Employers Work to Stay Compliant With Increasingly Complex California Employment Laws

California Employment Law Updates for 2025

Shauna Correia, a shareholder at Weintraub, Tobin's Labor & Employment Group, is joined by her partner Meagan Bainbridge to discuss recent changes in California employment law for 2025, shedding light on key developments that employers need to be aware of.

Employers must review job postings and applications to comply with California's new law prohibiting the requirement of a driver's license, unless driving is a necessary function of the job and alternative transportation is not feasible.
The Family Leave Benefits Act has been amended to eliminate an employer's ability to require employees to use up to two weeks of company-provided vacation before receiving Paid Family Leave benefits.
California employers will need to obtain and post a new worker's compensation notice and employee rights and responsibilities notice, outlining employee rights and the employer's responsibilities, by January 1, 2025.

California Employment Law Changes for 2025: What Employers and Workers Need to Know

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Major changes to California employment law are set to take effect January 1, 2025, bringing new protections for workers and compliance requirements for employers. From minimum wage increases to expanded discrimination protections, both employees and employers need to prepare for these significant updates.

Wages and Compensation

The statewide minimum wage will increase to $16.50 per hour for all employers, regardless of company size. Fast-food workers will maintain their higher minimum wage of $20.00 per hour, established in previous legislation. For salaried exempt employees, the minimum annual salary threshold will rise to $68,640, while fast-food exempt employees must earn at least $83,200 annually.

Perhaps most notably, 2025 marks the end of subminimum wage licenses for workers with disabilities. Under SB 639, all workers, regardless of ability, must be paid at least the standard minimum wage, marking a significant step toward wage equality.

Enhanced Worker Protections

Several new laws expand protections for various categories of workers:

Freelancers gain new rights under the Freelance Worker Protection Act, which requires written contracts for work valued over $250 and mandates payment within 30 days of work completion if not otherwise specified in the contract.

Farmworkers receive additional protection with the right to use sick leave during dangerous weather conditions, addressing the growing concerns about worker safety during extreme weather events.

A groundbreaking change prohibits employers from requiring driver's licenses for jobs unless driving is an essential function of the position. This removes a common barrier to employment for many Californians.

Discrimination and Leave Policies

California has strengthened its already robust anti-discrimination laws. Employers are now explicitly prohibited from discriminating based on combinations of protected characteristics – for example, discriminating against someone because they are both Hispanic and female.

Leave policies have also been updated. Employers can no longer require workers to use vacation time before accessing state paid family leave benefits. Additionally, new protections prevent retaliation against employees who take time off for jury duty, court appearances, or to address domestic violence situations.

New Requirements for Employers

Employers face several new compliance requirements:

They must post new workers' compensation notices and employee rights information by January 1
Companies conducting voluntary social compliance audits for child labor must publish their findings online
Grocery stores and pharmacies must provide advance notice of closures to workers and communities
"Captive audience" meetings about union organizing are now prohibited, with violations carrying a $500 penalty per employee

Action Steps for Compliance

Employment law experts recommend several steps for businesses to ensure compliance:

"Employers should immediately review their job postings and applications to remove driver's license requirements unless absolutely necessary," advises Shauna Correia, a shareholder at Weintraub Tobin's Labor & Employment Group. "They should also update their anti-discrimination policies and training materials to reflect the new intersectional protections."

Legal experts also suggest that businesses:

Audit current wage rates and adjust them to meet new minimums
Review and update leave policies
Train managers on new requirements
Document all employment practices thoroughly
Consider consulting with employment law specialists to ensure full compliance

Looking Ahead

These changes reflect California's continuing emphasis on worker protection and workplace equality. Local governments now have expanded authority to enforce these laws, potentially leading to more rigorous oversight of employment practices.

Businesses are advised to stay agile and maintain strong relationships with legal counsel to navigate these evolving requirements. Meanwhile, workers should familiarize themselves with their new rights and protections under these laws to ensure they receive their full benefits under the updated regulations.

How to Stay Compliant With Increasingly Complex Employment Laws | San Diego Reader

Employment laws are already complicated, and they seem to get more complex every year. If you want to avoid fines and other disruptions to your business, you'll need to stay aware of these new laws and make a serious effort to remain compliant.

But what's the best way to stay compliant with increasingly complex employment law?

Get the Right Legal Representation

By far the most important strategy for your business is to seek the right legal representation. If you look at new employment laws for California in 2025, you'll see not only a minimum wage increase, but also multiple changes to how leave works. With an excellent legal team behind you, you'll be in a much better position to see these employment law changes coming, you'll get quality legal counsel so your business can adapt, and you'll be in the best possible position to guarantee compliance. On top of that, if you ever do have any legal issues, you'll have an excellent team of advisors at your back who can represent you and minimize the potential fallout.

Choose a legal team with the credentials, experience, and expertise necessary to guide your business to success in this realm. Just note that they won't be responsible for doing all the heavy lifting; they're simply there to give you the information and direction necessary to maximize your legal outcomes. It's still imperative for you to follow that advice.

