Articles for California Employers
Stay informed about the legal developments shaping California workplaces. Explore timely updates, practical guidance, and analysis from Cook Brown attorneys on the issues affecting employers.
By January 1, 2027, certain businesses that use automated decision-making technology to make employment decisions must comply with new California Privacy Protection Agency regulations. The regulations generally apply to large employers — those with annual revenue in excess of $25 million dollars. Any such large employer that uses automated decision-making technology for significant employment decisions […]
Now that 2026 is well under way, employers may want to assess their compliance with one of this year’s more nuanced new laws – AB 692 – governing employee debts. AB 692 was enacted to prohibit employers from forcing employees who resign to pay for work-related benefits such as trainings, or school tuition. The law […]
California courts continue to interpret whistleblower protections broadly and extend this protection to employees even when they are wrong about the law or an alleged violation. In a recent decision, a California Court of Appeal held that an employee may pursue a whistleblower retaliation claim under Labor Code section 1102.5 based on the employee’s mistaken, […]
Pay equity and pay transparency continue to be legislative priorities in California. Over the past several years, the Legislature has repeatedly expanded California’s Equal Pay Act (Lab. Code §§ 1197.5, 432.3) and imposed increasingly detailed pay data reporting requirements on employers. The latest legislation continues this trend and further increases compliance obligations and potential litigation […]
The 2025 federal budget law “One Big Beautiful Bill Act” (OBBBA) created two temporary federal income tax deductions that rely on employer information reporting: (i) a deduction for qualified tips (IRC §224) and (ii) a deduction for qualified overtime compensation (IRC §225). Both apply to taxable years beginning after December 31, 2024, and each terminates […]
The California Legislature recently passed the “Workplace Know Your Rights Act (“Act”).” The Act requires employers to provide an annual workplace rights notice to employees focused on protection against immigration-related practices. While this new notice requirement contained in the Act has been widely publicized, another notice requirement was enacted as part of the Act to […]
A new California law requires employers to provide all California-based employees a new notice notifying employees of their workplace rights, including when interacting with law enforcement and immigration agents in the workplace. The California Department of Industrial Relations (DIR) published a sample “Workplace Know Your Rights Act” notice pursuant to Senate Bill 294, which is […]
Suppose you have a non-exempt employee who, in a single workweek, earns different rates of pay. This can occur, for example, if an employee works on both private and public works construction projects, or they earn a different rate for travel time than they do for other types of work, or they earn a higher […]
Before we carve turkeys, pass the stuffing, and head into a well-earned Thanksgiving break, it’s a good time to revisit how your business handles holidays to ensure you are paying your staff correctly. Here are some frequently asked questions and answers to review before you cut employee checks this holiday season. Am I required to […]
Cook Brown held its annual Employment Law Update on November 19, 2025. As part of this update, Cook Brown attorneys discussed the following statutory changes signed into law this session. Unless otherwise noted, these measures will go into effect January 1, 2026. Pay Practices SB 642 California Equal Pay Act SB 642 California Equal Pay […]
Many employers believe that labor rights under the National Labor Relations Act (“NLRA”) only apply in a unionized workplace or where union organizing is taking place. However, that is not the case. All employees, union and non-union, are protected under the NLRA. Protected Concerted Activities Section 7 of the NLRA provides in part that all […]
The California Supreme Court recently held in Iloff v. LaPaille (2025) Cal.5th 551 that employers who claim good faith ignorance of minimum wage laws are still subject to liquidated damages. Employers now bear the burden to establish they made reasonable efforts to understand minimum wage laws when defending against minimum wage claims. Further, employees may […]
In the recent decision of Kruitbosch v. Bakersfield Recovery Services, Inc. (CA5 F087809 partial pub. 9/8/25), a California court held that, although sexual harassment by a co-worker outside the workplace was not “work-related,” the employer’s response to the complaint can support an independent hostile environment claim against an employer. Background Plaintiff, a compliance officer for […]
Extended medical leave is challenging for California businesses to navigate, especially when there is no clear return to work date. California and federal law state that extended leave is sometimes necessary as a reasonable accommodation, but what if an employee repeatedly requests additional time off with no end in sight? Are businesses indefinitely at the […]
A recent California Court of Appeal decision, Hearn v. Pacific Gas & Electric Co. (2025) 108 Cal.App.5th 301, offers valuable guidance for employers and third-party investigators involved in drafting workplace investigation reports. The case highlights that retaliation and defamation claims can arise from the contents of an internal report—even when it is not shared outside […]
Appellate court finds harassment need only alter working conditions as to ‘make it more difficult to do the job’ Most California employers understand that under the Fair Employment and Housing Act (FEHA) they are required to promptly investigate harassment complaints and take immediate steps to protect employees. However, there is no definitive guide for determining […]
