Governor Gavin Newsom recently signed a slew of new bills into law at the close of California’s legislative season. Below is a summary of the new employment laws, all of which take effect on January 1, 2022.

Wage Theft Will Trigger Enhanced Criminal Liability

AB 1003 makes the intentional theft of wages by an employer, i.e., the intentional deprivation of wages due to an employee, punishable as grand theft if the wages equal $950 for one employee or $2,350 for two or more employees in any consecutive 12-month period. Notably:

• Grand theft is punishable either as a misdemeanor by imprisonment in county jail for up to one year or as a felony by imprisonment in county jail for 16 months or two to three years;
• “Employee” includes independent contractors, and “employer” includes the hiring entity of an independent contractor;
• “Wages” includes gratuities, benefits and other compensation and wages subject to prosecution may be recovered as restitution; and
• The employee or Labor Commissioner may also commence a civil action seeking remedies available under the Labor Code.

“Silenced No More” – Non-Disclosure Agreements

SB 331 expands existing coverage under the STAND (Stand Together Against Non-Disclosures) Act, which prohibits all California employers—in connection with lawsuits and administrative claims of sexual assault, or harassment, discrimination or retaliation based on sex—from entering into settlements of such formal legal actions that prevent disclosure of factual...

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