California Employer Alert - New California Laws Impacting the Workforce in 2025

If you're an employer in California, it's time to start paying attention to some important new employment and labor laws that will come into play in 2025. The Golden State is known for its progressive approach to worker protections, and the latest round of laws promises to reshape how businesses manage employees, from anti-discrimination measures to workplace safety. Staying up to date will not only help you avoid penalties but also create a fairer, more inclusive workplace for all your employees. Here’s a quick summary of the key changes that could impact your business in 2025. 

SB 1137 – Intersectionality in Protected Characteristics

California is officially the first state to adopt the concept of intersectionality in its anti-discrimination laws. What does that mean for you? Well, it’s about understanding that people can experience overlapping discrimination based on multiple characteristics, like race, gender, and disability. SB 1137 ensures that these overlapping claims are addressed under the Fair Employment and Housing Act (FEHA). So, if you’re handling employee discrimination cases, make sure you understand how intersectionality could affect your policies and practices.

AB 1815 – Expanding Race Discrimination to Include Hairstyles

Following on its prior legislative efforts to expand protections against race discrimination based on certain hairstyles, the California legislature has enacted AB 1815, which broadens the definition of race under FEHA to include traits associated with race, like hair texture and protective hairstyles (think braids, locks, and afros). This means that discrimination based on a person’s hairstyle is now illegal, expanding protections beyond what we traditionally think of as "race." Employers need to ensure their grooming policies are inclusive and don’t unintentionally discriminate against employees’ cultural or racial identities.

SB 1340 – Local Enforcement of Discrimination Laws

SB 1340 gives local governments the green light to enforce their own anti-discrimination laws, as long as they meet certain criteria. This law clarifies that local laws can apply to discrimination complaints if they are at least as protective as FEHA. Essentially, cities and counties can now step in and enforce these laws on top of state-level protections, so your business will need to be aware of local ordinances that may add additional layers of compliance.

AB 2499 – Victims’ Time Off Protections

In keeping with the California legislature’s trend of expanding employee rights to various leaves (such as 2023’s enactment of the bereavement leave law and 2024’s enactment of the reproductive loss leave law), newly enacted AB 2499 expands protections for employees who need time off for things like jury duty, court appearances, or if they are victims (or have a family member who is a victim) of a qualifying act of violence. Employers can’t retaliate against these employees for taking time off, and they can use vacation or paid sick leave for these absences. Given these drastic changes, employers should prepare by updating their employee handbook and/or policies regarding jury, witness, and victims’ leaves available to its employees to ensure compliance with the new law.  Employers are required to provide written notice of these rights at the time of hire and upon request. Employers should also be aware that these leaves will run concurrently with Family and Medical Leave (CFRA/FMLA), so you’ll need to track this carefully.

SB 1105 – Paid Sick Leave for Agricultural Workers

SB 1105 extends the state’s paid sick leave laws to agricultural workers who are exposed to hazardous conditions like smoke, heat, or flooding during emergencies. This law also allows workers to use paid sick leave for preventive care, like avoiding harmful environmental conditions. If you employ agricultural workers, make sure they’re aware of these new protections and how they might apply in extreme weather or other emergency situations.

SB 1100 – Driver’s License Requirement in Job Ads

Got a job opening? If you’re advertising for a position that doesn’t require a driver’s license to perform essential job duties, you can’t include the license as a requirement in your job posting. SB 1100 prohibits employers from mandating a driver’s license unless they reasonably expect the position’s duties to require driving and reasonably believe that an alternative form of transportation (e.g. ride hailing service, taxi, carpooling, bicycling, or walking) would not be comparable in travel time or cost to the employer. So, if driving isn’t a key function, rethink those job ads to avoid potential discrimination.

SB 399 – Ban on Captive Meetings

“Captive meetings,” or employer-mandated meetings among employees regarding political or religious topics, have been a controversial topic in a contentious election year. In its wake, California has enacted SB 399 to give employees the right to opt out without fear of retaliation. The new law makes clear that employees cannot be penalized or retaliated against for refusing to attend or participate in, receive, or listen to an employer-sponsored meeting or communication regarding the employer’s opinion on political or religious matters. The law further requires employers to continue paying employees who refuse to attend such meetings, and imposes a civil penalty of $500 per employee for each violation.

