The California legislature saw fit to pass several employment laws that will go into effect on January 1, 2025 and beyond. As always, Leap Solutions is here to help you face them proactively and confidently. Our HR professionals have the knowledge, expertise, and resources to inform and guide you through ever-changing legislation and empower your company to thrive in 2025 and beyond.

2025 MINIMUM WAGE

January 1, 2025, brings another increase in the California state hourly minimum wage for both non-exempt and exempt salary workers. Due to the increased annual inflation rate, the minimum wage was increased to $16.50 per hour regardless of the number of workers employed by an employer. The exempt salary threshold is two times the minimum wage, therefore, it increases to $68,640.

We recommend that a compensation review be conducted as soon as possible to ensure that you have identified those in your workforce who need to be brought to the minimum. Your review may reveal wage compression or other issues that you may want/need to address.

UPDATES ON LEGISLATIVE BILLS

The following is a summary of recent legislation and is not intended as legal advice.

SB 1105 – Expanded Paid Sick Leave Purpose – Agricultural Employees Who Work Outside
Eff 1/1/2025 – Senate Bill 1105 expands the sick day purposes definition of the Healthy Workplaces, Healthy Families Act of 2014 (Paid Sick Leave) for agricultural employees who work outside to include requesting paid sick leave due to smoke, heat, or flooding conditions created by a local or state emergency. Employers cannot require as a condition of using paid sick days that the employee search for or find a replacement worker to cover the days the employee uses paid sick time off.

What this could mean for you: Employers with agricultural employees who work outside should review and update existing handbook policies/practices and forms to ensure that employees are aware of the paid sick leave expansion. This would include specific employees in Wage Orders, 8, 13, and 14 of the Industrial Welfare Commission.

SB 1137 – New Protected Class (Two or More Characteristics) – All Employers
Eff 1/1/2025 – The CA Fair Employment and Housing Act (FEHA) has prohibited discrimination on individual protected characteristics and will also be prohibiting discrimination because of the combination of two or more protected characteristics (known as intersectionality).

What this could mean for you: Existing handbook policies should be updated to reflect the additional protected class.

AB 2499 – Victims of Crime Leave Expansion & Expanded Paid Sick Leave Purpose – All Employers
Eff 1/1/2025 – The definition of “victims” has been broadened to include an employee or family member whom a “qualifying act of violence” is committed, and expands protections for which employees can take time off to include domestic violence, sexual assault, stalking, or other specified crimes (such as brandishing a firearm or threatening physical harm).
Employers are required to provide employees time off to serve on a related inquest or trial jury, to appear in court to comply with a subpoena/court order, and to obtain relief (such as a restraining order).

Employers with 25 or more employees are required to provide time off to an employee to seek, obtain, or assist a family member to seek or obtain medical attention or recover from related injuries, certain services (such as victim services or legal services), mental health services, to participate in safety planning, to secure a new residence, to attend legal proceedings, or to provide childcare or care to a care-dependent adult to ensure their safety.

The law also expands Paid Sick Leave to be used for this purpose. Time off provisions will be moved from the Labor Code to FEHA and will now be enforced by the CA Civil Rights Department making this another protected class preventing discrimination and retaliation.

An employer may limit the total leave time depending on whether the employee is the victim versus a family member. Additionally, if the employee is eligible, leave will run concurrently with CFRA and FMLA.
Employer notice requirements now include written notice to new hires and to other employees upon request. (A poster is being developed by the Labor Commissioner that may be used to comply.)

What this could mean for you: Update employee handbook leave of absence policies, paid sick leave policies, and protected classes section, and prepare for distribution of the notice.

AB 2123 – Elimination of Required Vacation Leave Before Paid Family Leave – All Employers
Eff 1/1/2025 – Employers may no longer require employees to use up to two weeks of available vacation prior to accessing CA Paid Family Leave wage replacement benefits.

What this could mean for you: If applicable, update payroll practices and employee handbook policy.

SB 1100 – Driver’s License Requirement Discrimination – All Employers
Eff 1/1/2025 – This is an amendment to the Fair Employment Housing Act (FEHA) and requires employers not to ask for a driver’s license in job postings or similar material, as a condition of employment, unless they reasonably expect driving to be one of the job functions of the position AND reasonably believe that using alternative transportation (taxi, carpooling, ride-hailing, bicycling, or walking) would not be comparable in travel time or cost to the company.

What this could mean for you: Review and revise job descriptions and job posting information to remove driver’s license requirements unless driving is a function of the job and alternatives have been evaluated. Train managers and hiring personnel about the change.

SB 399 – Captive Audience “California Worker Freedom from Employer Intimidation Act” – Most Employers
Eff 1/1/2025 – This new law prohibits an employer from subjecting, or threatening to subject, an employee to discharge, discrimination, retaliation, or any other adverse action because the employee declines to attend an employer-sponsored meeting or declines to participate in, receive, or listen to any communications with the employer regarding their opinion about religious or political matters (including labor organization).  An employee who is working at the time of the meeting and elects not to attend a meeting shall continue to be paid while the meeting is held. Certain types of employers are exempt such as religious corporations, political organizations/parties, specified non-profits, etc. Violators are subject to a civil penalty of $500 per employee for each violation.

