The end of the year is upon us, and that means that legislative changes passed this year are about to go into effect, and now is the perfect time to do an end of year compliance check. As a small business owner, you need to be prepared and proactive to make sure you avoid unnecessary fines or penalties. At New Frontier, we help walk our customers through these changes as a part of our 4M consulting process.

This means that we’re here to help you navigate these legal changes and stay compliant with California law. If your HR policies need some updating, feel free to contact us and we’ll help with your latest compliance check.

Staying Up To date

It is vital your small business stays up to date as the new year begins. Legislative changes bring compliance checks and if 2024 is any indication, government agencies like Cal-OSHA will be increasing their business audits in the new year.

We have already recapped many of the most important labor law changes, go here to read through them.

What Should Your Small Business Do?

There are a number of action items your small business needs focus on as a part of the end of year compliance check. We will go over each of these below, but first, let’s cover a few additional changes you need to be aware of.

• There is a new I-9 form available. All new hires should be using that form.
• You can now incorporate your mandatory COVID-19 Prevention Program into your IIPP. This is highly recommended.
• If you have more than 100 employees, your payroll data needs to be submitted to the State of California.
• Review Company language regarding non-Compete agreements. These are now considered unlawful in the state of California

California Employers Take Note:

California employers should take note about two special parts of your compliance check.

First, you are now legally required to have a workplace violence protection plan. This, similar to the Covid prevention plan, must be a part of your IIPP. While not due on January 1, businesses should be vigilant and proactive so it is ready by the July 1 deadline.

 Second, minimum pay requirements are increasing to $16 an hour. Remember that this affects not only minimum wage employees but any exempt employees who are required to make two times state minimum wage

End-of-Year Compliance Audit

Here is a list of items to consider as a part of your business end-of-year compliance check.

•  California employers who drug test should evaluate and update Company policies regarding marijuana. You should also check to ensure that the drug testing company is California-compliant.
• Review your Company handbooks and update policies as needed.
• Make sure your Company has met all required sexual harassment training.
• Review insurance coverage to ensure proper liability protection.
• Check that your Company has proper procedures in place for the most common labor law areas. Check for items in payroll, meal and rest periods, overtime payments, and employee classifications.

Finally, remember that not everything has to be serious or worrisome. Schedule time to be with your employees while having fun, provide feedback for improvement, and celebrate 2023 accomplishments.