New Year's Resolutions aren't the only changes in 2025 — California passed a number of new employment laws affecting the workplace this year. Unlike resolutions that may have been abandoned by now, there are already efforts by various California agencies to enforce some of these new laws. Below are some of the more important laws for employers to pay attention to this year, all effective as ofJanuary 1, 2025, unless otherwise noted.
Leaves of Absence, Paid Sick Leave, and Paid Family Leave
Paid Sick Leave Use by Victims of Violence: AB 2499
Expanding on California's existing laws providing leave and accommodation to crime victims and their families, AB 2499 allows employees to use their paid sick leave entitlements to assist a family member who is the victim of a "qualifying act of violence," which is defined in the law as:
- Domestic violence
- Sexual assault
- Stalking
- Any act, conduct, or pattern of conduct that includes: (1) an individual causing bodily injury or death to another; (2) an individual exhibiting, drawing, brandishing, or using a firearm or other dangerous weapon, with respect to another; or (3) an individual using or making a reasonably perceived or actual threat of use of force against another to cause physical injury or death
Employers are required to provide written notice of worker
rights under this law to new hires and annually to all employees.
Written notice is also required any time an employee requests
information pertaining to his or her rights under this law and if
an employee informs an employer that the employee (or
employee's family member) is a victim of violence. The Civil
Rights Department (CRD) is required to publish a form notice by
July 1, 2025. Employers may use the form notice or provide its own
notice that is "substantially similar in content and
clarity." However, employers are not required to comply with
these notice requirements until the CRD posts its form
notice.
In anticipation of the CRD's form notice publication, employers
should review and update not only their policies, but also their
on-boarding checklists to ensure all new hires receive the
necessary notice.
Procedurally, AB 2499 also moves the jury, court, and victim time
off provisions of California law under the umbrella of the Fair
Employment and Housing Act, and, thus, under the enforcement
authority of the CRD.
Paid Family Leave: AB 2123
California's Paid Family Leave (PFL) program provides up to
eight weeks of partial-wage-replacement benefits to employees who
need to take time off from work either to bond with a new child,
care for a seriously ill family member, or participate in a
"qualifying exigency" relating to a family member's
military deployment to a foreign country1. Modifying
existing law, AB 2123 prohibits employers from
requiring employees to use up to two
weeks of accrued vacation time before receiving PFL benefits from
the state. Employers should review and revise any policies or
handbooks accordingly.
Beginning January 1, 2025, many new PFL claims will also be paid
higher benefit amounts. While these payments come from the state,
the increased benefit amounts may impact employers in cities and
counties where local ordinances require employers to supplemental
PFL benefits under certain circumstances, like San Francisco's
Paid Parental Leave Ordinance.
Harassment, Discrimination, and Retaliation
Expansion of Protected Characteristics Under Civil Rights Laws: SB 1137 and AB 1815
Expanding on California's already-expansive civil rights
laws, these laws broaden the enumerated protected characteristics
of two of the most prominent such laws: the Fair Employment and
Housing Act and the Unruh Civil Rights Act. Specifically, SB 1137
clarifies that both statutes (along with the Educational Equity
Chapter) not only preclude discrimination based on the enumerated
protected bases, but also preclude discrimination based on
any combination of those characteristics.
Similarly, while existing law prohibits discrimination based on
traits "historically associated with race," AB 1815
removes the term "historically" from the definition of
race2 and harmonizes the definitions of race under the
statutes.
The stated purpose of the new laws is to recognize the concept of
"intersectionality" in the state's civil rights laws,
with the legislature noting that, often times, workplace
discrimination or harassment cannot be so neatly reduced to animus
directed at a specific component of a person's identity.
However, it is unlikely that this law will necessitate significant
changes to employer practices, as any of the discrimination
prohibited by SB 1137 and AB 1815 was already likely to be found
unlawful under existing law.
Employee Hiring
Restrictions on Requiring Drivers' Licenses for Job Openings: SB 1100
Between pay transparency laws and ban-the-box legislation,
California has recently begun to more strictly legislate the
employee hiring process. SB 1100 continues that trend, prohibiting
California employers from including a statement on job postings,
job advertisements, and job applications and other employment
materials, that the applicant must have a valid driver's
license unless an employer can prove that it (1)
reasonably suspects that driving will be one of the employee's
duties and (2) reasonably believes that use of an alternative form
of transportation (e.g., bike, bus, ride share, etc.) would not be
comparable in travel time or cost.
In light of the new law, employers should audit any current (and
future) job postings and advertisements, as well as other
application materials, to remove any language requiring a valid
driver's license unless it meets the specified exception.
Independent Contractors
Requirements for Freelance Worker Independent Contractor Agreements: SB 988
SB 988 provides minimum requirements for independent contractor
agreements for freelance workers, defined as a "person or
organization composed of no more than one person, whether or not
incorporated or employing a trade name, that is hired or retained
as a bona fide independent contractor by a hiring party to provide
professional services in exchange for an amount equal to or greater
than two hundred and fifty dollars ($250), either by itself or when
aggregated with all contracts for services between the same hiring
party and independent contractor during the immediately preceding
120 days."
