California Employment Law Changes in 2025: Key Updates for Employers
1.21.25
California Employment Law Changes in 2025: Key Updates for Employers
With several new laws taking effect on January 1, 2025, California employers face regulatory changes requiring updates to workplace policies and procedures. Here’s a comprehensive guide to help your organization remain compliant and proactive.
Minimum Wage Updates
California’s general minimum wage will increase to $16.50/hour on January 1, 2025. Employers should note that the increase to the state’s minimum wage will trigger an increase in the salary test for exempt employees in the state. Additionally, employers should be aware of any applicable local minimum wage increases. The city of San Diego’s minimum wage will increase to $17.25 on January 1, 2025. Additionally, other jurisdictions are expected to increase their minimum wage on January 1, 2025. Those other jurisdictions include: Belmont, Burlingame, Cupertino, Daly City, East Palo Alto, El Cerrito, Foster City, Half Moon Bay, Hayward, Los Altos, Menlo Park, Mountain View, Novato, Oakland, Palo Alto, Petaluma, Redwood City, Richmond, San Carlos, San Jose, San Mateo, Santa Clara, Santa Rose, Sonoma, South San Francisco, Sunnyvale, and West Hollywood.
Leave Policies: Broader Access and Protections
1. Paid Family Leave (AB 2123)
Employers can no longer require employees to use accrued vacation before utilizing California’s Paid Family Leave (PFL). Employees retain the option to use vacation time voluntarily. Additionally, the wage replacement rate under PFL and State Disability Insurance (SDI) programs will increase from 60 to 70 percent, to between 70 and 90 percent.
Action Item: Adjust policies and employee communication about PFL to comply with the law.
2. Expanded Protections for Victims (AB 2499)
Employees experiencing or addressing violence-related issues can take leave to seek medical care, attend legal proceedings, or engage in safety planning. These rights now extend to employees who are assisting family members who have been victims of a crime. Additionally, the updated law expands the definition of a “qualifying act of violence” to include, for example, when an individual brandishes a dangerous weapon at someone, threatens to use force to injure someone, or an act that causes bodily injury or death or another.
Action Item: Include these expanded protections in your leave policy and train HR staff on handling related requests confidentially.
Independent Contractors: Clearer Obligations
Freelance Worker Protection Act (SB 988)
Contracts with freelancers earning over $250 must be in writing and include key details such as services, payment terms, and deadlines. Employers face penalties for delayed payments or retaliation against freelancers exercising their rights.
Action Item: Standardize written agreements for freelance workers and ensure prompt payment procedures.
Hiring Practices: Removing Barriers
Driver’s License Requirements (SB 1100)
Employers may only include a driver’s license requirement in job postings if driving is essential to the position and no viable transportation alternative exists.
Action Item: Audit job postings to ensure compliance and reduce unintentional discrimination.
Anti-Discrimination: Expanded Protections
- Intersectional Discrimination (SB 1137)
Employers must now recognize intersectional discrimination—discrimination based on the combination of two or more protected traits (e.g., race and gender)—under the Fair Employment and Housing Act (FEHA) and Unruh Civil Rights Act.
Action Item: Review hiring, promotion, and HR policies to ensure compliance with this expanded definition. Train managers on recognizing and preventing intersectional bias. - Updated Definition of Race (AB 1815)
This law explicitly protects traits associated with race, including hair texture and protective hairstyles such as braids, twists, and locs.
Action Item: Update anti-discrimination training and handbooks to reflect this broader scope of race-related protections.
Employee Freedom: Enhanced Protections
Mandatory Meetings (SB 399)
Employers are prohibited from subjecting, or threatening to subject employees to discrimination, retaliation, and/or any adverse action because the employee declines to attend meetings regarding the employer’s opinion on politics or religion.
Action Item: Review communication strategies for addressing sensitive topics, and update anti-discrimination training.
Administrative and Compliance Notices
Required Posters and Notices (AB 1870, AB 2299, AB 2499)
Employers must post updated worker’s compensation posters which inform employees that they may consult with a licensed attorney to advise them of their rights under worker’s compensation laws.
Additionally, the California Labor Commissioner is required to develop a model notice for employees’ rights under California’s whistleblower laws, and employers who post the model notice will be deemed in compliance of the notice requirement.
Lastly, employers must post an updated notice to employees of their rights under California law providing leave for crime and abuse victims. The CRD is directed to create a model form, and employers who utilize this form will be deemed in compliance with the notice requirements.
Action Item: Order new posters and display them prominently.
Preparing for 2025: Employer Checklist
- Update employee handbooks and training programs to reflect new laws.
- Conduct training sessions for management on anti-discrimination, leave policies, and compliance with contractor agreements.
- Regularly review job postings and agreements to ensure alignment with hiring law changes.
- Monitor local ordinances to stay ahead of potential regional enforcement requirements.
By staying informed and proactive, employers can foster a compliant, inclusive, and equitable workplace. For detailed legal advice or assistance, reach out to the employment attorneys at Schwartz Semerdjian Cauley Schena & Bush, LLP. This article was written by Mikayla Preus.