California Employers, Are You Ready for 2025? 10 Things to Watch Out For

It's that time of year again! The California legislature has been quite busy enacting and Governor Newsom has signed into law several new laws affecting California employers. As 2024 winds down, here are 10 new laws California employers should watch out for in 2025.

Minimum Wage: California’s state minimum wage increases to $16.50 per hour for non-exempt employees, regardless of size (several local governments have higher minimum wages); the minimum salary for exempt employees increases to $68,640 per year. In addition, the minimum wage increases to $23 per hour for many health care workers effective July 1, 2025. The minimum wage for fast food workers increased to  $20 per hour effective April 1, 2024.

Anti-Discrimination Laws: SB 1137 amends the Unruh Civil Rights Act and the California Fair Employment and Housing Act to clarify that the law prohibits discrimination on the basis not just of individual protected traits, but also on any combination of two or more protected traits. In addition, AB 1815 , which applies retroactively, amends the Unruh Civil Rights Act,  the Education Code, and the Government Code to amend the definition of "race" to include "traits associated with race,” such as hair texture and hairstyles.

Paid Family Leave: Employers no longer will be allowed to require employees to use up to two weeks of accrued vacation before taking PFL benefits.

Time Off for Victims of Crime: AB 2499 expands the provisions for time off related to jury duty, court appearances and other activities to include an employee's family member who is a victim of a qualifying act of violence and to allow employees to use paid sick leave when an employee or an employee's family member is a victim.

Driver's License Discrimination: Employers will be prohibited from including statements in job advertisements, postings or applications requiring applicants to have a driver’s license, except where the employer reasonably expects  driving to be one of the job functions of the position and reasonably believes that using an alternative form of transportation would not be comparable in travel time or cost to the employer.

Captive Audience Meeting Ban: SB 399, the California Worker Freedom from Employer Intimidation Act,  prohibits employers from taking or threatening to take adverse action against an employee who declines to attend a meeting or participate in, receive or listen to the employer's opinion on religious or political matters, or union organizing.

Independent Contractors: The Freelance Worker Protection Act, SB 988, requires that independent contractors providing services of $250 or more be paid on or before the date in their contract or in the absence of a contractual date, no later than 30 days after completion of services and prohibits conditioning payment on accepting less compensation or making certain changes to the contract. The new law also requires a written contract between the hiring party and the worker, which must  include certain information (such as names, dates, list of services and payment information), and which the hiring party must retain for four years. The hiring party also is prohibited from taking adverse action against a worker for exercising their rights under this bill and either the worker or a public prosecutor may bring a civil action as enforcement.

Workers' Compensation Rights: AB 1870 requires California employers to include information in workers' compensation  notices that the injured employee has the right to consult an attorney.

Whistleblower Posting. Pursuant to AB 2299, the Labor Commissioner must develop a model list of employees' rights and responsibilities under the whistleblower laws and provides that employers must post the model list.

Disclosure of Food Delivery Drivers' Identity: Pursuant to AB 375, effective March 1, 2025, third-party food delivery platforms are required to disclose to customers the driver's first name and picture when the customer is notified that the order is out for delivery.