California’s Employment Laws are Changing in 2025
Three elements are fundamental to the overarching concept of ‘workforce development’: the employer, the employee, and the employment itself. Numerous sets of rules and regulations govern the activities of each separate element, and some cover aspects of all three. These rule sets are established by the company, the industry, and the government, each of which has its own mandate as to why things must be done in those prescribed ways. Rules set by governments – laws – apply to all relevant entities within their jurisdictions, and those regulations are designed primarily to keep the applicable person/organization and their/its community safe from harm:
- Laws mandating safety practices keep workers, their bosses, and their customers safe.
- Laws governing wages, time off, social insurance, etc., ensure that most workers have the time and money needed to achieve their daily and long-term goals.
- Laws governing workspaces and facilities ensure that anyone entering them will be safe, regardless of their reason for being there.
As times change and industries and societies shift, the workspace rules also change. In 2025, California’s workers, employers, and industries will be managing some significant changes in the way they work and how their workplace is managed.
New Laws Impact 2025 EWD Efforts
For Employers:
Employers will have some adjusting to do to get in compliance with incoming 2025 California legislation, with several new mandates coming into force. These few are notable:
- The State’s minimum wage (MW) is rising to $16.50 per hour across the board while some cities and regions are moving it even higher. In San Diego, workers will now be earning $17.25 per hour; in San Jose, that value rises to $17.95. Note also that a separate initiative, Proposition 32, sought to raise the MW to $17.00 per hour in companies with 25 or fewer employees and to $18.00 in organizations with 26 or more workers. While that effort failed, the vote was split at 50.8% against and 49.2% in favor, suggesting that the opportunity might arise again.
- New causes of action for harassment can arise when two or more offensive or discriminatory behaviors occur at the same time. The new term is ‘intersectionality,’ as that is defined in Senate Bill (SB) 1137, Civil Code section 51, and Government Code section 12926, and it refers to when a person experiences biased behavior based on two or more forms of harassment. A Hispanic man, for example, might have claims rising from harassment based on both his ethnicity (Hispanic) and his gender (male).
- “Captive Audience” meetings are now banned in all California workplaces, too. These gatherings became ‘mandatory attendance’ by corporate decree when certain topics were on the table, specifically politics, union representation, and religious beliefs. The new “California Worker Freedom from Employer Intimidation Act” (SB-399) prohibits employers from requiring employees to attend meetings that push particular political or religious perspectives or that discourage unionization discussions. Retaliating against workers who refuse to attend these meetings is also now legislatively banned, and any employee choosing to work instead of participating in the chats must be paid their ‘normal rate of compensation.’
For Employees
Workers will also have new circumstances to navigate in the new year:
- Workers who need access to Paid Sick Leave benefits will have them expanded to cover absences caused by “qualifying acts of violence” (QAV). SB 616 covers QAVs suffered by both the worker and their victimized family members and includes injuries and trauma caused by domestic violence, sexual assault, stalking behaviors, and other acts that threaten or cause bodily harm to an individual. SB 616 and its partner Assembly Bill 2499 (AB 2499) modify Government Code section 12945.8 to ensure that employers with 25 or more workers provide the time off workers need to recover from their injuries and that they aren’t retaliated or discriminated against because they were – or their family member was – victimized by a QAV.
- Workers will also have more protected time off than before when AB 2123 takes effect. That Bill amends Unemployment Insurance Code section 3303.1 to prohibit the requirement that workers seeking family temporary disability insurance benefits take up to two weeks of earned but not used vacation leave prior to obtaining their access to the separate time off option. Employees will no longer have to consume their earned ‘vacation’ time when they need time off to manage disabling family circumstances.
- Independent contractors have new rights protecting them, too, with the enactment of the Freelance Worker Protection Act (FMPA). This new law gives freelancers who provide ‘professional services’ (human resources administration, marketing, grant writing, etc.) ‘basic worker protections’ against exploitation by requiring those who hire them to:
- put the agreement in writing,
- include both party’s names and addresses,
- clearly define the scope of work expected,
- clarify how compensation will be made and paid, and
- establish the timeframe in which payment will be made.
- Not least significant to many workers is the requirement that employers post their mandates regarding whistleblower laws in a prominent place. California’s ‘WhistleBlower‘ model poster clearly states who the law is intended to protect, how those protections operate within the organization, defines the elements of the ‘act‘ of alerting officials to questionable practices by employers, and provides contact information when reports could or should be made. Should that need arise, employees will now have easy access to this information.
- Rising demand for support from the State’s disability insurance program (SDI) will also impact workers in the form of a slightly higher tax to cover those costs. Withheld taxes for the SDI fund will cover increases in allowances for workers who must take time off because of injuries to them or to care for injured or sick family members.
As the new year launches, employees and their employers will be changing their customary routines to reflect these changes in California’s employment laws. Hopefully, the changes will improve not just employee morale but employer and enterprise success as well.