Status of Bills in the California Legislature That May Affect California Employers

By: Philip A. Toomey, Esq.

Bills held in Committee: the general consensus is that bills that have been held in committee will not be acted upon by the legislature prior to the expiration of this legislative session. The bills being held are:

  1. AB1902- Personal Service Contracts: this bill involved personal service contracts, and required the Department of Industrial Relations to value companies, determine ‘similar services,’ ‘area income,’ and thereafter set rates of compensation.
  2. AB2069- Medical Marijuana: this bill would have provided a specific statutory requirement that an employer permit the use of medical marijuana as a reasonable accommodation under FEHA. It would also have prohibited drug-free workplaces to the extent that they interfered with an individual’s ‘off-campus’ use of medical marijuana.
  3. AB3087 Health Care Price Controls: this bill would have created an appointed commission to impose price controls on healthcare providers and insurers.

Bills Awaiting Action by the full Senate or Assembly: the general consensus is most of the following bills will be passed. The Governor’s office has not taken a position on whether to sign or veto the legislation.

  1. AB2384- Mandated Treatment: this bill would mandate coverage for medication-assisted treatments for substance disorder and eliminates quality control or cost-containment mechanisms in relation there with.
  2. AB2613- Wage Statement Penalties: this bill would increase penalties for wage and hour violations and imposes personal liability upon employees who are involved in the process of processing wage payments, or responsible for wage statements.
  3. AB3080- Ban on Arbitration Agreement and certain Settlement Agreements: this bill would ban arbitration agreements made as a condition of employment. It also would ban settlement agreements that impose confidentiality obligations upon the settling party, mainly related to settlement of claims involving sexual harassment or workplace misconduct.
  4. SB1121- Breach of Stored Data: this bill would remove the requirement of any economic injury for standing to bring a claim against a company or employer for a data breach.
  5. SB1284- Disclosure of Pay Data: this bill would require certain California employees to submit pay data to the Department of Industrial Relations. This bill would override the federal Department of Labor decision earlier this year not to require the disclosure of pay data.
  6. SB1300- Standing to Assert Harassment Claim: this bill would remove the standing requirement for a plaintiff alleging failure to prevent harassment or discrimination in the workplace, when no harassment even occurs, limit the use of severance agreements used when there are allegations involving harassment or discrimination, and prohibit the use of a general release or non-disparagement clause in employer/employee agreements.

If you have any questions about these pending bills or about California employment law, please contact Philip A. Toomey. Phil serves as Leech Tishman’s West Coast Business & Employment Client Relations Partner and practices in the firm’s Employment, Corporate, Litigation, and Real Estate Practice Groups. He can be reached at 424.738.4400 or via email at ptoomey@leechtishman.com.

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