In this episode of The Workplace podcast, CalChamber Labor and Employment General Counsel Bianca Saad and CalChamber Associate General Counsel Matthew Roberts discuss key compliance practices and reminders for California employers.
The following provides a summary of the topics discussed on today’s podcast. Readers are encouraged to listen to the podcast for detailed information.
Recruiting, Hiring
There have been many changes over the last several years pertaining to hiring and recruiting, Saad says. These updates touch on various aspects of the hiring process, from job advertisements to criminal background checks and pre-employment drug screenings.
Employers are now required to be more vigilant in crafting job advertisements, ensuring that the language used is free from any form of discrimination. Additionally, certain employers are now mandated to include reasonable pay scales in their job postings. A new law has also made it illegal for employers to require a driver’s license unless driving is an essential part of the job and no comparable alternative transportation exists.
Saad explains that in an effort to promote fairness, a recent law prohibits employers from asking applicants about their gender or salary history. This shift, she notes, aims to combat wage discrimination and ensure a more equitable hiring process.
California’s Fair Chance Act has introduced a rigorous process for criminal background checks, emphasizing that these checks can occur only after a conditional offer of employment is made. If a criminal conviction surfaces, employers must conduct an individualized assessment to determine its relevance to the job. Applicants also are given the opportunity to provide additional information before a decision to deny employment is made, Saad says.
The Fair Employment and Housing Act has brought significant changes to how pre-employment drug screenings are conducted. Employers are prohibited from discriminating against applicants who use cannabis off the job. Additionally, drug screenings must be adjusted to avoid testing for non-psychoactive cannabis metabolites, a change that requires employers to work closely with their drug screening vendors.
Job Descriptions
Saad recommends that job descriptions be reviewed annually to ensure they accurately reflect an employee’s current duties. Accurate job descriptions help with classification (exempt vs. nonexempt), background checks and reasonable accommodation requests.
Job descriptions also provide clarity for performance expectations. For example, Saad says, if an employer is dealing with an employee with performance issues, the employer can go over the employee’s job description and help the employee understand where they’re falling short.
Employee Handbooks
Saad recommends that employers review employee handbooks yearly to align with new laws and ensure the policies reflect current practices.
An employee handbook is basically the workplace rules manual for employees, she says.
“It’s how we are going to communicate the expectations and the policies to our employees. So, if you want to enforce those rules, you of course need to make sure that your employees are aware of those rules. Secondly, a lot of times we have written policies that maybe have been in place for a while, they haven’t been reviewed, and they kind of get stale,” she says.
Training Programs
In California, employers should ensure their teams undergo the required trainings to maintain legal compliance.
One requirement is harassment prevention training, which must occur every two years. Non-supervisory employees are required to undergo one hour of training, while supervisors must receive two hours. Newly hired or promoted supervisors must complete this training within six months of their new hire or promotion.
Additionally, the state now mandates annual workplace violence prevention training for all employees, with additional sessions required whenever changes are made to the workplace violence prevention plan.
While not legally required, training on wage and hour laws, as well as mandatory leave policies such as paid sick leave and the California Family Rights Act, is essential to ensure compliance. Supervisors, in particular, must understand these regulations to prevent costly legal issues, such as violations of employee break requirements or not paying employees for all hours worked. Inadequate training in these areas can lead to actions under the Private Attorneys General Act (PAGA), which can be both costly and disruptive.
Beyond compliance, effective training helps address specific organizational risks, Saad says. Companies are encouraged to assess where their operations are most vulnerable and implement training programs that address those areas. For instance, cybersecurity training is increasingly crucial for businesses that have employees who rely heavily on computer systems.
Performance Management
The first thing that employers should keep in mind when they’re determining whether someone should be disciplined or rewarded, is to ensure that the decision being made is for a non-discriminatory, non-retaliatory legitimate business reason, Saad explains.
Effective performance management techniques are key in this area, she stresses. Whether quarterly or bi-annually, employees should receive a performance review from their managers. This ensures that performance issues are addressed promptly, preventing situations where an employee may be caught off guard by disciplinary action or termination if they haven’t been informed about their performance issues earlier.
Additionally, maintaining consistent, objective standards for evaluating performance is critical to avoid potential legal pitfalls. A structured review system helps ensure that employees are assessed fairly and are aware of the expectations and criteria used to evaluate their work. This transparency not only fosters better employee retention but also helps mitigate risks of discrimination or unfair treatment, Saad says.
