A buried provision in AB2780 tightens notification deadlines for part-time and substitute employees—and salon owners need to understand who it affects.
Most salon and personal care business owners in California have never heard of AB2780. That's understandable—it's a bill about public employee retirement systems. But tucked inside is a provision that changes hiring notification rules for certain employers, and the details matter if your business operates under an educational umbrella or contracts with schools.
Effective immediately upon the bill's approval, Section 22455.5 of the Education Code now requires educational employers—including charter schools, private contractors providing creditable service, and small community college employers—to notify part-time and substitute employees about STRS (State Teachers' Retirement System) membership eligibility within 10 working days of hire. Previously, employers had 30 days.
That's a two-thirds reduction in the notification window.
The rule also requires employers to obtain and retain signed written acknowledgment from the employee that they received this notice. Failure to comply creates liability for both the employer and the employee.
If you own a salon or personal care business that operates independently, this provision likely doesn't apply to you. The rule targets educational employers and contractors working within the education system.
However, if your business is:
—then you need to know about this change.
If AB2780's provision applies to your business, the practical steps are straightforward but time-sensitive:
Within 10 working days of hiring any part-time or substitute employee: Deliver written notice about STRS membership eligibility and election options. This is no longer a 30-day task.
Obtain written acknowledgment: Have the employee sign and date a document confirming they received the notice. Keep this on file. This creates a paper trail that protects both you and the employee if questions arise later.
Document your timeline: Track the hire date and the date notice was delivered. The 10 working day window is firm, and missing it creates exposure.
The law is explicit: failure to notify within the 10-day window creates liability for both employer and employee. That means if you miss the deadline, you could face claims from the employee, and the employee could face their own consequences regarding retirement eligibility. This isn't a soft requirement.
If you're unsure whether AB2780's STRS notification provision applies to your business structure, review your employment agreements and your relationship with any educational institution. If you operate independently as a salon or spa, you're almost certainly outside the scope. If you're part of or contract with a school, community college, or educational employer, audit your current hiring process now to ensure it meets the 10-day requirement.
The operative date is immediate—the provision took effect upon the bill's approval. There is no grace period.
Source: AB2780, Section 5, Education Code Section 22455.5. For business-specific guidance, consult your employment attorney or local trade association.