Specifically, SB 988 requires that agreements between "hiring
parties"3 and freelance workers must not only be
written, but also must include the following items:
- Name and address of both the freelance worker and the hiring party
- A list of the services to be provided by the freelancer, including the value of the services and the compensation method
- Either the date of payment or the mechanism for determining the payment date
- The date by which the freelancer must submit his or her list of services rendered to the hiring party for purposes of timely payment
The law also provides that freelance workers must be paid on
time pursuant to the contract or, in absence of an agreed payment
date, within 30 days of completion of services under the contract.
Once the freelance worker begins services under the contract,
hiring parties are prohibited from conditioning timely payment on
the freelancer either accepting less payment than what is specified
in the contract or providing more goods, services, or intellectual
property rights than agreed to in the contract.
Hiring parties must retain their agreements with freelance workers
for no less than four years.
The law contains an anti-discrimination provision protecting
freelance workers for seeking to enforce rights under the law,
opposing practices prohibited by the law, or participating in
proceedings related to the enforcement of the law.
Notably, the law contains potentially stiff penalties for
noncompliance, creating a private right of action for freelancers
that potentially allows for attorneys' fees and costs, a $1,000
penalty if a hiring party refuses to furnish a written contract,
and, for untimely payments, up to twice the amount that was unpaid
at the time payment was due.
Employer-Employee Relations
California Bans Captive-Audience Meetings on Political or Religious Matters: SB 399
In November 2024, the National Labor Relations Board issued a
decision in Amazon.com Services LLC, 373 NLRB No. 136,
ruling that so-called captive-audience meetings (i.e., mandatory
meetings where an employer shares its views on union activity)
violate the National Labor Relations Act.
Following the NLRB's lead, SB 399 (known as the California
Worker Freedom from Employer Intimidation Act) makes it unlawful
for most private and public California employers to take an adverse
employment action against an employee because the employee declines
to attend an employer-sponsored meeting or participate in any
communication with an employer, where the purpose is for the
employer to communicate its opinion about "religious or
political matters." For purposes of the new law,
"political matters" is defined to mean matters
"relating to elections for political office, political
parties, legislation, regulation, and the decision to join or
support any political party or political or labor
organization," and "religious matters" is defined to
mean matters "relating to religious affiliation and practice
and the decision to join or support any religious organization or
association."
The law also clarifies that a worker who is working at the time of
any such meeting and elects not to attend must still continue to be
paid while the meeting is being held.
SB 399 also creates a private right of action with significant
penalties, including damages, punitive damages, injunctive relief,
and civil penalties of $500 per employee for each violation, which,
depending on the size of the workforce, can make for a pretty
expensive captive-audience meeting.
Business groups have already challenged the legality of SB 399.
Unless and until the law is limited by the courts, California
employers — both public and private — should instruct
managers and supervisors regarding this law and the limitations on
holding mandatory meetings on prohibited topics.
New Workplace Posting Requirements
Whistleblower Rights Posting: AB 2299
AB 2299 requires employers to post the state Labor Commissioner's model list of employee rights and responsibilities under existing whistleblower laws. A template of the whistleblower notice is available for use.
Workers' Compensation Legal Advice Notice: AB 1870
AB 1870 expands on existing California law regarding workers' compensation notice posting requirements. Under the law, posters must now include all of the following pieces of information:
- How to get emergency medical treatment, if needed
- The kinds of events, injuries, and illnesses covered by workers' compensation
- The injured employee's right to receive medical care
- The injured employee's right to consult a licensed attorney to advise them of their rights under workers' compensation laws; in most instances, attorney's fees will be paid from an injured employee's recovery
- The rights of the employee to select and change the treating physician
- The rights of the employee to receive temporary disability indemnity, permanent disability indemnity, supplemental job displacement, and death benefits, as appropriate
- To whom injuries should be reported
- The existence of time limits for the employer to be notified of an occupational injury
- Protections against discrimination
- 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
Voluntary Social Compliance Audit Posting: AB 3234
AB 3234 provides that employers who conduct a voluntary
"social compliance audit" must publish the audit's
findings with respect to child labor in a "clear and
conspicuous link" on the company's website. For purposes
of the law, a "social compliance audit" is defined to be
any "voluntary, nongovernmental inspection or assessment of an
employer's operations or practices to evaluate whether the
operations or practices are in compliance with state and federal
labor laws, including, but not limited to, wage and hour and health
and safety regulations, including those regarding child
labor."
