New California HR Law Updates

Cal Saver Program

Cal Savers is a state run retirement savings program. Private sector employers in California with five or more employees must participate in CalSavers if they do not already have a workplace retirement plan in place.  Employees working for eligible employers will be automatically enrolled in the Cal Savers plan, but can opt out of it. 

Employers must register with the Cal Savers program by these deadlines:

• More than 100 employees – September 30, 2020
• More than 50 employees – June 30, 2021
• More than 5 employees – June 30, 2022

 Once enrolled, an eligible employer’s responsibilities related to CalSavers are limited to:

• Registering as a covered employer or certifying as to its exempt status
• Remitting participating employee contributions
• Updating its account by adding new employees who are eligible for enrollment and removing former employees who are no longer employed

If you are considering setting up a retirement plan for your employees and would like a referral, please reach out to our Culture Works team. 

New California Law Expands Employees Eligibility for Family and Medical Leave

Effective January 1, 2021 employers with five or more employees will be required to offer family and medical leave as a result of a new law which expands the existing California Family Rights Act (CFRA).

Currently, the California Family Rights Act (CFRA) covers employers with 50 or more employees within a 75 mile radius to provide up to 12 weeks of unpaid, but job protected, leave during each 12-month period for purposes of family and medical leave.  Eligible employees are able to take unpaid leave for numerous purposes, including to care for a “family member” (minor child) with a serious health condition. 

This new law effective January 1, 2021 expands the current CFRA to now apply to employers with five or more employees and eliminates the requirement that employees work within 75 miles of the worksite. There have also been modifications to the definition of “family member”, which is expanded to include siblings, grandparents, grandchildren, and domestic partners. Additionally, the definition of “child” is expanded to cover all adult children (regardless of whether they are dependent) and children of a domestic partner.

California Passes COVID-19 Presumption of Workers’ Compensation Liability 

This new legislation, SB 1159, affects employers in California. The legislation shifts the burden of proof to presume that covered employees who contracted COVID-19 did so at work, unless the employer can disprove it.  This presumption goes into effect immediately, and is retroactive to cases on or after July 6, 2020 through January 1, 2023. 

What is the immediate action employers have to take?

Covered employers who have had employees with positive COVID-19 tests must go back and report to their Workers Compensation (WC) claims administrator any positive results dating back to July 6. This must be done no later than October 17, 2020. 

Who does the presumption apply to?

1. Worker’s who work for an employer with five or more employees, and
2. Workers who test positive for COVID-19 test positive during an outbreak at the employee’s specific place of employment

What is considered an “outbreak”?

An “outbreak” exists if within 14 days one of the following occurs at a specific place of employment:

1. Four employees test positive if the employer has 100 employees or fewer;
2. Four percent (4%) of the number of employees who reported to the specific place of employment test positive if the employer has more than 100 employees; or
3. A specific place of employment is ordered to close by a local public health department, the State Department of Public Health, the Division of Occupational Safety and Health, or a school superintendent due to a risk of infection of COVID-19. 

 What does an Employer have to do?

If an employer “knows or reasonably should know” that an employee has tested positive for COVID-19, it shall report the following information to its workers’ compensation claims administrator within three business days:

• Notification that an employee has tested positive.
• The date that the employee tests positive (the date the specimen was collected for testing).
• The specific address or addresses of the employee’s place of employment during the 14-day period preceding the positive test.
• The highest number of employees who reported to work in the 45-day period preceding the last day the employee worked at the place of employment.
• Reminder: if you have employees who tested positive dating back to July 6, you have until October 17, 2020 to report to your WC claims administrator.