Employment Law Updates: What In-House Counsel Need to Know
Estimated reading time: 6 minutes
Staying informed about the latest employment law updates is crucial for in-house counsel, who are tasked with ensuring that their organizations remain compliant with ever-evolving legal standards. Recent developments, such as changes in worker classification laws, cannabis use regulations, and workplace violence prevention mandates, present both challenges and opportunities for companies.
The California Supreme Court recently upheld Proposition 22, a landmark decision that allows app-based drivers for companies like Uber, Lyft, and DoorDash to be classified as independent contractors rather than employees. This ruling has significant implications for the gig economy and the broader employment landscape. In-house can benefit from the following recommendations:
Review Worker Classifications: In-house counsel should review their company’s classification of workers to ensure compliance with Proposition 22 and other relevant laws. This is particularly important for businesses in the gig economy or those employing independent contractors.
Evaluate Business Models: Companies may need to reassess their business models and workforce strategies to align with the flexibility and requirements established by Proposition 22. Understanding the criteria that differentiate employees from independent contractors is crucial for minimizing legal risks.
Monitor Legislative Changes: As worker classification remains a contentious issue, it is essential for in-house counsel to stay informed about potential legislative changes that could impact how workers are classified.
Risk Management: Assess the potential risks associated with the independent contractor model. This includes understanding the liabilities that may arise if workers are incorrectly classified and ensuring that all risk management protocols are up to date. Regular audits and reviews can help identify potential vulnerabilities in worker classification practices.
Effective January 1, 2024, California’s Assembly Bill 2188 prohibits employers from penalizing employees for using cannabis during non-work hours. This law reflects a significant shift in how employers must approach drug use policies.
Update Drug Policies: In-house counsel should update their organization’s drug policies to comply with AB 2188. Policies should clearly differentiate between cannabis use during non-work hours and its use or possession at the workplace.
Training and Education: Implement training programs to educate managers and employees about the new legal protections regarding cannabis use. This will help prevent discrimination and ensure that all employees understand their rights and responsibilities.
Consider Exceptions: Be aware of exceptions, such as positions that require federal security clearances or those in the building and construction trades, where different rules may apply.
Review Testing Practices: AB 2188 impacts how drug tests are conducted and interpreted. In-house counsel should ensure that any drug testing practices used by the company are scientifically valid and do not detect nonpsychoactive cannabis metabolites. This means revising testing protocols to focus on impairment rather than mere presence of cannabis metabolites, aligning with best practices for workplace safety.
As of July 1, 2024, California requires employers to implement Workplace Violence Prevention Plans (WVPP) under Senate Bill 553. This legislation mandates proactive measures to safeguard employees against workplace violence.
Develop a WVPP: In-house counsel should collaborate with HR and safety teams to develop a comprehensive WVPP. The plan should include procedures for identifying and mitigating potential workplace violence risks, as well as response protocols for incidents.
Employee Training: Conduct regular training sessions to educate employees about workplace violence prevention, reporting mechanisms, and the actions to take during an emergency. Training should be tailored to address specific job functions and workplace environments.
Maintain Incident Logs: Employers must keep detailed logs of all workplace violence incidents, including date, time, location, and descriptions. This log will help identify patterns and inform future prevention strategies.
Engage Employees in Prevention Efforts: Encourage employee involvement in developing and updating the WVPP. Employees are often the first to notice potential threats or areas of concern, making their input invaluable. Regular feedback sessions and open discussions about workplace safety can enhance the effectiveness of the WVPP.
Regularly Review and Update the WVPP: Workplace environments and risks can change over time, necessitating regular reviews and updates of the WVPP. In-house counsel should ensure that the plan is assessed at least annually and after any significant incident or change in the workplace. This proactive approach helps maintain relevance and effectiveness in violence prevention efforts.
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