a wave of new legislation, and 2025 is no exception for California employers. Several significant new California labor laws in 2025 are set to take effect, impacting everything from minimum wage to employee protections. These developments underscore the importance for both employers and employees to stay informed. For employers, ensuring compliance is key to avoiding potential legal pitfalls. For employees, understanding how these laws impact their rights is crucial to understanding how to enforce them for their protection.
As a legal commentator and media personality, my passion is cutting through the noise and educating the general public on the latest news in employment law, workplace trends, and policies. Let’s dive into some key changes to California employment law that will occur in 2025.
What Are New California Labor Laws in 2025?
A new year means a new slate of California labor laws in 2025 that are poised to have a substantial impact on employers, employees, and work as a whole. Let’s explore some of the labor laws that are projected to have the biggest impact in the new year!
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Minimum Wage Increase & Overtime Exemption
The minimum wage increase is one of the most significant new California labor laws in 2025.
Earlier this year, California voters narrowly rejected Proposition 32, which would have increased the minimum wage to $18 an hour for large and medium-sized employers and $17 an hour for small employers with 25 or fewer employees.
Still, the minimum wage will not be frozen in 2025 and is scheduled to increase based on the consumer price index (CPI). Effective 2025, the California minimum wage will increase to $16.50 an hour.
The fifty-cent increase also alters the minimum salary test for primary overtime exemptions (administrative, executive, professional) to $68,640 annually or $5,720 monthly. If you are not paying your exempt employees who are qualified under these exemptions a salary of at least this much starting on January 1, 2025, they will not qualify as exempt.
California employers should verify the salary of exempt middle management and salaried administrative personnel to ensure compliance, consider that this salary test applies to even part-time exempt employees, and consider the effects of applicable collective bargaining agreements (CBAs).
Certain fast-food workers must also be paid $20 an hour based on the state law that took effect last year, and the California Fast Food Council has the authority to raise the fast-food minimum wage effective January 1, 2025, though it has not acted to do so yet.
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Paid Family Leave
Effective January 1, 2025, AB 2123 eliminates the ability of California employers to require their employees to use up to two weeks of vacation time before receiving Paid Family Leave (PFL) benefits under the Employment Development Department (EDD)’s paid family leave program. This law aims to provide greater support to employees utilizing PFL benefits.
Sick Leave Expansion
Also taking effect in the new year is a law expanding access for employees to sick leave under AB 20123. This legislation allows employees to use sick leave to assist any family member who is a victim of certain types of violent incidents or threats of violence, such as domestic violence, sexual assault, stalking, or other forms of violent crime.
This expansion of sick leave rights is intended to provide greater support to employees facing challenging family situations. By allowing employees to use sick days to assist family members in these circumstances, the law recognizes the importance of addressing the impact of violence on individuals and their families.
It’s advisable for California employers to supply a notice of this change to employees and alter sick leave policies and practices, and California employers should also consider training their management and human resources workers so that they are aware of these new changes.
Captive Audience Meetings
Effective January 1, 2025, with SB 399, California joins other states in banning mandatory captive audience meetings. This law places new restrictions on employers and their ability to compel employee attendance at meetings concerning religious, political, or union-related matters.
It also expands protections for employees regarding these matters. California employers can no longer discharge, discriminate, retaliate against, or threaten to carry out such actions because an employee refused to attend any employer-sponsored meeting related to religious matters, political matters, or matters related to the decision to support or not support a labor organization/union.
Restrictions on Requiring Drivers’ Licenses for Job Openings
Finally, effective January 1, 2025, SB 1100 restricts California employers’ ability to require a driver’s license as a condition of employment.
Under this new law, employers can no longer include statements in job advertisements, job applications, or other employment materials that an applicant must possess a valid driver’s license unless the employer can demonstrate both of the following:
- Driving is an Essential Job Function: The employer must be able to reasonably expect that driving is an essential function of the position.
- Alternative Transportation is Not Comparable: The employer must reasonably believe that using alternative forms of transportation, such as public transportation, biking, ridesharing services, or other reasonable options, would not be comparable in terms of travel time or cost.
This legislation aims to prevent unnecessary barriers to employment for individuals who may not possess a driver’s license for various reasons, such as cost, accessibility, or personal choice.
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Thought Leader, Media Personality, Professional Speaker, & Legal Commentator on New California Labor Laws in 2025 & Beyond
Understanding the new California labor laws in 2025 is imperative for both employees and employers. For employers, it ensures compliance to avoid legal and potentially financial consequences. For employees, it ensures that they understand their rights and can enforce them. I am an expert on all aspects of employment law and am uniquely positioned and qualified to provide expert insight and analysis on all employment law issues. These issues can be complex, so you need a seasoned legal professional to shed light on them. My passion is being a beacon in uncertain times of transition that provides that light.
Employment Law Thought Leader & Professional Speaker on New California Labor Laws in 2025, Employment Law Trends, and Breaking Employment Law News
It is essential to understand new California labor laws in 2025. Both employees and employers alike need to be able to navigate this changing landscape, and this knowledge is the only way to do so. I am a former employment and labor law attorney turned mediator, ADR, and conflict resolution specialist who believes it is imperative to stay current with groundbreaking changes to employment law for employees and employers alike. My passion is educating the general public on recent developments in employment law and the workplace trends that impact them as a thought leader and legal commentator. As such, I am uniquely qualified to address the issue of discussing politics in the workplace. My more than 20 years of experience as a media legal analyst and contributor led to my radio show on Tavis Smiley’s KBLA Talk 1580, “Legal Lens with Angela Reddock.” I also am a regular speaker and blogger on employment law and issues related to the workplace.
Also, learn more about my book – The Workplace Transformed: 7 Crucial Lessons from the Global Pandemic – here – https://angelareddock-wright.com/book/.
To follow and stream my Legal Lens Podcast, visit here – The Legal Lens Podcast.
For media inquiries, please reach out to josh@kwsmdigital.com.
For more information regarding mediation and dispute resolution resources for both employees and employers, let’s connect on LinkedIn for new updates or contact me here. You may also follow me on Instagram.
This communication is not legal advice. It is educational only. For legal advice, consult with an experienced employment law attorney in your state or city.