Minimum Wage

While this is not technically a new law, the general statewide California minimum wage increases to $16.50 per hour on January 1st, 2025. Employers should remember that local minimum wage ordinance updates and the recent healthcare worker minimum wage will also have an impact. Key Bay Area local ordinance updates include: Alameda: $17.00, Oakland: $16.50, Berkeley: $18.67, San Francisco: $18.67, and Emeryville: $19.36. Any state minimum wage increase also triggers an increase in the salary test for “white collar exempt” employees. On January 1st, 2025, the exempt salary goes up to $1,128 per week, or $58,656 yearly. 

The healthcare worker minimum wage update, which took effect on October 16th, 2024, raises the minimum wage from $18 to $23 per hour, depending on the healthcare facility. Exempt, covered health care employees must be paid the higher of either 2 times standard statewide minimum wage or 1.5 times applicable health care worker minimum wage. The definition of a “health care employee” is broad: it essentially covers all employees working for a covered health care facility whether they directly provide healthcare or not. Covered healthcare employers (this classification depends on many factors: see the Official Notice) must also post a supplemental minimum wage notice alongside the statewide minimum wage notice. Further, the fast-food worker minimum wage has also been updated, which affects restaurants that are a part of a fast-food chain of over 60 establishments nationally, and increases employees’ minimum wage to $20 an hour, or “limited service” employees (limited or no table service). 

Leaves of Absence

Assembly Bill 2499 moves crime victims’ leave from the Labor Code to the Fair Employment and Housing Act (FEHA), meaning the California Civil Rights Department. The law expands the reasons for which victims of a crime may get time off when working for employers with 25 or more employees. The law also broadens the definition of “victim” to a person who suffers a “qualifying act of violence,” which now also includes (1) when a dangerous weapon is “brandished” at someone by another individual, (2) when the use of force is threatened to injure someone, and (3) an act that causes bodily injury or death. Before, “victim” was defined mostly as how the California Family and Penal Codes would define a victim in relation to crimes and domestic violence.

Senate Bill 1105 revises paid sick leave and explicitly lets agricultural employees use accrued paid sick leave to avoid conditions such as flooding, smoke, or heat created by a local or state emergency. This is not a change in the law, but a clarification of existing law about sick days as a necessity for the preventive care of an employee.

Assembly Bill 2011 affects employers with between 5 and 19 employees. Under the California Fair Employment and Housing Act, the Civil Rights Department must create a small employer family leave mediation pilot program for resolving alleged violations of prescribed provisions on family care and medical and bereavement leave. This bill expands the program to include resolution of alleged violations of prescribed provisions on reproductive loss leave and deletes the repeal date for the pilot program, leaving it to stand indefinitely (as it will be in place indefinitely, it is no longer called a “pilot program,” just a “program”). The bill would also toll the statute of limitations applicable to an employee’s claim relating to an alleged violation of specified provisions on reproductive loss leave, as provided. The bill would also consider the mediation to be complete if the mediator determines that the employer does not have between 5 and 19 employees, except as specified. The statute of limitations will be tolled from the date the employee contacts the department’s dispute resolution division regarding the intent to pursue a legal action until the mediation is complete or the mediation is considered unsuccessful.

Assembly Bill 2123 prevents employers from requiring employees to use up to two weeks of accrued vacation before receiving Paid Family Leave (PFL) wage replacement benefits. Employers with this policy should make an update by January 1st to reflect the change.

Beginning on January 1st, 2025, revised changes to the formulas for determining benefits for both Paid Family Leave and State Disability Insurance will take effect. The wage replacement rate will go up to between 70 and 90 percent (from between 60 and 70 percent, which is where it is) of the wages which the employee earned in the highest quarter of the base period, depending on wages earned.

