With the new year quickly approaching, California employers—and any business with California-based employees—need to prepare for substantial changes in employment law that take effect on January 1, 2025. The latest legislation requires updates to policies, handbooks, and training programs, ensuring that employers stay compliant with the evolving regulations and expand protections for workers.
1. Expanded Anti-Discrimination Laws (SB 1137 and 1815)
California has broadened its definition of “race” to explicitly include hair texture and protective hairstyles. While largely clarifying existing protections, this amendment reaffirms these rights and applies retroactively. Additionally, the legislature has emphasized that discrimination based on the “intersectionality” (combination) of two or more protected traits is also prohibited. Employers should update discrimination policies and trainings to reflect these enhanced protections, which may simplify the burden of proof in discrimination cases for plaintiffs.
2. Expanded Paid Sick Leave Rights (AB 2499)
Under existing law, protections for “safe time” absences due to domestic violence, sexual assault, or stalking have been strengthened under the Fair Employment and Housing Act (“FEHA”). The new law includes additional rights for employees supporting family members who are crime victims. AB 2499 relocates anti-discrimination protections for employees involved in jury duty, court appearances, or are victims of a crime, under FEHA. This shift strengthens protections and adds leave eligibility for employees supporting family members who are crime victims.
Notable provisions:
- Expanded Definitions: “Qualifying acts of violence” now include domestic violence, sexual assault, stalking, and conduct involving threats or use of force.
- Broadened Leave Rights for Family Members: Employers with over 25 employees cannot discriminate or retaliate against workers taking leave to support family members who are crime victims.
- Annual Notice Requirement: Employers must notify employees of these rights upon hire and annually.
3. Expanded Paid Sick Leave for Agricultural Workers (SB 1105)
Agricultural workers may now use sick leave to avoid extreme weather and environmental hazards, expanding the scope of “preventive care.” This measure allows outdoor workers additional protection against adverse conditions.
4. Increased Flexibility for Paid Family Leave (AB 2123)
Starting on January 1, AB 2123 prohibits employers from requiring employees to use accrued vacation before accessing California’s Paid Family Leave (“PFL”) benefits, allowing greater control over PFL usage.
5. Restrictions on Driver’s License Requirements in Job Postings (SB 1100)
Starting on January 1, under SB 1100, employers may only require a driver’s license if it is essential to the job function and alternative transportation is not feasible. This change requires employers to carefully assess job postings and policies involving driver’s licenses.
6. Transparency on Social Compliance Audits (AB 3234)
Starting on January 1, AB 3234 mandates that employers who voluntarily audit for child labor must disclose findings publicly via a website link, emphasizing transparency in labor practices.
7. New Minimum Wage and Salary Threshold
Starting on January 1, the statewide minimum wage will increase to $16.50 per hour, and the threshold for exempt salaried employees will increase to $68,640 annually. Employers must stay current with these and any local and industry wage requirements to ensure compliance.
8. Delivery Driver Identity Disclosure (AB 375)
Beginning March 1, 2025, AB 375 requires food delivery platforms to disclose the delivery driver’s first name and picture to customers when the order is out for delivery. Under the existing Fair Food Delivery Act of 2020, third-party food delivery platforms that transport ready-to-eat food act as intermediaries between consumers and multiple food facilities. AB 375 introduces a new requirement for these platforms to disclose the delivery driver’s first name and picture to customers when notifying them that their order is out for delivery. This law exempts cases where the food facility uses its own delivery drivers, if the order is placed through the facility’s website, or if the order is placed through the food facility’s own website or a third-party service that does not qualify as a “food delivery platform” under this regulation.
9. Workers’ Compensation Notice Requirements (AB 1870)
Starting on January 1, AB 1870 will require California employers to inform employees about their right to consult an attorney for advice on workers’ compensation rights, reinforcing transparency in the workers’ compensation process.
10. Ban on Mandatory Work Meetings Covering Religion and Politics (SB 399)
Starting on January 1, the “California Worker Freedom from Employer Intimidation Act” goes into effect, which bans mandatory attendance at meetings covering religious or political opinions, including union organizing, potentially subjecting employers to new litigation risks if violated. Note this law does not apply to mandatory training to comply with an employer’s legal obligations, including obligations under civil rights laws (such as discrimination and harassment prevention training) and occupational safety and health laws.
11. New Freelancer Protection (SB 988)
Starting on January 1, the “Freelance Worker Protection Act” mandates timely payment, written contracts, and a minimum $250 threshold for independent contractor protections, aligning with California’s efforts to support gig workers and contractors.
12. Whistleblower Protection Posting Requirements
Starting on January 1, AB 2299 will require California employers to prominently display the California Labor Commissioner model list of employees’ rights and responsibilities under California’s existing whistleblower law where it may be easily read during the workday in lettering larger than size 14 point and must include the telephone number of the whistleblower hotline.
Conclusion
Employers in California face a landscape of new legal requirements and expanded employee protections for 2025. It’s critical for businesses to stay up to date on these changes and proactively adjust their practices, policies, and documentation. Working closely with employment counsel will help ensure compliance and reduce the risk of costly litigation under the state’s dynamic regulatory framework.