CLIENT ALERT – New California Legislation Takes Aim at Gender discrimination, Credit Checks by Employers, Pregnancy Leave Healthcare Coverage and Commission-Based Employment.
Effective January 2012, California employers will be required to comply with new regulations relating to gender discrimination, credit checks, and pregnancy leave healthcare coverage. Additional changes will be made to Commission-based employment regulations in January 2013.
New Protection for Transgender Employees in California
Effective January 2012, the “Gender Nondiscrimination Act” will add “gender expression” and “gender identity” to the list of classes protected from discrimination in the workplace and in housing under California’s Fair Employment and Housing Act. The Act provides protection for transgender individuals who face discrimination for their behavior and/or appearance as they relate to sex and gender. It also requires employers to revise dress codes to accommodate transgender individuals.
California Prohibits the Use of Credit Checks for Employment Purposes
California joins six other states in restricting the use of credit checks for employment purposes. In most cases, employers will now be prohibited from using credit-related information — such as credit history, credit score, and credit records — when hiring new employees.
California Law Intended to Protect Employees’ Health Care Coverage During Pregnancy Leave
A new California law, which amends the California Pregnancy Discrimination Law, prohibits employers from refusing to pay group health plan coverage for female employees who take pregnancy or childbirth leave.
California Amends Commission-Based Employment Contract Requirements
Effective January 2013, in-state employers will have to abide by rules previously applicable only to out-of-state employers, requiring employers to create a written contract for all commission-based employees describing how commissions will be computed and paid. Once effective, the law will also require all employers to give a copy of the contract to each applicable employee, and obtain a signed receipt for the contract from each employee.