As we close the first month of 2025, California is leading the way with several thought-provoking and game-changing laws that have sparked numerous questions from our clients and partners. At Ford & Diulio, we understand the importance of staying informed, so we’ve curated a list of the most impactful new legislation affecting employers and employees alike. Whether you’re a business owner, HR professional, or employee, these updates are essential for navigating California’s evolving legal landscape. Here’s what you need to know:
Minimum Wage Increase
California is further increasing its minimum wage, setting the state minimum at $16.50 per hour (SB 3), significantly higher than the federal minimum of $7.25 per hour. Additionally, various industries and regions have specific wage requirements:
- Fast-Food Workers: Previously set at $20.00 per hour.
- Healthcare Facility Workers: Minimums of $18.00 or $24.00 per hour, depending on the facility type.
- Los Angeles County: Minimum wage rising to $17.81 per hour on July 1, 2025.
- Los Angeles City: Minimum wage increasing to $17.28 per hour on July 1, 2025, adjusted based on the Consumer Price Index.
Action Step: Employers and employees should verify the applicable minimum wage for their specific industry and location to ensure compliance.
Protections for Independent Contractors
The Freelance Worker Protection Act (SB 988) aims to safeguard independent contractors, provided they meet California’s definition and are not misclassified employees. Key provisions include:
- Written Agreements: Must detail services to be performed and payment terms.
- Payment Timelines: Contractors must be paid by the specified date, no later than 30 days after service completion.
- Effective Date: Applies to contracts entered or renewed after January 1, 2025.
Limit on Employee Driver’s License Requirements
SB 1100 restricts employers from requiring a valid driver’s license in job postings unless:
- Driving is a fundamental job function.
- Alternative transportation (public transit, ride-hailing, etc.) is not feasible.
- For most positions with fixed locations, a driver’s license should no longer be a mandatory requirement.
Expanded Sick Leave for Agricultural Workers
Under SB 1105, employees working for the same employer for more than 30 days are entitled to paid sick days. This expansion includes:
- Additional Uses: Taking sick days to avoid heat, smoke, flooding or for preventive care related to working conditions.
- Protection: Employers cannot deny or retaliate against employees for using paid sick days.
Expanded Paid Family Leave
AB 2123 continues to enhance California’s paid family leave program by allowing employees to:
- Use Paid Family Leave: Without first exhausting up to two weeks of vacation time (effective January 1, 2025).
- Additional Benefits: Extended benefit periods and increased monetary support.
Prohibition of Captive Employee Meetings
Starting January 1, 2025, SB 399 prohibits employers from mandating attendance at meetings where they discuss:
- Religious or Political Topics: Including union representation.
- Retaliation: Employers cannot retaliate or discriminate against employees who decline to attend such meetings.
While voluntary meetings are allowed, this law is currently facing legal challenges on preemption and First Amendment grounds.
Child Social Media Income Protections
Building on the Coogan Law of 1939, AB 1880 and SB 764 extend protections to minors involved in online content creation:
- AB 1880: Requires at least 15% of a minor’s earnings from online platforms (e.g., YouTube, TikTok) to be deposited into a trust.
- SB 764: Extends protections to child vloggers, ensuring compensation for content creation and imposing record-keeping requirements.
Cannabis Retailers Authorized to Sell Food and Drinks
AB 1775 permits cannabis retailers and consumption lounges to sell non-cannabis food and beverages, subject to:
- Local Approval: Cities and counties must authorize the practice.
- Licensing: A local license is required for the sale of food and drinks.
- Event Hosting: Live entertainment and temporary events are allowed, though alcohol remains prohibited at cannabis events.
This marks a significant shift, allowing for more versatile business operations within the cannabis industry.
Make Cancelling Subscriptions Easier
AB 2863 addresses the ease of canceling subscriptions by mandating that:
- Cancellation Method: Must match the method used to subscribe.
- Online Subscriptions: If subscribed online, cancellations must also be completed online without the need to call or send a letter.
This law aims to protect consumers from overly complicated cancellation processes.
New State Symbols
While not directly impacting most businesses, California has added new official state symbols:
- State Slug: The Bannan Slug (mascot of UC Santa Cruz).
- State Crustacean: The Dungeness Crab.
- State Seashell: The Black Abalone.
Stay Compliant and Informed
These new laws reflect California’s ongoing commitment to improving labor standards, protecting workers, and enhancing consumer rights. Employers should review these updates carefully to ensure compliance, while employees should stay informed to understand their rights and benefits.
For personalized advice or more information on how these laws may affect your business or employment situation, contact the experienced team at Ford & Diulio.