As of January 1, 2025, several new employment laws have taken effect in California, impacting various aspects of employer-employee relations. Below is an overview of these key legislative changes:
Minimum Wage Adjustments
The state minimum wage has increased to $16.50 per hour, up from $16.00. Consequently, the minimum salary threshold for exempt employees in administrative, executive, and professional roles is now $68,640 annually ($5,720 monthly). Employers should review compensation structures to ensure compliance with these updated standards.
Paid Family Leave (PFL) Modifications
Assembly Bill 2123 has removed the provision that allowed employers to require employees to use up to two weeks of vacation before accessing state-paid family leave benefits. Employees can now receive PFL benefits without first exhausting their vacation time.
Whistleblower Protections Enhancement
Assembly Bill 2299 mandates that employers prominently display a notice detailing employees’ rights and responsibilities under whistleblower laws, including the whistleblower hotline number. The California Labor Commissioner has provided a model notice to facilitate compliance.
Restrictions on Mandatory Employer-Sponsored Meetings
Senate Bill 399, known as the California Worker Freedom from Employer Intimidation Act, prohibits employers from requiring employees to attend meetings or participate in communications intended to convey the employer’s opinions on religious or political matters, including union-related topics. This legislation aims to protect employees from coercion regarding personal beliefs.
Senate Bill 1223 expands the definition of “sensitive personal information” under the California Consumer Privacy Act (CCPA) to include “neural data,” which pertains to information generated by measuring the activity of a consumer’s nervous system. Employers must assess their data collection and handling practices to ensure adherence to these enhanced privacy protections.
Workers’ Compensation Notice Requirements
Assembly Bill 1870 requires that workers’ compensation postings inform employees of their right to consult an attorney regarding workers’ compensation claims. The notice must specify that, in most cases, attorney fees will be deducted from the employee’s compensation benefits.
Prohibition of Driver’s License Requirements in Job Postings
Senate Bill 1100 amends the Fair Employment and Housing Act (FEHA) to prohibit employers from including a requirement for a driver’s license in job advertisements unless driving is an essential job function that cannot be performed by alternative means. This measure seeks to prevent discrimination against individuals who do not possess a driver’s license.
Child Labor Audit Disclosure Obligations
Assembly Bill 3234 requires employers that voluntarily conduct social compliance audits related to child labor to publicly disclose the findings by posting a clear and conspicuous link to the audit report on their website. This law aims to promote transparency regarding child labor practices.
Employers in California should review and update their policies, procedures, and training programs to ensure compliance with these new legal requirements. Staying informed and proactive will help mitigate potential risks and foster a fair and lawful workplace environment.
If you missed the new employment laws for 2024, click here to read our summary.