlement is structured, this could influence your benefit amount.
In essence, the interplay between a personal injury claim and unemployment benefits is not a simple one-size-fits-all situation. Understanding these nuances requires a deep dive into the specifics of your case and a comprehensive understanding of California law.
And this is where we come in. As a personal injury law firm, we at PARRIS have the necessary expertise to guide you through this complex intersection. We can help navigate the intricacies of your case, ensuring you understand how a personal injury claim could impact your unemployment benefits, and vice versa.
Potential Hurdles and Obstacles
The road to securing unemployment benefits after an auto accident is not always smooth. It’s more akin to a Californian freeway during rush hour—expect delays, detours, and occasional gridlocks. But with careful navigation, you can reach your destination.
Legal Hurdles
The law is vast and complex, filled with nuances and fine print that can trip up even the most careful reader. When it comes to unemployment benefits, the legal landscape can be particularly challenging.
One such challenge is meeting EDD’s criteria for eligibility. To qualify, you must be “able and available” to work. However, if you’re recovering from a car accident, this requirement might seem like a significant roadblock. Fear not. You may still qualify if you’re willing to accept suitable work considering your physical condition. Proving this willingness, however, requires careful documentation and potentially legal advice.
Employer-Related Hurdles
Then some obstacles could arise from your former employer. Imagine this scenario: You’ve filed for unemployment benefits, but your former employer disputes your claim, arguing that you left voluntarily or were fired for misconduct. This dispute can throw a wrench in your unemployment benefits claim.
Another potential hurdle is if your employer inaccurately reported your earnings to the EDD, leading to a lower calculated benefit amount. Or what if your employer classifies you as an independent contractor instead of an employee, potentially disqualifying you from benefits entirely?
These challenges can feel like running into a brick wall, but remember, there are ways around them. In each case, it’s crucial to have solid evidence on your side—documentation of your employment, earnings, and the circumstances of your job loss.
When the Road Gets Bumpy, We Smooth It Out
We understand that the interplay between unemployment benefits and personal injury claims can be as complex as the Los Angeles freeway system. That’s why we’re here to guide you through every twist and turn, ensuring you don’t miss an exit or take a wrong turn.
So, if you find yourself unemployed due to a car accident, don’t navigate this road alone. There’s no need for you to become an overnight guru in personal injury law or the nuances of the EDD. That’s our job. Your job is to focus on your recovery.
Contact PARRIS Law Firm today. Let us handle the legal complexities so you can concentrate on what matters most—your health and well-being.
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Santa Clarita Minimum Wage Increase 2024 and What It Means for Workers
As the New Year begins, workers in Santa Clarita will wake up to a small but significant change: an increase in the minimum wage to $16 per hour. This adjustment, as reported by the Department of Industrial Relations (DIR), aligns Santa Clarita with the statewide minimum wage for California, which also increased as of January 1, 2024, to $16 per hour.
While some cities within the Golden State offer higher wages, Santa Clarita sticks to the state’s rate. For workers in Santa Clarita, your new minimum wage will be $16 per hour in 2024. However, it falls slightly short when compared to LA County’s minimum wage of $16.90.
Santa Clarita vs. LA County Minimum Wage
Despite being geographically nestled within Los Angeles County, Santa Clarita has aligned with the state’s minimum wage. In contrast, unincorporated areas of LA County have set their minimum wage at $16.90 per hour as of July 1, 2023.
The difference, albeit minor, is due to a critical distinction in governing laws. LA County has a county ordinance that allows it to set its own minimum wage for unincorporated areas, giving it the liberty to incrementally increase the wage each year. Santa Clarita, being an incorporated city, has opted to follow the state’s wage guidelines. This means despite its location within LA County, Santa Clarita isn’t subject to the county’s wage ordinance.
