Recent and Upcoming Legislation Impacting Employers in 2025

This article is part of our 2025 Labor & Employment Roundup. To read the other articles, click below:

A Potential Avenue for Bypassing Class Waivers in Arbitration Agreements
Impact of a Second Trump Presidency on Biden-Era NLRB Decisions
2024 PAGA Updates

California’s 2025 labor and employment laws bring substantial changes, including expanded employee leave, increased minimum wages, enhanced anti-discrimination protections, and stricter safety requirements. These updates aim to strengthen worker rights and improve workplace safety across industries.

What this means for employers: It’s time to review and update workplace policies, employee handbooks, and training materials to align with the new laws. It also requires proactive planning to ensure compliance with wage increases, safety measures, and expanded anti-discrimination standards. Consult employment counsel to be sure you’re addressing all new laws that apply to your business.

 

Workplace Policies and Employee Rights

AB 2011: Small Employer Family Leave Mediation Program: Reproductive Loss Leave

• California employers with between five and nineteen employees must provide up to five days of unpaid leave to employees who experience a reproductive loss, such as miscarriage, stillbirth, or a failed adoption or surrogacy. Employees may take these days over a three month period and may use paid leave (like sick days) if available.
• This law goes into effect January 1, 2025.

SB 399: Protections Against Employer Communications

• Protection from retaliation: Employers are not allowed to fire, punish, or take any negative action against an employee just because they choose not to attend a meeting or listen to discussions where the employer shares their views on religion, politics, labor organizations, and union representation.
• Simply put, this means that an employer cannot discipline an employee for opting out of conversations or meetings about religious, political, or union matters. For the purpose of this bill, “political matters” includes “the decision to join or support any political party or political or labor organization.”
• Pay during meetings: Additionally, if an employee is on the clock during one of these meetings and decides not to attend, they must still be paid for their time while the meeting takes place.
• This law goes into effect January 1, 2025.

AB 2499: Expanded Protections for Victims Taking Time Off

• Existing protections: Employees are already protected from discrimination or retaliation when taking time off for jury duty, court appearances, or if they’re victims of a crime or abuse.
• Expanded definition of “victims”: This bill keeps those protections in place and broadens the definition of “victims” to include those who have experienced:
  • Domestic violence, sexual assault, or stalking.
  • Any act or pattern of behavior where someone causes bodily harm or death.
  • Situations where someone displays or uses a firearm or dangerous weapon.
  • Threats or use of force that could lead to physical injury or death.
• This law goes into effect January 1, 2025.

 

Discrimination and Equal Employment Opportunities

SB 1100: Driver’s License Requirement in Job Postings

• Driver’s license requirement: The bill makes it illegal for employers to state in job postings or other hiring materials that applicants must have a driver’s license—unless driving is a necessary part of the job.
• This law goes into effect January 1, 2025.

SB 1137: Intersectional Discrimination Protections

• Current protections: Under the Unruh Civil Rights Act, everyone in California is entitled to equal access to businesses, regardless of their sex, race, religion, disability, sexual orientation, immigration status, and other protected characteristics.
• New addition: The bill expands equal access requirements by clarifying that California’s anti-discrimination laws also protect people with intersectional identities. This means that if someone faces discrimination because of a combination of characteristics—like both race and gender—that create a unique experience, those situations are also covered.
• This law goes into effect January 1, 2025.

 

Worker Support and Protections

AB 2123: Paid Family Leave Policy Adjustments  

• AB 2123 ensures that employees are not required to use up to two weeks of their earned, unused vacation time before becoming eligible for paid family leave benefits within a 12-month period.
• This law goes into effect January 1, 2025.

AB 2364: Mandatory Sexual Harassment Training for Janitors

• AB 2364 increases the payment rates for organizations that provide mandatory sexual violence and harassment prevention training to janitors. For training sessions with fewer than 10 participants, the rates will increase from $65 to $200 per person, and for sessions with 10 or more participants, the rates will increase to $80 per person. These new rates will remain in effect until January 1, 2026, after which they will increase annually.
• The law also requires the Department of Industrial Relations (DIR) to work with the UCLA Labor Center to study ways to improve worker safety and rights in the janitorial industry.
• This law goes into effect January 1, 2025.

 

Employer Posting and Notification Requirements

AB 2299: Model Notice for Whistleblower Rights

• Current posting requirement: Employers currently must post a list of employee rights and responsibilities under whistleblower laws, however, the law has not been clear about exactly what is required to be included.
• New Requirement: This bill requires the Labor Commissioner to create a standard list for employers to use. Once this model notice is made available, employers who post it where other employee notices are displayed will automatically be deemed compliant with the posting requirement.
• This law goes into effect January 1, 2025.