To be clear, this law does not mandate that employer's engage
in this type of audit — it only creates an obligation where
an employer chooses to audit its practices and, even then, only
with respect to any findings regarding the employer's
compliance with child labor laws. The disclosure posting only
requires findings related to "child labor" and requires
the following information to be included with the report:
- The year, month, day, and time the audit was conducted, and whether the audit was conducted during a day shift or night shift
- Whether the employer did or did not engage in, or support the use of, child labor
- A copy of any written policies and procedures the employer has and had regarding child employees
- Whether the employer exposed children to any workplace situations that were hazardous or unsafe to their physical and mental health and development
- Whether children worked within or outside regular school hours, or during night hours, for the employer
- A statement that the auditing company is not a government agency and is not authorized to verify compliance with state and federal labor laws or other health and safety regulations
Given this law, companies should consider having any review or audit of compliance with regulations be conducted by outside counsel for a company to maintain the attorney-client nature of such audit.
Employment Litigation
Small Employer Mediation Program Expanded to Include Reproductive Loss Leave Claims: AB 2011
AB 2011 expands the existing Small Employer Family Leave Mediation Pilot Program (the Program). Under the law, which covers employers with five to 19 employees, the Program now allows small employers to seek mediation to resolve allegations of violations of California's reproductive loss leave, in addition to alleged violations of the family care and medical and bereavement leave laws.
The Program requires the CRD to initiate mediation within 60 days following a request. As a benefit to small employers, once a dispute is submitted to mediation, employees are prohibited from pursuing civil action until mediation is complete or deemed unsuccessful. Participation in the Program also tolls the statute of limitations for the employee's claim until the mediation is completed or deemed unsuccessful.
Workplace Violence Restraining Order Law Expanded to Allow Employer TROs for Harassed Employees: SB 428
SB 428 allows employers to seek temporary restraining orders
(TROs) against individuals, on behalf of employees who have
suffered harassment, defined in the law as: "a knowing and
willful course of conduct directed at a specific person that
seriously alarms, annoys, or harasses the person, and that serves
no legitimate purpose. The course of conduct must be that which
would cause a reasonable person to suffer substantial emotional
distress, and must actually cause substantial emotional
distress."
This expands on existing law, which already allows employers to
seek TROs for employee victims of workplace violence or threats of
violence.
Minimum Wage Increases
Minimum wage increased statewide to $16.50 per hour (up from
$16.00 per hour). As a result, the minimum salary to maintain an
employee's exempt status also increased to $68,640 annually or
$5,720 monthly.
Employers taking advantage of Collective Bargaining Agreement (CBA)
wage and hour exemptions should compensate relevant employees at
least $21.45 per hour4 to ensure that the CBA exemption
still applies. Otherwise, the exemption may no longer apply to
those employees and pay will be in strict compliance with
California law.
There are also industry- or geography-specific minimum wage changes
(or potential changes) that employers should be aware of.
Fast food workers must be paid $20 per hour as of April 1, 2024. As of January 1, 2025, the California Fast Food Council is authorized to increase further by up to 3.5% but has not opted to do so yet.
Certain health care industry employees must be paid $23 per hour through June 30, 2025, and thereafter will increase to $24 per hour. By July 1, 2026, minimum wage for these employees is set to increase to $26 per hour.
The health care related minimum wage increase applies to covered health care facility employers with 10,000 or more full-time equivalent employees, any covered health care facility employer that is a part of an integrated health care delivery system or health care system with 10,000 or more full-time equivalent employees, any covered health care facility employer that is a dialysis clinic as defined in Health and Safety Code § 1204(b)5 or that is a person that owns, controls, or operates a dialysis clinic, or a covered health facility owned, affiliated, or operated by a county with a population of more than 5 million people as of January 1, 2023.
A complete list of covered health care facilities can be found under Section 1182.14(b)(3)(A). Notable covered facilities include:
- Facilities or other work sites that are part of an integrated health care delivery system
- Licensed general acute care hospitals (as defined)
- Urgent care clinics and community clinics licensed under Health and Safety Code § 1204
- Clinics operated by any political subdivisions of the state, including the University of California or a city or county that is exempt from licensure under Health and Safety Code § 1206(b)
A complete list of excluded employers can be found under Section 1182.14(b)(3)(B). Notable excluded facilities include:
- Health care facilities owned, controlled, or operated by the state or state agency of the executive branch
- Tribal clinics exempt from licensure under Health and Safety Code § 1206(b)
Employers should audit employee payroll and make any necessary
increases to meet new minimum wage standards, including increasing
the compensation of exempt employees to comply with the minimum
salary test. Employers should also pay attention to any city or
county ordinances with higher minimum wage increases.
Footnotes
1 Although called "Paid Family Leave," PFL just provides wage-replacement benefits to workers — it does not create a job-protected leave of absence.
2 This also includes protective hairstyles including, but not limited to, braids, locs, and twists.
3 The law excludes the federal government, the State of California (or any subdivision thereof), a foreign government, and an individual hiring services for the personal benefit of themselves, their family members, or their homestead from the definition of "hiring party."
4 $21.45 an hour represents 30% more than state minimum wage, as required for employees covered by a CBA.
5 Section 1204(b) defines a "chronic dialysis clinic" as "a clinic that provides less than 24-hour care for the treatment of patients with end-stage renal disease, including renal dialysis services."
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