Enacted by Stats. 1937, Ch. 90.
An employer shall in all cases indemnify his employee for losses caused by the employer’s want of ordinary care.
Article 2 - Obligations of Employer
California Labor Code — §§ 2800-2810.8
Sections (23)
Added by Stats. 1973, Ch. 497.
An employer shall in all cases take reasonable and necessary precautions to safeguard musical instruments and equipment, belonging to an employed musician, located on premises under the employer’s control. In the event such equipment is damaged or stolen as a result of the employer’s failure or refusal to take such reasonable and necessary precautions, the employer shall be liable to the owner for repair or replacement thereof if the employed musician has taken reasonable and necessary precautions to safeguard the musical instruments and equipment.
For the purposes of this section:
(a)“employer” includes a purchaser of services and the owner of premises upon which an employed musician is working; and (b) “employee” is any employed musician working on premises which are under an employer’s control.
Amended by Stats. 2005, Ch. 526, Sec. 8. Effective January 1, 2006.
(a)Any employer, employee association, or other entity otherwise providing hospital, surgical, or major medical benefits to its employees or members is solely responsible for notification of its employees or members of the conversion coverage made available pursuant to Part 6.1 (commencing with Section 12670) of Division 2 of the Insurance Code or Section 1373.6 of the Health and Safety Code.
(b)Any employer, employee association, or other entity, whether private or public, that provides hospital, medical, or surgical expense coverage that a former employee may continue under Section 4980B of Title 26 of the United States Code, Section 1161 et seq. of Title 29 of the United States Code, or Section 300bb of Title 42 of the United States Code, as added by the Consolidated Omnibus Budget Reconciliation Act of 1985 (Public Law 99-272), and as may be later amended (hereafter “COBRA”), shall, in conjunction with the notification required by COBRA that COBRA continuation coverage will cease and conversion coverage is available, and as a part of the notification required by subdivision (a), also notify the former employee, spouse, or former spouse of the availability of the continuation coverage under Section 1373.621 of the Health and Safety Code, and Sections 10116.5 and 11512.03 of the Insurance Code.
(c)On or after July 1, 2006, notification provided to employees, members, former employees, spouses, or former spouses under subdivisions (a) and (b) shall also include the following notification:
“Please examine your options carefully before declining this coverage. You should be aware that companies selling individual health insurance typically require a review of your medical history that could result in a higher premium or you could be denied coverage entirely.”
Added by Stats. 1981, Ch. 1096, Sec. 4. Operative January 1, 1983, by Sec. 5 of Ch. 1096.
Any employer, other than a self-insurer, employee association or other entity otherwise providing hospital, surgical or major medical benefits to its employees or members shall also make available conversion coverage which complies with the provisions of Part 6.1 (commencing with Section 12670) of Division 2 of the Insurance Code and Section 1373.6 of the Health and Safety Code.
Enacted by Stats. 1937, Ch. 90.
In any action to recover damages for a personal injury sustained within this State by an employee while engaged in the line of his duty or the course of his employment as such, or for death resulting from personal injury so sustained, in which recovery is sought upon the ground of want of ordinary or reasonable care of the employer, or of any officer, agent or servant of the employer, the fact that such employee has been guilty of contributory negligence shall not bar a recovery therein where his contributory negligence was slight and that of the employer was gross, in comparison, but the damages may be diminished by the jury in proportion to the amount of negligence attributable to such employee.
It shall be conclusively presumed that such employee was not guilty of contributory negligence in any case where the violation of any law enacted for the safety of employees contributed to such employee’s injury.
It shall not be a defense that:
(a)The employee either expressly or impliedly assumed the risk of the hazard complained of.
(b)The injury or death was caused in whole or in part by the want of ordinary or reasonable care of a fellow servant.
No contract, or regulation, shall exempt the employer from any provisions of this section.
Amended by Stats. 2015, Ch. 783, Sec. 4. (AB 970) Effective January 1, 2016.
(a)An employer shall indemnify his or her employee for all necessary expenditures or losses incurred by the employee in direct consequence of the discharge of his or her duties, or of his or her obedience to the directions of the employer, even though unlawful, unless the employee, at the time of obeying the directions, believed them to be unlawful.
(b)All awards made by a court or by the Division of Labor Standards Enforcement for reimbursement of necessary expenditures under this section shall carry interest at the same rate as judgments in civil actions. Interest shall accrue from the date on which the employee incurred the necessary expenditure
or loss.
(c)For purposes of this section, the term “necessary expenditures or losses” shall include all reasonable costs, including, but not limited to, attorney’s fees incurred by the employee enforcing the rights granted by this section.
(d)In addition to recovery of penalties under this section in a court action or proceedings pursuant to Section 98, the commissioner may issue a citation against an employer or other person acting on behalf of the employer who violates reimbursement obligations for an amount determined to be due to an employee under this section. The procedures for issuing, contesting, and enforcing judgments for citations or civil penalties issued by the commissioner shall be the same as those set forth in Section 1197.1. Amounts recovered pursuant to
this section shall be paid to the affected employee.
Added by Stats. 2020, Ch. 351, Sec. 2. (AB 2588) Effective January 1, 2021.
(a)(1) Section 2802 applies to any expense or cost of any employer-provided or employer-required educational program or training for an employee providing direct patient care or an applicant for direct patient care employment. Those expenses or costs shall constitute a necessary expenditure or loss incurred by the employee in direct consequence of the discharge
of the employee’s duties, as that phrase is used in Section 2802.
(2)For purposes of this section, “employer-provided or employer-required educational program or training” includes, but is not limited to, residencies, orientations, or competency validations necessary for direct patient care employment. “Employer-provided or employer-required educational program or training” does not include either of the following:
(A)Requirements for a
license, registration, or certification necessary to legally practice in a specific employee classification to provide direct patient care.
(B)Education or training that is voluntarily undertaken by the employee or applicant solely at their discretion.
(b)An employer, or any person acting on behalf of the employer, shall not retaliate against an applicant for employment or employee for refusing to enter into a contract or agreement that violates subdivision (a).
(c)This section shall only apply to applicants for employment and employees providing direct patient care for an
employer for a “general acute care hospital,” as defined in subdivision (a) of Section 1250 of the Health and Safety Code.
(d)In addition to injunctive relief and any other remedies available, a court shall award, in any action brought pursuant to this section, a prevailing plaintiff reasonable attorney’s fees and costs.
(e)This section is declaratory of and clarifies existing law with
respect to employer-required training for employees.
Added by Stats. 2025, Ch. 659, Sec. 3. (SB 809) Effective January 1, 2026.
(a)Section 2802 applies to the use of a vehicle, including a personal vehicle or a commercial vehicle, owned by an employee and used by that employee in the discharge of their duties. This subdivision is declarative of existing law.
(b)(1) With respect to construction trucking, a commercial motor vehicle driver who owns the truck, tractor, trailer, or other commercial vehicle that they use in the discharge of their duties as an employee working for an
employer is entitled to reimbursement for the use, upkeep, and depreciation of that truck, tractor, trailer, or other commercial vehicle. This subdivision applies whether the vehicle is owned by the driver as an individual or whether the vehicle is owned by the driver through a corporate entity. This paragraph is declarative of existing law.