AB 1870: Worker’s Compensation Notices

• The amendment requires that workers’ compensation notices in the workplace inform employees they have the right to consult a licensed attorney for guidance on their rights under workers’ compensation laws.
• AB 1870 also clarifies that, in most cases, attorney’s fees will be deducted from the injured employee’s recovery.
• This law goes into effect January 1, 2025.

 

Independent Contractors and Freelance Worker Protections

SB 988: Timely Payment for Freelance Workers

• Under the new law, “hiring parties” (any person or organization that hires independent contractors for professional services) must pay independent contractors who provide services worth $250 or more by the date specified in the contract. If no payment date is specified, payment must be made within 30 days of the work’s completion.
• Hiring parties are also prohibited from: Forcing independent contractors to accept less pay than agreed upon, requiring additional goods or services, or demanding extra intellectual property rights as a condition for timely payment.
• Additionally, hiring parties and independent contractors must have a written contract, which the hiring party is required to keep for at least four years. This law does not change existing rules about properly classifying workers as independent contractors versus employees.
• This law goes into effect January 1, 2025, and only applies to contracts entered into or renewed on or after January 1, 2025.

 

Industry-Specific Compliance

AB 2738: Festival Safety and Wage Enforcement

• To reduce worker injuries and fatalities at concert festivals, this law requires entertainment event vendors to provide written documentation to the contracting entity about the federal and Cal/OSHA safety training completed by their employees and subcontractors when hired for a live event.
• The law also empowers public prosecutors to enforce Labor Code violations, allowing them to recover unpaid wages, damages, and penalties on behalf of workers. Any remaining funds go to the state’s General Fund. Additionally, the law permits the prevailing party in such cases to recover attorney fees and legal costs.
• This law goes into effect January 1, 2025.

AB 1034: PAGA Exemption for Construction Employees

• AB 1034 extends the current January 1, 2028, expiration date of the PAGA exemption for employees in the construction industry applicable to work performed under a valid collective bargaining agreement in effect any time before January 1, 2025, to 2038.

 

Social Compliance and Reporting

AB 3234: Transparency in Social Compliance Audits

• Under AB 3234, any employer that has voluntarily subjected its business to a “social compliance audit” to determine if child labor is involved in the employer’s operations or practices, must post a link on its website to a report detailing the findings of the audit.
• AB 3234 defines “social compliance audit” as a voluntary, nongovernmental inspection or assessment of an employer’s operations and practices to verify that it complies with state and federal labor laws, including health and safety regulations regarding child labor.
• This law goes into effect January 1, 2025.

 

Healthcare Industry

Safety and Security in Healthcare

AB 977: Emergency Department Assault Penalties

• Penalties for assault: If someone assaults or physically harms a doctor, nurse, or any healthcare worker while they are working in a hospital’s emergency department, they could face up to one year in county jail, a fine of up to $2,000, or both.
• Notice in emergency departments: Hospitals with emergency departments can now put-up signs stating that assaulting staff is a crime and could lead to criminal charges.
• This law goes into effect January 1, 2025.

AB 2975: Metal Detectors in Hospitals

• New requirements for hospitals: hospitals will need to:
  • Install weapons detection devices at key entrances, like the main entrance, emergency department, and labor and delivery entrances.
  • Train staff to operate these devices and handle any detected weapons.
  • Place signs at entrances informing visitors that weapons screening is in place but assuring them that no one will be denied medical care.
  • Create protocols for alternative screening for those who refuse the weapons detection process.
  • Develop a policy for handling and storing any items that are confiscated.
• Timeline for Compliance: The California Occupational Safety and Health Standards Board must adopt standards by March 1, 2027. Once those standards are set, hospitals will have 90 days to meet the new requirements.

 

Employee Benefits in Healthcare

AB 1843: Emergency Ambulance Employees 

• AB 1843 requires that emergency ambulance providers offer peer support services to their employees, allowing them access to confidential peer-to-peer support for emotional or professional issues, adding a new layer of mental health support.
• This law goes into effect January 1, 2025.

