California Labor and Employment Laws for 2025

A variety of new labor laws in California will be going into effect on January 1, 2025. It’s important for employers to be aware of these changes and discuss them with an employment law attorney in advance so they know how to plan — and can make any necessary modifications to their employee handbooks. These laws cover a wide range of issues in the workplace and may require that employers reassess their policies in order to ensure they are legally compliant.

Some of the notable new labor laws in California in 2025 include the following:

Minimum Wage Laws

Beginning on January 1, 2025, employers of all sizes will be required to pay a minimum wage of $16.50. This is an increase of fifty cents from 2024. Notably, some employers may be required to pay a higher minimum wage that is specific to an industry or locality.

Paid Family Leave Benefits

Under AB 2123, California employers will no longer be able to require that employees use two weeks of vacation time prior to receiving Paid Family Leave benefits. AB 2123 also expands sick leave for employees so that it can now be used to assist a family member who has been a victim of “qualifying acts of violence,” such as stalking, domestic violence, and sexual assault.

Privacy and Data Security

As of January 1, 2023, employers in California were required to adhere to the California Consumer Privacy Act (CCPA). There are a number of laws that will be enacted in 2025 concerning privacy and data security that amend certain parts of the Act and apply to the workplace. These include the following:

• AB 1008 — This law amends the definition of “personal information” under the California Consumer Privacy Act (CCPA) that is collected by a business. It clarifies that personal information can exist in numerous formats, including “artificial intelligence systems that are capable of outputting personal information.”
• AB 1824 — When a business acquires personal information, such as HR data, as part of a merger, acquisition, bankruptcy, or other transaction, it must comply with any opt-out elections that were made by an employee prior to the transfer.
• SB 1233 — This modifies the CCPA’s definition of sensitive personal information to include “neural data,” as a type of personal information. Neural data is received directly from the body of a person by “measuring the activity of a consumer central or peripheral nervous system.”

To comply with the new data protection laws, employers should create a detailed privacy policy that specifies how employee data is handled. Employees should also be provided with notice about their data privacy rights under California law.

Discrimination

Employers should take note of two new labor laws in California that have to do with discrimination in the workplace. Under AB 1815, the definition of “race” under the Unruh Civil Rights Act now includes hair texture and protective hairstyles as traits associated with race. In addition, SB 1127 has amended the Fair Employment and Housing Act (FEHA) to clarify that protected characteristics not only include those listed in the Act, but also apply to a perception that an employee has any of those characteristics.

Workplace Safety

The new labor laws in California for 2025 also include several workplace safety regulations. Specifically, AB 1976 requires CalOSHA to enact regulations that require employers to carry Narcan in their first aid kits. Although this law will be in effect as of January 1, the regulations must be enacted by 2027. Additionally, SB 428 has amended the California Code of Civil Procedures section 527.8 to expand the ability of an employer to obtain a restraining order on behalf of one or more employees who have been subjected to harassment.

Job Postings

Employers will no longer be able to include in a job advertisement or application that an applicant must possess a valid driver’s license as of a new labor law in California in 2025. However, there are exceptions if the employer can establish that driving is one of the job functions of the position and they reasonably believe that an alternative form of transportation would not be comparable in cost or time.

Mandatory Employer-Sponsored Meetings

AB 399 bans mandatory captive audience meetings as of January 1. Pursuant to the California Freedom from Employer Intimidation Act, an employee can no longer be discharged, discriminated, retaliated against, or threatened because they refused to attend an employer-sponsored meeting that related to religious, political, or union matters.

Freelance Worker Protection Act

Employers who use freelance workers should be aware of a new labor law in California that imposes minimum requirements between the hiring party and an independent contractor when it comes to contractual agreements. Under SB 988, the agreement between a hiring party and a freelance worker must be in writing and include the following information:

• The names and addresses of both parties
• An itemized list of services, including the value and method of compensation
• Payment due dates, or how they are determined
• Due dates by which the freelance worker must report completed services in order to process payment in a timely manner

A hiring entity may not require a worker to provide more services than those that were agreed upon — or accept less compensation — once services have commenced in order to be paid timely.

Contact an Experienced Employment Law Attorney

It’s vital for employers to be informed about the new labor laws in California in 2025 — and to be prepared to implement any required changes in the workplace. The employment law attorneys at White & Bright, LLP work with employers regarding a broad scope of employment matters, including those involving legal and regulatory compliance. We welcome you to contact or call us at (760) 747-3200 to learn more about our legal services.