Top Ten 2025 Labor and Employment Law Updates
1. Increase in Minimum Wage
As of January 1, 2025, the minimum wage laws in California require employer to increase from $16.00 per hour to $16.50 per hour as minimum pay for all employees. This increase in minimum wage means that exempt employees in California must earn a minimum annual salary of $68,640 per year or $5,720 per month. Employers should be cautious of the minimum wage requirements in their local areas because some cities have higher minimum wage requirements.
2. Paid Family Leave
As of January 1, 2025, under Assembly Bill 2123, California employers can no longer require employees to use up to two (2) weeks of accrued vacation time before they start receiving Paid Family Leave benefits under the EDD’s program.
Employers, if your policies place this requirement on employees before they can receive Paid Family Leave benefits, you must revise these policies in compliance with this new requirement.
3. Captive Audience Meetings
Under Assembly Bill 399, California employers can no longer require employees to attend meetings that discuss religious, political or Union matters. This new law will subject employers to civil penalties or even civil action if they hold their employees as a captive audience for employer-sponsored events or meetings. Starting January 1, 2025, employers cannot threaten discharge, retaliate against, or take any adverse action against any employee who declines to attend a meeting if the topic concerns religious or political matters. Union issues were prohibited in prior laws and cases.
However, there are several exceptions to this new law, some of which include religious and educational institutions and political organizations. If you work for or are part of a religious corporation, political organization, or educational institution requiring students or instructors to attend lectures on political or religious matters as part of their course-work, and/or certain nonprofits, then this law does not apply. Feel free to reach out to our firm if you are unsure if your entity falls within one of these exceptions.
4. Restriction on Driver’s License Discrimination
Effective January 1, 2025, Senate Bill 1100 prohibits California employers from including statements in job advertisements, job applications, or other employment materials that require an applicant or employee to possess a valid driver’s license, exept under certain circumstances. The employer may require a valid driver’s license if it can prove that (1) it reasonably suspects driving to be one of the job functions of the position and (2) it reasonably believes that using an alternative form of transportation, such as biking or public transportation, for which no driver’s license isrequired, would not be comparable in travel time or cost to the employer.
Employers, this confirms that it is imperative to have clear and accurate job descriptions and duties for all positions. If you need assistance drafting job descriptions for your employees, please contact Sloat Law Group, APC.
5. Leaves of Absence
Assembly Bill 2499 amends the provisions for time off related to jury duty, court appearances, and victim-related activities. This new law (1) expands protections for employees, including “victims”; (2) requires employers to provide clear notice of these rights; and (3) clarifies that employees may use vacation or paid sick leave when on these leaves of absence.
This new law also expands the existing definition of “victims” to include victims of qualifying acts of violence such as domestic violence, sexual assault, stalking, or conduct that involves bodily injury or death, the exhibition or use of a firearm or other dangerous weapon, or when an individual uses force or threatens to use force against another. An employee may qualify as a victim even if the authorities do not arrest, prosecute, or convict the perpetrator of committing any crime.
Employers must review and analyze their policies on leaves of absence to ensure they are in compliance with these requirements.
6. Amending the Definition of “Race”
Assembly Bill 1815 expanded the definition of “race” under California law. Under this amendment, race is inclusive of traits associated with race, including but not limited to hair style, hair texture, and protective styles. Protective hairstyles, including but not limited to “braids, locs, and twists,” will be protected under the definition of race, for evaluating anti-discrimination laws.
7. Intersectional Discrimination
California is the first state to recognize “intersectionality” in its anti-discrimination laws. Senate Bill 1137 clarifies intersectional discrimination, or discrimination based on the combination of two or more protected traits. The bill 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. Employers will be prohibited from discriminating against employees based on the intersection of their protected traits, for example, being a female and a minority, under the Fair Employment and Housing Act.
8. Expansion of Paid Sick Leave for Agricultural Workers
Senate Bill 1105 amends the Healthy Workplace, Healthy Families Act to expressly allow agricultural workers to use accrued paid sick leave for smoke, heat, or flooding conditions declared by local or state authorities as an emergency. Agricultural employees are defined as those working in industries handling products after harvest, preparing agricultural products for markets or farms, or treating farmland.
If you work with agricultural workers, it is essential to ensure your Paid Sick Leave policy is updated accordingly.
9. Freelance Worker Protection Act
Under the Freelance Worker Protection Act, Senate Bill 988 imposes specific requirements on employers who hire freelance workers for professional services worth more than $250. Employers who hire freelance workers must ensure (1) that their contracts are in writing and (2) contain key information such as dates, services provided, and payment information.
Employers must also pay these freelance workers on the specific date listed in the contract or no later than thirty (30) days after the completion of their services. This new law prohibits employers from discriminating against or retaliating against any freelance workers who seek to exercise these rights under the law.
Call our firm if your company works with freelance workers and you need our assistance drafting a contract in compliance with this new law.
1o. Whistleblower Protections
Assembly Bill 2299 requires employers to display a list of employee rights and responsibilities under whistleblower laws, including the whistleblower hotline number. For these notices, employers must use lettering larger than 14-point font and post it in an area frequented by all employees.
Employers should ensure compliance with all workplace laws. If you have any questions about how these new laws may affect your business or need assistance preparing compliant policies or revising your practices, please contact the attorneys at Sloat Law Group, APC. We are here to help!
See our Resources page at www.karensloatlaw.com/employer-resources for new hire forms and other governmental forms and pamphlets, conveniently gathered for you to download, use, or complete for all employees.