 

Wage and Compensation Changes in Healthcare:

SB 525: Minimum Wage for Healthcare Workers

• SB 525 establishes a statewide minimum wage of $25 per hour for covered health care employees, including physicians, nurses, janitors, and laundry workers, replacing the current state minimum wage of $15.50 per hour. The increase to $25 per hour will be phased in based on the type of employer. For instance, larger health care facilities will implement the $25 rate by 2026, while licensed skilled nursing facilities will reach the $25 rate by 2028.
• The bill also requires exempt, salaried health care employees to earn at least 150% of the health care worker minimum wage. However, it does not apply to health care employees who are outside salespersons. Additionally, SB 525 prohibits any local ordinances or regulations from setting different wage or compensation standards for covered health care employees. Employers in the health care sector, such as hospitals, clinics, and urgent care centers, should seek legal guidance to determine when and how the wage increases will apply to their workforce.
• The table below sets out the types of covered health care facilities that are subject to the health care minimum wage, what the wage schedule is, and when it becomes effective.

Health Care Worker Minimum Wage Increases by Type of Health Care Facility
Type of Health Care Facility	Minimum Wage when the law takes effect	Full Minimum Wage Schedule
Hospital or integrated health system with 10,000 or more full-time employees (including skilled nursing facilities operated by these employers)	$23	10/16/24 to 6/30/25: $23 7/1/25 to 6/30/26: $24 7/1/26 to 12/31/27: $25 1/1/28: adjusted for inflation each year
Dialysis Clinics	$23	10/16/24 to 6/30/25: $23 7/1/25 to 6/30/26: $24 7/1/26 to 12/31/27: $25 1/1/28: adjusted for inflation each year
Safety Net Hospitals (independent hospitals with an elevated governmental payor mix defined as hospitals where Medicare and Medi-Cal payor mixes are 75% or greater and are not part of a larger hospital system)	$18	10/16/24 to 6/30/25: $18 6/1/25 to 6/30/33: increases 3.5% each year 7/1/33 to 12/31/34: $25 1/1/35: adjusted for inflation each year
Intermittent clinics, community clinics, rural health clinics, or urgent care clinics associated with community or rural health clinics	$21	10/16/24 to 6/30/26: $21 7/1/26 to 6/30/27: $22 7/1/27 to 12/31/28: $25 1/1/29: adjusted for inflation each year
All other covered health care facilities not listed in the other categories and not run by Counties	$21	10/16/24 to 6/30/26: $21 7/1/26 to 6/30/28: $23 7/1/28 to 12/31/29: $25 1/1/30: adjusted for inflation each year
Covered Health Care Facilities run by Large Counties (more than five million people as of 1/1/23)	$23 (no earlier than 1/1/25)	1/1/25 to 6/30/25: $23 7/1/25 to 6/30/26: $24 7/1/26 to 12/31/27: $25 1/1/28: adjusted for inflation each year
Covered Health Care Facilities run by Medium Sized Counties (250,000 to five million people as of 1/1/23)	$21 (no earlier than 1/1/25)	1/1/25 to 6/30/26: $21 7/1/26 to 6/30/28: $23 7/1/28 to 12/31/29: $25 1/1/30: adjusted for inflation each year
Covered Health Care Facilities run by Small Counties (less than 250,000 people as of 1/1/23)	$18 (no earlier than 1/1/25)	1/1/25 to 6/30/25: $18 6/1/25 to 6/30/33: increases 3.5% each year 7/1/33 to 12/31/34: $25 1/1/35: adjusted for inflation each year
Skilled Nursing facilities not owned, operated, or controlled by a hospital, integrated health care delivery system, or health care system: **Only takes effect if a patient care minimum spending requirement is passed	No effective date	Schedule if a patient care minimum spending requirement is passed: Once spending requirement passed to 6/30/26: $21 7/1/26 to 6/30/28: $23 7/1/28 to 12/31/29: $25 1/1/30: adjusted for inflation each year

 

What Employers Should Do Next

With these sweeping changes, now is the time to assess their impact on your operations. Consult legal counsel to:

1. Review and update employee handbooks, contracts, and workplace policies.
2. Train management on new compliance obligations and employee rights.
3. Prepare for phased wage increases, safety measures, and new discrimination standards.

For tailored guidance or assistance with compliance, contact our team of labor and employment law experts.

About JMBM’s Labor & Employment Practice
JMBM’s Labor and Employment attorneys counsel businesses and management on workplace issues, helping to establish policies that address problems and reduce job-related lawsuits. We act quickly to resolve claims and aggressively defend our clients in all federal and state courts, before the Department of Labor, the NLRB, and other federal, state and local agencies, as well as in private arbitration forums. We represent employers in collective bargaining negotiations and arbitration.

This update is provided to our clients, business associates and friends for informational purposes only. Legal advice should be based on your specific situation and provided by a qualified attorney.