As we enter 2025, several new employment laws have come into effect in California, bringing important changes for both employers and employees. These laws highlight the state’s dedication to enhancing worker rights and workplace fairness. Below is a detailed look at the updates effective January 1, 2025, along with comparisons to the previous year, 2024:
1. Minimum Wage Increase
Starting January 1, 2025, California’s minimum wage has increased to $16.50 per hour for all employers, regardless of size. This adjustment also raises the salary requirement for exempt employees to $68,640 annually under state law. In 2024, the minimum wage was $15.50 per hour, marking a $1.00 increase for 2025. Employers should update payroll processes to meet these new standards and avoid penalties.
2. Paid Family Leave (PFL) Expansion
The Paid Family Leave (PFL) program now allows employees to keep their accrued vacation time when accessing state benefits.
- What’s New in 2025: Employees no longer need to use up to two weeks of vacation leave before receiving PFL benefits.
- 2024 Comparison: Previously, employees were required to exhaust two weeks of vacation leave before becoming eligible for PFL benefits.
- Implications: Employees gain flexibility, and employers may need to adjust payroll and leave policies to reflect this change.
3. Enhanced Crime Victims Leave Protections
With the passage of AB 2499, employees are entitled to additional protections and benefits when dealing with the aftermath of certain crimes.
- What’s New in 2025: Employees can take leave to assist family members who are victims of specific crimes, and paid sick leave can now be utilized for these situations.
- 2024 Comparison: Previous laws did not explicitly allow paid sick leave to be used for assisting crime victim family members.
- Impact: This change emphasizes the state’s commitment to supporting employees during personal crises.
4. Ban on Mandatory Political and Religious Meetings
Employers are now prohibited from requiring employees to attend mandatory meetings related to political or religious matters, including union-related discussions.
- 2025 Update: This law enhances employee rights by ensuring workplace neutrality on sensitive topics.
- 2024 Context: No explicit prohibition on mandatory political or religious meetings existed, leaving room for potential employer influence.
5. Reforms to the Private Attorneys General Act (PAGA)
California has implemented significant changes to PAGA through the California Fair Pay and Employer Accountability Act (FPEAA).
- Key Changes in 2025:
- Employees can no longer file PAGA lawsuits independently.
- The Labor Commissioner now holds exclusive authority to enforce Labor Code violations.
- Collected penalties will go directly to affected employees.
- Additional funding for the Labor Commissioner’s office ensures stricter enforcement.
- 2024 Comparison: Employees had the ability to file PAGA lawsuits independently, often resulting in complex legal disputes.
Employers should review compliance procedures to align with this streamlined enforcement process.
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6. Broader Anti-Discrimination Protections
California has expanded workplace anti-discrimination laws:
- 2025 Updates:
- Family Caregiver Protections: Employers are prohibited from discriminating against employees who have caregiving responsibilities for family members.
- Pay Transparency: Employers with 15 or more employees are now required to disclose pay scales and benefits in all job postings.
- 2024 Comparison: While anti-discrimination laws existed, they did not specifically include protections for family caregivers or require pay transparency in job postings.
- Impact: These changes further workplace equity and transparency in hiring practices.
7. Other Compliance Steps for Employers
- Workplace Notices: Ensure all mandatory workplace posters and notices are updated to reflect the 2025 changes.
- Employee Handbook: Revise handbooks to include new policies on leave, pay transparency, and non-discrimination.
- Training and Education: Train HR and management teams on the updated laws to minimize compliance risks.
California Employment Laws in 2025: Conclusion
California’s 2025 employment law updates underscore the state’s focus on fairness, equity, and worker protection. Employers must act promptly to align their practices with these changes, ensuring they remain compliant and foster a supportive workplace environment. Compared to 2024, these updates reflect a broader scope of protections and requirements, signaling continued progress in labor laws.
For further guidance or assistance in adapting to these laws, consulting an employment law expert is highly recommended. Staying informed and proactive is key to navigating the evolving legal landscape.