Arbitration agreements, particularly those containing a class action waiver, are a powerful tool for employers seeking to efficiently manage employment disputes. A recent California appellate court ruling, Velarde v. Monroe Operations, LLC, highlights the importance to employers of properly managing the distribution of such agreements to employees to ensure their enforceability. Arbitration Agreement Presented During […]
In May 2025, the California Civil Rights Department (“CRD” ) released its latest “Fact Sheet on Protections Against Age Discrimination” (“Fact Sheet”) under California’s Fair Employment and Housing Act (“FEHA”). With age-related claims on the rise, this new guidance serves as a timely reminder for employers to take a closer look at their policies, hiring […]
A recent appellate decision provides a victory for California employers that seek to limit wage and hour liability. The Court in La Kimba Bradsbery, et al. v. Vicar Operating, Inc. recently ruled that revocable, prospective meal period waivers for employees that work between five and six hour shifts are enforceable if the waivers are not […]
Labor Code Section 1198.5 provides that current and former employees (or a representative) have the right to inspect and receive a copy of their personnel file and records that relate to the employee’s performance or to any grievance concerning the employee. Requests for personnel records often come in the form of a letter from a […]
California employers are required to engage in an interactive process and reasonably accommodate the known disabilities of employees and applicants to permit them to perform the essential functions of a position. However, employers are not required to provide accommodation if doing so would cause “undue hardship” to the employer’s operations. Employers may be tempted to […]
Private California employers that have 100 or more employees must submit an annual pay data report to the Civil Rights Department (CRD). This year’s reporting deadline is May 14, 2025. Employer Pay Data Requirements The Legislature enacted Government Code Sec. 12999 to encourage employers to self-assess pay disparities along gendered, racial, and ethnic lines in […]
While discussions regarding politics, political activities or support or opposition to social or political movements are important in certain contexts, differences of opinion can lead to disruptions in the workplace when these discussions or activities occur during work time. In addition, recent legislation has placed restrictions on employers’ ability to promote their own political views […]
New workplace laws in California typically trigger additional notice and posting requirements. This year is no exception. California employers now have two additional obligations. As a reminder, as of 2025, California employers must do the following: Post a Notice Advising Employees About Whistleblower Rights Under Labor Code Section 1102.5, employers cannot retaliate against an employee […]
On January 9, 2024, the California Department of Public Health (CDPH) significantly relaxed the rules on COVID exclusion periods, moving away from the 5-day isolation requirement after a positive COVID test. Return to Work For COVID-19 cases with symptoms, employees may return to work if 24 hours have passed with no fever, without the use […]
Employers across California are on high alert in response to Immigration and Customs Enforcement’s (“ICE”) recent increase in enforcement activity. Whether auditing I-9 compliance or preparing for ICE’s potential arrival at their place of business, employers must have a plan for addressing enforcement actions to remain in compliance and reduce disruption to their business. What […]
When an employee is hired, they are required to sign and acknowledge their understanding of, and agreement to, a number of important policies that become a part of the employment relationship. This often includes an arbitration agreement and waiver of class actions. The review and execution of these agreements is treated by some as a […]
In a decision released in November involving Amazon and its response to union organizing efforts, a majority of the members of the National Labor Relations Board (NLRB) overturned a 76 year-old NLRB decision and held that so-called employer “captive audience” meetings with employees during work hours are prohibited unless the employer meets new, specific requirements. […]
Managing employee leaves of absence can be a complex and often overwhelming process. With multiple state, federal, and local laws governing employee rights to leave, it’s easy to make mistakes that could expose your company to legal risks. Each leave request must be carefully reviewed to ensure compliance with various distinct, yet sometimes overlapping, legal […]
A recent court decision brings encouraging news for employers. In Gonzalez v. Nowhere Beverly Hills LLC, the court determined that employees cannot avoid contractual arbitration with companies who are related to their employer, such as subsidiaries or affiliates, if their claims are closely linked to their employment with the entity with which they signed an […]
A recent California Court of Appeal decision serves as a critical reminder for employers about the importance of clear policies and fair treatment in the workplace. Wawrzenski v. United Airlines, Inc. deals with allegations of gender discrimination, harassment and retaliation under California’s Fair Employment and Housing Act (FEHA). Alexa Wawrzenski, a flight attendant, claimed she […]
California’s annual expansion of employer obligations can overwhelm even the most seasoned of HR practitioners. New regulations, statutes, and case law combine to tax every HR Department. Keeping up takes time and resources – and both can be falling short as the year ends. For that reason, we have compiled a list of action items […]
