TOP EMPLOYMENT LAW ISSUES TO KNOW FOR 2025

TOP EMPLOYMENT LAW ISSUES TO KNOW FOR 2025

It’s that time of the year again when employers have to prepare for new legislation in 2025.  This year was not as burdensome for employers as it has been in years past.  The following are the top employment law issues to prepare for in 2025:

1. Minimum Wage Increase: The minimum wage is set to increase $16.50 on January 1, 2025.  The salary basis test for exempt employees is tied to the minimum wage.  Accordingly, the salary basis test for exempt employees (non-computer programming) increases to $68,640 (from $66,560).
2. California Bans Captive Audience Meetings: California passed the California Worker Freedom from Employer Intimidation Act, which prohibits employers from taking adverse action against any employee who declines to attend an employer sponsored meeting that discusses religious or political matters, including union-representation discussions.
3. California Employers Face New “Driver’s License Discrimination” Claim When Hiring: A new California law will prohibit California employers from telling job applicants that a driver’s license will be required for a job unless it reasonably expects driving to be one of the job functions AND no alternative forms of transportation would work.  SB 1100 amends the Fair Employment Housing Act to make it an unlawful employment practice to require a driver’s license unless the employer can meet to the two identified factors.
4. Workplace Protections for Victims of Crime or Abuse Reframed and Expanded: California has provided employee leave and accommodation protections for victims of certain crimes so that they may seek assistance. Labor Code section 230 prohibits employers from discharging or discriminating against an employee because of the employee’s status as a victim of “crime of abuse” or for taking time off for certain purposes (such as to appear in court as a witness).   Section 230 also requires employers to provide reasonable accommodations for a victim of domestic violence, sexual assault, or stalking, who requests accommodation for their safety while at work.  Labor Code section 230.1 provides added protections and requirements on employers that have 25 or more employees.  Finally, Labor Code section 246.5 requires employers to allow employees, upon the employee’s request, to use their accrued paid sick leave if they are a victim of domestic violence, sexual assault, or stalking and need time off.  The new law maintains the same protections, but also provides expanded protections to employees in several ways.  The main takeaways:

• Key Term: Qualifying Act of Violence replaces the existing phrasing, defined as domestic violence, sexual assault, stalking, or any act, conduct, or pattern of conduct that includes (i) bodily injury or death to another; (ii) brandishing, exhibiting, or drawing a firearm or other dangerous weapon; or (iii) a perceived or actual threat to use force against another to cause physical injury or death.
• Rules Moved from the Labor Code to FEHA, which now creates exposure for additional remedies.
• Discrimination and Retaliation Prohibited: Employers of any size are prohibited from retaliating against or otherwise discriminating against employees who participate in the legal process.
• Some Protections Extended to Any Employee Who Has a Family Member Who Is a Victim: “Family member” means “a child, parent, grandparent, grandchild, sibling, spouse, or domestic partner (as those terms are defined under the CFRA); or a designated person, who does not need to be a blood relative, so long as their association with the employee is the equivalent of a family relationship. An employee may identify a “designated person” at the time they request leave, but the employer may limit an employee to one designated person per 12-month period.
• Reasonable Accommodations Shall Be Provided for QAV Victims
• Employers with 25 or more shall provide unpaid time-off for leave for reasons specified in the law.

5. PAGA Legislative Reform: The CA Legislature and Governor Newsom signed legislation to provide new protections for employers, plus incentives for proactive compliance with labor laws. The key changes create standing requirements to ensure employees that bring PAGA actions have personally experienced the same violation as other employees, penalty caps for employers who take “all reasonable steps to comply”, and an expanded right to cure, depending on the alleged Labor Code violations and the employer’s size.
6. FEHA Protected Categories: FEHA was amended to prohibit Intersectional discrimination, which refers to cases where someone experiences discrimination based on a combination of protected characteristics, such as race, gender and age, rather than just one protected characteristic alone.
7. AI in the Workplace: A personal or professional services agreement (or employment agreement) containing a provision allowing for the use of a “digital replica” of an individual’s voice or likeness is unenforceable if (1) it does not include a reasonably specific description of the intended uses of the replica and (2) the individual is not represented by legal counsel or by a labor union.
8. Paid Family Leave and Accrued PTO: Employers can no longer require employees to use accrued PTO (sick leave, vacation leave, or other comparable paid leave benefits) before receiving Paid Family Leave benefits under the EDDs PFL program.
9. New Employment Poster Coming: A new law requires the California Labor Commissioner to create a “model notice” listing employees’ rights and responsibilities under California Labor Code section 1102.5 and other whistleblower laws. The poster can be found on the Labor Commissioner’s website.
10. New Indoor Heat Regulations: Cal-OSHA developed indoor heat regulations, which went into effect in 2024. These regulations apply to indoor work areas > 82ºF when workers are present, with certain exceptions.
11. Workplace Violence Prevention Plan. All employers are required to develop and implement a Workplace Violence Prevention Plan that meets specific requirements outlined in the law. Cal-OSHA has developed a Model Plan that employers can modify for their particular workplace.

If you wish to discuss any of these matters, please contact me at your convenience.