A new year often brings slew of legal and legislative changes—and 2022 is no exception. A number of different laws took effect on January 1st, 2022 that affect the rights and responsibilities of business. At KLEIN.LAW, we want to make sure that business owners and entrepreneurs have the tools, information, and resources that they need to do what is best for their company. Below, our Santa Monica commercial law attorney highlights some of the key new laws that businesses should know about in California in 2022 and the specific actions that you can take to protect the best interests of your company. 

Four New California Laws That Businesses Should be Ready for in 2022

Is your company preparing for the new laws regarding commerce and the workplace that are taking effect this year? It is crucial that you take proactive measures to educate yourself, your business partners, your managers, and your staff on rights and responsibilities. Here are four of the most notable new laws for 2022 that businesses in California should be aware of: 

  1. Enhanced Restrictions on Settlement Agreements and Non Disparagement Clauses: In recent years, California lawmakers have enacted new regulations limiting the ability of businesses and organizations to settle certain types of employment law claims. There are not even greater restrictions. SB 331 took effect in California on January 1st, 2022. It is a bill that, among other things, bars the use of nondisclosure agreements and non disparagement agreements to resolve workplace discrimination claims and workplace retaliation claims. If you have any questions about settlement agreements and the related regulations, our California business lawyer can help. 

  2. Criminal Liability for Intentional Failure to Pay Wages: AB 1003 officially took effect in California on January 1st, 2022. Also known as California’s new anti wage theft law, AB 1003 creates criminal liability for employers who knowingly and intentionally fail to pay wages. Businesses have long faced significant civil liability for failure to pay wages in violation of federal or state law. Now, employers could also face criminal liability in the form of a grand theft charge. Criminal liability requires “intentional” failure to pay in California.  

  3. Stronger Workplace Safety Requirements: California has long had some of the most comprehensive workplace safety laws in the entire country. Business owners in our state should be aware that these regulations are set to become even more stringent. On January 1st, 2022, SB 606 became law in California. The legislation signed by Governor Gavin Newsom significantly expands the authority held by the California Division of Occupational Safety and Health’s (Cal/OSHA). Cal/OSHA is the state’s top workplace safety enforcement action. The regulator will now have additional authority to conduct investigation and the ability to impose even more severe penalties for “egregious” workplace safety violations. 

  4. Additional COVID-19 Health Rules: Running a business in the current environment is challenging. There are many unique issues that entrepreneurs and managers need to deal with. The COVID-19 pandemic remains a major consideration. Over the past two years, California has imposed a number of different requirements on businesses—from capacity restrictions to personal protective equipment (PPE) requirements. Another bill that took effect in January (AB 654) also requires companies to notify parties if there has been a COVID-19 exposure in the workplace. Businesses and organizations in Southern California must have a comprehensive COVID-19 policy in place for the coming year. Failure to follow the state’s constantly shifting COVID-19 public health regulations could result in a business facing legal sanctions or legal liability. 

These are merely a small selection of some of the key new laws that business owners in California should know about. Beyond these new regulations, there are also a number of different industry specific changes that took effect in January or are scheduled to take effect in the coming months. 

Take Action: How to Prepare Your Company for Legal Changes

Owning and operating a successful business is challenging. The last thing any business owner or entrepreneur wants to worry about is facing legal liability because they failed to adjust to our state’s ever-changing laws in a timely manner. With guidance from a qualified business lawyer, your company will be in the best position to navigate the regulatory environment. Among other things, our an experienced California business law attorney can help you with the following:  

  • Awareness of All Relevant Legal Changes: First and foremost, a Southern California business lawyer will make sure that you are aware of all of the federal, state, and local changes that might affect your business and your industry. Remember, ignorance of commercial regulations is not a valid defense against a legal claim. As a business owner, you have a duty to stay informed. 

  • Full Compliance With the Law: Next, a California business lawyer will help you ensure that you and your company are in full compliance with all of the new legal changes that affect your industry. In some cases, this means revising internal protocols and developing a plan that is compliant with the law and limits the risk of liability. 

  • Comprehensive Review of its Practices: Finally, a California business law attorney can also conduct a more comprehensive review of your company’s practices—making sure that you are in compliance with the lot and operating in an efficient manner that reduces your risk of running into any legal problems. Business and employment policies should be reviewed—and, if necessary revised—on a regular basis. 

Contact Our Santa Monica, CA Business Law Attorney Today

At KLEIN.LAW, our Southern California business lawyer is a solutions-focused advocate for clients. If you have any specific questions about the new state laws affecting businesses in 2022 and what your company can do to stay prepared, we can help. Call us at (310) 295-2261 or get in touch with us online to arrange a confidential appointment with a lawyer. Our firm provides comprehensive legal services to businesses and entrepreneurs throughout the region, including in Santa Monica, Los Angeles, Beverly Hills, Inglewood, Torrance, Pasadena, Glendale, and Burbank.