(2)(A) The amount to be reimbursed for the use of the truck, tractor, or trailer shall be negotiated either by the driver and the employer, or
by a labor union representing that driver and the employer. The amount negotiated shall be either a flat rate reimbursement or a per-mile reimbursement, but in no case shall the amount negotiated be less than the actual amount expended by the driver for a flat rate reimbursement or less than the standard mileage reimbursement rate set by the Internal Revenue Service for the time the services were provided for a per-mile reimbursement.
(B)An amount owed to a driver under this section may be paid directly to the driver in the driver’s name, or may be paid to a corporate entity owned and controlled by the driver if the truck, tractor, or trailer is owned by the corporate entity rather than by the driver directly.
Amended by Stats. 1976, Ch. 1171.
When death, whether instantaneously or otherwise, results from an injury to an employee caused by the want of ordinary or reasonable care of an employer or of any officer, agent, a servant of the employer, the personal representative of such employee shall have a right of action therefor against such employer, and may recover damages in respect thereof, for and on behalf of the surviving spouse, children, dependent parents, and dependent brothers and sisters, in order of precedence as stated, but no more than one action shall be brought for such recovery.
Added by Stats. 1994, Ch. 147, Sec. 16. Effective July 11, 1994.
(a)Any employer providing health benefits under the Employee Retirement Income Security Act of 1974 (29 U.S.C. Sec. 1001, et seq.) shall not provide an exception for other coverage where the other coverage is entitlement to Medi-Cal benefits under Chapter 7 (commencing with Section 14000) or Chapter 8 (commencing with Section 14200) of Part 3 of Division 9 of the Welfare and Institutions Code, or medicaid benefits under Subchapter 19 (commencing with Section 1396) of Chapter 7 of Title 42 of the United States Code. Any employer providing health benefits under the Employee Retirement Income Security Act of 1974 shall not provide an exception for the Medi-Cal or medicaid benefits.
(b)Any employer providing health benefits under the Employee Retirement Income Security Act of 1974 shall not provide that the benefits payable are subject to reduction if the individual insured has entitlement to Medi-Cal or medicaid benefits.
(c)Any employer providing health benefits under the Employee Retirement Income Security Act of 1974 shall not provide an exception for enrollment for benefits because of an applicant’s entitlement to Medi-Cal benefits under Chapter 7 (commencing with Section 14000) or Chapter 8 (commencing with Section 14200) of Part 3 of Division 9 of the Welfare and Institutions Code, or medicaid benefits under Subchapter 19 (commencing with Section 1396) of Chapter 7 of Title 42 of the United States Code.
(d)The State Department of Health Services shall consider health benefits available under the Employee Retirement Income Security Act of 1974 in determining legal liability of any third party for medical expenses incurred by a Medi-Cal or medicaid recipient under Section 14124.90 of the Welfare and Institutions Code and Subchapter 19 (commencing with Section 1396) of Chapter 7 of Title 42 of the United States Code.
Amended by Stats. 1996, Ch. 1062, Sec. 28. Effective January 1, 1997.
Any employer who offers health care coverage, including employers and insurers, shall comply with the standards set forth in Chapter 7 (commencing with Section 3750) of Part 1 of Division 9 of the Family Code and Section 14124.94 of the Welfare and Institutions Code.
Enacted by Stats. 1937, Ch. 90.
Any contract or agreement, express or implied, made by any employee to waive the benefits of this article or any part thereof, is null and void, and this article shall not deprive any employee or his personal representative of any right or remedy to which he is entitled under the laws of this State.
Amended by Stats. 1992, Ch. 722, Sec. 8. Effective September 15, 1992.
(a)No employer, whether private or public, shall discontinue coverage for medical, surgical, or hospital benefits for employees unless the employer has notified and advised all covered employees in writing of any discontinuation of coverage, inclusive of nonrenewal and cancellation, but not inclusive of employment termination or cases in which substitute coverage has been provided, at least 15 days in advance of such discontinuation.
(b)If coverage is provided by a third party, failure of the employer to give the necessary notice shall not require the third party to continue the coverage beyond the date it would otherwise terminate.
(c)This section shall not apply to any employee welfare benefit plan that is subject to the Employee Retirement Income Security Act of 1974.
Amended by Stats. 1996, Ch. 1023, Sec. 381. Effective September 29, 1996.
(a)All employers, whether private or public, shall provide notification to former employees, along with the notification required by federal law pursuant to the Consolidated Omnibus Budget Reconciliation Act of 1985 (Public Law 99-272), of the availability of continued coverage for medical, surgical, or hospital benefits, a standardized written description of the Health Insurance Premium Program established by the State Department of Health Services pursuant to Section 120835 of the Health and Safety Code and Section 14124.91 of the Welfare and Institutions Code. The employer shall utilize the standardized written description prepared by the State Department of Health Services pursuant to subdivision (b).
(b)The State Department of Health Services shall prepare and make available, on request, a standardized written description of the Health Insurance Premium Program, at cost.
Added by Stats. 1993, Ch. 1210, Sec. 12. Effective January 1, 1994.
(a)It is the responsibility of all employers, whether public or private, to provide to all eligible employees an outline of coverage or similar explanation of all benefits provided under employer-sponsored health coverage, including, but not limited to, provider information for health maintenance organizations and preferred provider organizations.
(b)All employers, whether public or private, shall provide to employees, upon termination, notification of all continuation, disability extension, and conversion coverage options under any employer-sponsored coverage for which the employee may remain eligible after employment with that employer terminates.
Added by Stats. 2022, Ch. 562, Sec. 4. (AB 2134) Effective January 1, 2023.
(a)Commencing January 1, 2023, the Department of Industrial Relations shall post on its internet website information regarding abortion and contraception benefits or services that may be available at no cost through the California Reproductive Health Equity Program to employees whose employer-sponsored health coverage does not include coverage for both abortion and contraception.
(b)For purposes of this section:
(1)“Abortion” has the same meaning as defined in Section 123464 of the Health and Safety Code.
(2)“California Reproductive Health Equity Program” means the program established pursuant to Section 127632 of
the Health and Safety Code.
(3)“Contraception” means the services and contraceptive methods described in paragraph (1) of subdivision (b) of Section 1367.25 of the Health and Safety Code.
Added by Stats. 1996, Ch. 1160, Sec. 1. Effective January 1, 1997.
(a)Any employer, whether private or public, that offers its employees an employer-managed deferred compensation plan shall provide to each employee, prior to the employee’s enrollment in the plan, written notice of the reasonably foreseeable financial risks accompanying participation in the plan, historical information to date as to the performance of the investments or funds available under the plan, and an annual balance sheet, annual audit, or similar document that describes the employer’s financial condition as of a date no earlier than the immediately preceding year.
(b)Within 30 days after the end of each quarter of the calendar year, the employer, who directly manages the investments of a deferred compensation plan, shall provide, to each employee enrolled in a deferred compensation plan offered by the employer, a written report summarizing the current financial condition of the employer, summarizing the financial performance during the preceding quarter of each investment or fund available under the plan, and describing the actual performance of the employee’s funds that are invested in each investment or fund in the plan.