Keep Reading

Hopefully, you'll have a good legal team in place who can keep you notified of any legal changes, long before they ever take effect. Even so, you shouldn't exclusively rely on their help. It's your responsibility to stay on top of the news, reading about new legislation that your local Congress is considering and staying tuned to new regulatory updates.

Typically, when new employment legislation is passed at any level, it makes headlines. Whenever you see new developments, take it upon yourself to do your due diligence, read the legislation, and understand it to the best of your ability. You may still need the help of a lawyer to fully understand all the ramifications and ensure compliance, but you can at least stay on top of things this way.

Stay Agile

Next, keep your business as agile as possible. The more flexible and adaptable your business is, the easier it will be to comply with new laws and regulations.

· Thoroughly document your processes. Thoroughly document all your hiring and employment practices. The more complete this record is, the easier it's going to be to change. This may seem counterintuitive, since it requires you to solidify and formalize many of your processes, but if and when changes come, you'll be able to precisely pinpoint where your business needs to change and how it needs to change. On top of that, you'll have a clear and transparent record you can use to defend yourself in the event of threatening legal action.

· Practice decentralization. Although there are some merits and advantages associated with centralized operations, your business will generally be more agile if it's decentralized. In other words, you need to empower individual units within your business and avoid becoming a monolithic bureaucracy.

· Hire flexible people. You can build and preserve a flexible culture by hiring more flexible people. When reviewing resumes and conducting interviews, pay careful attention to people with experiences and qualities suggestive of their ability to adapt to new circumstances.

· Set proper expectations. You also need to set proper expectations with the people in your business, especially those in HR and other roles related to facilitating employment. Make sure everyone understands the importance of remaining dynamic and adaptable, and make sure everyone knows how quickly employment laws can change.

· Conduct regular education and training. Don't assume that all your employees are going to remain up to date on matters related to employment laws and regulations. Instead, it's incumbent upon you to conduct regular education and training.

· Conduct regular audits. Periodic audits can help illuminate potential issues in your employment practices, long before they attract any legal consequences. It's also a great way to maintain an agile, adaptable mindset within your team members.

· When in doubt, play it safe. If you're ever not sure whether it makes sense to change a policy or a process, err on the side of caution. Even if you aren't strictly required to make a change, making the change could be beneficial in reducing your risk profile.

Employment laws keep getting more complicated, and that momentum isn't likely to change anytime soon. However, your business can position itself strategically by employing the best possible lawyers, staying adaptable, and generally keeping up with the law to the best of your ability.

New California employment laws are scheduled to take effect on January 1, 2025. These laws address a variety of issues, including the state minimum wage, discrimination protections, paid time off, and employers’ messages about unionization.

Quick Hits

California’s minimum wage will increase from $16.00 to $16.50 per hour.
New legislation clarifies that employers may not discriminate against workers because they have a combination of protected characteristics or do not have a driver’s license.
California employers will no longer be allowed to hold captive-audience meetings to discuss union organizing.

Minimum Wage

On January 1, 2025, California’s minimum wage will rise from $16.00 to $16.50 per hour for all employers, regardless of size. Some California cities have set a higher minimum wage rate with which employers must comply. The annual minimum salary for exempt employees will jump from $66,560 to $68,640 per year across the state.

Fast-food workers will continue to have their own minimum wage rate of $20.00 per hour for nonexempt employees and $83,200 annually for exempt employees.

Discrimination Law

Under California law, employers cannot discriminate on the basis of sex, race, color, religion, ancestry, national origin, disability, medical condition, genetic information, marital status, sexual orientation, citizenship, primary language, or immigration status. Starting January 1, 2025, it will also be illegal to discriminate based on a combination of two or more of those protected characteristics. For example, employers may not discriminate against a worker because she is Hispanic and female.

Lawmakers amended the California Fair Employment and Housing Act (FEHA) to make it illegal for an employer to require job applicants to have a driver’s license. Job ads may be exempt from this provision if the employer reasonably expects driving to be one of the position’s job functions.

Meanwhile, new legislation permits California cities and counties to enforce state and local laws prohibiting employment discrimination against any of the protected classes established by state law. Previously, only the state’s Civil Rights Division could enforce the FEHA and the Unruh Civil Rights Act.

Leaves of Absence

A new California law will prohibit employers from discriminating or retaliating against an employee for taking time off from work for jury duty or to comply with a subpoena or other court order as a witness in court.

This law also bars employers from discriminating or retaliating against a worker who takes time off because the worker or a family member experienced an act of violence, such as domestic violence, sexual assault, or stalking. The law entitles these employees to time off to obtain a restraining order, receive services from a domestic violence shelter, or seek medical attention, safety protections, or psychological counseling.

