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What to Expect in 2021


Most can agree that 2020 was one for the books! Looking forward to 2021, there are several new laws and updates, with some that will significantly impact small businesses. Below are a few changes that businesses should review to ensure they are up to date with compliance, which may require creating or updating new policies or additional documentation:


  1. The California Family Rights Act (CFRA) was updated to require any employer with five or more employees to provide job protected leave to care for themselves or family members with a serious health condition, to bond with a new baby, or adoption. This law also removed the "key employee" exemption as well as the 75 mile radius of different worksites when calculating employee totals. It also expanded the definition of qualifying "family members".

  2. State minimum wage rates have increased to $13/hour for employers with under twenty five employees and $14/hour for employers with twenty six or more employees.

  3. With minimum wage increases, review exempt salary pay rates to ensure it meets the minimum requirements

  4. Temporary and seasonal employees are now required to take sexual harassment prevention training within 30 days of hire or 100 hours worked, whichever is earlier.

  5. Agricultural employers under Wage Order 14 with 26 or more employees are subject to a series of phased-in overtime changes. As of January 1, 2021, employees will receive overtime after 8.5 hours worked per day or 45 hours per week.

  6. Proposition 22 approved certain app-based drivers to be considered independent contractors.

  7. AB 5 was revised to include more clarity and changes to properly classify someone as an independent contractor. Primarily, the ABC test is still utilized, however, there are now more exceptions and clarifications on how to properly classify someone.

  8. New regulations require employers to develop and implement a written COVID-19 Prevention Program.

This list is by no means conclusive of all the updates, however, this is a good starting point to stay informed for the new year. If you'd like further details or could use assistance implementing or updating policies, contact SimpliHR today! You can also follow SimpliHR on Facebook or LinkedIn for updates and guidance!




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