(c)The obligations described in subdivisions (a) and (b) may be performed by a plan manager designated by the employer, who may contract with an investment manager for that purpose.
(d)If an employee is enrolled in a deferred compensation plan that is self-directed through a financial institution, the requirements set forth in this section shall be deemed to have been met.
Amended by Stats. 2024, Ch. 739, Sec. 1. (AB 2754) Effective January 1, 2025.
(a)A person or entity shall not enter into a contract or agreement for labor or services with a construction, farm labor, garment, janitorial, security guard, port drayage motor carrier, or warehouse contractor, if the person or entity knows or should know that the contract or agreement does not include funds sufficient to allow the contractor to comply with all applicable local, state, and federal laws or regulations governing the labor or services to be provided.
(b)There is a rebuttable presumption affecting the burden of proof that there has been no violation of subdivision (a) if the contract
or agreement with a construction, farm labor, garment, janitorial, security guard, port drayage motor carrier, or warehouse contractor meets all of the requirements in subdivision (d).
(c)Subdivision (a) does not apply to any of the following:
(1)A person or entity who executes a collective bargaining agreement covering the workers employed under the contract or agreement.
(2)A person who enters into a contract or agreement for labor or services to be performed on that person’s home residences, provided that a family member resides in the residence or residences for which the labor or services are to be performed for at
least a part of the year.
(3)A contract with a port drayage motor carrier involving 30 days or fewer of cumulative labor or services within a one-year period.
(d)To meet the requirements of subdivision (b), a contract or agreement with a construction, farm labor, garment, janitorial, security guard, port drayage motor carrier, or warehouse contractor for labor or services shall be in writing, in a single document, and contain all of the following provisions, in addition to any other provisions that may be
required by regulations adopted by the Labor Commissioner from time to time:
(1)The name, address, and telephone number of the person or entity and the construction, farm labor, garment, janitorial, security guard, port drayage motor carrier, or warehouse contractor through whom the labor or services are to be provided.
(2)A description of the labor or services to be provided and a statement of when those services are to be commenced and completed.
(3)The employer identification number for state tax purposes of the construction, farm labor, garment, janitorial, security guard,
port drayage motor carrier, or warehouse contractor.
(4)The workers’ compensation insurance policy number and the name, address, and telephone number of the insurance carrier of the construction, farm labor, garment, janitorial, security guard, port drayage motor carrier, or warehouse contractor.
(5)The vehicle identification number of any vehicle that is owned by the construction, farm labor, garment, janitorial, security guard, port drayage motor carrier, or warehouse contractor and used for transportation in connection with any service provided pursuant
to the contract or agreement, the number of the vehicle liability insurance policy that covers the vehicle, and the name, address, and telephone number of the insurance carrier.
(6)The address of any real property to be used to house workers in connection with the contract or agreement.
(7)The total number of workers to be employed under the contract or agreement, the total amount of all wages to be paid, and the date or dates when those wages are to be paid.
(8)The amount of the commission or other payment made to the construction, farm labor, garment, janitorial, security guard, port drayage motor carrier, or warehouse
contractor for services under the contract or agreement.
(9)The total number of persons who will be utilized under the contract or agreement as independent contractors, along with
both of the following:
(A)A list of the current local, state, and federal contractor license identification numbers or motor carrier authority or registration that the independent contractors are required to have under local, state, or federal laws or regulations.
(B)A copy of any agreement executed by an independent contractor identified pursuant to this paragraph.
(10)The signatures of all parties, and the date the contract or agreement was signed.
(e)(1) To qualify for the rebuttable presumption set forth in subdivision (b), a material change to the terms and conditions of a contract or agreement between a person or
entity and a construction, farm labor, garment, janitorial, security guard, port drayage motor carrier, or warehouse contractor must be in writing, in a single document, and contain all of the provisions listed in subdivision (d) that are affected by the change.
(2)If a provision required to be contained in a contract or agreement pursuant to paragraph (7) or (9) of subdivision (d) is unknown at the time the contract or agreement is executed, the best estimate available at that time is sufficient to satisfy the requirements of subdivision (d). If an estimate is used in place of actual figures in accordance with this paragraph, the parties to the contract or agreement have a continuing duty to ascertain the information required pursuant to paragraph
(7)or (9) of subdivision (d) and to reduce that information to writing in accordance with the requirements of paragraph (1) once that information becomes known.
(f)A person or entity who enters into a contract or agreement referred to in subdivisions (d) or (e) shall keep a copy of the written contract or agreement for a period of not less than four years following the termination of the contract or agreement. Upon the request of the Labor Commissioner, any person or entity who enters into the contract or agreement shall provide to the Labor Commissioner a copy of the provisions of the contract or agreement, and any other documentation, related to paragraphs (1) to (10), inclusive, of subdivision (d). Documents obtained pursuant to this section are exempt from disclosure under the California Public Records Act (Division 10
(commencing with Section 7920.000) of Title 1 of the Government Code).
(g)(1) An employee aggrieved by a violation of subdivision (a) may file an action for damages to recover the greater of all of the employee’s actual damages or two hundred fifty dollars ($250) per employee per violation for an initial violation and one thousand dollars ($1,000) per employee for each subsequent violation, and, upon prevailing in an action brought pursuant to this section, may recover costs and reasonable attorney’s fees. An action under this section shall not be maintained unless it is pleaded and proved that an employee was injured as a result of a violation of a labor law or regulation in connection with the performance of the contract or agreement.
(2)An employee
aggrieved by a violation of subdivision (a) may also bring an action for injunctive relief and, upon prevailing, may recover costs and reasonable attorney’s fees.
(h)The phrase “construction, farm labor, garment, janitorial, security guard, port drayage motor carrier, or warehouse contractor” includes any person, as defined in this code, whether or not licensed, who is acting in the capacity of a construction, farm labor, garment, janitorial, security guard, port drayage motor carrier, or warehouse contractor.
(i)(1) The term “knows” includes the knowledge, arising from familiarity
with the normal facts and circumstances of the business activity engaged in, that the contract or agreement does not include funds sufficient to allow the contractor to comply with applicable laws.
(2)The phrase “should know” includes the knowledge of any additional facts or information that would make a reasonably prudent person undertake to inquire whether, taken together, the contract or agreement contains sufficient funds to allow the contractor to comply with applicable laws.
(3)A failure by a person or entity to request or obtain any information from the contractor that is required by any applicable statute or by the contract or agreement between them, constitutes knowledge of that information for purposes of this section.
(j)For the purposes of this section, “warehouse” means a facility the primary operation of which is the storage or distribution of general merchandise, refrigerated goods, or other products.
(k)For the purposes of this section, “port drayage motor carrier” has the same meaning as in paragraph (5) of subdivision (a) of Section 2810.4.
Amended by Stats. 2019, Ch. 643, Sec. 1. (SB 358) Effective January 1, 2020.
(a)As used in this section:
(1)(A) “Client employer” means a business entity, regardless of its form, that obtains or is provided workers to perform labor within its usual course of business from a labor contractor.
