It's never been more complicated to work in California.
California businesses must navigate a host of new employment laws in 2025, addressing changes in everything from mandatory job postings and freelancer contracts to whistleblower protections, leave policies and more.
The California state legislature was characteristically busy last year.
Never shy about enacting new laws and amendments impacting the workplace, lawmakers adopted a wave of statutes and amendments last year, focusing on everything from discrimination and the status of independent contractors to sick leave, whistleblower protection, and more.
So what do Golden State employers need to know to stay compliant in 2025 and beyond?
Here’s an overview of key changes.
Expanded Fair Employment and Housing Act Protections
The California Fair Employment and Housing Act (FEHA) continues to lead the way in establishing strong anti-discrimination policies.
Prior to Jan. 1, the Act prohibited employers with five or more employees from discriminating against or harassing workers based on several protected characteristics, including race, sex, age or physical or mental disability.
Senate Bill 1137 has introduced a landmark expansion to these protections, prohibiting discrimination and harassment based on combinations of “intersectional” characteristics, such as race, gender or age.
For instance, discrimination against someone due to a combination of being an older woman of a certain ethnic background is now explicitly covered under FEHA protections.
Driver’s License Requirements in Job Postings
Senate Bill 1100 amends the FHA to restrict employers from requiring a driver’s license in job postings unless the employer reasonably:
Expects driving to be one of the job functions of the position.
Believes that using an alternative form of transportation would not be comparable in travel time or cost to the employer.
An “alternative form of transportation” can include, but is not limited to, ride-hailing services, taxis, carpooling, bicycling and walking.
Enhanced Whistleblower Protections
While the state previously mandated that employers post workplace notices outlining employees’ rights and protections under whistleblower laws, they were not required to post a specific notice drafted by the California Labor Commissioner. Assembly Bill 2299 changes that, requiring employers to adopt a recently issued model notice, which provides standard wording and contact information for whistleblower hotlines.
Employers must prominently display this poster alongside other workplace notices. To comply, the poster must have a typeface of at least 14-point font and include the designated phone number.
Local Enforcement of Employment Discrimination Laws
Senate Bill 1340 authorizes local governments in California to enforce employment discrimination laws through ordinances that are at least as protective as the FEHA.
In accordance with the statute, local enforcement can only address an employment complaint if it’s filed with the California Civil Rights Department (CRD) after the CRD issues a right-to-sue notice. The enforcement must begin before the deadline stated in the notice, and must follow a local law that offers protections equal to or greater than state law.
The law also requires the CRD to develop regulations governing local enforcement, with compliance required within a year of their implementation. In the meantime, local enforcement should follow procedures that are "substantially similar” to those currently followed by the CRD.
Ban on Captive Audience Meetings
California Senate Bill 399 prohibits employers from discriminating or retaliating against employees who choose not to participate in mandatory workplace meetings focused on political or religious matters.
The new law specifically defines political matters as anything relating to elections for political office, political parties, legislation, regulation, and the decision to join or support any political party or political or labor organization.
Employers violating this law may face penalties of $500 per impacted employee.
Paid Family Leave and Vacation Time
Assembly Bill 2123 eliminates an employer’s ability to require employees to use accrued vacation leave before accessing California’s Paid Family Leave Program (PFL).
The program provides benefits to individuals taking time off to care for:
- A seriously ill child, spouse, parent or domestic partner
- Bond with a new minor child
- Assist military family members under active duty
Prior to Jan. 1, 2025, employers could force workers to take up to 2 weeks of accrued vacation before accessing PFL benefits.
Expanded Leave for Victims of Violence
Assembly Bill 2499 expands discrimination and retaliation protections for employees taking time off related to certain crimes or to assist family members who are victims of specified crimes.
Workers are also permitted to use state paid sick leave for these purposes.
Prior to the statute’s adoption, California law only extended these protections to employees taking time off for jury duty or court appearances, or to employees who were themselves victims of crime or abuse.
