New Employment Laws for 2025 – Effective January 1st

Blog by HRWatchdog

The annual legislative cycle has ended as California Governor Gavin Newsom signed or vetoed bills over the last few weeks. Now California employers have a few scant months to prepare for new employment laws taking effect January 1, 2025.

After an already incredibly busy year with California’s new workplace violence prevention laws, Private Attorneys General Act (PAGA) reform, indoor heat illness prevention regulations and the recent federal Pregnant Workers Fairness Act regulations, California employers and HR professionals can’t slow down quite yet.

Here’s a quick look at the employment law changes ahead for 2025. Unless other stated, these bills are effective January 1, 2025.

Minimum Wage

Starting January 1, the general California statewide minimum wage is scheduled to increase to $16.50 per hour. However, in November, if Proposition 32 is approved, the minimum wage for employers with 26 or more employees would increase to $17 per hour for the rest of 2024 and would rise to $18 per hour starting in January 2025. Small businesses with 25 or fewer employees would be required to start paying at least $17 per hour next year, and $18 per hour in 2026.

Covered health care employers must also prepare for the imminent healthcare worker minimum wage law, which was delayed this year but will take effect no later than January 1, 2025, and potentially sooner, depending on the circumstances.

In addition to statewide minimum wage increases, employers should also keep in mind any applicable local minimum wage ordinances that increase on January 1.

Leaves of Absence

Governor Newsom signed AB 2499, which expands and moves jury and witness duty leave as well as crime victims’ leave from the Labor Code to the Fair Employment and Housing Act (FEHA) meaning the California Civil Rights Department will have enforcement authority. While jury and witness duty effectively remains the same, crime victims’ leave will expand on existing requirements. For example, under AB 2499, while employers with 25 or more employees must still provide time off to crime victims for treatment and various other purposes, the law will also allow employees time off to help a family member who is a victim of a qualifying act of violence and increases the circumstances when this leave can be taken.

Additionally, SB 1105 expands California’s paid sick leave, allowing agricultural employees to use accrued paid sick leave to avoid smoke, heat or flooding conditions created by a local or state emergency.

Finally, AB 2123 changes California’s paid family leave (PFL) program, eliminating employers’ current ability to require employees use up to two weeks of accrued vacation before — and as a condition of — receiving PFL wage replacement benefits.

Discrimination, Harassment and Retaliation

Two signed bills prohibit certain employer actions. For instance, SB 399 seeks to end so-called captive audience meetings during work hours. Employers are specifically prohibited from subjecting — or threatening to subject — an employee to discrimination, retaliation or any adverse action because the employee declines to attend an employer-sponsored meeting or affirmatively declines to participate in, receive or listen to any employer communications about the employer’s opinion on religious or political matters. CalChamber tagged SB 399 as a job killer bill this year.

In addition, SB 1100 continues the recent legislative and agency trend of regulating what employers can say during the recruiting and hiring process. Employers will be specifically prohibited from including statements in job applications, advertisements or other employment materials that an applicant must have a driver’s license, unless the employer both reasonably expects driving to be one of the job functions and believes using an alternative form of transportation would not be comparable in travel time or cost to the employer.

Lastly, SB 1137 clarifies that the FEHA prohibits discrimination not only based on individual protected characteristics but also on any combination of protected characteristics.

Required Poster and Notice Updates

California law requires employers to provide employees with notice of their rights under workers’ compensation laws via posted notice. Under AB 1870, employers will need to obtain an updated workers’ compensation poster that, in additional to existing requirements, informs employees that they may consult with a licensed attorney to advise them of their rights under workers’ compensation laws.

Similarly, California law requires employers to display a list of employees’ rights and responsibilities under the state’s whistleblower laws. So AB 2299 requires the California Labor Commissioner to develop a model notice that otherwise complies with existing requirements so employers posting this model poster will be deemed in compliance with the law.

California employers must provide notice to employees of their rights under the state’s laws providing leave for crime and abuse victims. When AB 2499 revised and expanded these leave provisions (discussed above), it means employers will need to provide an updated notice starting January 1.

Independent Contractors

Following a similar Los Angeles City law, SB 988 creates the Freelance Worker Protection Act, a law that imposes requirements on employers that form agreements with freelance workers providing “professional services” (limited to those listed in Labor Code section 2778) for the employer that are worth $250 or more.

If the contract falls under the scope of the Freelance Worker Protection Act, the law requires that the contract be in writing and include certain information (e.g., names, dates, list of services and payment information). Additionally, payment must be made on the date specified in the contract or no later than 30 days after completion of services. Discrimination or retaliation against individuals exercising their rights under the law is prohibited.

Workplace Safety Developments

Governor Newsom signed both AB 2975 and AB 1976, both of which direct the Occupational Safety and Health Standards Board — the standards board within the California Division of Occupational Safety and Health (Cal/OSHA) — to address certain topics through rulemaking in the future.

Specifically, by March 2027, AB 2975 requires the board to revise the existing violence prevention in health care regulations to include a requirement that a hospital implement a weapons detection screening policy. Additionally, by December 2027, AB 1976 directs the board to submit a draft rulemaking proposal to include opioid antagonists — medications that block the effects of opioids — with required first aid materials. These are in addition to existing directives to consider revising existing outdoor heat illness prevention and wildfire smoke regulations by December 31, 2025. And, as previously reported, federal OSHA is considering a national indoor and outdoor heat illness prevention standard, which could prompt Cal/OSHA to make conforming changes to its regulations next year. Though these workplace safety laws bring no immediate impact, it’s worth noting that employers will see some regulatory updates in these areas in the near future.

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