Are you compliant? New laws in California changing how business is run in 2021!
By: Attorney Elena Fewell Howard
Here are a few of the California laws relating to business to take note of in 2021. Please note that this list is non exhaustive.
Corporate Boards: Underrepresented Communities
Under current California law, publicly held corporations whose principal office is located in California must have a minimum of one female board member on its board. This year, that number has been promoted to two female directors for a corporation with a board numbering 5 and if the board has 6 board members, then at least 3 of them must be female. If your board consists of 4 or less board members, 1 must be female.
Further, by the end of the year if a board is 9 or more directors, 3 members must from an underrepresented community, if the board is more than 4 but fewer than 8, 2 minimum must be from an underrepresented community and if the board is 4 or less, a minimum of one director from an underrepresented community. A person is from the underrepresented community if they identify themselves as Black, African American, Hispanic, Latino, Asian, Pacific Islander, Native American, Native Hawaiian, or Alaska Native, or who self-identifies as gay, lesbian, bisexual, or transgender.
Exposure to Covid-19: Employer’s Duties
Employers (public or private) that receive notice of potential exposure to Covid-19 must provide notice to its employees within one business day. Notice goes to all employees and employers of subcontracted employees who were on the same worksite within the infectious period and state that they may have been exposed. Notice contains Covid-19 related benefit options and the employer’s plans to make the area safe under the guidelines of the CDC. Cal/OSHA is given the power to issue citations for serious violations or shut down the entire worksite.
Increased Minimum Wage
The state minimum hourly wage is now $14 for businesses that have 26 or more employees. Businesses with 25 or less employees must have a minimum wage of $13 an hour.
Small Business Under California Family Rights Act
All employers with 5 or more employees are under the purview of the California Family Rights Act. This means that if an employee has been with a company for at least 12 months and worked at least 1,250 hours in that 12 month period, that employee has a job protected unpaid leave of up to 12 weeks to take care of themselves, or to take care of a family member due to a serious health condition, or to bond with a new child. Previously this applied to businesses with 50 or more employees, the new law reduces it to 5. There is also no cap on the radius of where the employee resides so now remote workers are covered under this Act as well.
Statement of Information: Judgment Debtor
Businesses must file statements of information with the Secretary of State. A new law was passed that requires that these statements include whether any officer or director or any member or manager has an outstanding final judgment for violating any wage orders or Labor Code provision.
Employer Pay Data Reporting
Each year a private employer with 100 or more employees must submit a report to the Department of Fair Employment and Housing that includes a breakdown of their employees. Said report will subcategorize the employers staff - executive and administrative - by race, ethnicity and sex and include their pay with the total hours worked.
Don’t be caught off guard. Rational Unicorn’s knowledgeable legal team will help you understand which laws are affecting your business this year and help you avoid the headache and expense of being found in non-compliance. Contact us for your free consultation today!