As California’s legislative cycle ends, employers must gear up for an array of new labor and employment laws coming into effect in 2025. With updates to minimum wage requirements, expanded leave policies, and workplace safety standards, understanding these changes is essential for compliance and maintaining a healthy workplace culture. Here’s an in-depth look at what’s on the horizon and what employers should do to prepare.
Minimum Wage Changes and Implications
California’s minimum wage adjustments are front and center for 2025. Here’s what you need to know:
Here’s a breakdown of the new minimum wage rates across California:
- Belmont: $18.30/hour
- Burlingame: $17.43/hour
- Cupertino: $18.20/hour
- Daly City: $17.07/hour
- East Palo Alto: $17.45/hour
- El Cerrito: $18.34/hour
- Foster City: $17.40/hour
- Half Moon Bay: $17.47/hour
- Hayward: $17.36/hour (26+ employees); $16.50/hour (25 or fewer employees)
- Los Altos: $18.20/hour
- Menlo Park: $17.10/hour
- Mountain View: $19.20/hour
- Novato: $17.27/hour (100+ employees); $17/hour (26-99 employees); $16.42/hour (1-25 employees, unless state minimum wage applies at $16.50/hour)
- Oakland: $16.98/hour
- Palo Alto: $18.20/hour
- Petaluma: $17.97/hour
- Redwood City: $18.20/hour
- Richmond: $17.77/hour
- San Carlos: $17.32/hour
- San Diego (City): $17.25/hour
- San Jose: $17.95/hour
- San Mateo (City): $17.95/hour
- San Mateo County: $17.46/hour
- Santa Clara: $18.20/hour
- Santa Rosa: TBD
- Sonoma (City): $18.02/hour (26+ employees); $16.96/hour (25 or fewer employees)
- South San Francisco: $17.70/hour
- Sunnyvale: $19.00/hour
- West Hollywood: $19.65/hour
In addition, the statewide minimum wage will increase to $16.50/hour for all employers starting January 1, 2025, regardless of size.
Action Steps for Employers:
- Review your payroll systems to account for state and local increases.
- Ensure compliance with salary thresholds for exempt employees.
- Update labor law posters and communicate changes to employees.
Expanded Leave of Absence Policies
California continues to lead the nation in protecting employees’ rights with broader leave provisions:
- Crime Victims’ Leave (AB 2499):
- Expanded to include leave for helping family members who are victims of crimes.
- Broadened definition of “victim” to include threats, brandishing weapons, and other violent acts.
- Enforcement authority shifted to the California Civil Rights Department (CRD).
- Agricultural Workers (SB 1105):
- Clarifies that paid sick leave can be used for preventive care during emergencies like wildfire smoke or flooding.
- Permanent Mediation Program (AB 2011):
- The CRD’s Small Employer Mediation Program becomes permanent, providing support for disputes involving bereavement and reproductive loss leave.
- State Disability Insurance and Paid Family Leave (AB 2123):
- Wage replacement rates will increase to 70–90% of an employee’s highest-quarter earnings.
Action Steps for Employers:
- Update employee handbooks and leave policies.
- Train HR teams on new eligibility criteria and leave procedures.
- Monitor CRD announcements for required notice updates.
Workplace Safety and Violence Prevention
California’s commitment to workplace safety is reflected in new laws targeting violence prevention and environmental conditions:
- Workplace Violence Restraining Orders (SB 428):
- Expands temporary restraining order (TRO) provisions to include harassment.
- Allows unions to seek TROs on behalf of employees starting January 1, 2025.
- Future Cal/OSHA Regulations:
- Expect updates on outdoor heat illness prevention, wildfire smoke protections, and opioid antagonist requirements by 2027.
- COVID-19 Regulations:
- Temporary COVID-19 workplace standards will expire on February 3, 2025.
Action Steps for Employers:
- Strengthen workplace violence prevention policies.
- Prepare for potential updates to heat and smoke safety protocols.
- Update emergency preparedness plans.
Employer Speech and Anti-Discrimination Protections
California is redefining what employers can say and do regarding employee rights:
- Employer Speech (SB 399):
- Prohibits employers from requiring employees to attend meetings about political or religious matters. Employees must still be paid if they opt out.
- Intersectionality in Discrimination Cases (SB 1137):
- Protects individuals experiencing discrimination based on a combination of protected characteristics.
- Hiring Practices (SB 1100):
- Limits the ability to list a driver’s license as a job requirement unless absolutely necessary.
Action Steps for Employers:
- Review workplace communication policies to ensure compliance with SB 399.
- Train managers on recognizing and addressing intersectional discrimination.
- Audit job postings and remove unnecessary requirements.
Freelance Worker Protection Act (SB 988)
California is setting clear rules for freelance worker agreements. Contracts worth $250 or more must:
- Be in writing and include names, dates, a list of services, and payment terms.
- Specify payment deadlines (no later than 30 days after service completion).
- Prohibit retaliation against workers exercising their rights.
Action Steps for Employers:
- Review contracts with independent contractors.
- Train staff on compliance with the Freelance Worker Protection Act.
Poster and Notice Updates
Employers must update workplace posters and notices to reflect changes in:
- Workers’ compensation rights (AB 1870).
- Whistleblower protections (AB 2299).
- Crime and abuse victim leave rights (AB 2499).
The California Labor Commissioner and CRD will release updated notices by July 1, 2025, but employers should prepare for changes by January 1.
Looking Ahead
California’s labor landscape is ever-evolving, and 2025 is no exception. From wage increases to safety regulations, these updates require proactive planning and implementation.
Ignite HR Solutions is here to help you navigate these changes and stay compliant. Our expert team offers tailored support for policy updates, employee training, and compliance audits. Don’t let new laws catch you off guard—partner with us today.
Stay Ahead of the Curve. Contact Ignite HR Solutions Today!
Let us help you prepare for 2025 and beyond.