This year the California legislature and Governor Newsom enacted several new employment laws taking effect January 1, 2024.  Here are the key changes you must be aware of for the new year. Increase in Paid Sick Leave Effective January 1, 2024, California employers of all sizes must provide 5 days (40 hours) of paid sick leave each year to employees.  This is an increase from 3 days that is the current requirement.  The new law continues to allow employers to either provide the paid sick leave on an accrual basis or via frontloading the leave at the beginning of each... READ MORE

In recently passing two separate bills, Assembly Bill 1076 and Senate Bill 699, California has further strengthened its prohibition on non-compete agreements between employers and employees. California’s existing law, Business & Professions Code section 16600 already established that such agreements are void with very limited exceptions. However, the legislature remained concerned that some employers were still using non-compete agreements with employees as a deterrent. Therefore, California enacted Business & Professions Code section 16600.5 which effective January 1, 2024 will make it unlawful for an employer to even enter into a non-compete agreement with their employees. Employers who violate the new... READ MORE

Effective January 1, 2024, California will require all employers to increase the amount of paid sick leave to their employees from the current requirement of 3 days to the new requirement of 5 days per year. The new law, SB616, signed by Governor Newsome on October 4, applies to all employers regardless of size. Note that certain municipalities provide greater paid sick leave, such as the City of Los Angeles. Employers that fall under those municipalities’ laws must provide the greater amount of paid sick leave and also comply with the requirements set forth below. The new law increases the... READ MORE

A severance agreement is a release to be signed by an employee whose employment is separated in exchange for payment of money (or other consideration). This can be an effective tool to protect a company from future lawsuits and other risks. Below we discuss legal requirements when using a severance agreement as well as specific provisions that should be included in the agreement to protect the organization. Legal Requirements When Presenting A Severance Agreement Whenever severance agreements are used there are certain legal requirements that must be followed. As a preliminary matter, in order to be enforceable, the employee must... READ MORE

Over the last several years, remote working has radically changed the traditional office workforce.  With employees no longer physically present in the office, employers face new challenges in effectively managing remote workers to ensure their productivity and compliance with company policies and California’s extensive employment laws.   While there are certainly advantages for employers to have remote workers such as savings in office space expenditures and improved employee morale, there are important considerations to be taken into account whenever remote working arrangements are being used by employers.  Below are some key considerations and requirements that all employers should know. Develop and Implement... READ MORE

The state of California currently sets the minimum wage rate at $15.50 per hour. However, for employers with employees that work in specific cities (see below) the employers must also comply with local city minimum wage requirements when it is higher than the state mandated rate. Effective July 1, 2023, employers with employees in the following local cities, and unincorporated Los Angeles, will need to increase their minimum wage rate of pay as follows: Los Angeles City: $16.78/hour;Los Angeles County (unincorporated areas): $16.90/hour;Malibu: $16.90/hour;Pasadena: $16.93/hour;Santa Monica: $16.90/hour; andWest Hollywood: $19.08/hour   Employers whose employees work remotely in any of these... READ MORE

Whether your company is a large or small employer, there are five essential documents that should be implemented and distributed to your employees that will serve to both protect (as best as possible) the organization from employment-based claims as well as to keep your employees informed and notified of expectations concerning their employment.  Consultation with experienced employment counsel, who can aid in preparing these various documents is highly recommended.  The following are the top five essential employment documents every employer should have. Offer Letter Once a decision has been made to hire an employee, the critical terms and conditions of... READ MORE

By Scott Liner, Employment Attorney California employers must meet all state and federal requirements related to posting employment-related information in the workplace. Specifically, the California Department of Industrial Relations requires employers to post information related to wages, hours and working conditions in an area frequented by employees where it may be easily read during the workday. The required posters can be seen here by clicking on this link to the Department of Industrial Relations. Federal law required postings can be viewed by clicking here. Many of the workplace posters are available at no cost from the requiring agency or can... READ MORE

Inflation can be a challenging economic situation for small business owners. Rising prices of goods and services can make it difficult to keep your customers happy, pay your employees, and stay in business. So how can small business owners adapt to inflation and thrive in a challenging economic environment? Here are some strategies to consider adopting and how Chase Law Group can help. Manage Costs: One of the most effective ways to adapt to inflation is to manage costs effectively. This means taking a hard look at your business expenses and finding ways to reduce them without compromising on quality.... READ MORE

In a significant decision impacting employers’ ability to require new and current employees to agree to arbitrate their disputes, the Ninth Circuit Court of Appeals held by a 2-1 decision in Chamber of Commerce v. Bonta that AB51, enacted in California in 2019, which prohibited mandatory arbitration agreements, violated the Federal Arbitration Act.  Based upon its ruling, which reversed an earlier decision issued by the Ninth Circuit, employers can now require employees to enter arbitration agreements as a condition of employment.  California employers must now wait to see if the state of California will appeal to the full Ninth Circuit or the... READ MORE