With the new year fast approaching, we take this opportunity to advise California employers of upcoming legal changes taking effect January 1, 2025.

State Minimum Pay/Wage Increases

• As noted in our prior alert, the state minimum wage will increase from $16.00 to $16.50 per hour.
• Note: Several cities and counties in California have a local minimum wage that is higher than the state minimum wage.
• The salary threshold for exempt employees will rise from $66,560 to $68,640. 

 Updates to State Leave Policies

Paid Family Leave Program: Employers are currently allowed to require employees to take up to two weeks of accrued vacation leave before accessing California’s Paid Family Leave Program. Effective January 1, 2025, employers are prohibited from requiring employees to use accrued vacation leave before accessing PFL benefits.

Victim Time Off: Employees will be permitted to use paid time off for additional crimes if they are a victim of a qualifying act of violence or to assist family members who are victims of a qualifying act of violence. Employers also must provide written notice of their rights to new hires, all employees annually, at any time upon request, and any time the employer becomes aware that an employee or employee’s family member is a victim.

Additional General Employment Law Updates

Intersectionality of Protected Traits: Amendments to California’s Fair Employment and Housing Act, the Unruh Civil Rights Act, and the Education Code clarifies prohibitions against discrimination not only based on individual protected traits, but also based on the intersectionality of two or more protected traits.

Driver’s License Discrimination: New restrictions on requiring a driver’s license in job postings go into effect, unless it is a bona fide occupational qualification. Employers may not include a statement that an applicant must have a driver’s license unless the employer reasonably expects driving to be one of the position’s job functions and using an alternative form of transportation would not be comparable to driving in terms of travel time or cost to the employer.

Freelance Worker Protection Act: New California law will define “freelance workers” as a person or organization, whether incorporated or using a trade name, hired as a bona fide independent contractor to provide professional services under the California Labor Code for at least $250.

Under the law, an agreement between a hiring party and a freelance worker must be in writing and include the names and addresses of both parties, an itemized list of services and compensation, payment due dates or mechanisms, and due dates for the worker to report completed services for timely payment. Once a freelance worker has commenced providing services, the hiring party may not require the freelance worker to accept less compensation or provide more services than previously agreed in order to receive timely payment. The Act only applies to certain freelance work for “professional services” defined in the Labor Code.

Household Domestic Service Workers: The definition of “employment” expands to include household domestic service performed on a permanent or temporary basis, except for specified household domestic service, including, among others, those where an individual who, in their own residence, privately employs persons to perform ordinary domestic household tasks, including housecleaning, cooking, and caregiving. California Division of Occupational Safety and Health will have the authority to enforce health and safety regulations in private homes that employ domestic workers beginning July 1, 2025.

Captive Audience Meetings: California enacted the California Worker Freedom from Employer Intimidation Act to restrict employers’ ability to require employees to attend employer-sponsored meetings (also known as captive audience meetings) regarding the employer’s opinions on religious or political matters, as well as union organizing.

Small-Employer Family Leave Mediation Program: California previously created a small employer family leave mediation pilot program to resolve disputes between employees and small employers (5 – 19 employees) over violations of family care and medical leave laws. The program will be a permanent feature of California employment law and will include disputes over reproductive loss leave.

Employee Rights and Responsibilities Notice: All California employers will be required to prominently displace in the workplace a list of employee rights under California’s various whistleblower laws. The California Labor Commissioner has created a model poster which can be found here.

Voluntary Social Compliance Audit: Employers that voluntarily submit “social compliance audits” regarding the involvement of child labor must post a link on their website detailing the findings of the audit. Additionally, the audit report must include certain information, including when the audit was conducted, a copy of the employer’s policies, and a statement by the auditing company.

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If you have questions or would like additional information, please contact our Labor & Employment attorneys or the primary EGS attorney with whom you work.