Wage, hour laws on the rise in California

Wage and hour laws are in flux in the state that offers serves as a bellwether for the rest of the nation: California.

Shifting wage laws were one of the topics discussed at the inaugural CA Retail Law Summit in Irvine, Calif. The event, hosted by the National Retail Federation and the California Retailers Association,  was designed to help retailers navigate the complexities and nuances of California laws.

Andy Medlin, VP and deputy general counsel for Hot Topic, California labor and employment legal expert Julie Dunn and other leaders from DLA Piper led a panel discussion on California’s unique labor rules regarding scheduling, vacation pay, paid sick leave and timekeeping.

The following is a recap of the discussion by Ceara Flake, VP and deputy general counsel, NRF, who noted that wage and hour laws continue to shift for businesses located in California or with employees who work in California, presenting fresh challenges and additional considerations for retailers.

One such challenge is the City of Los Angeles’ Fair Work Week Ordinance, requiring large retail employers in Los Angeles to provide employees with a “good faith estimate” of their future work schedules, at least 10 hours of rest between shifts and at least 14 days advance notice of their work schedules.

Since the regulation’s 180-day grace period expired and enforcement began Sept. 28, 2023, Dunn urged retailers to be aware that each day a violation exists constitutes a separate violation and administrative fees increase by 50% if another offense occurs within three years.

Moving from scheduling rules to vacation pay rules, Dunn said employers are currently required to provide at least 24 hours (three days) of paid sick leave each year to most workers, including full-time, part-time and temporary workers who meet certain qualifications.

In addition, the California legislature recently passed a bill to expand paid sick leave to 40 hours (five days) per year. If signed by Governor Newsom, the law will become effective Jan. 1, 2024.

For more on the other issues discussed at the summit, including pricing litigation, environmental regulation and privacy, click here.