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Kim’s Message: California’s New 2025 Laws in a Nutshell

Posted by Kim Gusman, President & CEO on January 1, 2025

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Happy New Year! I can’t believe it’s already January, 2025! Thank you for allowing CEA to serve your HR needs for the past 87 years. Thank you for trusting us with your questions and allowing us to walk you through the in’s and out’s of California employment laws. It’s a privilege to be able to lighten your load and bring you Peace of Mind!

Effective leaders are busy and they need to stay abreast of the new laws impacting their business in the New Year, so I’ve dialed things down to provide you with a Reader’s Digest version of the most far reaching 2025 California employment laws. I’ve also included a to-do list after each law to help you keep your business in compliance and out of court.

Compared to prior years, the good news is that 2025 is a fairly light year when it comes to new employment laws! I’ve highlighted seven laws that impact the majority of businesses in California. When you need or want more information on any of the bills below, just click on the links, give us a call, send us an email, or join us on January 15 for our Encore Labor Law Update webinar.

  1. Minimum Wage Increase (SB3). As of January 1, 2025, the minimum wage in California increased from $16 to $16.50 per hour for all hourly workers. Salaried employees now need to earn at least $68,640 in order to remain exempt from wage and hour laws, such as breaks, meal periods and overtime.

TO DO: Put up New Poster, Increase wages as needed, and give updated Wage Theft Notices to hourly employees.

  1. Ban on Captive Audience Meetings (SB399)—CA Worker Freedom from Employer Intimidation Act. This law prohibits employers from discharging/retaliating/or taking adverse action against an employee if they don’t want to attend a work meeting where the employer gives their opinion on political, religious or union matters. Employees who refuse to attend have a right to compensation. Exceptions exist for religious organizations & education institutions and political organizations.

TO DO: Train your managers—no more captive audience meetings!

  1. Whistleblowers are Protected Updated Poster. (AB2299) The Labor Commissioner's prior posting was a "sample" which didn’t guarantee compliance with posting requirements. The new poster guarantees posting compliance. This whistleblower notice must be written in a font larger than 14 point and contain the whistleblower hotline’s telephone number.

TO DO: Update Your All in One Poster or other job postings

  1. Workers Compensation Poster (AB 1780). Another Poster Update. This new updated notice informs employees that are injured at work that they have the right to consult an attorney and that attorney fees will be taken out of any recovery.

TO DO: Update Your All in One Poster or other job postings

  1. Drivers License Discrimination in Job Listings (SB1100). California employers may no longer require job applicants to have a valid drivers license when posting a job or on a job application, unless driving is a function of the job and other modes of transportation are not comparable in terms of travel time and cost.

TO DO: Review your job applications and job postings and remove DL requirements.

  1. Crime Victims Leave (AB2499). Leave laws and rights have been expanded for victims of violent acts. There is a new definition of a crime victim. All employers must give employees a notice (which is still being created by CA Civil Rights Department) in 4 circumstances: when hired, annually, upon request, and when there is a qualifying circumstance. Reasonable accommodations to protect employee safety at work will now be required when the employee or their family member is the victim. And, if your company has more than 25 employees, employees may take leave for expanded reasons when the employee or their family member is a victim. Employees may use their Paid Sick Leave for expanded purposes.

TO DO: Review your employee handbook and leave law policies—update as needed.

  1. Written Contracts for "Freelance" Independent Contractors (IC) (SB988).This law requires any person or company who hires a “freelancer” for specified professional services as an IC to draw up a written contract if the services are equal to or greater than $250. The company must give a copy to the IC and retain a copy for four (4) years.

TO DO: Review your IC policies—Create written contracts if needed—make sure your IC’s are properly classified.

That’s it in a nutshell!  For more information, please join us on January 15 for our Encore Labor Law Update webinar. Members can also contact us for free phone support at 800-399-5331 or email us at: ceainfo@employers.org for a fast and accurate reply. Soon we will have a Live Chat feature for you too!

From all of us at CEA—Here’s Wishing You and Yours a Happy and Prosperous New Year! Let us help you Thrive in 2025!