California Employment Law Update: Key Changes for 2025 Every Employer Must Know

As of January 1, 2025, several new employment and labor laws will take effect in California, impacting various aspects of the employer-employee relationship. Below is a comprehensive list of these changes:

1. Minimum Wage Increase:
   • As of January 1, 2025, California’s state minimum wage will increase to $16.50 per hour for all employers, regardless of size. Proposition 32 was rejected on November 24, 2024 which was looking at increasing more the minimum hourly rate in California.
   • It’s important to note that certain localities within California have established higher minimum wage rates. For instance, the City of San Diego’s minimum wage is set to rise to $17.25 per hour on January 1, 2025.
2. California Worker Freedom from Employer Intimidation Act (SB 399):
   • Employers are prohibited from requiring employees to attend meetings or participate in communications primarily intended to convey the employer’s stance on religious or political matters, including union organizing. Employees have the right to refuse participation without fear of retaliation. Violations may result in statutory penalties of $500 per employee for each violation.
3. Expanded Time Off for Victims of Violence (AB 2499):
   • The definition of who qualifies as a victim entitled to time off has been broadened to include victims, and family members of victims, of a wider range of violent crimes. This includes domestic violence, sexual assault, stalking, acts involving bodily injury or death, use of dangerous weapons, or threats of physical harm, regardless of whether the perpetrator is arrested, prosecuted, or convicted.
4. Restrictions on Requiring Driver’s Licenses for Job Openings (SB 1100):
   • Employers are prohibited from including statements in job advertisements, applications, or other employment materials that an applicant must possess a valid driver’s license unless driving is an essential job function and alternative transportation methods are not feasible.
5. Paid Family Leave (AB 2123):
   • Employers can no longer require employees to use up to two weeks of accrued vacation before accessing California’s Paid Family Leave (PFL) benefits. Employees can now receive PFL wage replacement benefits without first exhausting their vacation time.
6. Anti-Discrimination Laws (SB 1137):
   • The California Fair Employment and Housing Act (FEHA) now explicitly prohibits discrimination based on the intersectionality of two or more protected characteristics, recognizing that different forms of inequality can operate together and exacerbate each other.
7. Freelance Worker Protections (SB 988):
   • Known as the “Freelance Worker Protection Act,” this law creates protections for independent contractors in the private sector who are paid at least $250 for their services. It requires that workers be paid on or before the date specified in their contract or, if no date is specified, no later than 30 days after completion of services. It also prohibits conditioning payment on accepting less compensation or making certain changes to the contract.
8. Workplace Violence Prevention:
   • Employers are required to implement comprehensive workplace violence prevention plans, including procedures to identify and evaluate workplace hazards, corrective measures, and employee training programs. This aims to enhance the safety and well-being of employees across various industries.

Employers in California should review and update their policies, employee handbooks, and training programs to ensure compliance with these new laws. Consulting with legal counsel is advisable to navigate the complexities of these regulations effectively.