Executive Summary: Employers should look forward to another round of changes to the Golden State’s employment standards this year, the most challenging of which will be addressing employee protections for off-premises cannabis use, expanded paid sick leave benefits, and further restrictions on the use of noncompete agreements.

As 2024 is fast approaching, employers should be aware of a number of new California laws, many of which will go into effect in 2024. Below is a brief overview of the most notable new laws affecting businesses in California:

• Expanded Protections for Off-Duty/Off-Premises Cannabis Users (SB 700). Last year, the California legislature caused a stir when it amended the state Fair Employment and Housing Act (FEHA) to create employee protections for off-premises, off-duty cannabis use and restricted the type of cannabis testing that employers could use. Fortunately, the state delayed enforcement of the law until January 1, 2024. California has since doubled down on these protections by enacting SB 700, which makes it unlawful, with limited exceptions, for employers to ask applicants about their prior cannabis use. To summarize, beginning next year, employers will only be permitted to take action against an employee for their on-the-job or on-premises use of cannabis. Additionally, testing designed only to detect the presence of nonpsychoactive cannabis metabolites will not be a valid basis for taking action against an employee. Nor will prospective...

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