In the closing of California’s 2023 legislative session, Governor Newsom recently signed a multitude of new bills into law. Aimed squarely at the state’s employers, these bills span several areas of employment law, thus necessitating careful attention from all employers operating within the state’s jurisdiction. Herein, we detail the key changes in this updated legislative framework that employers need to be aware of for the New Year.
Our first item of note is the further expansion of California’s prohibition against non-compete agreements. This expansion further solidifies the state’s stringent stance against the employment practice, warning employers to execute caution when implementing such agreements. This development is a concrete indicator of the direction in which California’s employment legislation is moving and establishes a new benchmark for the rights of employees in the state.
The second significant law pertains to the limitation on stays of proceedings pending the appeal of a denial of a motion to compel arbitration. This law signals a further shift in California’s stance on arbitration in employment disputes, and could potentially lengthen the process for such disputes to be resolved.
The bills also introduced an obligation for venture capital companies. Although the exact nature of this obligation has not been disclosed at the source, it is clear that the regulation of venture capital firms is a priority for the state. This should be a keen point of interest for employers that fall under this category and marks a significant movement in venture capital law in the state.
These are just a few of the bills signed into law by Governor Newsom, each carrying its own implications for employers in the Golden State. A comprehensive understanding of each new law is necessary to ensure a smooth transition into 2024 and for businesses to ensure they are fully equipped to adapt to these legal changes.
To learn more about these legislative changes, refer to the full article provided by Fenwick & West LLP here.