At the start of the year, the State of California rolled out several new employment laws. While all of these laws impact businesses, including commercial real estate, some have specific implications for the real estate industry. This includes the expansion of the California Family Rights Act and AB 2257, which revised portions of AB 5.

First, the California Family Rights Act involving paid family leave will expand in a way that impacts small businesses. "Many commercial real estate businesses in the state are small businesses," Dwayne McKenzie, a partner at Cox, Castle & Nicholson, tells GlobeSt.com. "Before 2020, family leave permitted under the California Family Rights Act (CFRA) applied only to employers with 50 or more employees."

This year, the law will expand to include small businesses under SB 1383. "SB 1383 expands the reach of CFRA leave to businesses with only five or more employees," Cathy Moses, a partner at Cox, Castle & Nicholson, tells GlobeSt.com. "Small CRE employers will need to be prepared to provide and administer family medical leaves. Although CFRA leave is unpaid, it can extend up to 12 weeks, which can be a greater burden on smaller employers."