The new law broadens the definition of “victims” to include those impacted by domestic violence, sexual assault, stalking or any “qualifying act of violence,” such as causing bodily harm, using or threatening force or brandishing a dangerous weapon—regardless of arrests, prosecutions, or convictions.
Additionally, the law moves existing provisions for jury duty, court appearances and crime victim times off from the Labor Code to the FEHA, reclassifying them as unlawful employment practices, now enforced by the CRD.
Paid Sick Leave for Agricultural Workers
California Senate Bill 1105 allows agricultural employees who work outside to use paid sick leave to avoid hazardous conditions caused by smoke, extreme heat or flooding during state or local emergencies.
The new statute defines an “agricultural employee” as an individual working in:
- Agricultural occupations outlined in Wage Order No. 14 by the Industrial Welfare Commission.
- On-farm industries preparing agricultural products for market, as specified in Wage Order No. 13.
- Post-harvest industries handling products, as detailed in Wage Order No. 8.
While these amendments supplement California’s Healthy Workplaces, Healthy Families Act of 2014, it should be noted that the requirements established by the earlier statute remain in effect.
Freelance Worker Protection Act
California Senate Bill 988, also known as the Freelance Worker Protection Act, outlines new protections for independent contractors, defined as any individual or organization engaged by a hiring party to provide professional services in exchange for an amount equal to or greater than $250.
The law’s key provisions include:
Payment Requirements: Freelancers must be paid as per their contract or within 30 days after completing services if no date is specified. Hiring parties cannot delay payment by asking an independent contractor to accept less pay, do extra work or grant more rights than agreed.
Written Contracts: All agreements must be in writing and kept for at least 4 years. Contracts must include: names/addresses of parties, itemized services with rates and payment terms, and deadlines for service submissions and payment.
Anti-Discrimination: Hiring parties cannot retaliate against independent contractors who assert their rights under SB 988.
Legal Enforcement: Freelancers or prosecutors can take legal action for violations, with potential damages including unpaid wages, penalties and attorney fees.
The new statute also adopts the definition of “professional services” outlined in Labor Code Section 2778.
This definition covers a broad spectrum of creative and intellectual fields, including, but not limited to, marketing, human resources, travel agency services, creative disciplines and licensed professions.
Workers' Compensation Notices
Prior to the adoption of Assembly Bill 1870, California employers were already obligated to ensure their employees were well-informed about their rights and benefits under the workers’ compensation system.
The new law expands on those requirements, mandating that employers include notice of an injured employee’s right to consult a licensed attorney to advise them of their rights under workers’ compensation laws.
The statute also specifies that in most instances, attorney fees will be paid from an injured employee’s workers’ compensation recovery.
Narcan in First Aid Kits
Under Assembly Bill 1975, the California Occupational Safety and Health Standards Board must propose changes to Section 3400 of Title 8 by Dec. 1, 2026.
The updated regulation, set to take effect by July 2027, will require workplaces to include naloxone or another federally-approved opioid antagonist in their first aid kits, along with clear instructions for their use.
Naloxone, sold under the brand name Narcan, and similar medications can save lives by reversing an opioid overdose when quickly administered by a bystander.
Child Labor Voluntary Audits
California Assembly Bill 3234 introduces reporting requirements for employers conducting voluntary audits to evaluate compliance with federal and state child labor laws.
While the statute doesn’t mandate social compliance audits, organizations that choose to perform them must adhere to the new reporting rules.
This includes posting the audit results on a clearly visible link on their website.
Unfortunately, the law provides limited guidance on specific disclosure requirements, leaving employers to interpret these ambiguities.
Unless further clarification is issued by the California Labor Commissioner, organizations will need to navigate these uncertainties on their own.
The Bottom Line
California’s employment law updates for 2025 reflect a growing commitment to strengthening employee rights and ensuring workplace fairness.
Employers should review their policies, update workplace postings, and consult legal counsel if needed to ensure full compliance.
By understanding and implementing these changes, businesses can foster a more inclusive and equitable environment while avoiding potential legal pitfalls in the year ahead.