Employer Speech

Called a “job killer bill” by CalChamber, Senate Bill 399 prohibits an employer from subjecting, or threatening to subject, an employee to retaliation, discrimination, or any adverse action because the employee refuses to go to an employer-sponsored meeting or affirmatively declines to listen to, receive, or take part in any employer communications regarding the employer’s opinion on religious or political matters. “Religious matters” is broadly defined as anything related to religious affiliation and practice, and the joining or supporting of any religious organization or group. “Political matters” is also defined broadly, as matters relating to political parties, elections, legislation or regulations, and the support of any political party or labor organization. 

SB 399 states that an employee working during a meeting and decides not to go to must be paid while the meeting is happening. There are exceptions: the law does not apply to specific religious corporations and political organizations, nor does it bar employers from communication or training mandated by law or necessary for the job itself.

Discrimination, Harassment, and Retaliation Prevention

Senate Bill 1100 regulates what employers can say during the recruitment and hiring process. It prohibits employers from listing a driver’s license as a preferred qualification for candidates unless certain conditions are met. Employers cannot include a mandate that an employee must have a driver’s license on a job posting or application unless the employer “reasonably expects” driving to be a job function for the position and “reasonably believes” that using an alternative form of transportation would not be comparable in travel time or cost to the employer. Even if driving is functionally the job for a position, employers cannot require a driver’s license unless they conclude that virtually any alternative forms of travel would not work.

Senate Bill 1137 clarifies that the anti-discrimination provisions under FEHA, the Unruh Civil Rights Act, and the Education Code prohibits discrimination on any combination of protected characteristics, not just one individual protected characteristic (or… intersectionality). Specifically, this recognizes that it would be necessary to determine whether discrimination occurred based on a combination of protected characteristics instead of one in isolation.

Assembly Bill 1870 requires employers to update their workers’ compensation posters to include that the employee may consult with a licensed attorney to advise them of their rights as they relate to workers’ compensation. Assembly Bill 2299 requires the Labor Commissioner to develop a notice regarding the state’s whistleblower laws, and employers who post the model notice from the Labor Commissioner will be considered compliant. You can download the model poster here

Assembly Bill 2499 requires the Civil Rights Department to create a model notice which employers can post which includes requirements for providing leave for victims of crime and abuse. Employers need not comply until the Civil Rights Department posts the model form. 

Independent Contractors

The Freelance Worker Protection Act (Senate Bill 988) requires contracts between employers and freelance workers who provide “professional services” worth $250 or more must be in writing and include information such as a list of the services provided, names, dates, and payment information. Payment must be made on the date in the contract or no later than 30 days after the services were provided.

Workplace Safety

Provisions from Senate Bill 428 take effect, expanding workplace violence temporary restraining order laws (TRO). Starting January 1st, the employee’s collective bargaining representative can also obtain a TRO, not just the employer. This can occur when an employee suffers harassment, specifically “knowing and willful course of conduct directed at a specific person that seriously alarms, annoys, or harasses the person, and that serves no legitimate purpose” which would cause a reasonable person to suffer emotional distress and actually cause emotional distress.

OSHA is considering a national indoor and outdoor heat illness prevention standard, which could lead to changes to Cal/OSHA’s regulations as soon as next year.

Social Compliance Audits

Assembly Bill 3234 protects minor employees. Employers who voluntarily opt into a “social compliance audit” must post a link on their website to a report detailing their compliance with child labor laws. Per AB 3234, a social compliance audit is a voluntary, nongovernmental inspection covering an employer’s practices in relation to state and federal labor laws, wage and hour compliance, and health and safety regulations including those relating to child labor.

If you have questions about California employment law, or if you need assistance reviewing or revising your existing policies, please contact our office to schedule a time to discuss your matter. The Nuddleman Law Firm, P.C. helps employees and employees understand their rights and obligations so they can make good decisions going forward. We help parties resolve workplace conflicts. Robert Nuddleman also provides group and one-on-one training regarding best practices and requirements for employees and employers. Contact the Nuddleman Law Firm today.

Original Article by Sophia Fraher of the Nuddleman Law Firm, P.C.
Article edited by Robert Nuddleman of the Nuddleman Law Firm, P.C.