California Governor Gavin Newsom signed several legislative items into law, effective January 1, 2023, unless otherwise noted.
AB 1949 requires employers with 5 or more employees in California to provide eligible employees with up to 5 days of unpaid bereavement leave for the death of a parent, spouse, child, sibling, grandparent, grandchild, domestic partner, or parent-in-law. Eligible employees must be employed for 30 days prior to the start of leave. Employees can utilize their paid leave, such as accrued vacation days or sick days. The time off must be completed within three months of the date of death and does not need to be taken in consecutive days.
Supplemental Paid Sick Leave (SPSL) has been extended from 9/30/2022 to 12/31/2022. Employers will not need to provide new or additional SPSL to employees who have already used their 2022 allotment between January 1, 2022 and September 30, 2022.
AB 152 establishes the California Small Business and Nonprofit COVID-19 Relief Grant Program within the Governor’s Office of Business and Economic Development, to assist eligible small businesses or nonprofits that are incurring costs for SPSL. This requirement of the bill will expire on January 1, 2024.
AB 1041 allows California employees to use Paid Sick Leave or take leave under the California Family Rights Act (CFRA) to care for a “designated person.” A designated person is defined as any individual related by blood or whose association with the employee is equivalent to a family relationship. An employee can designate this person at the time they request leave. An employer can limit an employee to one person in a 12-month period as the employee’s designated person.
Senate Bill 951 extends increased wage replacement rates for State Disability Insurance (SDI) and Paid Family Leave (PFL) that were set to expire at the end of the year. The legislation extends the date from January 1, 2023 to January 1, 2025.
For claims beginning on or after January 1, 2025, the formulas for determining benefits under both programs are revised to provide an increased wage replacement rate ranging from 70 to 90% based on the individual’s wages earned.
The legislation also eliminates the limitation for the taxable wage ceiling to be four times the maximum weekly benefit amount multiplied by 13 and divided by 55%. This will become effective on January 1, 2024.
California Senate Bill 1162 includes provisions that alter the current regulations for the annual California Pay Data Reporting, and a new regulation requiring certain employers to provide pay scale information on job applications.
California employers will have an extended deadline to file the pay data report. The new deadline is the second Wednesday in May of each year.
Additional FAQ and changes to the user guide should be expected from the California Civil Rights Department in the coming months. Paylocity will provide our clients with updated information in our Paylocity Knowledge base.
The legislation amendments Section 432.3 of the California labor code to require that employers disclose pay scale information.
Employers can update their job application in Paylocity’s Recruiting tool and should review their current compensation practices with Paylocity’s Compensation Management tool. Contact a Paylocity representative for assistance if needed.
The Fast Food Accountability Recovery Act (FAST Recovery Act) AB 257, was signed by the Governor on September 5, 2022. The bill requires the California DIR to form a Fast Food Council including representatives of state agencies, fast food restaurant employees, fast food restaurant franchisors, and franchisees.
The purpose of the council would be to establish industry minimum standards on wages, working hours, and other working conditions related to the health, safety, and welfare of, and supplying the necessary cost of living to fast food restaurant workers, as well as effecting interagency coordination and prompt agency responses in this regard. Prior to the Fast Food Council issuing new rules or standards, 10,000 or more California fast food restaurant employees must sign a petition supporting its creation.
Employers should continue to monitor for further regulations and requirements specific to Fast Food Restaurants.
For more information on California's wage and payroll tax laws, check out our California Wage and Payroll Tax Facts page.
Additional resources, and any additional information made available, will be ready for Paylocity clients in the Paylocity Knowledge Base, PEAK.
Thank you for choosing Paylocity as your Payroll Tax and HCM partner.
This information is provided as a courtesy, may change and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney or Advisor.