Latest Updates on California Labor Law for 2025
The latest updates in California labor laws cover multiple areas, including the state minimum wage, anti-discrimination measures, paid leave policies, and employers’ communications regarding union activities.
These changes reflect the shifting societal and economic environment, with California leading the charge to enhance employee protections and foster inclusivity across all sectors.
Let’s delve into the recent updates within California’s labor laws. We will explore the nuances of worker protections and benefits, transparency and ethical standards, and the profound implications these have on employers and employees.
Key Legislative Changes
The landscape of labor laws in California underwent a significant transformation in 2025, following legislative updates aimed at enhancing workers’ rights and promoting workplace inclusivity.
These changes span a broad spectrum of issues, including protections for freelancers, anti-discrimination measures, and evolving definitions surrounding race to ensure greater inclusivity.
Among the new measures are nuanced revisions to worker benefits, enhanced paid family leave provisions, and strengthened minimum wage laws. Employers are presented with fresh compliance challenges, as transparency and ethical standards become the pillars of this legislative evolution.
Driver’s license minimum requirements are also being reevaluated to expand accessibility for all workers. As these updates unfold, they are expected to have substantial impacts on how employers and employees interact, ensuring a fairer and more supportive employment environment.
Here are the most significant updates to California labor laws:
Expansion of Protections for Freelancers (SB 988)
In a move to better protect freelance workers, SB 988 introduces Freelance Worker Protection Act (FWPA) to safeguard the rights of this growing workforce segment. It acknowledges the unique challenges faced by freelancers who often work without the safety regulations of traditional employment benefits. Senate Bill No. 988.
- Mandatory Written Contracts for Freelancers: One of the notable features of the act is the requirement for written contracts for engagements exceeding $250, detailing the scope of work, payment timelines, and dispute resolution processes. This ensures clarity for both freelancers and those who hire them, mitigating potential conflicts and fostering a transparent working relationship.
- Anti-Discrimination Protections for Freelancers Under FWPA: The FWPA safeguards freelance workers from facing discrimination or any negative consequences when they protest against violations of the FWPA or attempt to uphold its provisions.
- Timely Payment Mandate for Freelancers: The legislation mandates timely compensation for services rendered, ensuring freelance workers are paid within 30 days of completing their work. This update reflects California’s commitment to adapting to evolving work realities while protecting the interests of all workers.
Strengthening Anti-Discrimination Laws (SB 1137) (AB 1815)
SB 1137(3) and AB 1815 represent a necessary step forward in fortifying California’s stance against workplace discrimination. The California Fair Employment and Housing Act (FEHA) sets up the Civil Rights Department to make sure people are treated fairly when it comes to where they work and live.
It says everyone has the right to look for, get, and keep a job or a home without facing unfair treatment because of certain traits. If someone faces discrimination, FEHA makes that illegal and allows employees to take civil action against it. The law aims to stop these unfair practices effectively.
A recent update to this law addresses workplace inclusivity by prohibiting discrimination based on a combination of two or more traits, rather than just one.
The traits this law focuses on include things like race (including but not limited to: hair texture and protective hairstyles), religion, skin color, where someone comes from, any kind of disability, medical condition, genetic information, marital status, sex, age, sexual orientation, decisions related to reproductive health, or whether is a veteran or in the military.
Minimum Wage Protection
In 2025, California reinforced its commitment to assisting low-income workers by gradually raising the minimum wage requirements. Effective January 1, 2025, the state’s minimum wage increased from $16.00 to $16.50 per hour for all employees. [1]
Under the state law that took effect in 2024, specific fast-food workers are required to receive a minimum wage of $20 per hour. Additionally, employees in the healthcare industry were set to earn a minimum of $23 per hour until June 30, 2025, which was then scheduled to rise to $24 per hour starting July 1, 2025. This minimum wage for healthcare workers is scheduled to increase further to $25 per hour starting July 1, 2026. [2], [4]
In addition, California law, akin to the federal Fair Labor Standards Act (FLSA), offers overtime pay exemptions for employees in executive, administrative, and professional services. From January 1, 2025, the minimum salary requirement for these exempt positions was raised from $66,560 to $68,640 annually. [1]
California continues to lead the country with its progressive wage policies that provide a more livable income for its workers. By setting a higher baseline, the law aims to reduce economic disparities and improve quality of life.
