The CA Legislature Passes Another Law Requiring that Employers Advise Employees that They Have the Right to Seek Legal Counsel
In recent years, California employers have seen legislation requiring that they advise their employees in certain situations about their right to consult with legal counsel. For example, in 2021 Senate Bill 331 (“Silenced No More Act”) amended section 1001 of the California Code of Civil Procedure, as well as the California Fair Employment and Housing Act (“FEHA”) to require, among other things, that a severance and release agreement contain a provision notifying the employee or former employee that they have the right to consult an attorney regarding the agreement. This notification under California law is separate and apart from the requirements under the federal Older Workers Benefit Protection Act (as part of the Age Discrimination in Employment Act) which also provides for such notice for employees over the age of 40.
On July 18, 2024, Governor Newsom signed another bill – Assembly Bill 1870 (“AB 1870”) – which amends section 3550 of the California Labor Code to also provide that employers must advise employees of their right to consult with legal counsel regarding their rights under workers’ compensations laws. Section 3550 requires that every employer that is subject to California’s workers’ compensation laws must post, and keep posted, in a conspicuous location that is frequented by employees, and where the notice may be easily read by employees during the hours of the workday, a notice that provides employees with information regarding workers’ compensation coverage and benefits. The notice must be posted in both English and Spanish where there are Spanish-speaking employees.
Based on the amendments by AB 1870, section 3550 now requires the notice contain the name of the employer’s current workers’ compensation insurance carrier or, when appropriate, a notice that the employer is self-insured, as well as the following information:
(1) How to get emergency medical treatment, if needed.
(2) The kinds of events, injuries, and illnesses covered by workers’ compensation.
(3) The injured employee’s right to receive medical care.
(4) The injured employee may consult a licensed attorney to advise them of their rights under workers’ compensations laws. In most instances, attorney’s fees will be paid from an injured employee’s recovery.
(5) The rights of the employee to select and change the treating physician pursuant to the provisions of Section 4600.
(6) The rights of the employee to receive temporary disability indemnity, permanent disability indemnity, supplemental job displacement, and death benefits, as appropriate.
(7) To whom injuries should be reported.
(8) The existence of time limits for the employer to be notified of an occupational injury.
(9) The protections against discrimination provided pursuant to Section 132a of the Labor Code.
(10) The internet website address and contact information that employees may use to obtain further information about the workers’ compensation claims process and an injured employee’s rights and obligations, including the location and telephone number of the nearest information and assistance officer.
Failure to properly post, and maintain the notice, constitutes a misdemeanor, and shall be prima facie evidence of noninsurance by the employer. The CA DIR – Division of Workers Compensation – is responsible for preparing a form notice in compliance with section 3550 and making it available to self-insured employers and workers’ compensation insurers. An employer’s insurer should provide the notice to the employer and advise the employer of the consequences for a failure to post this notice. However, employers are advised not to wait for their insurer to provide the updated notice, and instead should take proactive steps to ensure they have the updated section 3550 notice posted by January 1, 2025.
