While many California employers are still adjusting to the labor law changes that took effect at the start of 2025, recent enforcement data sends a clear warning: the number of citations issued by labor regulators in the first quarter surged by 73% year-over-year. The most common violations? Minimum wage noncompliance and mandatory meeting bans.
As former prosecutor and leading Southern California trial attorney Paul P. Cheng, Esq. notes, “Many employers mistakenly believe they have a grace period to comply. But with the busy Labor Day season approaching, now is the last window for corrective action.”
To help businesses stay on track, our firm outlines ten critical legal updates every California employer should understand — and act on.
1. Statewide Minimum Wage Increase
As of January 1, 2025, California’s minimum wage is $16.50/hour, regardless of company size. Exempt employees must now earn a minimum annual salary of $68,640.
Employer Action Items:
- Work with HR and finance to verify salary compliance
- Issue updated Wage Theft Prevention Notices
- Post the new Minimum Wage Order notice
- Be aware of higher local minimum wages (e.g., Menlo Park $17.10, Mountain View $19.20)
- Fast food and healthcare employers face even higher thresholds
2. New Poster Requirements
AB 2299 (Whistleblower Rights):
Employers must post a notice, in at least 14-point font, informing employees of their whistleblower protections.
AB 1870 (Workers’ Comp Legal Counsel Disclosure):
All workers’ compensation notices must now state:
- The employee’s right to consult an attorney
- Attorney fees are typically deducted from the settlement
3. Paid Family Leave Protections (AB 2123)
Employers can no longer require employees to use two weeks of paid vacation before accessing state-paid family leave (PFL).
Action Required:
- Update your employee handbook
- Train management on new leave policies
4. Driver’s License Discrimination Ban (SB 1100)
Unless driving is an essential duty with no reasonable alternative, employers:
- Cannot require a driver’s license in job postings
- Cannot discriminate against applicants who lack one
Recommendation:
Review and revise job descriptions and ads to ensure compliance.
5. Expanded Victim Protections (AB 2499)
Victims of qualifying crimes (e.g., domestic violence, stalking) and their designated family members are entitled to:
- Up to 12 weeks of safety-related leave
- Paid sick leave use
- Anti-retaliation protections for employers with 25+ employees
Compliance Tip:
Update anti-discrimination policies and train supervisors on reasonable accommodation.
6. Workplace Violence Restraining Orders (SB 428)
Employers can now seek restraining orders on behalf of employees subjected to harassing conduct that causes substantial emotional distress.
Action Step:
Strengthen anti-harassment training and response protocols.
7. Freelancer Protection Law (SB 988)
Independent contractors earning over $250 per engagement must have a written contract outlining:
- Scope of work
- Payment terms
- Timeline
Late payments may trigger double damages and attorney fee liability.
Tip:
Audit existing vendor agreements and ensure procurement staff understand the new rules.
8. Ban on Intersectional Discrimination (SB 1137)
California is now the first state to explicitly ban intersectional discrimination (e.g., bias based on combined race and gender) under the Fair Employment and Housing Act.
Employer Checklist:
- Update anti-discrimination training
- Seek legal counsel on complex bias claims
9. Mandatory Meeting Ban (SB 399)
Employers may not require employees to attend meetings discussing religion, politics, or union opposition. Violations can result in fines of $500 per employee.
Stay Compliant:
Ensure all such meetings are strictly voluntary and stay informed of evolving federal NLRB guidance.
10. Social Compliance Audit Disclosures (AB 3234)
Voluntary social audits involving child labor reviews must include a public link to the audit report on the company website.
Caution:
Consult legal counsel before disclosing audit results to preserve confidentiality or legal privilege.
What Didn't Pass (But You Should Watch):
- Prop 32: $18/hour minimum wage initiative was narrowly defeated
- AB 2930: AI hiring regulation bill stalled
- SB 1022: Proposal to extend FEHA lawsuits to 7 years was vetoed
With enforcement efforts rising and court interpretations evolving, compliance is no longer just about avoiding fines—it’s about future-proofing your workplace.
As Paul Cheng warns, “With pending legislation like AB 2930 on AI hiring practices, this is not just an annual update. It’s a fundamental shift in the employment landscape.”
The Law Offices of Paul P. Cheng & Associates continues to monitor these developments and provides tailored compliance strategies to California employers. For consultations or training, contact our labor law team today.