What this could mean for you: This law is being challenged by the U.S. Chamber of Commerce as it is in conflict with Federal law. Evaluate required employer-sponsored meetings to determine if they may fall under this new law and determine if it is in the organization’s best interest to allow opt-out provisions.

SB 988 – Independent Contractor “Freelance Worker Protection Act” – Most Employers
Eff 1/1/2025 – For new or renewed contracts, service terms and conditions must be in the form of a written contract and contain specified information including, but not limited to, an itemized list of services, the amount to be paid, and date payment is due (or mechanism by which the date will be determined). A “freelance worker” defined under the law is a person or organization composed of not more than one person who is hired/retained as an independent contractor to provide professional services in exchange for an amount equal to or greater than $250. The law includes anti-retaliation prohibitions such as penalizing a freelance worker from exercising their rights.

What this could mean for you: Review independent contractor agreements to ensure that the entity is a bona fide independent contractor and ensure that the written agreements has all of the specified components.

AB 2299 – Model Posting for Whistleblowers Protection – All Employers
The bill requires that the Labor Commissioner develops and that employers post the model list of employee’s rights and responsibilities under the whistleblower laws. Employers shall be deemed in compliance when prominently displayed in lettering larger than 14 point type and with the whistleblower hotline number.
What this could mean for you: Look for the new poster on the Labor Commissioner’s website and post as described.

AB 1870 – Worker’s Compensation Required Disclosures – All Employers
Eff 1/1/2025 – Through an amended worker’s compensation notice, employers are required to notify employees about their right to consult an attorney to advise them of their rights under worker’s compensation laws. Additionally, the notice will state that in most instances, the attorney’s fees will be paid from an injured employee’s recovery.

What this could mean for you: Look for the new poster notice. We recommend CalChamber Store.

OTHER EMPLOYMENT LAWS TO KEEP IN MIND FOR 2025

Meal and Rest Break Premium Pay – Applies to All Employers
The burden of meal break compliance proof rests squarely on the employer. It is imperative that non-exempt employees document their meal breaks daily on their time records and that “premiums” are paid timely. One hour of premium pay must be paid when an employee misses their break or meal period, does not complete their full (at least 30 minutes) meal period, and or does not begin their meal period by 4 hours, 59 minutes into their shift and must be reported on the employee’s pay statement.  Meal and/or rest break premium pay is considered “wages,” similar to overtime premium pay, reporting time pay, or split-shift pay. Failure to pay can cause expensive waiting time and wage statement penalties.

On-going Mandatory Harassment Prevention Training – Applies to 5+ Employers
Employers with five or more employees must provide one hour of sexual harassment prevention training to nonsupervisory employees and two hours of training to employees with supervisory authority. Training must take place within six months of hire or promotion and every two years thereafter.
This includes part-time, temporary, seasonal, and on-call staff as well as independent contractors, workers from staffing agencies, and employees outside of California, although you are only required to train supervisors located in California or those who supervise any California employees.

• Seasonal and temporary employees or employees hired to work less than 6 months, must be trained within 30 calendar days after hire or within 100 hours worked, whichever is earlier.
• Employers are not required to train employees who are employed for fewer than 30 calendar days and work for fewer than 100 hours

Leap Solutions can provide interactive onsite or online Harassment Prevention training for your employees!

Employee Handbook Review/Updates
If your employee handbook has not been reviewed in over a year, you may have missed out on important changes that could affect employee retention and increase your liability. Our HR consultants work with you to customize your handbook while ensuring that you and your employees have clear, up-to-date information to inform and to instruct.

Injury and Illness Prevention Program and COVID Prevention Plan
A written, effective Injury and Illness Prevention Program (IIPP) which includes a COVID Prevention Plan (CPP) is required for every California employer. A copy must be maintained at each worksite or at a central location if there is not a fixed worksite. We can develop a plan with you to ensure that you are in compliance!

Workplace Violence Prevention Plan
Under the California Division of Occupational Safety and Health (Cal/OSHA), covered employers were required to develop and implement a workplace violence prevention plan (WVPP) as part of their required Injury and Illness Prevention Plans (IIPP) by July 1, 2024. Employers are also required to provide training, create workplace violence incident logs, and keep various records for up to five years. Leap can develop a written plan, a training plan, and provide training. Just reach out and let us know!

Don’t Forget to Update Your California Labor Law Posters to Reflect 2025 Changes!
The California Department of Industrial Relations requires employers to post current information related to wages, hours and working conditions in an area frequented by employees where it may be easily read during the workday. Remote employees also need to receive required notices. The CalChamber Store can help.

Leaping Forward
The HR professionals at Leap Solutions can demystify these and many other complicated new employment and labor laws for you, your employees and your hiring managers and supervisors. Count on us to guide you through the complexities of each new piece of legislation and help you respond efficiently, reduce legal risk, minimize expenses, and achieve the peace of mind that comes with keeping your organization compliant and your people safe, strong, and successful.