New 2025 California Employment Laws

As Californians ring in the New Year, we focus on the new laws that become effective and applicable to employers and employees alike. Below is a summary of the new California laws which took effect on January 1, 2025:

MINIMUM WAGE INCREASE

The state of California's minimum wage was increased from $16.00 to $16.50 for both large and small employers, regardless of the number of employees they employ. This also means that as of January 1, 2025, an employee must be paid a minimum annual salary of $68,640 to be considered an exempt employee.

PAID FAMILY LEAVE

Employers will no longer be allowed to require their employees to use up to two weeks of accrued vacation time before they start receiving Paid Family Leave benefits under the EDD's paid family leave program. Prior to this law, employers could force employees to exhaust their accrued vacation time prior to to receiving Paid Family Leave benefits.

EXPANSION OF PAID SICK LEAVE

Employees can now use their paid sick leave to assist any family member who is a victim of certain types of violent incidents or threats of violence. Specifically, the new law requires employers to provide time off for victims of "qualifying acts of violence," which includes domestic violence, sexual assault, stalking, or any act, conduct or pattern of conduct that includes (1) bodily injury or death to another, (2) brandishing, exhibiting, or drawing a firearm or other dangerous weapon, or (3) a perceived or actual threat to use force against another to cause physical injury or death.

This new law further prohibits employers from retaliating or discriminating against employees who utilize their paid sick leave for the reasons mentioned above for themselves or a family member who experiences such types of violent incidents.

EXPANDED ANTI-DISCRIMINATION LAW

The California Fair Employment and Housing Act (FEHA) prevents employers from discriminating against employees based on certain protected characteristics, such as race, physical and mental disability, skin color, religion, age, sexual orientation, marital status, gender/sex, medical condition, reproductive health decision-making, and veteran or military status, among other things. This new bill amends the FEHA to clarify that the law prohibits discrimination on the basis no just of individual protected characteristics, but also on the basis of the combination of two or more protected characteristics.

Another new law expands the definition of "race" as defined under the FEHA to include traits associated with race, such as hair texture or protective hairstyles such as braids, locs and twists. Existing law defined "race" to include only traits "historically" associated with race.

PROHIBITION ON REQUIRED ATTENDANCE AT MEETINGS TO CONVEY EMPLOYER'S RELIGIOUS OR POLITICAL OPINION

The newly enacted California Worker Freedom from Employer Intimidation Act prohibits employers from discharging, discriminating, retaliating, or taking any other adverse employment action against an employee who declines to attend, participate in, receive or listen to an employer-sponsored meeting set up to communicate the employer's opinion about religions or political matters. Any employer who violates this act is subject to a $500 civil penalty per employee for each violation, civil actions for temporary or injunctive relief, and damages including punitive damages.

EMPLOYER RESTRICTIONS ON OBTAINING DRIVER'S LICENSE INFORMATION FROM EMPLOYEE

This new law makes it unlawful for employers to include statements about the need for driver's license in job advertisements, postings, applications and similar employment material. Employers may only require that an applicant have a driver's license if: (1) the employer reasonably expects driving to be one of the job functions of the position, and (2) the employer reasonably believes that using an alternative form of transportation (such as Uber, taxis, carpools, bicycles and walking) would not be comparable in travel time or cost to the employer.