Cal-Peculiarities: How California Employment Law is Different - 2023 Edition

270 | 2023 Cal-Peculiarities ©2023 Seyfarth Shaw LLP www.seyfarth.com 7.25.3 Impermissible conditions of employment LC § Description Penalty 226.8 Willful Misclassification as Independent Contractor. Employers must not willfully misclassify workers as independent contractors or impose deductions or charges on such employees that are unlawful to impose on employees. $5,000 to $25,000 407 Illegal Consideration to Secure Employment. Employers must not condition employment on investment in or purchase of stock in business. LC 2699 432.2 Polygraph and Similar Tests. Employers must not require applicants or employees to take polygraph, lie detector, or similar tests or examinations as a condition of employment or continued employment. Any “request” that employees take the test must be accompanied by written notice of this code section. LC 2699 432.3 Salary History Inquiries Forbidden. Employers must not inquire into salary history, and, in deciding whether to offer employment, may not rely on salary history. Salary history disclosed voluntarily and without prompting may be relied upon in setting salary but cannot itself justify any disparity in pay. LC 2699 432.5 Forcing Written Agreement to Illegal Terms of Employment. Employers must not require applicants or employees to agree to any term or condition of employment that the employer knows to be unlawful. LC 2699 450 No Coercion to Patronize Employer. Employers must not require employees to patronize the employer or other person in purchases of things of value, such as equipment or supplies. Employers must not charge employees to submit employment applications. LC 2699 1051 Employee Photos and Fingerprints. An employer commits a misdemeanor if the employer requires employees or applicants to be fingerprinted or photographed if the employer intends to give the fingerprints or photos to a third person, to the possible detriment of the employee or applicant, or the employer fails to take all reasonable steps to prevent such a violation. LC 1054: treble damages; LC 2699 28702872 Employee Inventions. Employers must not require or enforce contract provisions that assign rights in employee inventions if developed entirely on employee’s own time, without using employer’s equipment, supplies, facilities, or trade secret information. Exception: inventions that either (1) at time of conception or reduction to practice, relate to employer’s business or employer’s actual or demonstrably anticipated research or development, or (2) result from work by employee for employer. Any employment agreement requiring employees to assign invention rights to the employer must include written notice that agreement does not apply to any invention that would qualify under this section. LC 2699

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