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New California Laws affecting Small Business

California Laws affecting Small BusinessIn 2019, Governor Gavin Newsom signed several laws that impact California’s small business owners.

These bills made significant changes to employment law in California for 2020.

Some of the new laws relating to paid family leave, sexual harassment training, reclassification of independent contractors / employees and more.

We encourage our community’s feedback, so please call Merrill, Arnone & Jones at (707) 528-2882 if you have any questions about the below new 2020 laws in California.

NOTE: Find your county’s website and official Facebook page below.

2020 California Laws affecting Small Business

  1. Assembly Bill No. 5: This law limits the use of independent contractors – companies in certain industries are required to reclassify some independent contractors as employees. This affects workers whose employers control the work or if their work is part of the company’s core business.
  2. Assembly Bill No. 9: Employees who claim to be aggrieved by an alleged unlawful practice has an extended period of time 3 years to file a complaint from the date the unlawful practice occurred.
  3. Assembly Bill No. 51: Mandatory arbitration agreements that require people to resolve conflicts with an arbitrator outside of the court system are now banned. Employers cannot make employees sign this agreement as a condition or benefit of employment.
  4. Assembly Bill No. 333: Whistleblowers have expanded protections in California specifically in the health care field.
  5. Assembly Bill No. 1748: Airline employees and those who have donated an organ have expanding leave protections.
  6. Minimum Wage: California’s minimum wage increased to $12 per hour for employers with 25 employees or less and $13 per hour for employers with 26 or more employees. Many cities will increase their minimum wage beyond the state minimum.
  7. Senate Bill No. 83: Paid Family Leave will be increased from six to eight weeks starting July 1st, 2020. This program provides partial wage replacement benefits for those caring for a seriously ill family member or child under 1.
  8. Senate Bill No. 142: Companies must now provide appropriate lactation accommodations for nursing mothers. This room cannot be a bathroom or office closet. It must be near a sink and refrigerator.
  9. Senate Bill No. 188: Workplaces and schools cannot discriminate against a person due to their hairstyle. These hairstyles include braids, locks, and twists.
  10. Senate Bill No. 778: Businesses with 5 or more employees must provide sexual harassment training. Two hours are required for supervisory employees and one hour for nonsupervisory employees. The deadline is January 1st, 2021. This will have to be renewed every two years.

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Want to learn more about new laws affecting your county in California? Find your county below to visit their local website, or message them on their official Facebook page.


County Name

Alameda County

Alpine County

Amador County

Butte County

Calaveras County

Colusa County

Contra Costa County

Del Norte County

El Dorado County

Fresno County

Glenn County

Humboldt County

Imperial County

Inyo County

Kern County

Kings County

Lake County

Lassen County

Los Angeles County

Madera County

Marin County

Mariposa County

Mendocino County

Merced County

Modoc County

Mono County

Monterey County

Napa County

Nevada County

Orange County

Placer County

Plumas County

Riverside County

Sacramento County

San Benito County

San Bernardino County

San Diego County

San Francisco County

San Joaquin County

San Luis Obispo County

San Mateo County

Santa Barbara County

Santa Clara County

Santa Cruz County

Shasta County

Sierra County

Siskiyou County

Solano County

Sonoma County

Stanislaus County

Sutter County

Tehama County

Trinity County

Tulare County

Tuolumne County

Ventura County

Yolo County

Yuba County