California HR Compliance Updates for 2024

Minimum Wage and Compensation Updates

California's minimum wage continues to rise, with additional increases scheduled for 2024. These changes affect millions of workers across the state and require immediate attention from employers.

Statewide Minimum Wage Increases

Effective January 1, 2024, California's statewide minimum wage increased to $16.90 per hour for large employers (26+ employees) and $16.50 per hour for small employers (25 or fewer employees). This represents a $1.90 increase from 2023 levels.

Bay Area Local Minimum Wage Ordinances

Several Bay Area jurisdictions have minimum wages that exceed state requirements:

San Francisco

• Large employers (≥$1 million in gross receipts): $18.67/hour
• Small employers (<$1 million in gross receipts): $17.97/hour
• Tipped workers minimum: $5.55/hour plus tips

San Jose

• Large employers (≥$1 million in gross receipts): $17.73/hour
• Small employers (<$1 million in gross receipts): $16.20/hour

Oakland

• All employers: $16.99/hour
• Large employers (≥$1 million in gross receipts): $17.09/hour

Salary Threshold Updates for Exempt Employees

The California salary threshold for exempt employees increased to $62,400 annually ($1,200 weekly) effective January 1, 2024. This represents a $4,000 increase from 2023 levels and affects executive, administrative, and professional exemptions.

Paid Sick Leave and Family Leave Updates

California's paid leave laws continue to expand, providing employees with additional protections and benefits that employers must track and administer.

Healthy Workplaces, Healthy Families Act (HWHFA)

The statewide paid sick leave requirement remains at 24 hours (3 days) for small employers and 48 hours (6 days) for larger employers. Key requirements include:

• Accrual rate: 1 hour per 30 hours worked
• Carryover limit: 48 hours maximum accrual
• Usage: Employees can use for their own illness, family member care, or preventive care
• Notice requirements: Reasonable advance notice for foreseeable absences

Paid Family Leave (PFL) Updates

The Paid Family Leave program provides up to 8 weeks of partial wage replacement for employees caring for family members. Key 2024 updates include:

• Benefit amount: Up to $1,620 per week (66.67% of high-quarter wages)
• Eligibility: Employees with 12-22 months of employment and $300+ in wages
• Coverage expansion: Includes care for grandparents, grandchildren, and siblings
• Job protection: Employees returning from PFL are entitled to their same or comparable position

California Family Rights Act (CFRA) and Pregnancy Disability Leave

California provides robust protections for employees with family care responsibilities and pregnancy-related conditions.

CFRA Leave Entitlements

• Duration: Up to 12 weeks in a 12-month period
• Eligibility: Employees with 12+ months of service who have worked 1,250+ hours
• Job protection: Right to return to same or equivalent position
• Concurrent leave: Can be taken concurrently with PFL for additional pay

Pregnancy Disability Leave (PDL)

PDL provides up to 4 months of leave for pregnancy-related conditions, separate from CFRA entitlements. Employees can use accrued sick leave or take unpaid PDL.

Privacy and Data Protection Compliance

California leads the nation in privacy protection, with laws that significantly impact HR practices and employee data management.

California Consumer Privacy Act (CCPA)

The CCPA continues to evolve with enforcement actions and new regulations. Key requirements for employers include:

• Data collection notices: Clear disclosure of personal information collection practices
• Employee rights: Right to know, delete, and opt-out of data sales
• Security requirements: Reasonable security measures to protect personal information
• Breach notification: 45-day notification requirement for security breaches

California Privacy Rights Act (CPRA) Implementation

The CPRA amendments to CCPA took effect in 2023 and continue to impact employers in 2024:

• Automated decision-making: Protection against automated decisions without human review
• Sensitive personal information: Additional protections for sensitive data categories
• Children's privacy: Enhanced protections for users under 18
• Contract requirements: New requirements for contracts with service providers

Workplace Safety and Harassment Prevention

California maintains strict requirements for workplace safety and harassment prevention training.