What does this mean for workers? If you’re employed in Santa Clarita proper, the city’s adherence to the state minimum wage applies to you. However, if your workplace falls within the unincorporated areas of LA County, you’re entitled to the slightly higher county minimum wage. Understanding these distinctions is vital in ensuring you’re receiving the correct compensation for your hard work.
Understanding Employee Exemptions and Overtime Laws
An exempt employee is one who is exempt from the state’s minimum wage and overtime laws. They’re typically salaried workers in executive, administrative, or professional roles. Nonexempt (or hourly) employees are paid at least the state minimum wage and are entitled to overtime pay for hours worked beyond a 40-hour workweek, and in California, hours worked beyond eight in a single workday.
California law requires an exempt employee must earn a minimum salary equivalent to twice the state minimum wage for full-time employment. Given the new minimum wage of $16 per hour, this means that an exempt employee must earn at least $66,560 annually (that’s $16 x 2 x 40 hours per week x 52 weeks). If you earn less than this, your employer is supposed to classify you as nonexempt.
What does this mean for workers? If you’re an exempt employee earning less than $66,560 annually, your employer is in violation of California law. You should be classified as nonexempt and entitled to the protections that status offers, including overtime pay.
In California, nonexempt employees are entitled to 1.5 times their regular rate of pay for all hours worked beyond eight in a day or 40 in a week, and for the first 8 hours worked on the seventh consecutive day of work in a workweek. Double time is owed for all hours worked beyond 12 in a day and beyond eight on the seventh consecutive day of work in a workweek. So, if you’re working more than these hours and not receiving overtime pay, your rights are being infringed upon.
Making Ends Meet: The Reality of a $16 Hourly Wage
The Santa Clarita Minimum wage of $16 sounds like a step forward. But what does it really mean for your annual earnings and standard of living?
Here’s the math: If you’re working full time, meaning 40 hours a week for 52 weeks a year (no vacations, remember), you’ll earn $33,280 annually before taxes. On paper, that might seem like a fair sum. But let’s apply some context.
California has one of the highest costs of living in the United States. The state’s housing costs are sky high, with the median home price over $800,000. Rent isn’t much better, with the average apartment going for over $2000 a month. Then there’s food, transportation, healthcare, and other essentials, which all tend to be more expensive than the national average.
So, where does a $33,280 annual income place you? Sadly, below the poverty line. According to the California Poverty Measure, a more comprehensive tool than the federal poverty line, a family of four in LA County needs an income of just under $40,000 just to cover basic expenses. And that’s assuming no major unexpected costs come up, like a car repair or medical bill.
The reality is stark: A $16 hourly wage can leave you scrambling to make ends meet. You might find yourself choosing between paying the rent and buying groceries, or skipping a doctor’s appointment to save on co-pays. It’s a precarious balancing act, and one missed step can lead to financial disaster.
This isn’t about painting a grim picture. It’s about facing the facts and fighting for fair compensation. If you’re working full time, you deserve a wage that not only keeps you above the poverty line but allows for a decent standard of living. Anything less isn’t progress—it’s perpetuating a problem.
Your Rights and Recourses
California law provides robust protections for workers, and if your employer isn’t paying you appropriately, you have options. For starters, you can file a wage claim with the California Labor Commissioner’s Office. This office serves as an advocate for workers and has the power to investigate employers and enforce labor laws. If your claim is validated, they can recover your unpaid wages plus penalties from your employer.
Alternatively, you can take legal action. California law allows workers to sue their employers for unpaid wages, and if you win, you could potentially recover not only your unpaid wages but also interest and attorney’s fees. It’s not a step to be taken lightly, but it’s there if you need it.
It’s important to remember that retaliation is also illegal. Your employer cannot fire, demote, or otherwise punish you for asserting your rights. This includes reducing your hours, changing your shift, or moving you to a less desirable location. If they do those things, that’s another violation you can add to your claim or lawsuit.
Knowing your rights is the first step to asserting them. The second step is not being afraid to seek help. Whether it’s consulting with a lawyer, reaching out to a union representative, or simply talking to a trusted mentor, don’t hesitate to lean on others for support.
