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New Year, New Rules: Key California Employment Law Changes in 2025

Jan 14 2025

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Keller Grover / News / Employment News / New Year, New Rules: Key California Employment Law Changes in 2025

The new year will bring a series of new or clearer protections for California workers, from safeguards against intimidation and discrimination to more generous paid leave; we’re here to help you know what to watch for. Knowing your rights is the first step to guarding them. 

Here’s a rundown of some of the more noteworthy changes to California employment law that take effect in 2025:

    1. Pay: Minimum wage increases by 50 cents in January (to $16.50/hour). Health care minimum wages will increase again in July. 
  • Employer intimidation: Starting Jan. 1, employers are banned from requiring workers to attend meetings about religious or political issues, including those discouraging unionization. Employees scheduled to work during that time must be paid, whether or not they attend the meeting, and businesses must not retaliate against individuals who choose not to attend. SB 399 outlines exceptions for political, higher education and religious organizations, and employers still can hold meetings about legally required or job-related information. The penalty for violations is $500 per employee. 
  • Employer discrimination: In 2025, SB 1100 prohibits employers from requiring a driver’s license for a job unless duties specifically involve driving and an alternative would not be reasonable. SB 1137 clarifies that employers may not discriminate against workers based on any combination of protected characteristics. 
  • Paid family leave: Under prior California law, businesses could require employees to take up to two weeks of earned but unused vacation time before using paid family leave benefits to do things such as care for a very ill family member, bond with a new child, or make accommodations for active duty. AB 2123 erases that requirement as of Jan. 1.
    1. Standard communication of whistleblower rights: Employers have been required to post employee rights, including whistleblower rights. In 2025, AB 2299 will make this a standard posting, drafted by the state labor department (see the posting here), which includes the California Attorney General’s Whistleblower Hotline number. We recommend that workers thinking about taking whistleblower action contact an experienced whistleblower attorney to clearly understand their rights and prudent steps forward; we offer free, confidential consultations.
  • Freelance Worker Protection Act: The law, effective Jan. 1, outlines basic protections for freelance workers. It requires clear contracts detailing the project scope, as well as pay rate and pay method, for any work exceeding $250 over a four-month period. Also, freelancers must be paid within 30 days of work completion unless the contract says otherwise, clients cannot require freelancers to accept less than the contract amount to get a faster payment, and clients can’t retaliate against freelancers for seeking payment. Freelancers who aren’t paid are entitled to double payment plus costs and attorney’s fees.

We wish you a prosperous and protected 2025.

In more than 25 years litigating fraud and employment cases, the lawyers at Keller Grover have recovered hundreds of millions of dollars for clients and class members, and we’ve helped whistleblowers make successful reports and claim rewards. We can advocate for you. Contact us for a free, confidential consultation. 

 

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