(B)“Client employer” does not include any of the following:
(i)A business entity with a workforce of fewer than 25 workers, including those hired directly by the client employer and those obtained from, or provided by, any labor contractor.
(ii) A business entity with five or
fewer workers supplied by a labor contractor or labor contractors to the client employer at any given time.
(iii) The state or any political subdivision of the state, including any city, county, city and county, or special district.
(2)“Labor” has the same meaning provided by Section 200.
(3)“Labor contractor” means an individual or entity that supplies, either with or without a contract, a client employer with workers to perform labor within the client employer’s usual course of business. “Labor contractor” does not include any of the following:
(A)A bona fide nonprofit, community-based organization that provides services to workers.
(B)A bona fide labor organization or apprenticeship program or hiring hall operated pursuant to a collective bargaining agreement.
(C)A motion picture payroll services company, as defined in subparagraph (A) of paragraph (4) of subdivision (f) of Section 679 of the Unemployment Insurance Code.
(D)A third party who is a party to an employee leasing arrangement, as defined by Rule 4 of Section V of the California Workers’ Compensation Experience Rating Plan-1995 (Section 2353.1 of Title 10 of the California Code of Regulations), as it read on January 1, 2014, except those arrangements described in subrule d of Rule 4 of Section V, if the employee leasing arrangement contractually obligates the client employer to
assume all civil legal responsibility and civil liability under this act.
(4)“Wages” has the same meaning provided by Section 200 and all sums payable to an employee or the state based upon any failure to pay wages, as provided by law.
(5)“Worker” does not include an employee who is exempt from the payment of an overtime rate of compensation for executive, administrative, and professional employees pursuant to wage orders by the Industrial Welfare Commission described in Section 515.
(6)“Usual course of business” means the regular and customary work of a business, performed within or upon the premises or worksite of the client employer.
(b)A client
employer shall share with a labor contractor all civil legal responsibility and civil liability for all workers supplied by that labor contractor for both of the following:
(1)The payment of wages.
(2)Failure to secure valid workers’ compensation coverage as required by Section 3700.
(c)A client employer shall not shift to the labor contractor any legal duties or liabilities under Division 5 (commencing with Section 6300) with respect to workers supplied by the labor contractor.
(d)At least 30 days prior to filing a civil action against a client employer for violations covered by this section, a worker or the worker’s representative shall notify the client
employer of violations under subdivision (b).
(e)Neither the client employer nor the labor contractor may take any adverse action against any worker for providing notification of violations or filing a claim or civil action.
(f)The provisions of subdivisions (b) and (c) are in addition to, and shall be supplemental of, any other theories of liability or requirement established by statute or common law.
(g)This section does not prohibit a client employer from establishing, exercising, or enforcing by contract any otherwise lawful remedies against a labor contractor for liability created by acts of a labor contractor.
(h)This section does not prohibit a
labor contractor from establishing, exercising, or enforcing by contract any otherwise lawful remedies against a client employer for liability created by acts of a client employer.
(i)Upon request by a state enforcement agency or department, a client employer or a labor contractor shall provide to the agency or department any information within its possession, custody, or control required to verify compliance with applicable state laws. Upon request, these records shall be made available promptly for inspection, and the state agency or department shall be permitted to copy them. This subdivision does not require the disclosure of information that is not otherwise required to be disclosed by employers upon request by a state enforcement agency or department.
(j)The
Labor Commissioner may adopt regulations and rules of practice and procedure necessary to administer and enforce the provisions of subdivisions (b) and (i) that are under the Labor Commissioner’s jurisdiction.
(k)The Division of Occupational Safety and Health may adopt regulations and rules of practice and procedure necessary to administer and enforce the provisions of subdivisions (c) and (i) that are under its jurisdiction.
(l)The Employment Development Department may adopt regulations and rules of practice and procedure necessary to administer and enforce the provisions of subdivisions (b) and (i) that are under its jurisdiction.
(m)A waiver of this section is contrary to public policy, and is void and
unenforceable.
(n)This section does not impose individual liability on a homeowner for labor or services received at the home or the owner of a home-based business for labor or services received at the home.
(o)This section does not impose liability on a client employer for the use of an independent contractor other than a labor contractor or to change the definition of independent contractor.
(p)This section does not impose liability on the following:
(1)A client employer that is not a motor carrier of property based solely on the employer’s use of a third-party motor carrier of property with interstate or intrastate operating authority to ship or
receive freight.
(2)A client employer that is a motor carrier of property subcontracting with, or otherwise engaging, another motor carrier of property to provide transportation services using its own employees and commercial motor vehicles, as defined in Section 34601 of the Vehicle Code.
(3)A client employer that is not a household mover based solely on the employer’s use of a third-party household
mover permitted by the
Bureau of Household Goods and Services pursuant to Chapter 3.1 (commencing with Section 19225) of Division 8 of the Business and Professions Code to move household goods.
(4)A client employer that is a household mover permitted by the Bureau of Household Goods and Services pursuant to Chapter 3.1 (commencing with Section 19225) of Division 8 of the Business and Professions Code subcontracting with, or otherwise engaging, another permitted household mover to provide transportation of household goods using its own employees and motor vehicles, as defined in former Section 5108 of the Public Utilities Code.
(5)A client employer that is a cable operator, as defined by Section 5830 of the Public Utilities Code, a direct-to-home satellite service
provider, or a telephone corporation, as defined by Section 234 of the Public Utilities Code, based upon its contracting with a company to build, install, maintain, or perform repair work utilizing the employees and vehicles of the contractor if the name of the contractor is visible on employee uniforms and vehicles.
(6)A motor club holding a certificate of authority issued pursuant to Chapter 2 (commencing with Section 12160) of Part 5 of Division 2 of the Insurance Code when it contracts with third parties to provide motor club services utilizing the employees and vehicles of the third-party contractor if the name of the contractor is visible on the contractor’s vehicles.
Amended by Stats. 2024, Ch. 739, Sec. 2. (AB 2754) Effective January 1, 2025.
(a)As used in this section:
(1)“Commercial driver” means a person who holds a valid commercial driver’s license who is hired or contracted to provide port drayage services either as an independent contractor or an employee driver.
(2)(A) “Customer” means a business entity, regardless of its form, that engages or uses a port drayage motor carrier to perform port drayage services on the customer’s behalf, whether the customer directly engages or uses a port drayage motor carrier or indirectly engages or uses a port drayage motor carrier through the use of an agent, including, but not limited to, a freight forwarder, motor transportation broker, ocean carrier, or other motor
carrier.
(B)“Customer” does not include any of the following:
(i)A business entity with a workforce of fewer than 25 workers, including those hired directly by the customer or through a temporary employer or labor contractor.
(ii) The state or any political subdivision of the state, including any city, county, city and county, or special district.
(iii) A business entity, including, but not limited to, a marine terminal operator, who is not a customer, and who, incidental to the transportation of the freight for the customer, receives, makes available, or exchanges intermodal equipment, loaded or unloaded, or conducts any other transaction of equipment subject to an equipment interchange agreement with a motor carrier who is a signatory to an
equipment interchange agreement.
