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What’s New in California Employment Laws for 2025: Key Changes You Need to Know
March 7, 2025
What’s New in California Employment Laws for 2025: Key Changes You Need to Know
2025 brings significant updates to California employment laws, many of which are designed to strengthen the rights and protections of workers across the state. For employees navigating complex workplace challenges, these new laws provide critical tools to ensure fairness and accountability. Here’s everything you need to know:
Minimum Wage Increases
As of January 1st, 2025, the state minimum wage increased to $16.50 per hour for all employees, regardless of employer headcount. As a result, exempt employees under California’s executive, administrative, and professional exemptions must earn a minimum annual salary of $68,.640 to maintain their exempt status.
Fast-food employees will have a specific minimum wage of $20.00 per hour for non-exempt workers, while exempt employees in this sector will need to earn a minimum annual salary of $83,200.
Enhanced Anti-Discrimination Measures (SB 1137)
California has strengthened its anti-discrimination laws to promote fairness in the workplace. Effective January 1, 2025, California law prohibits discrimination based on a combination of two or more protected characteristics
Another key amendment to the California Fair Employment and Housing Act (FEHA) makes it unlawful to require job applicants to have a driver’s license unless driving is an essential job function and alternative transportation methods are infeasible. This is a critical update to combat discrimination in the workplace and ensure equal opportunity for all job applicants.
Prohibition of Mandatory Meetings on Political or Religious Matters (SB 399)
To promote workplace autonomy, new laws prevent employers from retaliating against employees who choose not to attend meetings or communications discussing the employer’s stance on political or religious matters, including unionization.
These measures provide employees with greater freedom to make personal decisions without undue pressure. Employers who violate this law could be subject to a $500 penalty per employee, per violation, addressing concerns related to workplace retaliation in California.
Protections for Freelance Workers (SB 988)
The Freelance Worker Protection Act (FWPA) establishes protections for independent contractors providing services valued at $250 or more, requiring written contracts and timely payment. Noncompliant hiring entities may face statutory penalties.
Expanded Leave Rights (AB 2499)
Victims of crimes or abuse now have greater protections under expanded leave laws. Employees who qualify as victims can take time off for related purposes without facing discrimination in the workplace.
The definition of "victim" has also been broadened to include individuals subjected to qualifying acts of violence, ensuring more comprehensive support for affected employees.
Paid Family Leave (AB 2123)
Assembly Bill 2123 (AB 2123) expands California's Paid Family Leave (PFL) program, offering more comprehensive benefits for employees who need time off to care for family members or bond with a new child. This bill amends Unemployment Insurance Code Section 3303.1, eliminating the provision that required employees to use vacation time before receiving PFL benefits.
As of January 1, 2025, eligible employees can now receive up to eight weeks of benefit payments without using vacation time first, making paid family leave in California more accessible than ever.
Strengthened Whistleblower Protections (AB 2299)
California has strengthened its whistleblower protections in 2025, ensuring employees feel safe reporting workplace violations without fear of retaliation. Employers will now be required to post a specific notice, drafted by the Labor Commissioner, outlining employee rights and responsibilities under whistleblower laws. This addresses concerns related to workplace retaliation in California, offering greater security to employees who report illegal activities.
Safety During Extreme Weather (SB 1105)
New measures have been introduced to safeguard agricultural workers during extreme weather conditions. Agricultural workers can now use their sick leave during hazardous weather periods, ensuring their health and safety are prioritized. This expands California paid sick leave options to include extreme weather situations.
The new California employment laws in 2025 represent a significant shift toward stronger worker protections and a more equitable work environment. Employees will benefit from enhanced support across various areas, including higher wage replacement rates, expanded leave rights, stronger whistleblower protections, and increased safeguards against retaliation.
Ultimately, these changes emphasize that the workplace should be a space where employees feel valued, protected, and supported, both in their professional roles and as individuals with personal and familial needs. Employees in California can look forward to a more secure and supportive work environment in 2025 and beyond.
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