Overview: Several new laws impacting California workers have come into effect from January 1, including an increase in minimum wage to $16.90 per hour, protection for service workers’ tips, and the right for rideshare drivers to sectoral collective bargaining. New restrictions on employment contract terms and enhanced enforcement authority to recover lost wages have also been introduced. Additionally, measures have been implemented to prevent employer fraud and modernize a 1976 statute to help farmworkers recover unpaid wages. The California Workforce Development Agency (LWDA) emphasized the importance of these changes to build a resilient and thriving economy for all.
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A number of key laws important to California workers became effective with the new year. The CA Workforce Development Agency (LWDA) stressed the importance of workers, employers, and community organizations being aware of and understanding these changes.
LWDA stressed how the new laws are intended to reinforce California’s continued commitment to building a resilient and thriving economy for all. Following are some of the key changes that took effect January 1.
More money for California workers
California’s minimum wage increased to $16.90 per hour. The increase is intended to ensure that wages better reflect the rising cost of living and help lift workers toward greater financial stability.
Service workers’ right to keep 100% of their tips is now further protected. Beginning this year, the Labor Commissioner now has the authority, through their existing citation process, to investigate and impose citations and fines against employers who unlawfully withhold gratuities (SB648).
More power and protections for California workers
For the first time, rideshare drivers now have the right to sectoral collective bargaining. This change allows drivers to unionize and collectively bargain for improved working conditions, including benefits and pay (AB 1340).
New restrictions on employment contract terms now prohibit many forms of “stay-or-pay” agreements that previously indebted working Californians to their employers by requiring employees to repay expenses, such as relocation costs and training, if the employee leaves their employment before a specified time (AB 692).
The California Workplace Outreach Program has expanded its existing education and outreach services to workers in industries that are vulnerable to labor violations as a way to help workers understand and assert their workplace rights (SB 578).
Workplace, fairness, accountability nd responsibility
Newly enhanced enforcement authority will help workers recover lost wages by increasing employer accountability for unpaid wage judgments with new penalties. If not paid within 180 days, these enhanced penalties can be up to three times the amount of wages owed,
Measures to prevent employer fraud make it easier for the state to collect from unscrupulous employers who fail to protect injured workers by not providing workers compensation coverage – ensuring all workers receive the benefits to which they are entitled (SB 847).
Also, effective January 1, a 1976 statute was modernized to give the Labor Commissioner a more efficient enforcement mechanism to help farmworkers recover unpaid wages (SB 846).
The role of LWDA is to ensure safe and fair workplaces, deliver critical worker benefits, and promote good jobs for all. LWDA oversees seven major departments, boards and panels that serve California workers and employers, including the Agricultural Labor Relations Board, Department of Industrial Relations, Employment Development Department, Employment Training Panel, Public Employment Relations Board, Unemployment Insurance Appeals Board, and Workforce Development Board. Visit the LWDA website to learn more about the agency and its purpose.