GOVERNANCE RISK AND COMPLIANCE (grc) CONSULTING

MINIMUM WAGE CHANGES ON JANUARY 1


The State of California raises its minimum wage to $15.50, regardless of size of business, on January 1. In addition, 25 cities across the State will also raise their minimum wage requirements in amounts exceeding the State minimum. Some jurisdictions differentiate between size of business and type of business when setting minimum wages. 

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FAST ACT ON HOLD


AB 257 enacts the Fast-Food Accountability and Standards Recovery Act (FAST Recovery Act) which, among other things, establishes until January 1, 2029, the Fast-Food Council (Council) within DIR, to be composed of 10 members, as specified, for the purpose of establishing sector-wide minimum standards on wages, working hours, and other working conditions related to the health, safety, and welfare of fast-food restaurant workers.


AB 257 is currently on hold based upon a preliminary injunction issued on January 13 in the Sacramento County Superior Court. The reason for this is that referendum petitions have been filed with the Secretary of State to have AB 257 submitted to the voters for approval in the 2024 General Election. Petition signatures are currently still being verified - a process that could take until mid-March. If enough valid signatures are found to qualify the measure for the November 2024 ballot, the FAST Act will remain on hold until the voters decide its fate. 



   

JANUARY CALENDAR

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January 1 —Statutes take effect (Art. IV, Sec. 8(c)).

January 4 —Legislature reconvenes (J.R. 51(a)(1)).

January 10 —Budget must be submitted by Governor (Art. IV, Sec. 12(a)).


January 13 - Sacramento County Superior Court Judge Shelleyanne W. L. Chang granted a preliminary injunction against enforcing the FAST Act relating to fast food establishment employment and safety issues, until the verification process for petition signatures for a potential referendum on the Act - Assembly Bill 257 (Holden) - is completed.  

January 20 —Last day to submit bill requests to the Office of Legislative Counsel. 


NEW LAWS ON JANUARY 1


The following chaptered bills will take effect January 1, 2023.


​Senate Bill 1127 (Atkins) – reduces the 90-day time period to determine compensability to 75 days for certain presumptively compensable injuries or illnesses, including hernia, heart trouble, pneumonia, or tuberculosis, among others, sustained in the course of employment of a specified members of law enforcement or a specified first responder. 


Also, for specified firefighters and peace officers claiming illness or injury related to cancer, increase the number of compensable weeks to 240 without limitation as to time from the date of injury.

Finally, if liability for an injury has been unreasonably rejected for specified claims of injury or illness, including hernia, heart trouble, pneumonia, or tuberculosis, among others, sustained in the course of employment of a specified member of law enforcement or a specified first responder, the amount of the penalty to be 5 times the amount of the benefits unreasonably delayed due to the rejection of liability. The bill would limit the penalty to no more than $50,000. The bill would require the appeals board to determine the question of whether the rejection of liability is reasonable. The bill would apply this provision to all injuries, without regard to whether the injury occurs before, on, or after the operative date of the bill.


​ ​Assembly Bill 1751 (Daly) – extends the sunset for COVID-19 workers’ compensation presumptions of compensability until January 1, 2024.


​Assembly Bill 2693 (Reyes) – extends the sunset dates of Labor Code §§ 6325 and 6409.6 relating to COVID-19 until January 1, 2024. The bill was amended late in the session to make its provisions more aligned with both Cal/OSHA and California Department of Public Health (CDPH) standards and guidances.