Summary of New California COVID-19 Supplemental Paid Sick Leave – What Employers Need to Know

On February 9, 2022, California Gov. Gavin Newsom signed Senate Bill 114, which provides COVID-19 supplemental paid sick leave (SPSL) for covered employees who are unable to work or telework due to COVID-19 related reasons from January 1, 2022 through September 30, 2022. SB 114 is nearly identical to Assembly Bill 84 (AB) which was passed by the California Legislature on February 7, 2022. SB 114 takes effect on February 19, 2022, (10 days after the bill is signed by Gov. Newsom) and adds Sections 248.6 and 248.7 to the California Labor Code.

Among other things, SB 114:

  • Applies to employers with more than 25 employees.
  • Establishes a new bank of COVID-19 related SPSL.
  • Broadens the reasons employees can take COVID-19 SPSL
  • Permits employers to request proof of a positive COVID-19 test as to the employee or the employee’s family member.
  • Requires retroactive payment if an employee would have been eligible for SPSL since January 1, 2022.
  • Will remain in effect until September 30, 2022.

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New Executive Order Requires Project Labor Agreements on Large Federal Construction Projects

On Friday, February 4, 2022 President Joe Biden signed Executive Order 14063, requiring project labor agreements (PLA) for all federal construction projects costing more than $35 million. PLAs are agreements between contractors and one or more labor organizations that establish the terms and conditions of employment, such as wage rates and benefits, for specific construction projects. Because of their project-based specificity, the terms and conditions of a PLA often (depending upon the PLA’s terms) supersede the provisions of an existing, but more geographically generalized, area collective bargaining agreements (CBA).

The order takes effect immediately and will apply to many of the projects funded by the recent infrastructure bill.

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Colorado Increases Its Criminal Penalty for Violations of Its Noncompete Law

On July 6, 2021, the Colorado legislature passed S.B. 21-271 in an effort to reform the sentencing provisions related to a number of petty offenses and misdemeanors. As a result, several Colorado laws related to labor and employment are affected, including Colorado’s statute addressing restrictive covenant and noncompete agreements, C.R.S. § 8-2-113. Under C.R.S. § 8-2-113, it is unlawful to intimidate workers in order to limit their ability to engage in lawful work; and covenants that restrict trade, such as noncompete and nonsolicitation agreements, are void unless the covenants fit within limited exceptions provided under the statute. Effective March 1, 2022, the penalty for violating the noncompete statute will be increased to a class 2 misdemeanor punishable by up to 120 days in jail, or a fine of up to $750, or both.

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Pay Equity Update: New York City’s New Salary Range Disclosure Law

Several states and localities have passed laws that seek to address pay inequity, based on gender, race and other protected categories. While the intent behind these laws is similar, the laws impose different obligations. New York City is the latest locality to impose a salary range disclosure requirement on employers. On January 15, 2022, the New York City Human Rights Law (NYCHRL) was amended to prohibit employers with four or more workers (including independent contractors) from advertising a job, promotion or transfer opportunity without stating the minimum and maximum salary for the position. The range may extend from the lowest to the highest salary the employer in good faith believes at the time of the posting it would pay for the advertised job, promotion or transfer opportunity. New York City’s salary range law is effective May 15, 2022.

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Employer Beware: New California Employment Laws for 2022

*Originally published by CalCPA in the January/February 2022 issue of California CPA.

To borrow from both the Grateful Dead and Miley Cyrus, “… what a long, strange trip it’s been …” and “there’s always gonna be another mountain … ain’t about what’s on the other side, it’s the climb.” Among the lasting 2021 impacts of politics, aberrant weather and wildfires—and COVID-19— is increased regulation of California employers. More than 330 bills introduced in the most recent California legislative session mention “employer,” compared to about 560 bills in 2020. While most bills did not pass the Legislature, many were signed into law by Gov. Gavin Newsom, bringing more rules and risks for employers in our state dealing with COVID-19, workplace safety, wage and hour rules, worker classification, working conditions, leaves of absence, posters, Department of Fair Employment and Housing matters, settlements and nondisparagement agreements, and wage rates.

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Benefit Plan Descriptions May Create Unilateral Contracts in Pennsylvania

Written descriptions of employee benefits may expose Pennsylvania employers to additional contractual obligations and liabilities. According to a three-judge Pennsylvania Superior Court panel, providing written descriptions to employees regarding various benefits, incentives and rewards may form a binding, unilateral contract creating rights and obligations separate from an employee’s at-will relationship with the employer.

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