In California, the dental industry is set for employment law changes in 2024. Below is the second of a three (3) part article series regarding the new law changes that every practice owner must be aware of.
Retaliatory Conduct for Protected Activity
The new law creates a rebuttable presumption of retaliation if the employer’s alleged retaliatory action occurred within 90 days of the employee’s protected activity. The law also provides that employers may not prohibit employees from discussing or disclosing their wages, asking about another employee’s wages, or encouraging other employees to exercise their legal rights.
Noncompete Agreements
The new law prohibits employers from including noncompete clauses in employment contracts, and also makes it unlawful to require an employee to enter into a noncompete agreement, regardless of where and when the agreement was signed. Further, employers who have existing noncompete agreements must notify their current and former employees that the noncompete clause or agreement is invalid.
Unenforceability of Restrictive Covenants
These covenants restrict employees from engaging in a lawful business, trade, or profession. As with noncompete agreements, these covenants will also be unenforceable beginning on January 1, regardless of when and where the agreement containing the restrictive covenant was signed. Note – this applies, for example, even if the contract was signed outside of California and the employment was outside of the state.
In Summary
The new law changes are very complex. Dental practice owners, as well as all employers, should consult with an employment law firm in order to determine the best course of action regarding changes in the law.
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