New Laws Businesses Should Prepare for Ahead of January 1, 2025

New Laws Businesses Should Prepare for Ahead of January 1, 2025

Governor Newsom signed dozens of bills, including protections for whistleblowers and employer speech rights, many of which will take effect on January 1, 2025. We've highlighted some of the big changes below so you can begin preparing for their implementation date. We also invite you to join our webinaron December 4, 2024, at 10:00 a.m. PST for more details.

Minimum Wage Increase

SB 3: California Minimum Wage. The State's minimum wage is increasing to $16.50/hour for all hourly employees.* That means the exempt employee salaries will need to meet the minimum salary increase to $68,640/year. (This is calculated by taking two times the State minimum wage times 2080 hours in a year.). *Fast Food businesses with 60 or more locations need to continue to pay hourly workers $20.00 per hour or $83,200 for salaried employees.

Note: If Prop 32 passes, (votes are still being counted) the minimum wage will be further increased-to $18.00/hour in 2025 (for businesses with 26 or more employees), and to $17.00/hour in 2025 (for businesses with 25 or fewer employees).

What employers need to do:

• Budget to comply with new minimum wage (and minimum exempt salary) amounts
• Prepare to update Wage Theft Notices for non-exempt employees as needed
• Expect updates to the required minimum wage workplace posting

Ban on Forced Work Meetings for Religion and Politics

SB 399: Employer Speech Rights. Known as the California Worker Freedom from Employer Intimidation Act, this law prohibits public and private employers from discharging, retaliating, or taking adverse action against an employee (or threatening to do so) if an employee declines to attend or listen to an employer meeting/communication regarding the employer's opinion on political or religious matters. Employees who refuse to attend would still have a right to be compensated during the meeting. The law includes specified exceptions including for certain religious organizations, political organizations, and educational institutions. "Political matters" means matters relating to elections for political office, political parties, legislation, regulation, and the decision to join or support any political party or political or labor organization. "Religious matters" means matters relating to religious affiliation and practice and the decision to join or support any religious organization or association. Violations may result in a $500 fine, civil action against the employer, and enforcement by the Labor Commissioner.

What employers need to do:

• Ensure supervisors/managers are trained on employee rights/protections concerning politics and religion, particularly near election cycles

Posting Protections for Whistleblowers

AB 2299: Poster Update. AB2299 mandates the Labor Commissioner to update its "Whistleblowers Are Protected" poster to ensure compliance with all current legal requirements. As of January 1, 2025, employers that post the model notice will be deemed in compliance with the requirement to prominently display the list of employees' whistleblower rights and responsibilities.

What employers need to do:

• Order a new All In One 2025 Labor Law Posterfrom CEA, or
• Print out an up-to-date Whistleblower poster to post at your worksite

Modifies Time Off for Victims of Violence

AB 2499: Crime Victims Leave Expansion. AB 2499 creates new reasonable accommodation requirements for employees who are victims (or have family members who are victims) of qualifying violent acts. Victim leave rights are expanded to employers with 25 or more employees, who are required to offer victims (or employees who have family members who are victims) time off for a number of purposes, for up to 12 weeks total. Paid sick leave is also expanded to cover qualifying time off under AB 2499. The bill also includes a new employee notice requirement (still being developed by CRD), which must be provided to employees at hire, annually, upon request, and upon qualifying circumstances.

What employers need to do:

• Ensure employee handbook/leave policies and forms are updated
• Comply with new notice requirements for employees, once notice is developed by CRD

Driver's License Discrimination in Job Listings

SB 1100: Job Listing and Driver's Licenses. SB110 prevents employers from requiring an applicant to have a valid driver's license in a job advertisement, posting, application, etc. unless: (1) the employer reasonably expects driving to be one of the job functions for the position, AND (2) the employer reasonably believes that satisfying the job function using an alternative form of transportation (walking, biking, taxi, etc.) would not be comparable in travel time or cost to the employer.

What employers need to do:

• Evaluate your job advertisements, postings, etc. for compliance

Vacation Time not Required for Paid Family Leave

AB 2123: Paid Family Leave Change. Employers used to be able to require employees to take up to 2 weeks of accrued vacation before using California Paid Family Leave (PFL) benefits through the State. This no longer applies. Now, employers may no longer require employees to use accrued vacation leave before using PFL.

What employers need to do now:

• Update your Paid Family leave policy accordingly

Independent Contractor Protections

SB 988: Contracts for Independent Contractors. Requires the hiring entity to execute a written contract with an independent contractor if professional services are equal to or greater than $250. The contract must include specified terms, and the hiring entity must provide a copy to the independent contractor and retain the contract for 4 years, among other requirements.

What employers need to do:

• Review policies relating to the hiring and payment of independent contractors
• Revise document retention policies concerning independent contractors
• Ensure that independent contractors are properly classified as such under California law
• Consult legal counsel as needed

Good News!

CEA will review all of these laws in much more detail and take your questions in our 2025 Labor Law Update. Join us for this informative webinaron December 4, 2024, at 10:00 a.m. P.T. Registration is $69 for CEAmembers and $149 for non-members.