California Legislation

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California’s Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”) requires commercial cannabis entities to obtain a license from California’s Department of Cannabis Control (“DCC”) to cultivate, distribute, transport, store, manufacture, process, and sell cannabis in the state of California. Since its enactment, MAUCRSA required licensees with 20 or more employees to enter into Labor Peace Agreements (“LPAs”) with “bona fide” labor organizations to receive and renew a license from the DCC, as previously outlined here. LPAs require commercial cannabis licensees and labor organizations to agree to not engage in conduct that would disrupt or interfere with the other’s dealings. In 2022, AB 195 reduced the employee threshold requirement by half, effective July 1, 2024. That means, effective July 1, 2024, all license applicants with 10 or more employees must comply with the LPA requirement to obtain a license, and all current licensees with 10 or more employees must so comply to renew their license. Continue Reading July 1 Deadline Looms for Cannabis Operators to Maintain and Renew Their Licenses by Entering into Labor Peace Agreements

On April 26, 2024, Ctrl Alt Destroy, Inc. (“CAD”), a California Corporation and cannabis licensee filed a lawsuit against Nicole Elliott in her official capacity as Director of the State of California’s Department of Cannabis Control (“DCC”) and Rob Bonta in his official capacity as Attorney General of the State of California, seeking declaratory and injunctive relief alleging that California’s Medicinal and Adult-Use Cannabis Regulation and Safety Act (“MAUCRSA”) is unconstitutional under the Fifth and Fourteenth Amendments to the US Constitution and is preempted by the National Labor Relations Act (“NLRA”).Continue Reading Cannabis Operator Challenges California State Statute and Regulations Requiring Labor Peace Agreements

On October 10, 2023, California Governor Newsom signed into law S.B. 365, a bill that amends California Code of Civil Procedure Section 1294. The new law provides that when a party appeals an order denying a motion to compel arbitration (an order which is immediately appealable), the trial court is not obligated to stay the action during the pendency of the appeal. The law marks a major shift in California civil procedure law.Continue Reading New California Law Prohibits Automatic Stay of Trial Court Action When Appealing Denial of a Motion to Compel Arbitration

Major changes are coming to the Minor League. In April, Major League Baseball (MLB) players and owners voted to ratify a historic collective bargaining agreement that, for the first time in history, covers Minor League players. MLB owners voted unanimously to ratify the agreement on April 3, following a March 31 vote in which more than 99 percent of Minor League players voted to ratify the agreement. The five-year agreement, which was negotiated by MLB and the MLB Players Association (MLBPA), more than doubles the salaries at all Minor League levels and provides that Minor League players will be paid almost year-round.Continue Reading A Major Deal for the Minor League: California Bill Paves the Way for Historic Collective Bargaining Agreement for Minor League Baseball

On September 30, 2023, Governor Gavin Newsom signed SB 553 into law, establishing a new written Workplace Violence Prevention Plan (“WVPP”) requirement for nearly all California employers. The WVPP requirement, which becomes effective on July 1, 2024, is the first of its kind in the nation to apply to employers across industries. In connection with maintaining and implementing the WVPP, employers also must train employees on workplace violence hazards, maintain a violent incident log and other workplace violence-related records, and conduct periodic reviews of the WVPP. The law’s extensive requirements, which are detailed comprehensively below, will be enforced by California’s Division of Occupational Safety and Health (“Cal/OSHA”).Continue Reading California Passes New Law Mandating Workplace Violence Prevention Plan for Employers

As we previously reported here last fall, California enacted a pay transparency law (SB 1162) requiring employers with 15 or more employees to disclose pay scales in job postings beginning January 1, 2023. The Labor Commissioner recently issued guidance in the form of FAQs to address some of the unanswered questions regarding the interpretation and enforcement of the California Equal Pay Act.Continue Reading California Labor Commissioner Issues FAQs Clarifying Pay Transparency Law

The Bill

The Expansion of California Family Rights Act, AB 1041, was signed into law by Governor Newsom on September 29, 2022. AB 1041 expands the class of people for whom an employee may take leave to care for under the California Family Rights Act (“CFRA”) to include a “designated person.” AB 1041 also expands the term “family member” under the Healthy Workplaces, Healthy Families Act (“HWHFA”), which governs paid sick day leave, to include “designated person.”Continue Reading Who Is a “Designated Person”? Changes to California’s Medical Leave

On September 27, 2022, California Governor Newsom signed the state’s pay transparency bill, SB 1162, into law, requiring employers with 15 or more employees to disclose pay ranges in job postings, beginning on January 1, 2023. California now joins Colorado, Washington, and New York City with this requirement. SB 1162 also requires certain employers with 100 or more employees to report certain demographic information regarding their employees to the California Civil Rights Division, beginning in May 2023.Continue Reading California Will Now Require Employers to Disclose Pay Ranges in Job Postings and Report Certain Data in an Effort to Combat Pay Disparity

On May 13, 2022, a law requiring publicly held corporations headquartered in California to have women on the board of directors was enjoined from being enforced and declared unconstitutional after a bench trial in Los Angeles Superior Court.  In Crest v. Padilla, a judge ruled that the law violated the Equal Protection Clause of the California Constitution because it created a suspect gender classification without a compelling state interest, and the law was not necessary or narrowly tailored to achieve the State’s goals of remedying gender discrimination or benefiting the economy. Continue Reading Court Enjoins Law Requiring California Businesses Have Women on Their Board of Directors