As we approach the end of the year, California employers need to be prepared for new California laws affecting their relationships with their employees. Here are a few new laws that California employers will need to know and implement preferably before the end of 2024:
Changes to the Minimum Wage
Although California voters soundly rejected Proposition 32 (which would have increased the minimum wage to $18.00 per hour for large and medium-sized employers and $17.00 per hour for employers with 25 or fewer employees), the existing minimum wage will still increase based on the consumer price index. Thus, effective 2025, the new California minimum wage will increase to $16.50 per hour from the present $16.00 per hour.
As a result of this increase, the minimum salary test for the primary overtime exemptions (administrative, executive and professional) in 2025 will be $68,640.00 annually or $5,720.00 monthly. Employers should be checking salaries of their exempt and salaried employees to ensure that they qualify for the exemption.
Please also be aware that the minimum wage is different for certain industries and workers starting in 2025. Fast food workers must be paid $20.00 per hour based on the state law that took effect this past year. Certain healthcare industry employees must be paid a minimum of $23.00 per hour effective last month, and on June 30, 2025, will increase to $24.00 per hour – and by another dollar per hour to $25.00 per hour on July 1, 2026.
There are also many local ordinances that require higher minimum wages that are related to inflation and have automatic increases in 2025. We recommend that you check local law to determine the exact required minimum wage or contact your employment attorney to help figure it out.
Paid Family Leave
Starting January 1, 2025, California employers cannot 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.
Expanded Sick Leave
Commencing next year, California employees will be able to use sick leave to assist family members who are victims of certain types of violence or threats of violence. Employers should provide notice to their California employees of this change in their sick leave policies and practices and also train management and HR about the changes since the violence is not limited to victim of domestic violence, sexual assault and stalking.
Captive Audience Meetings
Commencing with the new year, California has banned mandatory captive audience meetings. Employers can no longer discharge, discriminate, or retaliate against, or threaten to carry out such actions because an employee refuses to attend any employer-sponsored meeting relating to religious or political matters or anything related to the support or the lack thereof of a labor organization or union.
Requiring Drivers’ Licenses for Job Openings
Starting January 1, 2025, it is impermissible for a California employer to include a statement in job advertisements, job applications, or other employment materials that a job applicant must possess a valid driver’s license unless the employer can prove that it reasonably suspects driving to be one of the job functions of the position, and, reasonably believes that using an alternative form of transportations, such as a bike or public transportation, that does not require a driver’s license would not be comparable in travel time or cost to the employer.
These new laws are only a small snippet of some of the key changes in California employment law for 2025. It is best to seek advice from your employment lawyer with regard to these changes and how to implement them in the workplace.
The information presented is not intended to be, and does not constitute, “legal advice.” Because each situation varies, and only brief summary information is provided here, you should not use this information as a basis for action unless you have independently verified with your own counsel that it applies to your particular situation.
