California Employment Law Update: Key Changes Effective January 2025

California employers, take note: starting January 1, 2025, several significant updates to the state's employment laws will take effect. 

These changes impact everything from paid family leave to anti-discrimination protections. It’s essential for businesses to understand these new regulations to stay compliant and protect their employees. 

Here's a breakdown of the most important changes:

1. Senate Bill 2123: Changes to Paid Family Leave

Under SB 2123, employers can no longer require employees to use their accrued vacation leave before they can access state-provided paid family leave. This marks a significant shift from previous rules, where employees had to exhaust their vacation time before receiving state benefits. This change ensures that employees can better balance their leave without depleting their paid time off, especially in critical family situations.

2. Senate Bill 2499: Expanded Protections for Crime Victims

SB 2499 expands California’s anti-discrimination laws to protect employees who are victims of certain crimes or acts of violence. Under this new law, employers with 25 or more employees are prohibited from discriminating against crime victims who need time off to address issues related to the crime, including domestic violence, sexual assault, stalking, and other listed violent acts.

Moreover, these protections extend to employees whose family members are victims of such crimes. Employers can run this leave concurrently with leave provided under the California Family Rights Act and other federal leave laws.

The list of qualifying violent acts includes:

• Domestic violence

• Sexual assault

• Stalking

• Any act that results in bodily injury or death

• Use of a firearm or dangerous weapon

• Threats to use force causing injury or death

Additionally, SB 2499 also expands protections for employees taking time off to:

• Serve on a jury

• Appear in court as a witness under a subpoena or court order

• Obtain legal relief as a victim of a crime or violence

3. Senate Bill 1137: Anti-Discrimination Based on Combination of Protected Characteristics

SB 1137 amends the Unruh Civil Rights Act to prohibit discrimination based on a combination of protected characteristics. California already prohibits discrimination based on race, sex, age, religion, disability, and more. However, the new law extends this protection to cases where an individual is discriminated against due to a combination of these characteristics or is perceived to have them.

For example, an employee cannot be discriminated against because they are both a person of color and a woman. This law also protects individuals who are perceived to be associated with someone who has, or is perceived to have, these characteristics. This change ensures a more nuanced and comprehensive approach to combat discrimination in the workplace.

4. Senate Bill 1100: Restrictions on Driver’s License Requirements for Job Applicants

With SB 1100, employers can no longer require job applicants to have a driver’s license unless driving is an essential function of the role. Even when driving is necessary, employers must consider whether alternative transportation options — such as walking, biking, or ride-sharing — would be sufficient to perform the job. This new rule aims to reduce barriers for individuals who may face challenges obtaining a driver's license, especially amid the trend of returning to office work and the associated commuting challenges.

5. Senate Bill 988: Protections for Freelance Workers

SB 988, effective January 1, 2025, sets minimum requirements for contracts between a hiring party and a freelance worker. A freelance worker is defined as an individual hired as a bona fide independent contractor to provide professional services for $250 or more. The bill mandates that the hiring party pay the freelance worker by the date specified in the contract or, if no date is provided, within 30 days of completing the services. Contracts between the hiring party and freelance worker must be in writing and kept for at least four years. The bill also prohibits retaliation or adverse action against freelance workers for pursuing their rights under this law. Both freelance workers and public prosecutors are authorized to take legal action to enforce these provisions.

6. Senate Bill 399: Limits on Mandatory Religious and Political Meetings

SB 399  prohibits employers from requiring employees to attend meetings or listen to communications where the employer’s opinions on religious or political matters are expressed. This law aims to protect employees from being compelled to participate in discussions about personal beliefs or political views they may not share. If an employee feels coerced into such meetings, they are granted the right to take legal action. SB 988 strengthens boundaries in the workplace, ensuring that employees' personal beliefs are respected, and reducing the potential for undue influence in workplace settings.

What These Changes Mean for Employers

The new laws reflect California’s continued commitment to strengthening employee rights and workplace protections. As these changes come into effect on January 1, 2025, employers should take steps now to review and update their policies, employee handbooks, and training materials to ensure compliance.

• Action Steps:

  • Ensure your leave policies reflect the changes to paid family leave and crime victim protections.

  • Review job postings and remove driver’s license requirements where driving is not a core function of the role.

  • Update anti-discrimination policies to address the expanded protections under SB 1137.

  • Be prepared to adjust communication and meeting protocols to align with the new rules on religious and political discussions.

Final Thoughts

With these significant legislative updates, California continues to set the bar for workplace protections. Staying informed and proactive about these changes is crucial for maintaining compliance and fostering a supportive work environment.

For more information on how these laws might affect your business or if you need help updating your policies, contact a legal professional or HR consultant.