California lawmakers passed another bill to prevent employers from requiring workers to take accrued vacation leave before they use the state’s paid family leave program. Previously, employers could mandate that employees take up to two weeks of accrued vacation before they access the state’s paid family leave benefits.

Captive Audience Meetings

Starting January 1, 2025, California law will prohibit employers from holding mandatory meetings during working hours to discuss political or religious matters, including union organizing. An employer that violates this law could be subject to a $500 penalty per employee per violation.

Protection for Freelance Workers

Meanwhile, the new Freelance Worker Protection Act (FWPA) will require California employers to pay freelance workers on or before the date specified by the contract, or within thirty days after completion of the work, if the contract does not specify a date. The act requires employers to provide a written contract to freelance workers and retain the contract for at least four years. An aggrieved freelance worker may bring a civil lawsuit to enforce the FWPA and may recover attorneys’ fees, injunctive relief, and any other remedies deemed appropriate by the court.

Workplace Restraining Orders

A law addressing workplace violence restraining orders, which was enacted in 2023, will become effective on January 1, 2025. It allows employers to seek a temporary restraining order against an individual who has harassed their employees. It expands the law to include not only violence and threats of violence, but also harassment. The law defines harassment as “a knowing and willful course of conduct directed at a specific person that seriously alarms, annoys, or harasses the person, and that serves no legitimate purpose. The course of conduct must be that which would cause a reasonable person to suffer substantial emotional distress, and must actually cause substantial emotional distress.”

Social Compliance Audits

Another new law requires California employers to publish audit findings on their website when they voluntarily conduct a social compliance audit to determine whether child labor is involved in the employer’s operations or practices. The law defines a “social compliance audit” as a “voluntary, nongovernmental inspection or assessment of an employer’s operations or practices to evaluate whether the operations or practices are in compliance with state and federal labor laws.” The new law does not specify when or for how long an employer must post the link. Nor does it specify the penalty for noncompliance. The California Division of Labor Standards Enforcement likely will publish a list of frequently asked guidance (FAQs) and/or guidance about these new obligations in the future.

New Whistleblower Poster

The California labor commissioner will develop a model list of employees’ rights and responsibilities under state and federal whistleblower laws. Employers that post the model list will be deemed in compliance with the state’s requirement to prominently display a list of employees’ rights and responsibilities related to whistleblower laws.

Next Compliance Steps

Businesses may wish to plan ahead for higher labor costs with the new minimum wage rate. They also may wish to review exempt employees’ salaries to ensure that they meet the new salary basis test.

Employers may wish to update their antidiscrimination policies to forbid discrimination based on an intersection of protected characteristics. They also may wish to review their printed and online job advertisements, postings, and applications to ensure they do not require job applicants to have a driver’s license for positions that do not require driving.

What you need to know: Governor Newsom signed important changes into law that take effect in 2025 – including new worker protections.

SACRAMENTO — As the new year soon begins, California continues its forward momentum with a new set of laws signed by Governor Newsom that improve the health, safety, and well-being of all Californians.

“California’s new laws tackle today’s biggest emerging challenges head-on — from cracking down on retail crime to protecting your digital identity. Through partnership with the Legislature, we’re strengthening public safety, building more housing, and providing more resources for our communities. These practical reforms protect what matters most while creating more opportunities for all Californians.”

Governor Gavin Newsom

💼 Protecting more workers

Here are just some of the new laws taking effect in 2025 that protect more workers:

Ending subminimum wages: SB 639 (enacted in 2021) by Senator María Elena Durazo (D-Los Angeles) fully takes effect in January 2025, ensuring workers with disabilities earn at least the standard minimum wage by ending new subminimum-wage licenses and phasing out existing licenses. By guaranteeing fair pay, California affirms that every worker — regardless of ability — deserves dignity and equal treatment.

Safety during extreme weather: Farmworkers can now take needed sick leave during certain dangerous weather conditions, thanks to SB 1105 by Senator Steve Padilla (D-Chula Vista).

Event safety standards: AB 2738 by Assemblymember Luz Rivas (now Member-elect of the U.S. House of Representatives) builds upon existing safety and training requirements for live events before the show starts — helping protect workers and audiences alike.

Fair treatment for freelancers: SB 988 by Senator Scott Wiener (D-San Francisco) guarantees freelancers written agreements and timely payment for work worth more than $250.

No unnecessary driver’s license requirements: SB 1100 by Senator Anthony Portantino (D-Burbank) bars employers from requiring a driver’s license unless driving is actually part of the job.

Addressing food & medical deserts: SB 1089 by Senator Lola Smallwood-Cuevas (D-Los Angeles) requires grocery stores and pharmacies to provide advance notice to the community and workers before closures, helping to address food deserts that disproportionately affect low-income communities.

💪 Why it matters: Our workplaces, families, and communities are stronger when workers have protection from extreme weather, fair payment for their work, and time to prepare for workplace changes. These reforms help ensure essential services continue reliably while giving workers and their families the stability they deserve.

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