The end of the year poses unique challenges for employers seeking to reward employees and at the same time stay compliant with hyper-technical legal mandates. No aspect of employment relationships is simple or intuitive in California and that is especially true for gift giving in 2024. Most risky practices can be avoided. With that in […]
Effective January 1, 2025, job postings, applications and other pre-employment materials cannot indicate that an applicant must have a driver’s license unless certain conditions are satisfied. New FEHA Amendment On September 28, 2024, Governor Gavin Newsom signed into law Senate Bill 1100, which amends the California Fair Employment and Housing Act to make it an […]
Background The Private Attorneys General Act of 2004 generally enables California employees to sue their employers on behalf of themselves and other “aggrieved employees” to recover civil penalties for Labor Code violations. In 2018, legislation was passed which created a PAGA exemption for employees in the construction industry if they are covered by a collective […]
California’s Private Attorneys General Act (PAGA) allows aggrieved employees to file lawsuits to recover civil penalties on behalf of themselves, other employees and the state of California for Labor Code violations. Private employers are well aware of the substantial increase in PAGA litigation that cost businesses across California billions of dollars. But can aggrieved employees […]
On July 29, 2024, the California Supreme Court issued an opinion in Bailey v. San Francisco District Attorney’s Office reaffirming that the single use of a racial epithet can be severe enough to constitute actionable harassment under the California Fair Employment in Housing Act (FEHA). Bailey was a former employee of the District Attorney’s office. […]
On August 7, 2023, the EEOC proposed new regulations for implementing the federal Pregnant Workers Fairness Act (PWFA). The PWFA was enacted in 2022 and went into effect on June 27th of this year. The law requires employers to make changes to working conditions and provide reasonable accommodations to employees who have pregnancy-related limitations. The […]
When it comes time to terminate an employee or institute a reduction-in-force or layoff, many companies choose to offer severance to help the separated employee transition to future employment. Indeed, the offer of severance pay and/or reimbursement of COBRA costs after separation can be a morale booster and an excellent form of “protection” from future […]
Alleged wage statement violations are a staple of complaints in class action litigation and claims under the Private Attorneys General Act (PAGA). Labor Code section 226 requires that a wage statement accurately state nine categories of information, including among other things the gross wages earned, total hours worked, and net wages earned. An employer who […]
On June 20, 2024, Cal/OSHA’s Standard Board adopted a new regulation that will require certain California businesses to prepare an Indoor Heat Illness Prevention Plan. Once effective, much like California’s current outdoor heat illness prevention requirements, the recently approved regulations will require employers to implement certain heat illness prevention measures for employees working in hot […]
As has been widely publicized, emergency legislation has been passed to reform the Private Attorneys General Act of 2004 (“PAGA”). As most California employers know, PAGA allows an individual employee to collect civil penalties on behalf of the state for alleged Labor Code violations. The reform legislation consists of two bills signed into law on […]
Arbitration agreements represent a critical tool for employers aiming to circumvent the protracted and costly litigation of employee disputes in civil courts. However, recent judicial scrutiny in California necessitates meticulous drafting to ensure the legality of these agreements. In a recently published appellate decision, Cook v. University of Southern California (USC), et al., the court […]
For decades, state and federal mandates have required employers provide equal opportunity to all their employees, a mandate which requires equal access to training opportunities, promotions, and job-related tools and resources. While the principle of equal opportunity is clear, the practical application has become increasingly challenging in light of rapid changes in technology. Without any […]
On April 29, 2024, the U.S. Equal Employment Opportunity Commission (EEOC) published its newest “Enforcement Guidance on Harassment in the Workplace” (the “Guidance”). This marks the EEOC’s first update to its anti-harassment guidelines since 1999. The Guidance incorporates practical and legal developments from the past 25 years, specifically addressing harassment in virtual or hybrid work […]
Many California employers have adopted arbitration agreements to resolve their workplace disputes. Such agreements are enforceable in California so long as their terms are substantively fair. To ensure enforceability, the agreement must include certain procedural protections for employees, and must not waive an employee’s rights to assert individual statutory and common law employment claims, including […]
Virtually all California employers must have a workplace violence prevention plan in place by July 1, 2024. Cal/OSHA’s model plan offers a starting point for creating a compliant plan. In addition to a model workplace violence prevention plan, California’s Division of Occupational Safety and Health (Cal/OSHA) has also published a general fact sheet to help employer’s create and […]
While employers hope every employee hired enjoys a long, productive relationship with the employer, almost every employee ultimately leaves employment. The end of employment most commonly occurs through a voluntary resignation by the employee either with or without advance notice or by the employer terminating the employee with or without advance notice. Employers terminate employees […]