California has comprehensive employment laws and regulations, many of which diverge from federal law quite notably. As a result, manufacturers operating in California must stay current on all relevant laws and regulations to remain in compliance. Failure to do so can lead to fees and penalties steep enough to put a small manufacturer out of business.
In this blog, we’ll highlight some recent changes to California’s labor laws that impact the manufacturing industry and offer insights for how California manufacturers can stay in compliance.
To start, let’s review some of the most critical updates to the California Labor Code:
On January 1, 2023, Senate Bill 3 increased the minimum wage in California to $15.50 an hour for all employees, regardless of their company’s size. Some cities and counties in California have even higher minimum wages than that. It is important that companies understand the minimum wage requirement in the counties they do business.
Meanwhile, Senate Bill 1162 requires private employers with over 100 employees to submit annual pay data reports to the Civil Rights Department. These reports must break down companies’ median and mean hourly employee rates by race, ethnicity, and sex.
SB 1162 also requires employers with 15 or more employees to feature pay ranges on all of their job listings and provide employees with pay scales for their positions upon request.
Here’s an overview of California’s newly expanded health and safety regulations:
California’s Civil Rights Department enforces strict anti-discrimination and harassment laws that protect various people. Protections apply to the following characteristics:
Assembly Bill 2068 now requires employers to post certain Cal/OSHA information in English as well as in the top seven non-English languages in California to support diverse workplaces.
Starting on January 1, 2024, Assembly Bill 2188 will protect California workers and job applicants from being discriminated against for their off-site, off-duty cannabis use. Employers will not be allowed to make verbal inquiries about an individual's cannabis use. However, it doesn’t apply to all workers — employees in the building and construction trades and those subject to mandatory federal background checks are exempt.
Since California has a high immigrant population, the state has enacted certain protections for immigrant workers. For instance, California employers are not allowed to look into applicants’ or employees’ immigration status unless they’re doing so to comply with federal immigration law.
California’s Immigrant Worker Protection Act (AB 450) also prohibits employers from providing “voluntary consent” to allow immigration enforcement agents to enter any “nonpublic areas of a place of labor.” In addition, it requires employers to give their employees notice of any upcoming immigration inspections. In addition, all employers must follow state and federal guideline regarding I-9 documentation.
Now that we’ve discussed the employment laws impacting all industries, let’s take a look at a few laws that are especially relevant for California manufacturers:
Since new bills are passed yearly, California employers must keep up with current labor laws and regulations. They also need comprehensive compliance programs to ensure they fulfill all of their legal obligations.
California manufacturers have a lot to keep track of, from expanded health and safety regulations to the recently updated employee classifications.
Fortunately, CMTC’s HR solutions are tailored specifically for small and medium-sized manufacturers in California. This means that each of our experts is well-versed in California’s complex and ever-evolving hiring and employment laws, and can help ensure your organization is practicing California-specific manufacturing compliance.
Reach out today to find out what CMTC can do for your organization!