2025 Labor Law Preview

California's legislative cycle has ended, and Governor Gavin Newsom has signed several new employment laws that take effect January 1, 2025. Employers have only a few months to prepare for these changes. Here's a quick look at some of the key laws:

• Minimum Wage: Starting January 1, 2025, the statewide minimum wage will increase to $16.50 per hour. However, if Proposition 32 is approved in November, the wage could rise to $17 for businesses with 26 or more employees, with further increases planned for 2026.
• Leaves of Absence: New laws (AB 2499, SB 1105, and AB 2123) expand leave provisions, including crime victim leave and sick leave for agricultural workers to avoid hazardous conditions like smoke or heat. Employers can no longer require workers to use vacation before paid family leave benefits.
• Discrimination and Retaliation: SB 399 prohibits mandatory attendance at employer meetings about political or religious opinions, while SB 1100 restricts job applications from requiring a driver’s license unless necessary for the job.
• Independent Contractors: The Freelance Worker Protection Act (SB 988) introduces new contract and payment requirements for freelance workers.
• Workplace Safety: New laws direct Cal/OSHA to address violence prevention in healthcare settings and opioid antagonist availability in first aid kits by 2027.

Other changes to be on the lookout for:

• The impact of PAGA Reform
• New Paid Family Leave rule prohibiting employers from requiring employees to vacation time prior to receiving PFL benefits
• New definitions related to protected categories under the Fair Employment and Housing Act
• The impact of the new federal Pregnant Workers’ Fairness Act in California
• Changes to the DLSE’s FAQs regarding the accrual rates for CA paid sick leave
• New standards for evaluating religious accommodation requests
• Arbitration agreement developments
• Clarification of standard to prove "harassment" claims
• Changes to the definition of "hours worked" and pay for travel time
• Expected updates to Fed/CA compliance posters. Infinium HR clients will receive updates automatically.

As always, we'll sift through the clutter and provide a simple and concise breakdown during our annual Labor Law Update. Keep your eyes peeled for more information coming from Infinium HR!