(3)“Internet web page” refers only to the port drayage motor carrier list that the Division of Labor Standards Enforcement is required to update and maintain pursuant to subdivision (b) and shall not be construed to apply to any other information about wage claims, investigations, citations, judgments, or other activities that the Division of Labor Standards Enforcement may provide to the public through its internet website.
(4)“Labor” has the same meaning provided by Section 200.
(5)(A) “Port drayage motor carrier” means an individual or entity that hires or
engages commercial drivers in the port drayage industry.
(B)“Port drayage motor carrier” also means a registered owner, lessee, licensee, or bailee of a commercial motor vehicle, as defined in subdivision (b) of Section 15210 of the Vehicle Code, that operates or directs the operation of a commercial motor vehicle by a commercial driver on a for-hire or not-for-hire basis to perform port drayage services in the port drayage industry.
(C)“Port drayage motor carrier” also means an entity or individual who succeeds in the interest and operation of a predecessor port drayage motor carrier consistent with the provisions of Section 2684.
(6)“Port” means any sea or river port located in this state.
(7)“Port drayage services” means the movement within
California of cargo or intermodal equipment by a commercial motor vehicle whose point-to-point movement has either its origin or destination at a port, including any interchange of power units, chassis, or intermodal containers, or the switching of port drayage drivers that occurs during the movement of that freight. It shall not include employees performing the intra-port or inter-port movement of cargo or cargo handling equipment under the control of their employers.
(8)“Prior offender” means a port drayage motor carrier that has had at least one of the following:
(A)A final court judgment, tax assessment, or tax lien that may be released to the public under federal and state disclosure laws and which arose from unlawful conduct relating to the misclassification of employees as independent contractors.
(B)A
final Labor Commissioner citation or a Labor Commissioner order, decision, or award that arose from unlawful conduct relating to the misclassification of employees as independent contractors.
(9)“Wages” has the same meaning provided by Section 200 and all sums payable to an employee or the state based upon any failure to pay wages, as provided by law.
(b)On and after January 1, 2025, a customer that, as part of its business, engages or uses a port drayage motor carrier shall share with the motor carrier or the motor carrier’s successor all civil legal responsibility and civil liability owed to a port drayage driver or the state arising out of the motor carrier’s misclassification of the driver as an independent contractor, regardless of whether or not the port drayage motor carrier is on the list
established pursuant to paragraph (1) of subdivision (c). The customer shall have no liability pursuant to this subdivision under either of the following circumstances:
(1)The motor carrier utilizes its own employee drivers to perform services for the customer.
(2)The motor carrier utilizes bona fide independent contractors to perform services for the customer where each independent contractor possesses their own operating authority and has a business relationship with the motor carrier that meets the California legal standard for being determined an independent contractor.
(c)(1) (A) The Division of Labor Standards Enforcement shall post on its internet web page the names, addresses, and essential information for a port drayage motor carrier with an unsatisfied final court judgment, tax assessment, or tax lien that may be released to the public under federal and state disclosure laws, including any order, decision, or award obtained by a public or private person or entity pursuant to Section 98.1 finding that a port drayage motor carrier has engaged in illegal conduct including failure to pay wages, imposing unlawful expenses on employees, failure to remit payroll taxes, failure to provide workers’ compensation insurance, or misclassification of employees as independent contractors with regard to a port drayage commercial
driver.
(B) The Division of Labor Standards Enforcement shall post on its internet web page, to the extent permitted by federal and state disclosure laws, a list consisting of the names, addresses, and essential information for a prior offender with a subsequent judgment, ruling, citation, order, decision, or award finding that the port drayage motor carrier has violated a labor or employment law or regulation, even if all periods for appeals have not expired. If the Division of Labor Standards Enforcement receives notice that a prior offender that is listed on the division’s internet
web page pursuant to this subparagraph has subsequently prevailed on appeal, the division shall remove the posting for the prior offender within 15 days after the division has determined that there remains no other basis under this section upon which to retain the prior offender’s information on the internet web page. The Division of Labor Standards Enforcement shall be required to post the prior offender to this list on the internet web page only if notice of the subsequent and prior judgment, ruling, citation, order, decision, or award is provided in a manner and format
that is acceptable to the Division of Labor Standards Enforcement.
(C) Except as provided in subparagraph (B), the Division of Labor Standards Enforcement shall not place the information required to be posted by this paragraph on the internet web page until the period for all judicial appeals has expired.
(D) A posting required by this paragraph shall be removed within 15 business days after the Division of Labor Standards Enforcement determines, first, that there has been full payment of an unsatisfied judgment or any other financial liabilities for all violations identified pursuant to subparagraphs (A) and (B) or that the port drayage motor carrier has entered into an approved
settlement dispensing of the judgment or liabilities and, second, that both of the following conditions have been satisfied:
(i)The port drayage motor carrier has submitted certification, under penalty of perjury, that all violations identified pursuant to subparagraphs (A) and (B) have been remedied or abated.
(ii) On and after the date that the Division of Labor Standards Enforcement adopts regulations describing what constitutes “sufficient documentation” for purposes of this clause, the port drayage motor carrier has submitted sufficient documentation that all violations identified pursuant to subparagraphs (A) and (B) have been remedied or sufficiently abated.
(2)No less than 15 business days before posting on its internet
web page the names, addresses, and essential information for any port drayage motor carrier pursuant to paragraph (1), the Division of Labor Standards Enforcement shall provide notification by certified mail to the port drayage motor carrier which, at a minimum, shall include all of the following:
(A)The name, email address, and telephone number of a contact person at the division.
(B)The alleged conduct and a copy of the citation, unsatisfied court judgment, assessment, order, decision, or award.
(C)A copy of the regulations or rules of practice or procedure adopted pursuant to subdivision (l) or (m) for removal of the posting.
(3)A customer that, as part of its business, engages or uses a port
drayage motor carrier that is on the list established pursuant to paragraph (1) to perform port drayage services shall share with the motor carrier or the motor carrier’s successor all civil legal responsibility and civil liability owed to a port drayage driver or to the state for port drayage services obtained after the date the motor carrier appeared on the list, meaning joint and several liability with the motor carrier for the full amount of unpaid wages, unreimbursed expenses, damages, and penalties, including applicable interest and all other amounts that are found due for all of the following:
(A)Minimum, regular, or premium wages that are unpaid by the motor carrier, including any wages that are found due under Section 226.7, 227.3, or 246.
(B)Unlawful deductions by the motor carrier from wages pursuant to Section 2802.
(C)Out-of-pocket business expenses incurred by the commercial driver that are not reimbursed by the motor carrier as required pursuant to Section 2802.
(D)Civil penalties for the failure to secure valid workers’ compensation coverage as required by Section 3700.
(E)Employment tax assessments issued by the state.
(F)Civil liability stemming from the motor carrier’s failure to comply with applicable health and safety laws, rules, or regulations.
(G)Damages or penalties as provided for by law that are due to the commercial driver or the state based upon the failure of the motor carrier to pay wages owed, including those set forth under Sections 203, 226, 226.8, 248.5, 558, 1194.2, and 1197.1.
(H)Applicable interest due for any sum described above.