If your employer isn’t paying you the minimum wage or overtime you’re entitled to, you have the right—and the means—to demand fairness. Stand up for your rights. Seek help if you need it.
Your Wage, Your Rights
The Santa Clarita minimum wage increase to $16 an hour in 2024 is a step in the right direction but it’s not quite enough for a comfortable life in California. If you’re an exempt employee earning less than $66,560 annually, you should be classified as nonexempt and entitled to overtime pay. Working more than eight hours a day or 40 hours a week without receiving overtime pay is not just unfair, it’s illegal.
If you find your paycheck falling short of these standards, it’s time to take action. You have rights. You deserve fair pay for your hard work. And if your employer isn’t playing by the rules, they need to be held accountable.
That’s where PARRIS Law Firm steps in. Our team of seasoned employment law attorneys is ready to help you fight for what you’re owed. We can guide you through the process of filing a wage claim or even taking your employer to court if necessary.
So, if you’re tired of struggling to make ends meet on a wage that’s less than you deserve, reach out. Contact PARRIS Law Firm for a free consultation today. Your rights are worth fighting for, and we’re ready to help you win the battle.
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Navigating California's 2024 Minimum Wage Hike As An Employer
As a California employer, navigating the labyrinth of labor laws can be complex, especially with the state’s minimum wage. In 2024, California will experience another increase in its minimum wage up to $16.00 per hour, a change that could significantly impact your business operations. Understanding these changes is not just important—it’s critical. A thorough comprehension of the evolving wage landscape will allow you to make informed decisions, ensure compliance with the law, and maintain a sustainable business model.
California’s 2024 Minimum Wage Increase
As of 2023, California’s minimum wage currently stands at $15.50 per hour for all employers, with some cities and counties adopting a higher minimum wage. This rate is not static and is subject to changes as dictated by the state’s labor laws.
Come January 1, 2024, employers across the Golden State will need to adjust their payrolls once again as the state’s minimum wage will increase to $16.00 per hour. This adjustment marks a significant milestone in the state’s ongoing efforts to provide fair wages to its workforce.
The decision to raise the minimum wage is rooted in legislation passed by the California legislature. The intent behind these increases is to ensure that workers earn a living wage that keeps pace with the cost of living in one of the nation’s most expensive states. It’s part of a broader commitment to economic justice and reducing income inequality.
Looking ahead, it’s unclear whether and when the state will increase the minimum wage again. In November 2024, voters will consider a proposition that would raise the state’s minimum wage to $18.00 per hour in 2025 for larger employers and in 2026 for small employers. Given the state’s history and commitment to ensuring fair wages, it would not be surprising if additional increases are on the horizon.
For tipped workers, California does not permit the use of tip credits. Tip credits are a practice in some states that allows employers to count a portion of their employees’ tips towards the minimum wage requirement. In effect, the employer keeps that portion of the tip. But in California, employees must be paid at least the full state minimum wage before tips. The impact of this policy is significant—it ensures that tipped employees in California, such as restaurant servers or bartenders, are guaranteed the same minimum wage as non-tipped employees, providing a more stable income base despite the often unpredictable nature of tips.
Minimum Wage by City and Municipality
While California sets the baseline for minimum wage, it’s noteworthy that several cities and municipalities have taken it upon themselves to set higher rates. These localities have recognized the unique economic conditions within their borders and adjusted their minimum wages accordingly.
Here is a complete list of all cities and municipalities in California that have a minimum wage higher than the state. Please note that some of these wages will not change in 2024, or if they are changing, no announcement has been made by the time of publication of this article.