It's also worth noting that the new California law comes on the heels of a recent ruling by the National Labor Relations Board that held an employer violates the National Labor Relations Act (NLRA) by requiring employees under threat of discipline or discharge to attend meetings in which the employer expresses its views on unionization. The NLRB determined that such captive meetings have a reasonable tendency to interfere with and coerce employees in the exercise of their Section 7 NLRA rights and therefore violate Section 8(a)(1) of the NLRA.

If you’re holding these types of meetings, it’s time to rethink the approach.

AB 2123 – Lifting Paid Family Leave Restrictions

Under AB 2123, employers can no longer require employees to use up to two weeks of vacation before they receive Paid Family Leave benefits. This law helps to streamline the process and ensure that employees aren’t unfairly burdened before accessing family leave. It’s a small but significant change that can affect your leave policies and payroll practices.

AB 1888 – Labor Trafficking Unit

The California legislature is stepping up its fight against labor trafficking in the new year. AB 1888 creates a Labor Trafficking Unit within the Department of Justice to focus on addressing trafficking in the workplace. If you run a business that involves labor contracts or multiple vendors, you’ll want to ensure that your hiring and contractor processes are fully compliant with anti-trafficking laws.

AB 3234 – Social Compliance Audits

Under AB 3234, employers who voluntarily undergo “social compliance audits” must post the findings online on its website. “Social compliance audit” is defined in the statute as a voluntary, nongovernmental inspection or assessment of an employer’s operations or practices to evaluate whether the operations or practices are in compliance with state and federal labor laws, including wage and hour and health and safety regulations, including those regarding child labor. If your company is part of this group, make sure you have a transparent process for sharing these reports.

AB 2738 – Labor Code Enforcement and OSHA Training

In response to the rise of worker injuries and fatalities at concert festivals, California enacted AB 2738 to require written contracts with entertainment events vendors to specify that the vendor will furnish to the contracting entity certain information about the federal and Cal/OSHA trainings its own employees and subcontractors’ employees have completed.

This law also authorizes public prosecutors enforcing violations of the Labor Code to recover all remedies available under the statute, which would be prioritized toward workers for unpaid wages, damages, or penalties, and the remainder to the General Fund. It also authorizes recovery of fees and costs to the prevailing plaintiff in such an action.

SB 988 – Freelance Worker Protection Act

Following similar laws enacted in New York and Illinois, California SB 988 enacted the Freelance Worker Protection Act. The new law imposes minimum requirements, commencing January 1, 2025, relating to contracts between a hiring party and a “freelance worker,” defined as a person, as specified, that is hired or retained as a bona fide independent contractor by a hiring party to provide professional services in exchange for an amount equal to or greater than $250, as specified.

The law also requires a contract between a hiring party and a freelance worker to be in writing and would require a hiring party to retain the contract for no less than 4 years. The written contract must include the following minimum information:

(1) The name and mailing address of each party.

(2) An itemized list of all services to be provided by the freelance worker, including the value of those services and the rate and method of compensation.

(3) The date on which the hiring party shall pay the contracted compensation or the mechanism by which the date shall be determined.

(4) The date by which a freelance worker shall submit a list of services rendered under the contract to the hiring party to meet the hiring party’s internal processing deadlines for purposes of timely payment of compensation.

Moreover, the law requires a hiring party to pay a freelance worker the compensation specified by a contract for professional services on or before the date specified by the contract or, if the contract does not specify a date, no later than 30 days after completion of the freelance worker’s services. 

The law prohibits a hiring party from discriminating or taking adverse action against a freelance worker for taking specified actions relating to the enforcement of these provisions. The law also authorizes an aggrieved freelance worker or a public prosecutor to bring a civil action to enforce these provisions, as specified.

AB 2299 – Whistleblower Protections Posting

AB 2299, signed into law July 15, 2024, requires the Labor Commissioner to develop, and an employer to post, a model list of employees’ rights and responsibilities under California’s whistleblower laws. An employer is considered compliant with the posting requirement set forth in Labor Code section 1102.8 if the employer posts the model list.

Conclusion

California’s employment laws are constantly evolving, and 2025 brings with it some significant changes that employers can’t afford to ignore. From anti-discrimination protections to employee leave requirements, these new laws are designed to create a fairer, safer workplace for everyone. Take the time now to review your policies, update training for HR teams, and ensure compliance so your business can stay ahead of the curve and avoid costly legal issues down the road. Stay informed, stay compliant, and most importantly, create a work environment where every employee feels valued.