California Employers: Get Ready for These Game-Changing Laws in 2025
Attention, California employers: the legal landscape is shifting, and 2025 is bringing some major updates your way! Governor Newsom just signed a slew of new laws designed to shake up workplace policies, from wages to whistleblower protections and more. These changes are fast approaching, so now’s the time to get ahead of the game.
Don't let compliance slip through the cracks—contact our office to ensure your business isn’t walking into a liability minefield. Let’s dive into the highlights and what you need to do to stay in the clear!
California’s Minimum Wage Increase: What Employers Need to Know for 2025
Big changes are coming to California’s minimum wage in 2025, and employers need to be prepared. With increases affecting hourly and salaried workers across the board—and even more specific rules for certain industries—these changes will require attention to budgets, compliance, and employee communications.
Starting January 1, 2025, the statewide minimum wage for all hourly workers will rise to $16.50 per hour under SB 3. For exempt employees, the new minimum annual salary will increase to $68,640. However, employers in specific industries face even stricter requirements. For example, fast food chains with 60 or more locations will see the minimum wage jump to $20 per hour or $83,200 annually for salaried roles.
Further changes could be on the horizon if Proposition 32 passes. This measure would raise the minimum wage even higher:
$18 per hour for businesses with 26 or more employees.
$17 per hour for businesses with 25 or fewer employees.
For businesses of all sizes, these adjustments are significant and require proactive planning.
Expanded Leave for Victims of Violence: A New Workplace Obligation for 2025
California is extending critical support to employees affected by violence through the enactment of AB 2499, which provides up to 12 weeks of leave for victims and their families starting in 2025. This expanded leave recognizes the importance of offering time and flexibility to individuals dealing with the aftermath of violence, ensuring they have the resources and protection needed during challenging times.
Employees can use this leave to address medical, legal, or other critical needs resulting from violence. Paid sick leave may also be applied, giving workers greater flexibility in how they manage their time away. Employers will also need to comply with new notice requirements, with updates expected from the California Civil Rights Department.
New Rules for Independent Contractors: What SB 988 Means for Your Business
Starting in 2025, if your business works with independent contractors, SB 988 introduces new requirements that demand attention. For any contract worth $250 or more, a written agreement isn’t just a good idea—it’s mandatory. These agreements must include specific terms to ensure compliance, and you’ll also need to retain these contracts for at least four years.
Whether SB 988 becomes your best ally or a compliance headache depends on how prepared you are to adapt to these changes.
California Paid Family Leave Policy: Important Updates for Employers
Big changes are coming to California’s Paid Family Leave (PFL) program in 2025, courtesy of AB 2123. Under the old rules, employers could require employees to exhaust their vacation time before accessing PFL benefits. However, starting January 1, 2025, that’s no longer allowed.
This shift gives employees greater flexibility in how they manage their time off and ensures that PFL benefits are accessible without strings attached. For employers, it means updating your policies to reflect this important change.
SB 399: Ending Mandatory “Belief” Meetings in the Workplace
Starting in 2025, California workplaces are getting a major update in how politics, religion, and other personal beliefs are handled on the job. Thanks to SB 399, employers can no longer require employees to attend mandatory meetings about political or religious topics. Even better, workers who skip these sessions must still be paid—and employers are prohibited from retaliating against them for choosing not to attend.
This new law is a significant change, aiming to ensure that workplaces remain neutral spaces where employees feel respected and free from undue pressure. While exceptions apply for certain religious, political, or educational organizations, most businesses must now rethink how they approach such topics.
Enhanced Whistleblower Protections: AB 2299 Updates You Need to Know
Whistle while you work—and rest assured, the law’s got your back. Beginning January 1, 2025, AB 2299 strengthens whistleblower protections in California by requiring employers to display a new and improved “Whistleblowers Are Protected” poster. This updated notice emphasizes the rights of employees to report workplace misconduct or violations without fear of retaliation.
It’s a simple yet impactful change aimed at fostering transparency and accountability in the workplace. For employers, however, it’s a compliance update you can’t afford to ignore.
SB 1100: No Driver’s License? No Problem for Job Applicants
California is shifting gears on employment qualifications with SB 1100, effective January 1, 2025. Under this new law, employers can no longer require job applicants to have a valid driver’s license unless driving is an essential part of the job and alternative transportation options—like biking, taxis, or rideshares—just won’t do.
This change is designed to remove unnecessary barriers to employment and ensure job postings focus on the skills and requirements truly needed for the role. For employers, it means revisiting job descriptions and hiring practices to stay compliant.
