All the New California Labor Laws You Need to Know for 2025 | Fisher Phillips

Now that the California legislative session is essentially over and Governor Newsom has taken action to either approve or veto all workplace safety bills on his desk, employers can take stock of all the new laws that will soon go into effect . Unless otherwise noted, all laws described below are effective January 1, 2025. But don’t leave compliance tasks until the last minute. Use this helpful insight to put together your checklist of things you need to do in the next few months.

Employer meetings with “captive audiences” are now banned

Gov. Newsom signed a bill last Friday that will soon prohibit employers from holding “captive audience” meetings – those employer-sponsored mandatory meetings where religious or political matters, including discussions about union representation, are discussed. SB 399, also known as the “California Worker Freedom from Employer Intimidation Act,” will subject most employers to a civil penalty or civil lawsuit beginning January 1, 2025 if they prevent employees from attending such meetings under threat of dismissal, disciplinary action, etc require some other adverse employment actions. These spectator bans are becoming increasingly common across the country—and are shifting the balance of power in favor of unions by preventing employers from exercising their protected right to free speech. Knowing that this new law could have serious consequences for employers and businesses in California, read on to understand what you need to know and the five steps you should take to ensure compliance.

New law regulates vacation for victims of violence

Gov. Newsom signed a bill Sunday that will revamp and expand existing workplace protections for employees who are victims of crime or abuse. The new law redefines who is eligible for protection, expands the grounds for protected exemption and shifts enforcement authority to the state's Civil Rights Division. Therefore, employers need to pay careful attention to what is changing and what you need to do to stay compliant. We explain everything to you and give you eight important insights for employers.

State extends PAGA exemption for unionized construction employers — but you must take action to qualify

Governor Newsom just signed legislation on Saturday that ensures that certain unionized construction employers will be completely exempt from PAGA lawsuits for the next 14 years. Thanks to AB 1034, construction employers who meet certain standards – including paying workers 30% more than the minimum wage – will have the Private Attorneys General Act (PAGA) exemption they have enjoyed for a decade effective January 1st Postponed to 2038. What do employers do? Would you like to know about this positive development and what steps do you need to take to enjoy the relief?

Employers must pass a new two-part test to avoid driving discrimination in hiring

A new law signed into law over the weekend by Gov. Newsom will soon ban California employers from telling job applicants that a job requires a driver's license unless the job passes a two-part test. SB 1100 amends the Fair Employment Housing Act (FEHA) to state that, effective January 1, 2025, you can only make such a declaration if you have a reasonable expectation that driving is one of your job responsibilities and not an alternative means of transportation doing this would train. Further details and a four-step action plan to comply with the new law can be found here.

New law expands protection for freelancers

California just passed a new law that further expands protections for freelancers. Starting in 2025, private employers who engage certain independent contractors will be required to provide a written agreement with certain terms and pay their compensation within certain time frames. The new law aims to provide freelancers with “basic worker protections” and the right to be paid on time. We'll explain everything you need to know and give you five steps you can take to stay compliant.

New law allows local enforcement of workplace discrimination

California will soon allow local governments to enforce not only the state's employment discrimination claims, but also local anti-discrimination laws that are stricter than the state's anti-bias laws. Governor Newsom signed SB 1340 last week, meaning your business could soon face compliance challenges beyond those posed by California's Fair Employment and Housing Act (FEHA) and the Unruh Civil Rights Act. Here are three steps you can take to ensure you are prepared for these changes, which take effect on January 1, 2025.

New law sets requirements for voluntary social compliance audits

California will soon require companies to publicly share the results of voluntary, non-governmental social compliance audits. Governor Newsom signed Assembly Bill 3234 on September 22, which establishes reporting requirements for employers who choose to conduct social compliance audits and requires them to post the audit results to a prominent link on their website . The new legislation comes into force on January 1, 2025. So what five things do employers need to include in audit reports?

The 3 biggest workplace vetoes

In addition to the legislation passed and finalized, Governor Newsom vetoed a number of bills that came to his table – including three major proposals that would have impacted employers.

• Governor vetoes controversial AI security law – Facing fierce opposition from high-tech companies and executives, California's governor on Sunday vetoed a proposed AI safety law that would have required developers of high-risk AI models to conduct safety testing and implement shutdown mechanisms, to prevent critical damage. SB 1047, also known as the Safe and Secure Innovation for Frontier Artificial Intelligence Models Act, would have established the strictest AI security standards in the country, particularly when it comes to cybersecurity and public safety. What can California businesses and employers expect after this high-profile defeat?
• Governor rejects new law that would have more than doubled statute of limitations — The California Department of Civil Rights would have been given the authority to file group or class complaints against employers for up to seven years after the alleged misconduct, but Gov. Newsom vetoed the bill on Sunday. Under state law, such claims can only be brought within three years of allegations of misconduct. Therefore, SB 1022 would have dramatically upped the ante for employers across the state by more than doubling the statute of limitations for these cases. The proposed law would also have expanded the types of claims that would be considered “class or collective actions,” meaning an increase in the number of lawsuits filed by the state would be expected in the coming years. In his veto message, Newsom said the “significant” extension of the statute of limitations was “concerning” to him and he urged lawmakers to submit a bill to him with a more “reasonable” deadline.
• It was suspected that farm workers' heat injuries were work-related — California agricultural employers can breathe a sigh of relief after Gov. Newsom vetoed a workers' compensation bill that would have harshly punished employers who don't comply with heat standards. The proposed legislation contained in SB 1299 would have created a presumption that heat-related injuries to farmworkers were work-related and therefore covered by workers' compensation if their employer failed to meet heat illness prevention standards.