Labor & Employment

Unemployment benefits; maximum duration. Provides that, beginning July 1, 2026, for claims effective on or after July 1, 2026, an eligible individual's weekly unemployment compensation benefit amount shall be paid for a maximum duration of 26 weeks.

Prevailing wage rate for public works contracts; civil penalties. Provides that the prevailing wage rate required to be paid under certain contracts for public works shall not be less than the applicable prevailing wage rate determined by the U.S. Secretary of Labor under federal law. The bill subjects any contractor or subcontractor who fails to pay the prevailing wage rate for public works contracts as required by existing law to a civil penalty of $500 for each day on which such underpayment occurs and disqualifies such contractor or subcontractor from bidding on public contracts until three years after the final date on which such underpayment occurs. The bill revises the requirements for a contractor or subcontractor to submit certain payroll information to the Department of Labor and Industry and creates certain civil penalties for first and second or subsequent failures to meet such requirements.

Employment; paid sick leave; civil penalties. Expands provisions of the Code that currently require one hour of paid sick leave for every 30 hours worked for home health workers to cover all employees of private employers and state and local governments. The bill requires that employees who are employed and compensated on a fee-for-service basis accrue paid sick leave in accordance with regulations adopted by the Commissioner of Labor and Industry. The bill provides that employees transferred to a separate division or location remain entitled to previously accrued paid sick leave and that employees retain their accrued sick leave under any successor employer. The bill allows employers to provide a more generous paid sick leave policy than prescribed by its provisions and specifies that employees, in addition to using paid sick leave for their physical or mental illness or to care for a family member, may use paid sick leave to seek or obtain certain services or to relocate or secure an existing home due to domestic abuse, sexual assault, or stalking. The bill provides that certain health care workers who work no more than 30 hours per month may waive the right to accrue and use paid sick leave. The bill also provides that employers are not required to provide paid sick leave to certain health care workers who are employed on a pro re nata, or as-needed, basis, regardless of the number of hours worked. The bill requires the Commissioner to promulgate regulations regarding employee notification and employer recordkeeping requirements. The bill authorizes the Commissioner, in the case of a knowing violation, to subject an employer to a civil penalty not to exceed $150 for the first violation, $300 for the second violation, and $500 for each successive violation. The Commissioner may institute proceedings on behalf of an employee to enforce compliance with the provisions of this bill. Additionally, the bill authorizes an aggrieved employee to bring a civil action against the employer in which he may recover double the amount of any unpaid sick leave and the amount of any actual damages suffered as the result of the employer's violation. The bill has a delayed effective date of July 1, 2027.

Protection of employees; covenants not to compete; involuntarily separated employees. Prohibits the enforcement of a covenant not to compete, as such term is defined in existing law, between an employer and an employee if such employee is involuntarily separated from employment, as defined in the bill. The bill provides that for its purposes, an employee that is separated from employment shall be presumed to be involuntarily separated from employment unless the employer provides documentation establishing that such separation is voluntary or due to the employee's inadequate job performance or misconduct.