Happy New Year! My resolution: maybe, slightly less procrastination. But . . . for the most part, these laws don’t take effect until January 1, 2025. So, I’m not really “late.” (The exception is PAGA reform).
Here’s what you need to know to tackle the new employment laws for 2025!
The PAGA Reforms (AB 2288 and SB 92). In June 2024, several reforms of PAGA were enacted. In brief, if a California employer receives a notice on behalf of a former or current employee about alleged PAGA violations, legal counsel should be contacted immediately as there are important steps that can be taken to minimize liability. In addition, employers receive significant benefits under the reforms if they have already taken steps to identify and remedy wage and hour issues in their pay practices.
It is imperative that you regularly review your timekeeping and pay procedures. An annual detailed wage and hour audit and regular review of employer practices is critical to avoid or at least minimize expensive representative claims. Nonexempt employees’ meal breaks must be no less than 30 minutes. Rounding is not acceptable. And the meal period must be taken before the end fifth hour of work. Employers must provide nonexempt employees with the opportunity to take their rest breaks in a timely manner. When an employee is entitled to overtime pay, paid sick leave, a meal period premium, or a rest break premium, the employer must consider all forms of compensation and determine the regular rate of pay for such payments – an amount higher than the hourly rate of pay.
Minimum Wage Increase. As of January 1, 2025, all California employers, regardless of size, must pay their employees at least a minimum wage of $16.50 per hour. Please be mindful of local minimum wage ordinances.
The minimum salary that must be paid to exempt employees in California is a function of the minimum wage. Workers paid under the Administrative, Executive or Professional exemption must be paid at least two times the appropriate minimum wage based on a 40-hour workweek: $68,640. The Computer Software overtime exemption requires a minimum hourly rate of pay of $56.97, which means a minimum monthly salary of $9,888.12, or minimum annual salary of $118,657.43.
Accrued Vacation and California Paid Family Leave (AB 2123). Employers cannot require employees to take up to two weeks of earned but unused vacation days before they can begin receiving wage replacement benefits under the Paid Family Leave program. Employers should review their handbooks and other policy documents to delete any such rules.
Restrictions on Driver’s License Requirements (SB 1100). Employers cannot tell job applicants that a driver’s license is required for a job unless the employer reasonably expects driving to be a job function for the position and that using an alternative form of transportation would not be comparable in terms of time and cost to the employer. Employers should review their job postings, applications, and offer letters to remove any unnecessary (and now illegal) driver’s license requirements.
Changes and Expansions to Protections for Victims of Violence (AB 2499). This law expands the protections available for crime victims. It broadens the definition of “victims” to include those who are a victim of certain acts of violence (domestic violence, sexual assault, stalking, among others) regardless of whether anyone is arrested for, prosecuted, or convicted of committing any crime. In addition, the law provides that employees may use vacation, personal leave, or paid sick leave for any protected time off for jury duty, court appearances, and for victim time off. Finally, employers must provide written notice of the rights established under this bill to new hires, to all employees annually, at any time upon request, and any time the employer becomes newly aware that an employee or an employee’s family member is a victim. Employer handbooks, onboarding documents and other employee resources should be reviewed and updated.
Captive Audience Meetings are Banned (SB 399). California employers must be cautious about required/mandatory meetings. Employers will be subject to a civil penalty and civil action if they hold mandatory meetings where the purpose of the meeting is to communicate the employer’s opinion about religious or political matters. “Political matters” means 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. “Religious matters” means matters relating to religious affiliation and practice and the decision to join or support any religious organization or association.
Model Whistleblower Poster (AB 2299). Employers that post the Labor Commissioner’s model notice about whistleblower protections will be deemed in compliance with the state’s whistleblower posting requirements. You can get a copy here. Print it out and post it today.
Intersectionality of Protected Characteristics (SB 1137). Several California laws – including the FEHA – are amended to clarify that their protections prohibit discrimination on the basis of individual protected characteristics and where there is intersectionality (i.e., a combination) of two or more protected characteristics. This law confirms existing caselaw, but it is an important clarification.
“Social Compliance Audits” (AB 3234). Some employers voluntarily conduct “social compliance audits.” These audits are voluntary, non-governmental inspections or assessments of an employer’s operations or practices to evaluate whether the operations or practices are in compliance with state and federal labor laws, including wage and hour and health and safety regulations, including those regarding child labor. This new law requires employers who conduct these audits to post on their website a report detailing the audit’s findings of the employer’s compliance with child labor laws.
This is just a summary of some of the changes to California’s employment laws.
Please do not hesitate to contact us with questions!
California Employment Law Blog 