AB 1825 Sexual Harassment Prevention Training

All California employers must provide sexual harassment prevention training:

• Frequency: Annual training for supervisors, biannual for non-supervisory employees
• Content requirements: Cover harassment prevention, retaliation, and complaint procedures
• Documentation: Maintain training records for at least 2 years
• Interactive training: Training must be interactive and allow for questions

SB 1343 Workplace Violence Prevention

High-risk industries must implement workplace violence prevention plans by 2025, but all employers should prepare for potential expansion of these requirements.

Remote Work and Flexible Scheduling

California's approach to remote work continues to evolve, with new laws addressing flexible work arrangements.

AB 1658 Right to Request Flexible Work

California employees have the right to request flexible work arrangements for childcare or elder care responsibilities:

• Eligibility: Employees with 6+ months of service
• Employer response: Must respond within 21 days with a written decision
• Reasonable accommodation: Employers must engage in good faith interactive process
• Retaliation protection: Protected from retaliation for making requests

Predictive Scheduling Laws

Several California cities have predictive scheduling ordinances requiring advance notice of work schedules. While primarily affecting retail and hospitality, these laws may influence other industries.

Equal Employment Opportunity and Discrimination

California's anti-discrimination laws extend beyond federal requirements, providing additional protections for employees.

Expanded Protected Classes

California law prohibits discrimination based on additional categories beyond federal law:

• Marital status - Protection against discrimination based on marital status
• Medical condition - Broader protection for medical conditions beyond disabilities
• Political activities - Protection for off-duty political activities
• Military/veteran status - Enhanced protections for veterans
• Genetic information - Protection against discrimination based on genetic testing

Transgender Rights

California provides strong protections for transgender employees, including the right to use facilities consistent with gender identity and protection from discrimination based on gender identity or expression.

Workers' Compensation and Disability Accommodations

California's workers' compensation system and disability accommodation requirements remain among the most employee-friendly in the nation.

Workers' Compensation Updates

• Medical treatment: Employers must provide prompt medical treatment for work-related injuries
• Wage replacement: 66.67% of pre-injury wages (up to maximum amounts)
• Medical costs: Full coverage for reasonable and necessary medical treatment
• Return to work: Light duty and return-to-work programs encouraged

California Family Rights Act (CFRA) and FEHA

The Fair Employment and Housing Act (FEHA) requires employers to provide reasonable accommodations for employees with disabilities, with additional requirements for larger employers.

Recordkeeping and Reporting Requirements

California employers face extensive recordkeeping and reporting obligations that vary by industry and company size.

E-Verify Requirements

Public employers and certain private employers must use E-Verify for employment verification:

• All public employers - Required to use E-Verify
• Private employers with state contracts - Must use E-Verify
• Construction contractors - E-Verify required for projects over $1 million
• Penalties - Civil penalties up to $10,000 per violation

Payroll Records and Wage Statements

California requires detailed payroll records and itemized wage statements. Employers must maintain records for 3 years and provide detailed wage statements with each paycheck.

Industry-Specific Compliance Considerations

Certain industries face additional compliance requirements specific to their sector.

Technology and High-Tech Industries

• Wage and hour - Careful tracking of exempt vs. non-exempt classifications
• Data privacy - Enhanced CCPA compliance for employee data
• Trade secrets - Protection of intellectual property and confidential information
• Remote work - Compliance with AB 1658 flexible work requests

Healthcare and Medical Services

• HIPAA compliance - Protection of patient health information
• OSHA requirements - Bloodborne pathogens and infection control
• Licensing - Verification of professional credentials
• Mandatory overtime - Special rules for healthcare workers

Compliance Audit and Risk Assessment

Regular compliance audits help identify and address potential issues before they become problems.

Essential Audit Components

• Policy review - Ensure all policies comply with current laws
• Training verification - Confirm required training has been completed
• Payroll audit - Verify accurate wage payments and recordkeeping
• Leave administration - Review leave requests and approvals
• Accommodation requests - Ensure proper handling of accommodation requests
• Incident reporting - Review workplace incident investigations

Penalties and Enforcement Actions

California's labor enforcement agencies actively investigate complaints and impose significant penalties for violations.

Practical Steps for Compliance in 2024

Maintaining compliance requires proactive planning and regular review of policies and practices.