With the new year California will roll out a bounty of new legislation, so you may be wondering what new employment laws impact you. You’re in the right place - we have compiled an overview of the laws that are changing for 2025. If you find you need help with ensuring compliance, reach out to us at www.flourishhr.org.
As of Jan. 1, 2025, the California state minimum wage will increase to $16.50 per hour for all employers, regardless of employee headcount. This also means that as of Jan. 1, 2025, exempt employees in California must be paid a minimum annual salary of $68,640 ($5,720 monthly).
"Living wage ordinances" in various locales within the state have been enacted, so local standards should be confirmed to ensure compliance with all governing wage requirements.
Covered exempt computer professional employees must be paid a minimum of $56.97 per hour, or $118,657.43 in annual salary.
California employers are urged to audit their payroll to ensure they comply with all the new local and statewide minimum wage requirements for their industries and locations. All California employers should ensure that with these changes their exempt employees continue to qualify as exempt under the new salary basis minimum.
Intersectionality of protected characteristics
In enacting Senate Bill (SB) 1137, California became the first US state to prohibit discrimination on the basis of the intersection, or combination, of two or more protected characteristics (e.g., race, sex, age, disability, etc.). The law defines “intersectionality” as “an analytical framework that sets forth that different forms of inequality operate together, exacerbate each other, and can result in amplified forms of prejudice and harm.” Notably, this intersectionality concept is one recently recognized by the US Equal Employment Opportunity Commission’s latest enforcement guidance on harassment in the workplace.
Modified CROWN Act
Assembly Bill (AB) 1815 amends the state’s existing CROWN (Creating a Respectful and Open Workplace for Natural Hair) Act, which generally prohibits race-based hair discrimination. In particular, the definition of “race” is amended to be “inclusive of traits associated with race, including, but not limited to, hair texture and protective hairstyles,” while “protective hairstyles” has been revised so that it “includes but is not limited to such hairstyles as braids, locs, and twists.” While the law removes the requirement that traits be “historically” associated with race, it is declarative of existing law and thus operates retroactively.
Local enforcement of anti-discrimination laws
SB 1340 permits any city, county or other political subdivision of the state to enforce local antidiscrimination law when the laws are at least as protective as the state law and certain additional requirements are met. Under the law, local enforcement may occur if all of the following apply:
*It concerns an employment complaint filed with the California Civil Rights Department (CRD).
*It happens after the CRD has issued a right-to-sue notice.
*It commences before the statute of limitations to file a civil action expires.
In addition, the time to file a civil action specified in the right-to-sue notice will be tolled during any local enforcement.
Restrictions on Requiring Drivers’ Licenses for Job Openings
SB 1100 makes it unlawful for employers to include a statement in a job advertisement, posting, application or other material that an applicant must have a driver’s license, unless the employer both:
Reasonably expects driving to be one of the job functions.
Reasonably believes using alternative transportation would not be comparable in travel time or cost to the employer.
Under the law, “alternative transportation” includes, but is not limited to, using a ride-hailing service or taxi, carpooling, bicycling, or even walking.
Expanded protections for victims of violence
AB 2499 expands protection available for victims of crime or abuse and introduces a definition of “qualifying act of violence,” which includes domestic violence, sexual assault, stalking, and other acts of violence.
Employers cannot discriminate against an employee for taking time off for jury service, to appear in court as a witness under court order, or to take time off as a victim of a qualifying act of violence to obtain relief for their or their child’s health, safety or welfare. Additionally, an employer with 25 or more employees cannot discriminate or retaliate against an employee who is a victim (or who has a family member who is a victim) of a qualifying act of violence for taking time off for other prescribed purposes.
This bill recasts the jury, court and victim time-off provisions as unlawful employment practices within the California Fair Employment and Housing Act and, thus, within the CRD’s enforcement authority. The CRD will publish a form notice of the expanded rights on or before July 1, 2025, for employers to satisfy their notification requirements.
With SB 399, California joins several other states in banning mandatory captive audience meetings. Effective January 1, 2025, under the California Worker Freedom from Employer Intimidation Act, California employers can no longer discharge, discriminate, or retaliate against, or threaten to carry out such actions because an employee refused to attend any employer-sponsored meeting related to religious matters, political matters, or matters related to the decision to support or not support a labor organization/union.
Following Los Angeles’ enactment of its Freelance Worker Protections Ordinance in 2023, under SB 988, the state will now require contracts with independent contractors providing “professional services” valued at least $250 to be written. “Professional services” has the same meaning as California Labor Code Section 2778(b)(2), which applies generally to creative professionals (e.g., photographers, estheticians, marketing professionals and grant writers). The $250 threshold applies to all contracts for services between the hiring entity and the contractor during the preceding 120 days.
Like other freelance worker protections laws, the contracts must contain key items of information, such as an itemization of all services to be provided by the contractor and the dates for payment. Hiring parties must provide a copy of the written contract either physically or electronically to the contractor. Hiring parties also must retain a copy of the contract for at least four years.
Aggrieved contractors can sue for violations and recover reasonable attorneys’ fees and costs, injunctive relief, and other remedies deemed appropriate by the court. The amount of damages recoverable depends upon the violation. This law does not prevent a freelance worker from enforcing an oral contract.
New rules for paid family leave benefits
Effective January 1, 2025, AB 2123 eliminates the ability of California employers to require their employees to use up to two weeks of accrued vacation time before they start receiving Paid Family Leave benefits under the EDD’s paid family leave program.
Applies to employees who need to take off due to caring for a sick family member, bonding with a new child, or because a family member is on military active duty.
Starting next year, under AB 2123, employees in California can now use sick leave to assist any family member who is a victim of certain types of violent incidents or threats of violence. California employers should provide notice of this change to their employees and alter their sick leave policies and practices. California employers should also consider training their management and human resources professionals, so that they are aware of these new changes and that leave is no longer limited to victims of domestic violence, sexual assault and stalking.
AB 2011 The small employer family leave mediation program, which covers employers with five to 19 employees, requires employees to request a mediation with the California Civil Rights Department (CRD) prior to filing claims in court for violations of the California Family Rights Act (CFRA) and California's bereavement leave law. AB 2011 expands the mediation program to include claims under Californias reproductive loss leave law.
Updated whistleblower poster
AB 2299 requires that the state labor commissioner develop a “model list” of rights and responsibilities an employee has under whistleblower laws. It also works to simplify employers’ compliance obligations, as employers who post this model list will be deemed compliant with existing requirements. Employers can view the updated notice on the Department of Industrial Relations website.
Updates to workers’ compensation notice requirements
AB 1870 amends the state’s existing workers’ compensation notice requirements to contain additional information, including that injured employees have the right to consult with an attorney, and that attorneys’ fees will be paid from the injured worker’s award, in most instances.
‘Social compliance audit’ reporting
AB 3234 introduces new reporting requirements for employers that conduct a “social compliance audit,” which is defined as a “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.”
While employers are not required to conduct such audits, when they do, they must post a clear and conspicuous link on their website to report the detailed findings of these audits. These detailed findings must include certain required information, such as whether children work for the employer within or outside regular school hours, or during night hours, and whether the employer engages in or supports the use of child labor. The state may provide further guidance on these disclosure obligations. If you have any questions about these laws or how to comply, please contact a member of Cooley’s ESG and sustainability advisory practice.
Information was gathered from the following sources: