CEB has reviewed this year’s legislation to bring you this concise outline of the key statutory changes that could impact your employment law practice in the next year. We hope you’ll find it useful in your practice.

Return to the Heads Up! Key Statutory Developments home page.

The California Supreme Court’s landmark Dynamex Decision Codified by AB 5  
Codifies the California Supreme Court’s landmark decision in Dynamex Operations West, Inc. v. Superior Court of Los Angeles (2018) 4 Cal.5th 903, setting out what’s known as the “ABC test” for determining whether a worker is an employee or an independent contractor.

Under that test, a worker is only an independent contractor if (a) the worker is free from the hiring entity’s control in connection with the performance of the work, (b) the worker performs work that is outside the usual course of the hiring entity’s business, and (c) the worker is customarily engaged in an independently established business of the same nature as the work performed for the hiring entity.

Previously, California courts had determined independent contractor status using the standard established in S.G. Borello & Sons Inc. v. Department of Industrial Relations (1989) 48 Cal.3d 341, consisting of five disjunctive factors including the worker’s opportunity for profit or loss and the working relationship’s degree of permanence.

Significantly, although the Supreme Court’s decision in Dynamex applied only to California Wage Orders, AB 5 adopts the ABC test for purposes of the state’s Labor Code and Unemployment Insurance Code.
Prohibition of Arbitration Agreements: AB 51 
Adds section 432.6 to the Labor Code and provides that employers may not require an employee to sign an employment contract that waives “any right, forum, or procedure” for alleged violations of the Fair Employment and Housing Act (FEHA) and the Labor Code. (Lab. Code, § 432.6, subd. (a).) Significantly, this broad language covers all types of discrimination, harassment, and retaliation claims under FEHA as well as all types of wage and hour claims cognizable under the Labor Code.

Labor Code section 432.6 also prohibits “opt out” arbitration agreements, which require employees to take some affirmative action to opt out of an employment contract's arbitration provisions. (See Lab. Code, § 432.6, subd. (c).)

Finally, AB 51 adds section 12953 to the Government Code to provide that it is an unlawful employment practice under FEHA for an employer to violate Labor Code section 432.6, thereby creating a private right of action to enforce the statute.
FEHA Statute of Limitations Extended: AB 9

Expands the time for filing a complaint with the California Department of Fair Employment and Housing (DFEH) alleging a violation of the Fair Employment and Housing Act (FEHA) from one year to three years.

Before filing a civil action, employees who allege claims of discrimination, harassment, or retaliation under FEHA are required to exhaust their administrative remedies by filing a verified complaint with the DFEH. (Gov. Code, § 12965, subd. (b).) As a result of AB 9, the limitations period for exhaustion of administrative remedies under FEHA will be six times longer than the period under Title VII of the Civil Rights Act of 1964. (See 42 U.S.C. § 2000e-5(e)(1) [charge alleging violation of Title VII must be filed with EEOC within 180 days after alleged discriminatory act].)

AB 9 also makes clear that the operative date of the verified complaint is the date of the filing of the intake form with the DFEH and that it should not be interpreted as reviving lapsed claims.

New Employer Lactation Accommodation Requirements: SB 142 

Provides that employers must provide a reasonable amount of break time to accommodate an employee desiring to express breast milk for the employee’s infant child each time the employee needs to express milk. If possible, the lactation break should run concurrently with any rest time the employer is required to provide under the IWC wage orders. Private lactation spaces at work must have a place to sit; must be safe, clean, and free of hazardous materials; must contain a surface to place a breast pump and personal items; must have access to electricity or alternative devices; and must be in proximity to the employee’s work area, shielded from view, and free from intrusion while the employee is expressing milk. Employers must also provide access to a sink with running water and a refrigerator in close proximity to the employee’s workspace.

Hairstyles Now Covered by FEHA's Race Discrimination Prohibition: SB 188 

Extends the Fair Employment and Housing Act’s prohibition of discrimination based on race by adding the following provisions to Government Code section 12926: (w) “Race” is inclusive of traits historically associated with race, including, but not limited to, hair texture and protective hairstyles, and (x) “Protective hairstyles” includes, but is not limited to, such hairstyles as braids, locks, and twists. 



News description Lorem ipsum dolor sit amet, consectetur adipisicing elit. Voluptates, enim.

News description Lorem ipsum dolor sit amet, consectetur adipisicing elit. Voluptates, enim.

News description Lorem ipsum dolor sit amet, consectetur adipisicing elit. Voluptates, enim.

News description Lorem ipsum dolor sit amet, consectetur adipisicing elit. Voluptates, enim.

News description Lorem ipsum dolor sit amet, consectetur adipisicing elit. Voluptates, enim.

News description Lorem ipsum dolor sit amet, consectetur adipisicing elit. Voluptates, enim.

CEB Employment Law Solutions

Employment Law Titles—Our strong line of Employment Law publications include print and digital resources in in Employment Law Practice and Workers’ Compensation.

OnLAW CEB and Simmons Employment Law Library—This digital library delivers substantive analysis of the law, step-by-step procedural assistance, and best-practice strategies. Empower your practice to help California employers avoid liability pitfalls, and California employees pursue their rights.

CLE Programs—CEB's complete CLE library has 600+ programs taught by experienced practitioners. As California’s original CLE provider, and a non-profit program of the University of California, CEB is your best source for CLE and MCLE programs.

CEB Primary—free primary law, law alerts, and current awareness articles

CEB Plus—all the features of CEB Primary, plus unlimited CLE and our powerful case law citator, TrueCite™

CEB Pro—all the features of CEB Plus, with access to CEB's high-quality secondary sources and seamless integration between those sources and TrueCite™


Return to the Heads Up! Key Statutory Developments home page.