Location2023 Minimum Wage2024 Minimum WageAlameda$16.52No announcementBelmont$16.75$17.35Berkeley$18.07No announcementBurlingame$16.47$17.03Cupertino$17.20No announcementDaly City$16.07No announcementEast Palo Alto$16.50$17.10El Cerrito$17.35$17.92Emeryville$18.67No announcementFoster City$16.50No announcementFremont$16.80No announcementHalf Moon Bay$16.45No announcementHayward$16.34$16.90Los Altos$17.20No announcementLos Angeles (City)$16.78No announcementLos Angeles County (unincorporated)$16.90No announcementMalibu$16.90No announcementMenlo Park$16.20$16.70Milpitas$17.20No announcementMountain View$18.15$18.75Novato$16.07$16.86Oakland$15.97$16.00Palo Alto$17.25$17.80Pasadena$16.93No announcementPetaluma$17.06$17.45Redwood City$17.00$17.70Richmond$16.17No announcementSan Carlos$16.32$16.87San Diego$16.30$16.85San Francisco$18.07No announcementSan Jose$17.00$17.55San Mateo$16.75$17.35San Mateo County (unincorporated)$16.50$17.06Santa Clara$17.20$17.75Santa Monica$16.90No announcementSanta Rosa$17.06$17.45Sonoma$17.00No announcementSouth San Francisco$16.70No announcementSunnyvale$17.95$18.55West Hollywood$19.08No announcement
This patchwork of wage rates can be confusing for employers, particularly those operating in multiple localities. As a rule of thumb, employers must always pay the highest applicable minimum wage, whether it’s the federal, state, or local rate. Therefore, if a city or county has a higher minimum wage than the state, employers operating in that locality must abide by the local rate.
The rationale behind these differing rates across the state is largely tied to cost-of-living variances. Cities like San Francisco and Los Angeles are known for their high living costs, hence the justification for higher minimum wages. The goal is to ensure that workers in these areas can afford basic necessities such as housing, food, and healthcare.
However, these higher wages can also put pressure on local businesses, especially small ones, as they strive to balance fair pay with sustainable operations. It’s a delicate balancing act that continues to shape discussions around minimum wage laws in California.
Salary Threshold for Exempt Employees
Exempt employees are those who are exempt from certain provisions of the Fair Labor Standards Act (FLSA) and California Labor Code, particularly those related to overtime pay and meal and rest breaks. To qualify as exempt, an employee must generally meet specific criteria regarding their job duties and be paid above a specific salary threshold.
As of 2023, in California, the salary threshold for exempt employees is $64,480. This means that to qualify as an exempt employee, an individual must earn at least this amount annually and meet the applicable duties test.
However, come January 1, 2024, this threshold will increase to $66,560. This increase in the salary threshold for exempt employees has significant implications for employers. It means that some employees who were previously classified as exempt may no longer meet the salary criterion for exemption in 2024. If that’s the case, employers may need to reclassify these employees as non-exempt, which would make them eligible for overtime pay, meal periods, rest breaks, and other protections under the Labor Code. Alternatively, employers could choose to raise the salaries of these employees to meet the new threshold, maintaining their exempt status.
Impact on Employers and Remote Workers
The increase in California’s minimum wage has notable implications for all employers, including those employing remote workers within the state. For businesses, higher wages can mean increased labor costs, which could impact profitability. Employers may need to reassess their budgets, potentially adjusting pricing strategies or reallocating resources to accommodate these changes.
Specifically for employers with remote workers in California, it’s crucial to understand that these employees are still protected by California’s labor laws, including its minimum wage laws. This means that even if your business is not physically located in California, but you have remote hourly employees working in the state, they must be paid at least the applicable California minimum wage.
When determining which minimum wage laws to follow, the rule is to apply the highest rate that applies to the employee. So, if a municipality in California where your remote worker resides has a higher minimum wage than the state, you would need to pay at least that local rate.
California’s labor laws are often more protective than federal laws, so non-California-based employers with remote workers in the state must adhere to these standards. This includes not only minimum wage laws but also overtime, meal and rest breaks, and leave entitlements, among others.
