New laws impacting MFG in 2020, and a minimum wage increase

By CMTA Staff

Capitol Update, Dec. 19, 2019

A new year means new changes in California law with the enactment of bills from the 2019 Legislative Session. Overall, your Government Relations Team was successful in maintaining a competitive environment for manufacturers in the state, however there are significant changes on the horizon for 2020 that will have an impact on your operations. Below is a list of CMTA’s most impactful legislation that will become law in 2020. These bills represent the priorities identified by our membership that advanced through the legislative process and were signed by the Governor. For a complete list of CMTA’s 2019 “Making CA” agenda, please click here.

In addition, manufacturers may also feel the impact of the latest minimum wage increase set to occur on January 1, 2020. The $1 increase will move employers with 26 or more employees to $13 an hour. Those with 25 or fewer employees will increase to $11 an hour. This is the fourth of seven annual increases since the passage of Senate Bill 3 (Chapter 4, Statutes of 2016) to gradually raise the state’s minimum wage to $15 an hour by 2023. Several cities and counties have enacted higher minimum wages than the state wage. Manufacturers in those jurisdictions are subject to, and therefore must pay, the higher wage. You can see those municipalities at the bottom of this page. For more information on California’s minimum wage requirements, please click here.

Policy Changes Effective January 1, 2020:

AB 51 (Gonzalez) – bans the use of arbitration agreements as a condition of employment. **Since publication of this update, a federal judge held this law and set an injuction hearing for January 10, 2020. **

AB 824 (Wood) – weakens California patentholders’ ability to protect their intellectual property rights from infringement that will delay and increase costs for both generic and branded drugs.

AB 187 (Garcia) – enacts provisions to the 2013 Used Mattress Recovery and Recycling Act to increase accountability and furtherance in reaching the state’s mattress recycling targets.

AB 5 (Gonzalez) – codifies the Dynamex “ABC” test that presumes all workers are employees, and not independent contractors, unless an employer can demonstrate the test factors have been satisfied.

AB 9 (Reyes) – extends the statute of limitations to file complaints with the Department of Fair Employment and Housing for unlawful employment practices to three years but prohibits the revival of lapsed claims.

SB 142 (Wiener) – imposes new requirements on employers for ensuring access to adequate lactation space in the workplace.

Policy Changes Effective January 1, 2020:

AB 48 (O'Donnell) – authorizes a public vote in the 2020 Primary Election for a $15 billion facilities construction and modernization bond of Preschool, K-12, and Higher Ed that also includes $500 million specifically dedicated for career technical education facilities.

AB 1583 (Eggman) – extends the California Alternative Energy and Advanced Transportation Financing Authority (CAEATFA) advance manufacturing program by five years to 2026.

See more Capitol Updates