Every year we see new laws that go in to effect January 1st. Here are some of the new laws that may affect taxpayers and business owners:
AB 5 – Gig worker law
The landmark labor law reclassifies some independent contractors as employees. It aims to provide new protections for so-called gig economy workers such as minimum wage, paid sick days and health insurance benefits. Organizations representing freelance journalists have already sued over the law and Uber has said it will not adhere to the changes.
SB 3 – Minimum wage increase
The law raises the state minimum wage to $13 an hour for workplaces with 26 or more employees and to $12 for workplaces with fewer than 26 employees. The law outlines incremental minimum wage increases through 2023 when it will reach $15 an hour for all workplaces.
SB 83 – Extending paid leave
The law increases paid leave from six to eight weeks for people taking care of a seriously ill family member or to bond with a new child. It takes effect July 1, 2020.
AB 1482 – Rent Cap
The law caps rent increases at 5% each year plus inflation for the next decade. The cap does not apply to property built within the last 15 years. It also requires landlords to provide just cause for evictions.
AB 539 – Interest rate cap
The law caps interest rates at 36% above the U.S. Federal Reserve’s main interest rate on loans between $2,500 and $10,000. It aims to prevent predatory lending practices.
SB 30 – Domestic partnership law
The law gives heterosexual couples an alternative to marriage. It expands the option of a domestic partnership from same-sex couples to heterosexual couples. California law treats domestic partners and married people the same for tax purposes. But federal law does not recognize domestic partners. That could let some couples avoid the federal “marriage penalty,” which is a higher tax resulting from when two people marry who have the same income.