Preparing for the minimum wage increase requires strategic planning and proactive measures. Here are some strategies employers can adopt to effectively manage these changes:
- Budget Review: Reassess your current budget to accommodate increased labor costs. This may involve adjusting pricing strategies, reducing non-essential expenses, or even exploring automation options for certain tasks.
- Workforce Planning: Consider the potential need for reclassification of employees who no longer meet the salary threshold for exempt status. If raising salaries is not feasible, prepare to manage increased overtime costs for newly non-exempt workers.
- Policy Updates: Ensure your company policies reflect the new wage rates and that these are communicated clearly to all employees. This includes remote workers who are also covered by California’s labor laws.
- Legal Consultation: Engage a labor law expert to help navigate these changes. They can provide tailored advice to ensure your business remains compliant while minimizing disruption to operations.
Failing to implement these changes correctly can result in significant penalties. Taking proactive steps now can help mitigate potential impacts on your business operations.
Navigating the Wage Waters: Final Thoughts
Understanding California’s minimum wage laws, including the rising salary thresholds for exempt employees and the impact on remote workers, is crucial for all employers. As these changes loom, proactive management and strategic planning are your best defense. Stay informed, reassess your policies, and consider seeking legal guidance to navigate these waters smoothly.
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New Year, New Laws: Understanding the New California Employment Laws 2024
As we usher in 2024, it’s crucial to stay informed about the new California employment laws that could significantly impact our daily lives and work environments. From an increase in the minimum wage to important changes regarding remote work, pay equity, and even state holidays—the landscape of California law is evolving. As California continues to lead in progressive legislation, keeping abreast of these changes is more than just a legal necessity; it’s a tool for empowerment and fairness in our rapidly changing world.
Expansion of Paid Sick Leave
In 2024, California sees a significant expansion in its paid sick leave law. Previously, employers were required to provide at least three days or 24 hours of paid sick leave per year. However, under the new law, this minimum rises to five days or 40 hours per year. Notably, this applies to all employees who work in California for the same employer for at least 30 days within a year.
The law aims to foster healthier workplaces by encouraging sick employees to stay home without fear of lost wages. This change underscores California’s commitment to worker rights and sets a progressive precedent for other states to follow. Employers should update their policies accordingly to ensure compliance with this expanded obligation.
CalWARN Notice Requirements
The California Worker Adjustment and Retraining Notification (CalWARN) Act currently mandates that businesses with 75 or more employees provide at least 60 days advance notice before mass layoffs, relocations, or terminations. However, in 2024, the notice requirement increases to 75 days. The law also revises a covered business to mean a single location with 75 or more workers. Importantly, employers are prohibited from using severance agreements to waive an employee’s right under this law.
Rights of Remote Workers
With many employers looking to have employees return to offices, California is providing some protections for workers. Beginning in 2024, an employer must provide a worker with at least 30 calendar days’ notice that they are requiring a remote or work-from-home worker to come work in the office. The notice must be provided to the employee in writing, and it must provide information about the employee’s right to remote work as a reasonable accommodation for a disability.
Wage Theft
Wage theft, the denial of wages or benefits rightfully owed to an employee, is a pervasive issue in the American workforce. To combat this, a new California law significantly increases penalties for employers found guilty of wage theft, including higher fines and potential jail time. It also expands the authority to receive, investigate, and hear employee complaints to public prosecutors, beyond recovery available under Private Attorneys General Act (PAGA) lawsuits.
Achieving Pay Equity
Pay equity remains a significant issue in California, as it does nationwide. A new law aims to address this by enhancing transparency around pay data. The existing laws require employers to report pay data categorized by sex, race, and ethnicity. The new law expands on these requirements, mandating more comprehensive reporting of wage information, including job categories, wage ranges, and the number of employees within these ranges. This increased transparency is intended to illuminate any pay disparities, pressuring employers to take corrective action.
