Business Lawyers Blog
California’s 2024 legislative session concluded with Governor Gavin Newsom approving several critical bills that will impact workplace policies starting January 1, 2025. These new laws cover a broad spectrum of areas, including anti-discrimination protections, paid family leave, freelance worker rights, and more. Employers need to review and update their policies, handbooks, and training programs to ensure compliance. Below are some of the most notable updates for 2025.
1. Minimum Wage Increase for 2025
Starting January 1, 2025, California’s statewide minimum wage will increase to $16.50 per hour for all employers, regardless of size. This increase is part of the state’s ongoing effort to keep up with the cost of living and ensure fair wages for workers.
Additionally, some cities and counties in California may have higher local minimum wage requirements. Employers operating in these jurisdictions need to comply with both state and local wage laws, applying the higher of the two rates.
Key Employer Actions:
- Ensure that payroll systems are updated to reflect the new minimum wage.
- Review local wage laws in your area to confirm compliance with any higher local rates.
- Update pay scales for hourly employees to meet or exceed the new rate, and communicate changes to affected workers.
- Expanded Rights for Jury Duty, Court, and Victim-Related Time Off
Under AB 2499, employers must provide clear notice to employees of their rights to take time off for jury duty, court appearances, or victim-related activities. Employees are also entitled to use vacation or paid sick leave during this time. The bill also strengthens anti-retaliation measures to protect employees exercising these rights.
What Employers Should Do:
- Provide written notice of these time-off rights.
- Ensure that policies allow for the use of paid leave in these circumstances
3. Driver’s License Requirements in Job Postings
With the passage of SB 1100, employers are prohibited from requiring a driver’s license in job postings unless it is a bona fide occupational qualification. If driving is essential to the job and no comparable form of transportation can reasonably replace it, then an employer may request a driver’s license.
Action Steps:
- Review job postings and remove unnecessary driver’s license requirements.
- Ensure that qualifications for driving roles are justified and reasonable.
Freelance Worker Protection Act
SB 988 establishes the Freelance Worker Protection Act, setting clear requirements for contracts between hiring parties and freelancers. Under this law, freelancers are entitled to timely payment and must receive a written contract for work valued at $250 or more. This law adds protections for freelance workers in an evolving gig economy.
Compliance Tips:
- Ensure all freelance agreements are in writing and meet the $250 threshold.
- Update payment timelines to avoid penalties under this law.
4. Social Compliance Audits
AB 3234 introduces transparency requirements for businesses conducting social compliance audits. If a company voluntarily audits its operations for compliance with child labor or workplace safety regulations, it must now publicly post a link to a report detailing the audit’s findings on its website.
What This Means:
- Businesses opting for social compliance audits must ensure transparency in reporting results.
- Consider working with legal counsel to ensure audit procedures and disclosures meet legal standards.
Preparing for Compliance in 2025
The changes introduced by California’s 2024 legislative session emphasize worker protections and corporate accountability. Employers should take proactive steps to update their employee handbooks, workplace policies, and training programs to align with these new legal standards. Failure to comply with these updates may result in legal penalties or litigation.
For further guidance on how these laws may affect your business, contact Structure Law Group, LLP at (408) 441-7500 or reach out to us online for expert legal guidance on social media and content moderation.