New Year, New Laws: California Employment Law Updates for 2025
It’s that time of year again—California employers need to prepare for a raft of new laws that become effective in the new year. Below is a brief overview of some of those laws and how employers should prepare for them. All of the laws discussed below become effective on January 1, 2025.
Ban on Forced Work Meetings for Religion and Politics
SB 399: Employers will now be prevented from threatening to discharge, discriminate, retaliate against, or carry out those actions against employees who decline to attend an employer-sponsored meeting, or who decline to participate in, receive, or listen to, communications regarding an employer’s opinions on religious or political matters. The new law defines religious matters as matters “relating to religious affiliation and practice and the decision to join or support any religious organization or association.” Political matters are defined as matters “relating to elections for political office, political parties, legislation, regulation, and the decision to join or support any political party or political or labor organization.” Note this law does not apply to mandatory training to comply with an employer’s legal obligations, including obligations under civil rights laws (such as discrimination and harassment prevention training) and occupational safety and health laws.
How Employers Should Prepare: (1) assess the content of mandatory meetings; (2) review the statutory definitions of religious and political matters; and (3) ensure supervisors and managers receive necessary training on this new ban.
Posting Protections for Whistleblowers
AB 2299: This law requires the California Labor Commissioner to develop a model list of employees’ rights and responsibilities under California’s existing whistleblower laws. Once that list is developed, the Labor Commissioner will publish it on its website and employers will be required to “prominently” display that list. Once published, employers must post the list in an area employees frequent where it may be easily read during the workday in “lettering larger than size 14 point,” and must also include the telephone number of the whistleblower hotline described in California Labor Code § 1102.7.
How Employers Should Prepare: Monitor the Labor Commissioner’s website for the publication of the model list of employee rights and responsibilities and be prepared to post the notice when it is published in the same manner and in the same place as other legally-required postings.
Intersectionality as a Protected Characteristic
SB 1137: California is the first jurisdiction to adopt the concept of “intersectionality” with respect to a protected category under its anti-discrimination law (FEHA). As defined in the bill, “intersectionality” is the understanding that different forms of inequality operate together, exacerbate each other, and can result in amplified forms of prejudice and harm. More specifically, it captures interlocking forms of discrimination and harassment individuals experience in the workplace and in society. FEHA prohibits discrimination based on various protected characteristics, including: race, sex, color, religion, and disability. Now, FEHA explicitly protects the intersection or combination of existing protected characteristics from discrimination and when two or more bases for discrimination or harassment exist, it may be necessary to determine whether the discrimination or harassment occurred on the basis of a combination of the factors (such as being an Asian woman), and not just on any one protected characteristic alone (such as being a woman or being Asian).
How Employers Should Prepare: (1) ensure supervisors and managers are properly trained regarding the employer’s updated discrimination policies, including an overview of the relevant protected categories and how those categories can intersect; and (2) review and potentially revise training manuals, guidelines, and employee handbooks relating to anti-discrimination policies.
Time Off for Victims of Violence
AB 2499: Although existing law prohibits employers from discharging or discriminating against employees because of their status as a crime or abuse victim, and for participating in the legal process, this new law now redefines the scope of protection and considers such actions unlawful employment practices under FEHA, thus bringing these individuals within the enforcement authority of the California Civil Rights Department. More specifically, this new law protects against “qualifying acts of violence” (QAV) which are defined as: domestic violence, sexual assault, stalking, acts that cause bodily injury or death, acts in which a firearm or other dangerous weapon is used or brandished, and acts in which an individual uses or threatens to use force against another individual to cause physical injury or death. Employers of any size will be prohibited from discharging, discriminating, or retaliating against employees because of their (or their family member’s) status as a victim of a QAV, or for participating in the legal process. Employers with 25 or more employees will also be required to permit employees who are victims of a QAV or have family members who are victims from taking time off from work for certain purposes related to QAVs (including obtaining medical attention, seeking legal services, and participating in legal proceedings). In addition, the California Civil Rights Department will publish a form notice of employee protections under this new law no later than July 1, 2025, and once this notice is published, it (or a similar) notice must be provided: (1) to new employees upon hire, (2) to all employees annually, (3) at any time upon request, and (4) any time an employee informs an employer that the employee or the employee’s family member is a victim.
How Employers Should Prepare: (1) review and update relevant leave policies as necessary; (2) provide training to supervisors and human resources personnel about the existence and parameters of this leave; and (3) monitor the California Civil Rights Department’s website for publication of the employee notice and be prepared to provide that (or a similar) notice to the required employees.
Driver’s License Discrimination
SB 1100: Employers will now be prohibited from including statements in job advertisements, postings, applications, or other materials requiring applicants to have a driver's license. However, there are exceptions where: (1) the employer reasonably expects driving to be one of the job functions for the position; and (2) the employer reasonably believes that alternate forms of transportation for that job function would not be comparable in travel time or cost to the employer.
How Employers Should Prepare: (1) review existing job advertisements, postings, and applications for language requiring applicants to have a driver’s license; (2) assess whether new positions require driving as a job function; and (3) review and revise existing policies relating to a driver’s license requirement in job postings and applications.
AB 2123: Although previously allowed, Employers will now be prohibited from requiring employees to take up to two weeks of earned but unused vacation before receiving benefits under California’s paid family leave program.
How Employers Should Prepare: (1) update relevant policies relating to employee leave; and (2) provide training to human resources personnel regarding leave and benefits under California’s paid family leave program.
Freelance Worker Protections
SB 988: “Hiring parties” (who are any persons or organizations that that retain independent contractors to provide professional services) will now be required to pay independent contractors (who are providing services in the amount of $250 or more) on the date specified by contract, or if not specified by contract, no later than 30 days after the completion of the work. Hiring parties will also be prohibited from: (1) requiring independent contractors to accept less compensation than specified by contract, (2) to provide additional goods or services, or (3) to grant additional IP rights as a condition of timely payment. Furthermore, hiring parties and independent contractors must enter into a written contract that the hiring party must retain for no less than 4 years. Note that nothing in this law amends or alters existing law regarding the appropriate classification of individuals as independent contractors.
How Employers Should Prepare: (1) review and revise policies relating to the retention and payment for independent contractors; (2) revise relevant data collection and document retention policies with respect to independent contractors; and (3) (as always) ensure that independent contractors are properly classified as such under California law.
Mintz’s Employment Practice will continue to monitor any future key developments and remains ready to assist California employers preparing to comply with these upcoming changes and other California-related legal developments impacting employers.
Authors
Jennifer B. Rubin
Member
