As employers prepare to update their policies and practices for 2025, there are a number of new laws to consider. Unless otherwise noted, the laws discussed below will be effective as of January 1, 2025.
Minimum Wage
California’s statewide minimum wage will increase to $16.50 per hour regardless of the size of the employer. This hourly increase also affects the minimum salary for full-time exempt employees, with a new minimum of $68,640 per year ($5,720 per month).
Anti-Discrimination Laws to Include “Intersectionality”
California’s civil rights laws prohibit discrimination against others in housing, employment, education, and public accommodations on the basis of a range of legally protected characteristics. Currently, the Fair Employment and Housing Act (“FEHA”), the Unruh Act and the Education Code do not expressly recognize that discrimination can arise from the interplay between multiple protected characteristics.
Senate Bill 1137 (SB 1137) amends FEHA, the Unruh Act, and the Education Code to prohibit discrimination and harassment on “intersectionality,” which is a combination of two or more protected traits, such as both race and gender, gender and age, or gender and disability. This affirms the decision of Lam v. University of Hawaii (9th Cir. 1994) 40 F.3d 1551 (where an individual claims multiple bases for discrimination or harassment, establishment of discrimination and harassment can occur on the combination of these bases, not just one protected characteristic alone.) The Legislature now recognizes that where two or more bases for discrimination and harassment exist, they cannot be reduced to separate components as this bisection of a person’s identity often distorts or ignores the particular nature of one’s experience.
When an individual claims multiple bases for discrimination or harassment, it may be necessary to establish whether the discrimination and/or harassment occurred on the basis of a combination of these factors, not just one protected characteristic alone. Employers should also incorporate the concept of intersectionality into their anti-discrimination training.
Definition of Race Amended in the Unruh Act
Similarly, Assembly Bill 1815 (AB 1815) amends the definition of “race” in the Unruh Act to include “traits associated with race, including but not limited to hair texture and protective hairstyles” (e.g. braids, locs, twists) consistent with the definition in the FEHA. AB 1815 also removes the word “historically” from the inclusion of traits “historically associated with race” in the definition of race under the Education Code and FEHA.
Expansion of Paid Sick Leave For Family Members of Victims of Violence
Assembly Bill 2499 (AB 2499) allows employees to use paid sick leave if their family members are the victim of a “qualifying act of violence.” “Qualifying act of violence” includes domestic violence, sexual assault, stalking, any act that causes bodily injury or death, and a reasonably perceived or actual threat of physical injury or death. Previously, only victims were eligible to use paid sick leave. Enforcement of this expansion of law is now granted to the California Civil Rights Department.
AB 2499 also removes the previous minimum threshold requirement of an employer having 25 or more employees for the law to apply; it will now apply to employers with at least one employee. Further, employers are required to inform employees of their rights under this new law, including upon hire and when employees inform their employer that their family members are victims of a violent crime. Employers must post notices of this new law to their employees on or before July 1, 2025.
Paid Family Leave
Assembly Bill 2123 (AB 2123) now prohibits employers from requiring employees to use accrued vacation as a condition before accessing and collecting California’s Paid Family Leave Program (“PFL”).
With this change to California’s PFL, employers should update their paid family leave policies accordingly.
Worker Freedom from Employer Intimidation
Senate Bill 399 (SB 399) prohibits employers from subjecting or threatening to discharge, discriminate, or taking any other adverse action because an employee declines to attend an “employer-sponsored meeting.” An “employer-sponsored meeting” is defined as an employer sharing their opinion on religious or political matters. A civil penalty of $500 per employee is imposed for violations and is enforceable by the Labor Commission and individual employees.
Notable exemptions to SB 399 include exemptions for a religious institution or group exempt from Title VII of the Civil Rights Act of 1964; a political organization or party; an educational institution that lectures on political/religious matters as a part of the regular coursework; a nonprofit, tax-exempt training program performing community service hours on political or religious matters; an employer-sponsored trainings to comply with the employer’s legal obligations; and a public employer holding a new-employee orientation.
Further Protections for Independent Contractors
Senate Bill 988 (SB 988) establishes the Freelance Worker Protection Act, increasing protections for independent contractors who are paid at least $250 for their services. All services between a hiring party and the independent contractor must be in writing, and the hiring party must retain the contract for at least four years. The hiring party is required to pay independent contractors the exact compensation before or on the date specified in the contract. If the contract does not specify a date, payment must be made no later than 30 days after the completion of services.
Prohibition Against Driver’s License Discrimination
Senate Bill 1100 (SB 1100) prohibits employers from including as a requirement that an applicant must have a driver’s license in a job posting, application, advertisement, or related material. Exceptions to SB 1100 include– if the employer reasonably expects that driving will be an essential function of the job and the employer reasonably believes that meeting that job function cannot be achieved through alternative, comparable means in time or cost to the employer.
Social Compliance Audits
Under Assembly Bill 3234 (AB 3234), employers are subject to further transparency disclosures involving social compliance audits. Social compliance audits now include the “inspection of any production house, factory, farm, or packaging facility of a business to verify whether it complies with social and ethical responsibilities, health and safety regulations, and labor laws, including those regarding child labor.”
If an audit is conducted, the employer must post a clear and conspicuous link detailing the audit findings on their business website.
PAGA Amendments
Currently, workers in the construction industry governed by a collective bargaining agreement are exempt from PAGA under Labor Code section 2699.6 until January 1, 2025. Assembly Bill 1034 (AB 1034) extends the expiration date of the exemption from January 1, 2025 to January 1, 2038.
Update to Workers Compensation Notices
Currently, employers subject to the workers compensation system must display accessible notices to employees that outline what employees should do if employees are injured in the course of employment. Assembly Bill 1870 (AB 1870) requires additional notice about an injured employee’s right to consult a licensed attorney regarding their workers compensation rights.
****
If you need assistance or have any questions about these new laws, including with respect to updating your policies and practices, please feel free to contact us.