California Employers Must Notify Employees That Their Non-Compete Agreements or Clauses are Void By February 2024!

California employers are tasked with new notice requirements! Employers must give notice to all current and former employees employed after January 1, 2022 whose contracts included a noncompete clause (or who were required to enter a noncompete agreement) that such clauses or agreements are void. This notice must be given to the employees by February 14, 2024. The notice has to be individualized for each employee, in writing, and shall be delivered to the employee’s or former employee’s last known address and email address. This is a significant task and employers should plan their compliance ahead of time.

New Law in 2024 Allows California to Refuse to Recognize ANY Non-Compete Agreements - Even Those That are Perfectly Legal in Other States.

California’s new controversial law (SB 699) codified in California Business and Professions Code section 16600.5 now extends California’s restriction on non-compete agreements to even perfectly legal out-of-state non-compete agreements. California wants to attract the best workers in the nation and now will refuse to enforce ANY non-compete agreements at all - even those that other states recognize. Employers have no right to enforce non-compete agreements in California.

Update: McDonald’s Confirms that California’s $20 Minimum Wage Will Lead to Increase in Menu Prices (and Possibly More Changes).

Fast food franchisees confirm that they will be increasing menu prices to offset the staggering increase in labor costs due to California’s new $20 minimum wage for all fast food workers. However, the California legislature, in establishing California’s new fast food worker minimum wage, may have failed to deliver high wages to California fast food workers. If the menu prices increase significantly, the fast food workers may find that their higher wages do not significantly increase their buying power at their own workplace- and perhaps in other areas of their life. In addition, if fast food franchisees choose to go fully automated and not hire employees, there are no higher wages for these workers because there will be no wages at all.

California Creates a Second "Selective" Minimum Wage: Health Care Workers’ Minimum Wage Set to Increase to $25 an Hour -With Some Workers Receiving a Raise of $7.50 an Hour in 7 Months.

Employers beware! California’s legislature has now created “selective” minimum wage for employees working in two industries- fast food and (now) healthcare. California’s current state minimum wage is set at $15.50 an hour and will increase to $16.00 an hour in January of 2024- a mere 50 cents! Just weeks after California enacted a new law to increase the minimum wage for fast food workers to $20 an hour, California enacted a second law to increase the minimum wage for health care workers to $25 an hour. This second law gives some healthcare workers a pay raise of $7.50 an hour in only 7 months!

California's Controversial and Unprecedented New Law Creates "Selective" Minimum Wage For Fast Food Workers and Council to Oversee Franchise Owners.

California has enacted a new law that creates a “selective” minimum wage by creating a minimum wage only for fast food workers. In the span of less than seven months, California fast food workers will receive a $4.50 per hour pay increase. In January of 2024, all other California employees working for minimum wage will receive a pay increase of a mere $0.50 per hour. Fast food employees are clearly receiving a windfall, and fast food employers will now be forced to deal with added rules, regulation, and oversight due to the creation of the fast food council.

Update: Governor Vetoes SB 799 and Refuses to Pay Unemployment Benefits to (Employed) Workers Who Choose to Strike.

UPDATE: Governor Newsom recently vetoed California Senate Bill 799, which would have provided unemployment benefits to employees who were not laid off and, instead, were choosing to go on strike.

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