Increase in Minimum Wage
In 2024, California sees a significant increase in the minimum wage to $16.00 per hour. This rise is a result of a law passed in 2016 that ties the state’s minimum wage to inflation, ensuring that the lowest-paid workers are not left behind as the cost of living increases. This progressive adjustment not only provides an immediate pay raise for those on minimum wage but also sets a new standard for employers across the state. As a result, this wage increase helps to reduce income inequality and promotes economic fairness. It’s a significant step towards ensuring that all Californians can afford a decent standard of living.
Protections for Prior Marijuana Use
A new law expands protections for job applicants and employees who use marijuana. This law makes it unlawful for an employer to request or demand information about an applicant’s prior use of marijuana. Even if an employer receives information about an applicant’s prior use through a criminal history check, the employer may not use that information in their hiring decision.
Health Care Workers Get a Raise
Senate Bill 525 proposes a significant wage increase for all healthcare professionals employed at eligible healthcare institutions in California. Starting from June 1, 2024, the legislation mandates a rise in the minimum wage for healthcare workers to $21 per hour, which will further increase to $25 per hour from June 1, 2025. For those who receive a salary, their pay should not fall below 150 percent of this new healthcare worker minimum wage or 200% of the applicable minimum wage, whichever is greater. The law applies to all tasks performed within any qualifying healthcare facility, as well as any paid healthcare services carried out on behalf of any entity that owns, manages, or operates such a facility, regardless of where the work is done.
Paid Family Leave Benefits Expansion
The eligibility criteria for receiving Paid Family Leave benefits is set to expand, including employees taking leave to care for a “designated person.” The Legislature had previously broadened California’s leave laws last year to include leave for a “designated person.” This year, it seeks to extend this trend to the state’s Paid Family Leave insurance program. Specifically, AB 518 redefines a “family member,” enabling employees to qualify for wage replacement benefits when they take leave to care for a seriously ill “designated person.” This term refers to any individual related by blood or someone who shares a relationship equivalent to a family bond with the employee. Employees will specify their designated person when submitting a benefits claim.
Laid-Off Employees Rehire Rights
A new proposal aims to expand reemployment rights for employees in the hospitality and business service provider sectors who lost their jobs due to the pandemic. This includes those working in hotels, private clubs, event centers, airports, and building service providers. The current law mandates employers to offer job opportunities to eligible former employees as they arise, provided these employees were: (1) employed for at least six months before January 1, 2020, and (2) lost their jobs due to pandemic-related reasons.
SB 723 seeks to widen the scope of covered employees by modifying the first criterion to include any employee who has been employed for a minimum of six months at any time and was laid off on or after March 4, 2020. While the second criterion remains unchanged, SB 723 notably introduces a presumption that terminations due to a lack of business, workforce reduction, or other economic, nondisciplinary reasons are associated with the COVID-19 pandemic. The onus is on the employer to establish otherwise by a preponderance of the evidence. Finally, SB 723 proposes to extend the expiry date of the current law by one year to December 31, 2025.
Reproductive Loss Leave
If enacted, a new law would grant employees a five-day leave for issues related to reproduction or adoption losses. It would be illegal for employers to deny an employee’s request for up to five days of leave following an event of reproductive loss, which could include miscarriage, unsuccessful assisted reproduction such as IVF, or a failed adoption. The employee would need to utilize this leave within three months of the event, and the total duration of leave should not surpass 20 days in a single year. While the reproductive loss leave may be unpaid, employees have the option to use their other leave balances like accrued and available paid sick leave.
Noncompete Agreements
Beginning January 1, 2024, a new law confirms it is illegal for employers to require employees to sign post-employment noncompete agreements or clauses.
The newly signed law explicitly forbids employers from incorporating post-employment noncompete clauses in employment contracts or obliging employees to agree to post-employment noncompete arrangements. By February 14, 2024, employers are required to give individualized written notices to all current and certain former employees that any post-employment noncompete clause in their employment agreement and/or any post-employment noncompete agreement with the employer is now void.
