California to see new laws in 2020

     We are mere days from the new year and our legislature has been particularly prolific this year.  For those of you interested in a brief glance, here is a rundown of some of the changes that may affect your daily lives as well as some interesting law.  As you read, realize that there are far more laws in effect and this is just a brief summary and not legal advice.  Now is the time to review your status in relation to these laws.

1.          Assembly Bill 317 - No sale of DMV Appointments

    It is against the law for anyone to sell or offer to sell a DMV appointment. Perhaps this is why it become so hard to get a realistic schedule at the DMV.

2.          Assembly Bill 2155 - Passing Garbage Trucks

     Drivers who are approaching or passing a stopped waste service vehicle will need to make a lane change and pass at a safe distance.  It will be interesting to see how this law will be enforced by police.

3.          Assembly Bill 5 - Employees v. Independent Contractors

     Many employers need to pay attention to this one.  Also known as the "Gig Worker Bill", Assembly Bill 5 changes how independent contractors are classified in California.  This bill affects the California Labor Code and the Unemployment Insurance Code.

     This law will presume that ALL workers are employees and places the burden of proving that the worker qualifies as an independent contractor on the employer.  In order to do so, the employer must prove the worker satisfies each factor of the ABC test: (A) the worker is free from the control and direction of the employer, both in the contract agreement if one exists and in fact; (B) the worker is performing work outside the usual course of the employer's business; and (C) the worker has their own business or enterprise of the same nature as the work performed.

     Litigation will quickly arise out of this one throughout California.  Employers need to review the status of their independent contractors urgently.  The last thing a company needs is a class action suit seeking millions of dollars in damages.  This law will also likely open the court door and allow most any independent contractor access to the courts by simply alleging misclassification in a complaint.

4.          Minimum Wage Change

     In 2016, the legislature passed a bill to increase minimum wage each year over a six year period.  Beginning January 1, 2020, California employers with 26 or more employees must pay a minimum wage of $13.00/hour.  California employers with 25 or fewer employees must pay $12.00/hour.

5.          Assembly Bill 749 - Terminated Employee No Rehire Clauses

     For those attorneys reading this, you know that employee settlement agreements often contain a "no-hire" clause preventing the employee from working or applying to that employer again.  This new law prohibits the use of "no-hire" clauses in settlement agreements that address employment disputes, except if it relates to sexual harassment or assault.

6.          Real ID Implementation

     Though not limited to just California, the deadline for the new "REAL ID" is coming swiftly.  Beginning October 1, 2020, the U.S. Department of Homeland Security will require residents to have a federally approved document, like a REAL ID driver's license or ID card, to board domestic flights and access secured federal facilities.  To apply, California residents need to fill out an application and visit a DMV office with several documents: (1) original or certified proof of identity, such as a valid passport or birth certification (including legal name change document(s) if name on proof of identity is different from other documents; (2) proof of social security number; and (3) two proofs of California residency, like a utility bill, bank statement, etcetera. 

     For many persons who rent property or move frequently, gathering this many documents can be really difficult and surely many people will struggle to get a REAL ID.  This is certain to have an impact on people who want to fly domestically and especially those who want to go to court.  The purpose of the REAL ID is to create a unified identification system, but it seems to be another barrier to people who want engage in the justice system, transportation and possibly voting at locations that require ID.

7.          California Consumer Privacy Act (CCPA)

     Effective January 1, 2020, the CCPA creates new privacy rights regarding the collection, deletion and sharing of personal information of California residents.  Qualifying businesses must inform California consumers of the categories of personal information being collected and grants those consumers the right to request that the business: (1) disclose the personal information that is collected; (2) delete the personal information that the business has collected about the consumer; and (3) provide the option to opt-out of the sale of the consumer's personal information.  Failure for a business to comply will result in a notice of violation and possible a subsequent fine of $2,500 per incident or $7,500 for intentional violations.

     The CCPA is far more complicated than summarized here.  Businesses that use personal information will need a substantial review and revision of privacy policies, internal data collection and retention practices.  The benefit of this law is that California now matches many European laws who give consumers the "right to be forgotten" on the internet.