Top Five New California Employment Laws for 2025

As we usher in the new year, California’s latest employment laws are bringing essential changes that you need to be aware of as an employee. These new laws not only support your rights but also help ensure fairness at work. From increases in minimum wages to expansions in leave policies, we are here to break down the top five California employment law changes taking effect this year.

Minimum Wage Changes

While California voters narrowly rejected Proposition 32, which aimed to boost the state minimum wage to $18 an hour for large and medium employers and $17 for small businesses, this does not mean wages will remain stagnant. Effective January 2025, the minimum wage rises from $16 to $16.50 an hour. This adjustment ensures wages keep up with inflation and cost-of-living changes, providing some much-needed economic boost to employees.

Additionally, the fifty-cent increase raises the minimum salary threshold for overtime-exempt employees in administrative, executive, and professional roles. This means exempt employees must be paid at least $68,640 annually or $5,720 monthly to maintain exempt status. This salary requirement also applies to part-time exempt employees. 

However, the new $16.50 minimum wage is only part of the broader wage landscape in California. Under legislation from 2023, certain fast-food employees must be paid at least $20 per hour, with potential increases pending action by the California Fast Food Council. Additionally, a recent state law mandates minimum wages of $23 an hour for specific healthcare workers starting October 2024, with an increase to $24 per hour in mid-2025 and a further rise to $25 an hour by July 2026.

Paid Family Leave Adjustments (AB 2123)

Under Assembly Bill 2123, your employer no longer has to require you to use up to two weeks of accumulated vacation before accessing Paid Family Leave (PFL) benefits, as was previously the case.

Expanded Leave for Crime Victims (AB 2499)

Assembly Bill 2499 introduces an essential expansion of job-protected leave for crime victims and their family members. Under this new regulation, if an employee or their immediate family member is a victim of a “qualifying act of violence,” they are entitled to use their sick leave to assist their loved one. Consequently, as an employee in California, your employer must now inform you of this change and adjust their sick leave policies and procedures accordingly.

New Restrictions on Captive Audience Meetings (SB 399)

As of January 1, 2025, employers can no longer retaliate against employees who refuse to attend or participate in meetings on religious, political, or labor union-support topics. Employees who violate this provision will face a civil penalty of $500 per employee for each infraction.

Job-Related Driver’s License Requirements (SB 1100)

Starting January 2025, SB 1100 places new restrictions on driver’s license requirements in job postings. California law now prohibits employers from including a valid driver’s license requirement in job advertisements, applications, or other employment materials unless they can demonstrate that:

• Driving is an essential function of the role, and
• Alternative transportation modes (such as biking or public transit) would not offer the employer comparable travel time or cost-efficiency.

Contact a California Employment Lawyer Today

Contact a California employment lawyer for personalized guidance on how these and other employment law changes may affect you.