Policies and Procedures Required for Workplace Violence Protection
On September 30, 2023, California introduced the first-ever general industry workplace violence prevention safety standards in the U.S. These regulations apply to almost all employers in the state with minimal exceptions. As per the new Labor Code Section 6401.9, employers must devise and implement a workplace violence prevention plan by July 1, 2024.
The plan should include:
- Assigning individuals responsible for the plan.
- Developing procedures to actively involve employees in formulating and executing the plan.
- Methods for coordinating the plan with other employers, if relevant.
- Procedures for addressing and responding to reports of workplace violence without retaliation against the reporter.
- Communication methods about workplace violence, such as reporting violent incidents, alerting employees about emergencies, and seeking help from the assigned staff or law enforcement.
- Processes to identify, evaluate, and correct workplace violence hazards.
- Post-incident response and investigation procedures.
- Reviewing and revising the plan as necessary, which includes active involvement of employees.
- Initial and annual training about the plan.
Employers are also required to maintain specific records for a minimum of five years and present them to Cal/OSHA upon request. These records include hazard identification, evaluation and correction records, training records, a log of every violent incident, and records of incident investigations.
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California Prop. 22 Passed. What’s Next?
NOTE: This article was originally published in March 2021. In August 2021, an Alameda County judge ruled Prop 22 unconstitutional, which you can read about in a separate article here. Read more about the original Proposition 22 ballot measure passed in 2020 in the article below.
Independent contractor rights have been a hot topic recently. With a global pandemic and historic job losses, many individuals were forced to take on gig work. The problem with gig work is that it provides no benefits.
But that changes with California Proposition 22. California voters approved it in the November 3, 2020 election and became law in December, granting rights to some California gig workers.
What is Prop 22?
In 2019, Uber, DoorDash, and similar app-based companies were required to classify drivers as employees under the AB 5 law. Until now, the companies classified their drivers as independent contractors, which meant the gig workers did not have a right to a minimum wage and other benefits.
Prop 22 was an initiative to undo parts of AB 5 and keep app-based delivery delivers and rideshare drivers as independent contractors. This initiative was largely funded by the gig economy companies who threatened to stop operating in California altogether if they were to be forced to classify gig workers as employees.
It passed, but it applies only to app-based delivery delivers and rideshare drivers. If you are a gig worker or any other independent contractor, you may still be misclassified.
Classifying employees correctly is a fundamental part of California employment law and the federal Fair Labor Standards Act (FLSA). If an employee is incorrectly classified as an independent contractor, the employer has to pay back wages and hefty penalties. Maintaining gig workers as independent contractors relieves employers of the burden of overtime, minimum wage, and providing benefits.
California Prop. 22 Passed. What’s Next? 1
New Rights for App-Based Workers
Despite remaining independent contractors, some app-based delivery delivers and rideshare drivers will be entitled to some protection under the law that would normally only be available to employees. Some of them represent significant advancements in independent contractor rights.
Earnings Guarantee
Prop 22 guarantees a wage floor for drivers, much like a minimum wage. Averaged over a two-week period, drivers must make 120% of minimum wage plus 30 cents per mile. If they do not meet that minimum, the company has to provide the difference. This does not include tolls, tips, or airport fees. This also applies only to time logged when a driver accepts a ride through the drop-off, commonly referred to as engaged time.
Healthcare Subsidy
Each driver is entitled to a healthcare subsidy if they work at least 25 hours per week. The time is averaged over a quarter and only includes engaged time. The amount a driver can receive is 82% of the average cost of a Covered California Bronze plan, or roughly $367 per month.
Workers’ Comp (Almost)
Gig workers who drive for an app-based company will receive some coverage for on-the-job injuries. Described as occupational accident insurance, this coverage is similar to but not exactly the same as workers’ compensation insurance. Medical expenses and disability benefits related to on-the-job injuries will be covered for gig workers in limited circumstances.
