Hundreds of new laws became effective statewide on Jan. 1 but some adversely impact small business owners more than others.
Although it's too early in the year to tell what downsides will occur, having to scale back shifts, opportunities and benefits are common, according to National Federation of Independent Business state director John Kabateck.
The new laws include the following.
SB 3
The minimum wage increased by 50 cents to $15.50 per hour at the start of the year.
“A minimum wage is a starting wage and while there is and may very well be a place for it, we also believe that progressives oftentimes lean on the minimum wage as the end-all for employee success,” Kabateck said. “Minimum wage was never intended to be a forever wage for workers.”
AB 1949
It is now illegal for employers to refuse bereavement leave of up to five days for an employee whose family member died under AB 1949 and the NFIB argues the new law is ripe for abuse.
“With nearly every leave program, there's fines, penalties, and the right to sue, so if an employer even questions the leave programs that might be abused, they can be victimized and liable for alleged retaliation,” Kabateck told the Southern California Record.
AB 1287
A fee on care products for women only was eliminated this year due to its inapplicability across all genders.
Under AB 1287, businesses and manufacturers can no longer charge more money for feminine hygiene products and if they do, the State Attorney General can impose a civil penalty. Kabateck views it as arbitrary.
“This is opening a wide door to scheming plaintiff's lawyers who will try and twist the law as they have done with things like Americans with Disabilities Act and Proposition 65 for their own benefit,” he said. “The core problem we have is that it's not a pink tax as much as it is a determination by manufacturers and retailers of the sheer cost of an item based on what they determine its value and cost to be.”
AB 1601
AB 1601 requires that businesses providing customer service using call centers give employees 60 days' notice in the event of relocation abroad. But the NFIB argues that the law could create liability for small businesses if they are relocating due to an emergency.
"With the pandemic and unforeseen consequences, many businesses just simply don't have the luxury of a 60-day window to notify employees at any level," Kabateck added.