What happened?

On September 26, 2024, Governor Gavin Newsom signed SB 1340 into law, which allows local governments to enforce not only the state’s employment discrimination claims but also local anti-discrimination laws that are more stringent than the state’s anti-bias laws.

Quick Summary:

• The law enhances the enforcement of anti-discrimination laws by allowing local agencies to partner with the Civil Rights Department (CRD) to investigate and decide complaints.
  • As a prerequisite to this local enforcement, the CRD must issue a right-to-sue notice.

• It also reinforces that local anti-discrimination laws must be at least as protective as state laws.

What are the details?

Background:

• Previously, enforcement of California’s discrimination laws, such as FEHA and the Unruh Civil Rights Act, was solely the responsibility of the CRD. However, beginning January 1, 2025, this will change.

Key Provision:

• Amendments to Existing Laws: the law amends sections of the Government Code and the Public Contract Code to enhance local enforcement of anti-discrimination laws.
  • The law allows local jurisdictions to enforce anti-discrimination laws that are at least as protective as state laws, provided the Civil Rights Department (CRD) issues a right-to-sue notice.

• Reinforcement of Existing Frameworks: Reinforces the Unruh Civil Rights Act and the California Fair Employment and Housing Act (FEHA), which prohibit discrimination in business establishments, housing, and employment.

• Local Enforcement Requirements: Local enforcement can occur if it meets specific requirements, including being based on a complaint filed with the CRD and starting before the expiration of the time to file a civil action specified in the right-to-sue notice.

• Tolling of Statute of Limitations: The law tolls the statute of limitations for filing a civil action under a right-to-sue notice, pausing the one-year period to sue during local enforcement.

• Compliance with Local Laws: Employers must stay informed about local anti-discrimination laws, which may impose stricter standards than state laws.

• Extended Litigation Timelines: The tolling provision could significantly extend the litigation timeline, requiring employers to be prepared for prolonged legal exposure.

Business Considerations

• Employers should stay informed about local anti-discrimination laws, which may impose stricter standards than state laws. Legal counsel can help ensure compliance with these additional obligations.
• Employers should review and update their anti-discrimination policies and practices to align with both state and local laws. Employers should be mindful of the new authority that local governments will have and the possible impact on their operations and, especially given the new law’s tolling provision and empowerment of rigorous anti-discrimination laws, re-evaluate past claims to ensure that steps have been taken to remedy causes of discriminatory practices or ensure that such claims truly have no merit.
• Employers should provide training for management and staff on the new requirements and local laws to help prevent discrimination and ensure a compliant workplace environment.
• Employers should maintain thorough documentation of all complaints and actions taken. This can help demonstrate compliance and provide a defense in case of litigation.
• Employers should note that local enforcement may occur only after the Civil Rights Department issues a right-to-sue notice. The statute of limitations provided in the right-to-sue notice is extended during any local enforcement, without prohibiting the potential plaintiff from filing during local enforcement.

Source References

• CA SB 1340

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