Effective January 1, 2025, California will implement several new employment laws affecting employers statewide. Key changes include:
Minimum Wage Increase: The state minimum wage will rise from $16.00 to $16.50 per hour for all employers, regardless of size. Additionally, the minimum salary for exempt employees will increase from $66,560 to $68,640 annually. Fast-food workers will have a separate minimum wage of $20.00 per hour for nonexempt employees and $83,200 annually for exempt employees.
Expanded Discrimination Protections: Employers are prohibited from discriminating against individuals based on a combination of protected characteristics, such as race and gender. Furthermore, employers cannot require job applicants to possess a driver’s license unless driving is an essential job function.
Restrictions on Captive Audience Meetings: Employers are barred from holding mandatory meetings to discuss political or religious matters, including union organizing. Violations may result in penalties of $500 per employee per violation.
Leave of Absence Protections: New laws protect employees from discrimination or retaliation for taking time off for jury duty, complying with a subpoena, or attending court as a witness. Employees affected by violence, such as domestic violence or stalking, are also protected when taking time off to seek legal or medical assistance. Additionally, employers can no longer require employees to use accrued vacation before accessing the state’s paid family leave benefits.
Freelance Worker Protections: The Freelance Worker Protection Act mandates that employers provide written contracts to freelance workers, pay them by the agreed-upon date or within 30 days of work completion, and retain contracts for at least four years. Freelancers can pursue civil action for violations, potentially recovering attorney’s fees and other remedies.
Workplace Restraining Orders: Employers can seek temporary restraining orders against individuals who have harassed their employees, with “harassment” defined as conduct causing substantial emotional distress.
Social Compliance Audits: Employers conducting voluntary audits to check for child labor must publish the findings on their website. The law does not specify the duration for which the findings must be posted or penalties for non-compliance.
Whistleblower Rights Poster: The California Labor Commissioner will develop a model list of employee rights and responsibilities under whistleblower laws. Employers displaying this list will comply with posting requirements.
Employers should review and update their policies to ensure compliance with these new regulations.