(4)Pursuant to paragraph (3), each and every customer that engages or uses a port drayage motor carrier to provide port drayage services in a given workweek shall be jointly and severally liable with the motor carrier for the full amount of all unpaid wages, unreimbursed expenses, damages, and penalties, including applicable interest, which are found owed by the motor carrier for that workweek. The customer shall be jointly and severally liable from the time the driver is dispatched to begin work on behalf of the customer until all tasks are completed incidental to that work, including the return of an unladen chassis or intermodal container to its point of origin, and the driver is ready to be dispatched to haul freight on behalf of another customer.
(5)Except as
provided in subparagraphs (B), (C), and (D) of paragraph (1) of this subdivision, the Division of Labor Standards Enforcement shall update its internet web page monthly by the fifth day of each month.
(d)A customer’s liability under this section shall be determined by either one of the following:
(1)The Labor Commissioner, in an administrative proceeding pursuant to Section 98, de novo appeal under Section
98.2, or pursuant to the Labor Commissioner’s citation authority under this code.
(2)By a court in a civil action brought by the Labor Commissioner, or by a commercial driver or their representative, where at least 30 business days prior to filing the civil action, the Labor Commissioner, or commercial driver or representative, notifies the customer of its potential joint and several liability for any of the wages, expenses, damages, or penalties listed in paragraph (3) of subdivision
(c). No civil action for a violation or enforcement of this section shall be brought pursuant to Part 13 (commencing with Section 2698) of Division 2.
(e)The joint and several liability provided by this section shall not apply as follows:
(1)To customers who engage or use a port drayage motor carrier whose employees are covered by a bona fide collective bargaining agreement, if the agreement expressly provides for wages, hours of work, working conditions, a process to resolve disputes concerning nonpayment of wages, expenses, damages, and penalties listed in
paragraph (3) of subdivision (c), including applicable interest, and a waiver of the joint and several liability provided by this section.
(2)Except for liability established pursuant to subdivision (b), where the customer and port drayage motor carrier had an existing contract for port drayage services at the time a port drayage motor carrier is listed on the internet web page
maintained by the Division of Labor Standards Enforcement and the customer wishes to terminate the agreement, joint and several liability shall not apply until the expiration of the existing contract or a period of 90 business days following the listing, whichever is shorter. This paragraph does not apply to contracts entered into, renegotiated, or extended after the date a port drayage motor carrier is listed on the internet web page.
(3)Except for liability established pursuant to subdivision (b), where a port drayage motor carrier
is not listed on the Division of Labor Standards Enforcement’s internet web page pursuant to subdivision (c).
(4)Except for liability established pursuant to subdivision (b), where a port drayage motor carrier satisfied the conditions for removal from the internet
web page pursuant to paragraph (1) of subdivision (c) prior to the time period for which the joint and several liability is alleged.
(f)A port drayage motor carrier that provides port drayage services to a customer, prior to providing these services to the customer, shall furnish the text of this section and written notice to the customer of any of the following:
(1)Any
unsatisfied final judgments against the motor carrier for unpaid wages, damages, unreimbursed expenses, and penalties, including applicable interest.
(2)A final order from the Occupational Safety and Health Appeals Board regarding a citation, notice, order, or special order from the Division of Occupational Safety and Health finding that the employer has committed a serious violation that remains unabated, unremedied, or unsatisfied following the period for which any appeal may be made.
(3)If the motor carrier is a prior offender, a subsequent judgment, ruling, citation, order, decision, or award that the Division of Labor Standards Enforcement is required to post on its internet web page
pursuant to subdivision
(c).
(g)A port drayage motor carrier that provides port drayage services to a customer shall provide, within 30 business days of entry of the judgment, written notice of any unsatisfied final judgments against the motor carrier for unpaid wages, damages, unreimbursed expenses, and penalties, including applicable interest, to any customer to which the motor carrier is presently providing port drayage services.
(h)The failure of the motor carrier to provide notice under subdivision (f) or (g) shall not be a defense to the joint and several liability provided by this section.
(i)A customer or port drayage motor carrier shall not take any adverse action against any commercial driver for providing notification of violations or filing a claim or civil action pertaining to unpaid wages, unreimbursed expenses, or the recovery of damages and penalties, including applicable
interest.
(j)The remedies provided by this section are in addition to, and shall be supplemental of, any other theories of liability or requirement established by statute or common law.
(k)Two or more parties who are held jointly and severally liable under this section after a final judgment is rendered by the court shall not be
prohibited from establishing, exercising, or enforcing by contract or otherwise, any lawful or equitable remedies, including, but not limited to, a right of contribution and indemnity against each other for liability created by acts of a port drayage motor carrier.
(l)Pursuant to the Labor Commissioner’s citation authority, a customer or a port drayage motor carrier shall provide to the Labor Commissioner any information within its possession, custody, or control required to verify compliance with applicable state laws. Upon request, the records that contain this information shall be made available promptly for inspection, and the Labor Commissioner shall be permitted
to copy them.
(m)The Labor Commissioner may adopt regulations and rules of practice and procedure necessary to administer and enforce the provisions of subdivisions (c) and (l) that are under their jurisdiction.
(n)The Employment Development Department may adopt regulations and rules of practice and procedure necessary to administer and enforce the provisions of subdivision (c) that are under its jurisdiction.
(o)A waiver of this section is contrary to public policy, and is void and unenforceable.
(p)The provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
Amended by Stats. 2023, Ch. 451, Sec. 2. (AB 636) Effective January 1, 2024.
(a)(1) At the time of hiring, an employer shall provide to each employee a written notice, in the language the employer normally uses to communicate employment-related information to the employee, containing the following information:
(A) The rate or rates of pay and basis thereof, whether paid by the hour, shift, day, week, salary, piece, commission, or otherwise, including any rates for overtime, as applicable.
(B) Allowances, if any, claimed as part of the minimum wage, including meal or lodging allowances.
(C) The regular payday designated
by the employer in accordance with the requirements of this code.
(D) The name of the employer, including any “doing business as” names used by the employer.
(E) The physical address of the employer’s main office or principal place of business, and a mailing address, if different.
(F) The telephone number of the employer.
(G) The name, address, and telephone number of the employer’s workers’ compensation insurance carrier.
(H) That an employee: may accrue and use sick leave; has a right to request and use accrued paid sick leave; may not be terminated or retaliated against for using or requesting the use
of accrued paid sick leave; and has the right to file a complaint against an employer who retaliates.
(I) The existence of a federal or state emergency or disaster declaration applicable to the county or counties where the employee is to be employed, and that was issued within 30 days before the employee’s first day of employment, that may affect their health and safety during their employment.
(J) Any other information the Labor Commissioner deems material and necessary.
(2)The Labor Commissioner shall prepare
templates for the required notices that comply with the requirements of paragraphs (1) and (4). The templates shall be made available to employers in a manner as determined by the Labor
Commissioner, and as set forth in subdivision (d). Commencing March 1, 2024, the template developed pursuant to paragraph (4) shall be posted on the Labor Commissioner’s internet website.
