New Laws in California
Business Legal

Upcoming Law Changes in California

The last year saw many laws put on hold as the state of California struggled to adjust to life at home. Laws affecting different areas of business were also put on hold and many small business owners are eagerly awaiting the changes. While the state itself is revising a lot of laws, here are three new legal areas to pay attention to.

Training for Restaurants In California That Serve Alcohol

California is home to the Alcohol Beverage Control (ABC) that dictates how restaurants need to operate in regard to serving alcohol. While it’s known that bartenders must have a license to serve alcohol, it’s now become a law that all restaurant staff must be certified and passed off by the ABC. This new law, dubbed Responsible Beverage Service, requires the wait staff, bartenders, chefs, cooks and restaurant managers to all be certified to serve alcohol. If a restaurant serves alcohol in any way, they’ll need to pay attention to this law and ensure every employee has responsible beverage service training.

How Commercial Properties Are Leased In California

There is also new legislation for new businesses in California and how they rent their property. According to the new laws, businesses in California may now retain an attorney to work directly with real estate agents. Due to complicated terms and difficult to understand procedures, tenants of commercial properties have run into a lot of issues and thus now require the assistance of an attorney. Sacramento commercial real estate agent Tom Bacon says, “the new law will require a lot more paperwork, but will make the tenants feel safer about committing to a long-term lease in a commercial property.”

Homeowners Associations Require A Third Party Election Process

In a new law that was first passed in early 2020, homeowners associations (HOAs) will now require an election process to elect new members to the board of directors. Due to issues with nepotism and favoritism among California’s HOAs, they now have to elect directors through an election process rather than just admitting someone to the board. According to one HOA election inspector, the move will create a much fairer process to putting people in position in homeowners groups. California is one of the first states to enact a law like this, but based on its early success, it will likely be adopted by other states.

All Workers Must Have a W2 Now

While this law went into effect last year, many people and businesses were not quick to adopt it. This law now states that all independent contractor employees must be provided with a W2 IRS form. Previously, businesses could give their contractor employees a 1099 form as they would be independent of a company. Now, to protect independent contractors even more, the law makes it so every employee is considered an employee under California law.

Final Thoughts

These are just a few of the laws that have recently been enacted in California. Due to the state of California’s workforce, many people and businesses are being given time to understand these laws and become familiar with them. California will likely make revisions to these laws or create new ones based on them in the coming year.

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