California Employers Association Helping CA Businesses Comply with New 2025 Laws
Major changes include Min. Wage, Paid Family and Crime Victim Leave, and Employer Speech Rights
CEA will host an informative webinar and live Q&A about these laws on December 4, 2024, at 10:00 a.m. P.T. A recording will be available to registrants. Registration is $69 for members and $149 for non-members of CEA.
Below are some of the laws businesses need to start preparing for now ahead of their implementation on January 1, 2025:
State Minimum Wage & Exempt Salaries
SB 3: The State’s minimum wage is increasing to $16.50/hour for all employers on January 1, 2025. The minimum exempt employee salary (i.e., professional, administrative, executive exemptions) for 2025 is $68,640/year
Note: If Prop 32 passes on the November 2024 ballot this year, the minimum wage will be further increased—to $18.00/hour in 2025 (for businesses with 26 or more employees), and $17.00/hour in 2025 (for businesses with 25 or fewer employees).
What employers need to do now: 1. Budget to comply with new minimum wage and minimum exempt salary amounts. 2. Prepare to update Wage Theft Notices for non-exempt employees as needed. 3. Expect updates to the required minimum wage workplace posting.
Ban on Forced Work Meetings for Religion and Politics
SB 399: Employer Speech Rights: The California Worker Freedom from Employer Intimidation Act prohibits public and private employers from discharging, retaliating, threatening or taking adverse action against an employee because they declined to attend or listen to an employer meeting/communication regarding the employer’s opinion on political or religious matters. Employees who refuse to attend would have a right to be compensated during the meeting. Exceptions include certain religious or political organizations and educational institutions. Violations may result in a $500 fine, civil action against the employer, and enforcement by the Labor Commissioner.
What employers need to do now: Ensure supervisors/managers are trained on employee rights/protections concerning politics and religion, particularly near election cycles.
Posting Protections for Whistleblowers
AB 2299: Mandates the Labor Commissioner to update its “Whistleblowers Are Protected” poster, to ensure compliance with all current legal requirements.
What employers need to do now: Order or print up-to-date Labor Law Posters at your worksites.
Intersectionality as a Protected Characteristic (Protected Classes)
SB 1137: Among other things, clarifies that the definition of discrimination under California’s Fair Employment and Housing Act (FEHA) includes any combination of two or more protected classes. This change recognizes the concept of “intersectionality.”
What employers need to do now: 1. Ensure supervisors and managers are properly trained regarding the employer’s updated discrimination and harassment policies, including an overview of the relevant protected categories and how those categories can intersect; and 2. Update Equal Employment Opportunity and antidiscrimination and harassment policies accordingly.
Time Off for Victims of Violence
AB 2499: Crime Victims Leave Expansion: Modifies jury, court, and victim time off provisions for employees under FEHA, placing enforcement with the Civil Rights Department (CRD). Creates new reasonable accommodation requirements related to safety at work for employees who are victims (or have family members who are victims) of qualifying violent acts. Expands victim leave rights for employers with 25 or more employees, who are required to offer victims (or employees with family members who are victims) time off for a number of purposes, for up to 12 weeks total. In certain instances, the leave may be capped at 5 or 10 days. Paid sick leave is expanded and may be used to cover qualifying time off.
What employers need to do now: 1. Ensure employee handbook/leave policies and forms are updated. 2. Comply with new notice requirements.
Driver’s License Discrimination in Job Listings
SB 1100: Precludes employers from including a statement in a job advertisement, posting, application, etc. that an applicant must have a valid driver’s license unless: (1) the employer reasonably expects driving to be one of the job functions for the position, AND (2) the employer reasonably believes that satisfying the job function using an alternative form of transportation (walking, biking, taxi, etc.) would not be comparable in travel time or cost to the employer.
What employers need to do now: 1. Evaluate job advertisements, postings, etc. for compliance.
Paid Family Leave
AB 2123: Under the new law, employers may no longer require employees to use accrued vacation leave before using Paid Family Leave.
What employers need to do now: Update leave policies accordingly.
Freelance Worker Protections
SB 988: Requires hiring entity to execute a written contract with an independent contractor providing professional services in an amount equal to or greater than $250. The contract must include specified terms, and the hiring entity must provide a copy to the independent contractor and retain the contract for 4 years, among other requirements.
What employers need to do now: 1. Review policies relating to the hiring and payment for independent contractors; 2. Revise document retention policies concerning independent contractors, and 3. Ensure that independent contractors are properly classified as such under California law. Consult legal counsel as needed.
About California Employers Association (CEA)
California Employers Association (CEA) is a trade association dedicated to supporting employers in all industries and sizes throughout California, including out-of-state employers with California employees. Founded in 1937 to provide employers with Peace of Mind through exceptional HR solutions, training, and professional development services.
Membership is a valuable resource for businesses and empowers employers with the knowledge, resources, and tools necessary to comply with labor laws and regulations, manage their workforce, and improve their bottom line. CEA has HR advisors who can provide consultation and training in English and Spanish. For more information, please click here.
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Heather Atherton
Atherton PR
+1 916-316-4568
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