(3)If the employer is a temporary services employer, as defined in Section 201.3, the notice described in paragraph (1) shall also include the name, the physical address of the main office, the mailing address if different from the physical address of the main office, and the telephone number of the legal entity for whom the employee will perform work, and any other information the Labor Commissioner deems material and necessary. The requirements of this paragraph do not apply to a security services company that is licensed by the Department of Consumer Affairs and that solely provides security services.
(4)(A) If an employee is admitted under the federal H-2A agricultural visa program pursuant to Section 1188 of Title 8 of the United States Code, the notice described in paragraph (1) shall also include, in Spanish, a separate and distinct section containing nonduplicative information succinctly describing an agricultural employee’s additional rights and protections under California law and regulations, including, but not limited to, information addressing the federal H-2A program wage rate required to be paid during the contract period; overtime wage rates; frequency of pay; pay for piece rate workers; 10-minute rest periods; 30-minute meal periods; transportation travel time compensation when required, including transportation from housing to work sites; employee housing rights; nonretaliation protections for complaints
or organizing; contents of itemized wage statements; sexual harassment prohibitions; toilets; requirements regarding availability of potable water and handwashing facilities; requirements relating to hot weather working conditions and the availability of shade; pesticide exposure protections; workplace safety requirements, training and correction of hazards; transportation in defined farm labor vehicles; prohibitions against tool or equipment charges, prohibitions against deductions for meals not taken; training and necessary equipment and lighting for night work; prohibitions against use of short-handled hoes and limits on hand weeding; employee-paid health insurance; right to accrue and take sick leave; workers’ compensation coverage, disability pay, and medical care for injuries; and the right to complain to state or federal agencies and to seek advice from collective bargaining representatives
or legal assistance organizations.
(B)(i) Notwithstanding paragraph (1), an employer shall provide the notice required by subparagraph (A) in Spanish to the H-2A employee on the day that the H-2A employee begins work in the state or on the first day that the employee begins work for another H-2A employer. An H-2A employee may request that the employer also provide the notice in English.
(ii) An employer who employs both H-2A and non-H-2A employees at the same time may satisfy the requirements of paragraph (1) with respect to the employer’s non-H-2A employees by opting to provide those employees with the notice required by subparagraph (A) or by providing the notice required by paragraph (1).
(b)An employer shall notify their employees in writing of any changes to the information set forth in the notice within seven calendar days after the time of the changes, unless one of the following applies:
(1)All changes are reflected on a timely wage statement furnished in accordance with Section 226.
(2)Notice of all changes is provided in another writing required by
law within seven days of the changes.
(c)For purposes of this section, “employee” does not include any of the following:
(1)An employee directly employed by the state or any political subdivision thereof, including any city, county, city and county, or special district.
(2)An employee who is exempt from the payment of overtime wages by statute or the wage orders of the Industrial Welfare Commission.
(3)An employee who is covered by a valid collective bargaining agreement if the agreement expressly provides for the wages, hours of work, and working conditions of the employee, and if the agreement provides premium wage rates for all overtime hours worked
and a regular hourly rate of pay for those employees of not less than 30 percent more than the state minimum wage. This subdivision applies to employees admitted to the federal H-2A program only if the collective bargaining agreement provides for wage rates of not less than the federal H-2A program wage required to be paid during the contract period.
(d)Commencing March 15, 2024, an employer of an employee admitted pursuant to the federal H-2A agricultural visa program shall comply with subdivision (a) by giving workers a copy of the template developed by the Labor Commissioner in accordance with paragraph (4) of subdivision (a).
Added by Stats. 2019, Ch. 195, Sec. 1. (AB 1554) Effective January 1, 2020.
(a)An employer shall notify an employee who participates in a flexible spending account, including, but not limited to, a dependent care flexible spending account, a health flexible spending account, or adoption assistance flexible spending account, of any deadline to withdraw funds before the end of the plan year. Notice shall be by two
different forms, one of which may be electronic.
(b)Notices made pursuant to subdivision (a) may include, but are not limited to the following:
(1)Electronic mail communication.
(2)Telephone communication.
(3)Text message notification.
(4)Postal mail notification.
(5)In-person notification.
Amended by Stats. 2025, Ch. 280, Sec. 1. (AB 858) Effective January 1, 2026. Inoperative January 1, 2027, by its own provisions.
(a)For purposes of this section, the following definitions apply:
(1)“Airport” means any area of land or water used or intended for landing or takeoff of aircraft including appurtenant area used or intended for airport buildings, facilities, as well as rights-of-way together with the buildings and facilities within the State of California, excluding any military base or federally operated facility.
(2)“Airport hospitality operation” means a business that prepares, delivers, inspects, or provides any other service in connection with the preparation of food or beverage for aircraft crew or passengers at an airport, or that provides food and beverage, retail, or other consumer goods or services to the
public at an airport. The term airport hospitality operation does not include an air carrier certificated by the Federal Aviation Administration.
(3)“Airport service provider” means a business that performs, under contract with a passenger air carrier, airport facility management, or airport authority, functions on the property of the airport that are directly related to the air transportation of persons, property, or mail, including, but not limited to, the loading and unloading of property on aircraft, assistance to passengers under Part 382 (commencing with Section 382.1) of Title 14 of the Code of Federal Regulations, security, airport ticketing and check-in functions, ground-handling of aircraft, aircraft cleaning and sanitization functions, and waste removal. The term “airport service provider” does not include an air carrier certificated by the Federal Aviation Administration.
(4)“Building service” means janitorial, building maintenance, or security services.
(5)“Employee” means any individual who in a particular week performs at least two hours of work for an employer.
(6)“Employer” means any person, including a corporate officer or executive, who directly or indirectly or through an agent or any other person, including through the services of a temporary service or staffing agency or similar entity, owns or operates an enterprise and employs or exercises control over the wages, hours, or working conditions of any employee. “Employer” also means the successor employer as set forth under paragraph (6) of subdivision (b).
(7)“Enterprise” means a hotel, private club, event center, airport hospitality operation, airport service provider, or the provision of building service
to office, retail, or other commercial buildings.
(8)“Event center” means a publicly or privately owned structure of more than 50,000 square feet or 1,000 seats that is used for the purposes of public performances, sporting events, business meetings, or similar events, and includes concert halls, stadiums, sports arenas, racetracks, coliseums, and convention centers. The term “event center” also includes any contracted, leased, or sublet premises connected to or operated in conjunction with the event center’s purpose, including food preparation facilities, concessions, retail stores, restaurants, bars, and structured parking facilities.
(9)“Hotel” means a residential building that is designated or used for lodging and other related services for the public, and containing 50 or more guest rooms, or suites of rooms (adjoining rooms do not constitute a suite of rooms). “Hotel” also
includes any contracted, leased, or sublet premises connected to or operated in conjunction with the building’s purpose, or providing services at the building. The number of guest rooms, or suites of rooms, shall be calculated based on the room count on the opening of the hotel or on December 31, 2019 whichever is greater.
(10)“Laid-off employee” means any employee who was employed by the employer for six months or more and whose most recent separation from active employment by the employer
occurred on or after March 4, 2020, and was due to a reason related to the COVID-19 pandemic, including a public health directive, government shutdown order, lack of business, a reduction in force, or other economic, nondisciplinary reason due to the COVID-19 pandemic. There shall be a presumption that a separation due to a lack of business, reduction in force, or other economic, nondisciplinary reason is due to
a reason related to the COVID-19 pandemic, unless the employer establishes otherwise by a preponderance of the evidence.