Modifications to Paid Family Leave (AB 2123)
The Paid Family Leave program in California continues to expand its support for workers needing time off to care for family. Starting January 1, 2025, a new rule called AB 2123 stops California employers from making employees use up to two weeks of their vacation time before they can get Paid Family Leave benefits.
Sick Leave Modifications
California has revised its sick leave policies to improve health standards and employee rights. The modifications focus on expanding annual sick leave accruals and the range of acceptable uses, including caring for family members. AB 2123
By mandating clearer record-keeping and employee notifications, the state aims to prevent misuse while also enabling workers to address health issues without the fear of losing income or employment.
Employers must update their policies to reflect these changes, ensuring compliance and awareness among their workforce.
Ban on Captive Audience Meetings
With the enactment of SB 399, California aligns with several other states by prohibiting mandatory captive audience meetings.
With effect from January 1, 2025, under the California Worker Freedom from Employer Intimidation Act, employers in California are barred from firing, discriminating against, or retaliating against employees. They cannot even threaten to do so. [3]
Employment Protections for Violence Victims (AB 2499)
AB 2499, a significant update in California labor laws, introduces enhanced protections for victims of acts of violence, including domestic violence, sexual assault, and stalking.
Recognizing the profound impact of such experiences on professional life, the law mandates reasonable accommodations like flexible work hours or temporary transfers, ensuring abuse victims can maintain employment while addressing their safety.
Restricting Driver's License Requirements (SB 1100)
SB 1100 proposes changes in the regulations surrounding driver’s license requirements, particularly affecting employment opportunities. The revisions aim to reduce barriers for potential employees whose access to work may be restricted by strict transportation requirements.
The law seeks to prevent those without a legal driver’s license from being excluded from jobs that do not require driving. It would prevent the employer from requiring a valid driver’s license from the applicant if driving is not required for the job position.
This reform positions California’s labor policies at the forefront of adapting to workforce dynamics and prioritizing accessibility and fairness in employment practices.
Reach out to Goldberg & Loren’s California employment law attorneys for a free consultation today if you’re experiencing any violations of your workplace rights.
Frequently Asked Questions (FAQs)
The key updates include new regulations on captive audience meetings, enhanced protections for violence victims, and restrictions on driver's license requirements, aimed at promoting fair employment practices and worker freedom.
Victims of crimes such as domestic violence, sexual violence, and stalking are entitled to reasonable workplace accommodations such as flexible working hours or temporary transfers, assisting them in maintaining employment while addressing personal safety concerns.
SB 1100 eases the transportation requirements tied to employment, promoting inclusivity and enabling more individuals to access job opportunities by focusing on job function capabilities instead of rigid transportation constraints.
Sources:
[1] Cal/OSHA, & California, S. O. (n.d.). The Labor Commissioner’s Office reminds employers that California’s Minimum Wage Increases to $16.50 per hour on January 1| California Department of Industrial Relations. https://www.dir.ca.gov/DIRNews/2024/2024-107.html
[2] Llp, C. L. L. (n.d.). California Employers: Are you ready for the new laws of 2025? ©2025 CDF Labor Law LLP. https://www.callaborlaw.com/entry/california-employers-are-you-ready-for-the-new-laws-of-2025
[3] Liebert Cassidy Whitmore. (2024, October 22). California’s New Worker Freedom from Employer Intimidation Act – Liebert Cassidy Whitmore. https://www.lcwlegal.com/news/californias-new-worker-freedom-from-employer-intimidation-act/
[4] Dir, & California, S. O. (n.d.). Health care worker minimum wage frequently asked questions. https://www.dir.ca.gov/dlse/Health-Care-Worker-Minimum-Wage-FAQ.htm