Not All Gig Workers are Included
Many gig companies see this as a win, while gig workers see it as a setback. Gig workers get some rights from it, but it is more restrictive than AB 5. This leads to some gig workers missing out.
Most gig workers should be classified as employees even after Prop 22, which applies only to app-based delivery delivers and rideshare drivers. App-based delivery drivers and rideshare drivers are the only gig workers who will receive additional benefits under Prop 22.
Protect Your Rights
Even after Prop 22 you may still be misclassified as an independent contractor. Employers often benefit from misclassifying employees as independent contractors. The same can be said for gig economy companies who benefit from it. They can continue to classify app-based delivery delivers and rideshare drivers gig workers as independent contractors in order to avoid paying taxes and offering benefits.
PARRIS employment law attorneys regularly represent independent contractors like you in your fight against your employer. Our goal is to protect your rights and help you collect the wages you deserve. Contact us today for a free review of your case if you believe your employer is misclassifying you as an independent contractor.
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California Prop. 22 Ruled Unconstitutional: What’s Next for App-Based Drivers?
On August 20, 2021, a California judge ruled the controversial rideshare law, Prop. 22, unconstitutional. Applicable to gig workers, this could impact your earnings. If you’re a gig worker, read on to find out why you might be entitled to additional compensation from the company you’re working for.
What is California Prop. 22?
We’ve previously covered Prop. 22 in detail, including why it’s important. As a quick refresher, Prop. 22 was a 2020 ballot initiative to undo parts of California’s independent contractor classification law, Assembly Bill 5. AB 5 required app-based companies to classify drivers as employees. This meant drivers were entitled to benefits, minimum wage, workers’ compensation coverage, and meal and rest breaks, among other items. Prop. 22 sought to undo that classification and return app-based drivers to independent contractors.
Why was Prop. 22 Ruled Unconstitutional?
Under Prop. 22, rideshare drivers and similar gig workers would be classified as independent contractors instead of employees. Though this, it granted app-based drivers limited benefits, including a wage floor, a healthcare subsidy, and a limited version of workers’ comp, independent contractors receive significantly fewer benefits than employees under California law. Upon examining the law, Alameda County Superior Court Judge Frank Roesch took issue with Prop. 22’s wording, which appeared to benefit rideshare companies at the expense of their workers.
For one, it prevented gig workers from unionizing. In the judge’s own words, the law “appears only to protect the economic interest of the network companies in having a divided, ununionized workforce, which is not a stated goal of the legislation.” In reality, it prevents workers from having access to any rights that the California legislature says they should have.
Secondly, it had a clause that made it very difficult to change the law. This clause required a seven-eighths majority in the legislature to make any changes. Not only is this clearly biased toward ridesharing companies, but it could also be a violation of California citizens’ right to change laws.
Lastly, the judge noted that it unconstitutionally restricted the state legislature from making gig workers eligible for workers’ compensation. This is a clear violation of the California Constitution.
By declaring it unconstitutional, the judge rendered it unenforceable, as legislators cannot separate the unconstitutional clauses from the rest of the law.
What Now?
Major rideshare companies were the financial muscle behind the push to pass Prop. 22. Those same companies will almost certainly appeal this ruling. Some of these companies have even stated publicly that they will continue to adhere to Prop. 22, meaning that they will continue to treat gig workers as independent contractors, not employees.
So if you’re a gig worker, you may have legal options to collect compensation from your employer for every minute you’re on the clock. Under AB 5, rideshare drivers are employees. If you aren’t getting a minimum wage, overtime, benefits, and workers’ compensation, you need to speak with a lawyer right away.
Gig Workers Have Rights — Let Us Protect Yours
If you’re a misclassified gig worker, you may be eligible for compensation for lost wages, overtime, and more. Contact PARRIS today to speak with an experienced California employment lawyer who can protect your rights.