(11)“Length of service” means the total of all periods of time during which an employee has been in active service with the employer, based on the employee’s date of hire, including periods of time when the employee was on leave or on vacation.
(12)“Person” means an individual, corporation, partnership, limited partnership, limited liability partnership, limited liability company, business trust, estate, trust, association, joint venture, agency, instrumentality, or any other legal or commercial entity, whether domestic or foreign.
(13)“Private club” means a private, membership-based business or nonprofit organization that operates a building or complex of buildings containing at least 50 guest
rooms or suites of rooms that are offered as overnight lodging to members. The number of guest rooms or suites of rooms shall be calculated based on the room count on the opening of the private club or on December 31, 2019, whichever is greater.
(b)(1) Within five business days of establishing a position, an employer shall offer its laid-off employees in writing, either by hand or to their last known physical address, and by email and text message to the extent the employer possesses such information, all job positions that become available after the effective date of this section for which the laid-off employees are qualified. A laid-off employee is qualified for a position if the employee held the same or similar position at the enterprise at the time of the employee’s most recent layoff with the employer.
(2)The employer shall offer positions to laid-off
employees in an order of preference subject to paragraph (1) and this paragraph. If more than one employee is entitled to preference for a position, the employer shall offer the position to the laid-off employee with the greatest length of service based on the employee’s date of hire for the enterprise.
(3)A laid-off employee who is offered a position pursuant to this section shall be given at least five business days, from the date of receipt, in which to accept or decline the offer. A “business day” is any day except Saturday, Sunday, or any official state holiday. An employer may make simultaneous, conditional offers of employment to laid-off employees, with a final offer of employment conditioned on application of the preference system set forth in paragraph (2).
(4)An employer must retain the following records for at least three years, measured from the date of the written
notice regarding the layoff, for each laid-off employee: the employee’s full legal name; the employee’s job classification at the time of separation from employment; the employee’s date of hire; the employee’s last known address of residence; the employee’s last known email address; the employee’s last known telephone number; and a copy of the written notices regarding the layoff provided to the employee and all records of communications between the employer and the employee concerning offers of employment made to the employee pursuant to this section.
(5)An employer that declines to recall a laid-off employee on the grounds of lack of qualifications and instead hires someone other than a laid-off employee shall provide the laid-off employee a written notice within 30 days including the length of service with the employer of those hired in lieu of that recall, along with all reasons for the decision.
(6)This section also applies in any of the following circumstances:
(A)The ownership of the employer changed after the separation from employment of a laid-off employee but the enterprise is conducting the same or similar operations as before the COVID-19 state of emergency.
(B)The form of organization of the employer changed after the COVID-19 state of emergency.
(C)Substantially all of the assets of the employer were acquired by another entity that conducts the same or similar operations using substantially the same assets.
(D)The employer relocates the operations at which a laid-off employee was employed before the COVID-19 state of emergency to a different location.
(c)No employer shall refuse to employ, terminate, reduce in compensation, or otherwise take any adverse action against any laid-off employee as defined in subdivision (a) for seeking to enforce their rights under this section, for participating in proceedings related to this section, opposing any practice proscribed by this section, or otherwise asserting rights under this section. This subdivision shall also apply to any employee or laid-off employee who mistakenly, but in good faith, alleges noncompliance with this section.
(d)The Division of Labor Standards Enforcement shall have exclusive jurisdiction to enforce this section. This section may be enforced only as follows:
(1)A laid-off employee may file a complaint with the Division of Labor Standards Enforcement for violations of this section and may be awarded
any or all of the following, as appropriate:
(A)Hiring and reinstatement rights pursuant to this section.
(B)Frontpay or backpay for each day during which the violation continues, which shall be calculated at a rate of compensation not less than the highest of any of the following rates:
(i)The average regular rate of pay received by the laid-off employee during the last three years of that employee’s employment in the same occupation classification.
(ii) The most recent regular rate received by the laid-off employee while employed by the employer.
(iii) The regular rate received by an employee occupying the position in place of the laid-off employee that should have been employed.
(C) Value of the benefits the laid-off employee would have received under the employer’s benefit plan.
(2)No criminal penalties shall be imposed for violation of this section.
(3)Any employer, agent of the employer, or other person who violates or causes to be violated the provisions of this section shall be subject to a civil penalty of one hundred dollars ($100) for each employee whose rights under these provisions are violated and an additional sum payable as liquidated damages in the amount of five hundred dollars ($500), per employee, for each day the rights of an employee under this section are violated and continuing until such time as the violation is cured, which shall be recovered by the Labor Commissioner, deposited into the Labor and Workforce Development Fund, and paid to the employee as compensatory
damages.
(4)The Labor Commissioner shall enforce this section, including investigating an alleged violation and ordering appropriate temporary relief to mitigate the violation pending the completion of a full investigation or hearing, through the procedures set forth in Section 98.3, 98.7, 98.74, or 1197.1, including by issuance of a citation against an employer who violates this section and by filing a civil action. If a citation is issued, the procedures for issuing, contesting, and enforcing judgments for citations and civil penalties issued by the Labor Commissioner shall be the same as those set out in Section 98.74 or 1197.1, as appropriate.
(5)In an action brought by the Labor Commissioner for enforcement of this section, the court may issue preliminary and permanent injunctive relief to vindicate the rights of employees.
(6)In an administrative or civil action brought under this section, the Labor Commissioner or court, as the case may be, shall award interest on all amounts due and unpaid at the rate of interest specified in subdivision (b) of Section 3289 of the Civil Code.
(7)The remedies, penalties, and procedures provided under this section are cumulative.
(e)The Division of Labor Standards Enforcement may promulgate and enforce rules and regulations, and issue determinations and interpretations, consistent with and necessary for the implementation of this section. Those rules and regulations, determinations, and interpretations shall have the force of law and may be relied upon by employers, employees, and other persons to determine their rights and responsibilities under this section.
(f)Nothing in this section shall prohibit a local governmental agency from enacting ordinances that impose greater standards than, or establish additional enforcement provisions to, those prescribed by this section. This section shall not be construed to limit a discharged employee or eligible employee’s right to bring a common law cause of action for wrongful termination.
(g)All of the provisions of this section, or any part of this section, may be waived in a valid collective bargaining agreement, but only if the waiver is explicitly set forth in that agreement in clear and unambiguous terms. Unilateral implementation of terms and conditions of employment by either party to a collective bargaining relationship shall not constitute or be permitted as a waiver of all or any part of the provisions of this section.
(h)The
provisions of this section are severable. If any provision of this section or its application is held invalid, that invalidity shall not affect other provisions or applications that can be given effect without the invalid provision or application.
(i)(1) Except as provided in paragraph (2), this section shall remain operative only until January 1, 2027.
(2)Notwithstanding paragraph (1), a violation of this section occurring on or before December 31, 2026, shall continue to be enforceable pursuant to subdivision (d).