Employers subject to California’s employment laws will see a few additions in 2024, according to Caroline Donelan, partner at Blank Rome. Changes will affect compensation, leave and cannabis rights, among other things.

Donelan outlined what she deemed the “top five” legal updates coming out of the Golden State in a Dec. 7 webinar.

A $16 per hour minimum wage

As some jurisdictions move to a $15 minimum wage, California will stay ahead of the curve. “In true California fashion, we saw your $15 and we raised you $1,” Donelan said. The $16 minimum wage takes effect Jan. 1 for all employers, regardless of size. Moreover, “you have to think about the fact that this not only affects your hourly workers, but this raises the minimum salary threshold for your exempt employees as well,” Donelan added. “So that now is up to $66,560 per year.”

Some California cities have higher minimum wages as well and employers also must keep an eye on industry-specific requirements. The state sets separate wage requirements for healthcare workers, for example.

Paid sick and safe leave

California employees will soon generally be entitled to five days or 40 hours, whichever is greater, of paid sick and safe leave.

Donelan said some of her firm’s clients have chosen to maintain one comprehensive PTO policy, but employers that choose this path must ensure they’re allowing workers to use time off for covered reasons. Local laws may overlap with this requirement, too, and may even conflict when it comes to documentation requirements, she noted, suggesting employers consult legal counsel before requiring documentation or disciplining an employee for failing to provide documentation.

Employers may want to make particular note of the law’s coverage of leave for the health condition of someone an employee names as their “designated person.” A traditional familial relationship is not required, Donelan said; “This is a brand new, very progressive — relatively speaking — [...] form of protective leave.”

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