California Employment Law Updates in 2025

There are several new and updated California employment laws that will take effect in 2025. Below is a brief overview of the new and updated laws, all of which will take effect on January 1, 2025.

Minimum Wage Increased

California’s state minimum wage will increase to $16.50 per hour for all employers. The minimum salary requirement for exempt employees will also be increased to $68,640 annually. Employers should be aware that some cities and counties in California have a local minimum wage that is higher than the state rate.

Additionally, certain types of employees are entitled to a higher minimum wage. As of April 1, 2024, the minimum wage for fast food workers in California is $20 per hour. As of October 16, 2024, the minimum wage for covered health care facility employees increased to $23 per hour, and it will continue to increase gradually to at least $25 per hour in 2026.

Driver’s License Requirements for Job Listings

Under Senate Bill 1100, an employer may not state in a job listing that an applicant must have a driver’s license unless two conditions are met: 1) the employer reasonably expects driving to be one of the position’s job functions, and 2) the employer reasonably believes that using an alternative form of transportation would not be comparable in travel time or cost to the employer.

Paid Family Leave

Under Assembly Bill 2123, employers may no longer require employees to use accrued vacation leave before accessing California’s Paid Family Leave benefits.

Freelance Worker Protection Act

Senate Bill 988 establishes the Freelance Worker Protection Act, which will impose minimum requirements on contracts between a hiring party and a freelance worker. A “freelance worker” will be defined as a person or organization composed of no more than one person (even if incorporated or employing a trade name), that is hired as a bona fide independent contractor to provide professional services, in exchange for a minimum amount of $250.

Restrictions on Mandatory Meetings

Senate Bill 399 establishes the California Worker Freedom from Employer Intimidation Act. This new law will prohibit employers from requiring employees to attend mandatory employer-sponsored meetings that convey the employer’s opinions on religious or political matters.

Updates to Anti-Discrimination Laws

Under Senate Bill 1137, the California Fair Employment and Housing Act, Unruh Civil Rights Act, and the provisions of the Education Code prohibiting discrimination in public education, will all prohibit discrimination not on only on the basis of individual protected traits, but also on the basis of a combination of two or more protected traits.

Under Assembly Bill 1815, the definition of “race” will also be updated in the anti-discrimination provisions of the California Government and Education Codes. Race will now be “inclusive of traits associated with race, including but not limited to hair texture and protective hairstyles. Protective hairstyles will “include but are not limited to such hairstyles as braids, locs, and twists.”

Time Off for Jury Duty, Court Appearances, and Victim-Related Activities

Assembly Bill 2499 amends current law for employee time off related to jury duty, court appearances, and victim-related activities. This update will expand protections for employees, require employers to provide clear notice of these rights, and allows for employees to use vacation or paid sick leave when taking such leave. Anti-retaliation provisions are also being bolstered to protect employees exercising these rights. Employers will be permitted to require documentation from employees for their time off.

Social Compliance Audits

Under Assembly Bill 3234, employers will be required to make certain disclosures if they voluntarily audit their operations for the involvement of child labor. In such a case, employers must post a link to a detailed report of the audit findings on their website.

Anti-Retaliation Poster

Assembly Bill 2299 requires employers to post a list of employee rights and responsibilities under California’s whistleblower laws. The Division of Labor Standards Enforcement has provided a model poster that it believes will comply with this law. (https://www.dir.ca.gov/dlse/WhistleblowersNotice.pdf)

California employers and human resources administrators are encouraged to contact our office if they have any questions or need clarification for any of the above employment law updates.