By Sharice B. Marootian, Abdulaziz, Grossbart & Rudman
License Bond: The contractor's license bond amount has increased from $12,500 to $15,000. When a claim is made on the bond, qualified claimants are still limited to recouping the amount of $7,500, but residential owner may claim the entire bond amount of $15,000. Most surety companies have a blanket endorsement in place with the CSLB.
Salesperson Registration: The requirements that a salesperson register with each particular contractor that he/she is acting as a salesperson for is now eliminated. Under the new law, the salesperson will register once every two years, and the contractor can electronically notify the CSLB that a particular salesperson is working for it. Additionally, the CSLB will require that the HIS have a current and valid registration filed with the CSLB before making sales calls on behalf of contractors; requires that a contractor notify the CSLB when they hire a registered HIS and also when that employment ceases; the CSLB will accept applications electronically (including signatures) from the HIS applicant; and registration will be valid for two years from the month of issue.
Paid Sick Leave: To make sure as an employer you are in compliance, make sure that you create a policy addressing the amount of leave provided to employees or else the mandated accrual rate of one hour of sick pay for every 30 hours worked will be allotted without a cap. This could be almost nine days of sick pay rather than the mandated three days. Additionally, an employer must provide an employee with a written notice setting forth the amount of paid sick leave available to the employee each pay period. The Wage and Employment Notice has been updated by the Labor Commissioner to contain information about an employee's right to accrue and use paid sick leave and about employee protections under the law, which can be found on the Labor Commissioner's website. A new poster is now required, and employers must also keep records for at least three years which document the number of hours that each employee worked and paid sick days accrued and used by each employee.
Public Works: In order to bid or work on public works jobs, contractors must register with the Department of Industrial Relations (and renew that registration by June 30, of every year) and meet requirements. Contractors now face a penalty of $2,000 if they allow their registration to lapse. Further, contractors on public works must enter certified payroll records online at the Department of Industrial Relations website if the project was awarded on or after April 1, 2015.
Minimum Wage: The minimum wage in California has increased from $9.00 per hour to $10.00 per hour.