New Labor Laws taking effect in 2025



California’s two-year legislative session for 2023-2024 ended on August 31, 2024. A record 5,553 bills were introduced. For 2024 specifically, the California Chamber of Commerce tagged 17 bills as “job killers”. Thankfully, through significant advocacy work by chambers all over the state, only one of those bills was signed into law: SB 399 (details below).

However, there are numerous other bills that were not labeled as “job killers” that did get signed into law that affect business. Here is a summary. Minimum Wages – Proposition 32 failed at the ballot box in November. However, minimum wage is still going up to $16.50 per hour for both small and large employers in the state. As you probably know by now, fast-food and healthcare employers need to keep their focus on minimum wage laws that took affect mid-year last year that are specific to those industries. Banning Employer Speech (SB 399 – Job Killer) – Employers are now forbidden from requiring employees to attend meetings where the employer shares their views on religious and/or political matters.



This is specifically intended to prevent employers from communicating with their employees about their (the employers’) views on unionization. The California Chamber believes that this law may be unconstitutional under the First Amendment and also preempted by the National Labor Relations Act. But to date no legal challenges have been filed that I know of. Driver’s License Requirement Prohibited (SB 1100) – Employers may no longer include statements in job postings that an applicant “must have a driver’s license”, unless the employer expects driving to be one of the job functions of that job. Vacation vs. FMLA (AB 2123) – Employers may no longer require employees to use up to two weeks of accrued vacation before receiving paid family leave benefits. Contracts for Independent Contractors (SB 988) – All agreements between freelance workers and hiring parties must be in writing if the service being provided will equal or exceed $250 in value.

These contracts have some very specific requirements. Any freelance worker who believes he/she has a grievance against a hiring party can bring a civil action to enforce this law – so do your homework and get these agreements set up properly. Social Compliant Audits (AB 3234) – If your company voluntarily undergoes a social compliance audit (which is typically used to determine whether child labor is involved in your operations), that audit’s findings must now be posted on your company website.

Several Other Niche Laws/Industries:
• Paid Sick Leave – expanding to cover agricultural employees (SB 1105).
• CAL/OSHA Indoor Heat Rules – took effect last July. If you have a restaurant, warehouse or manufacturing facility, make sure you know the details.
• Digital Replica Restrictions – AI replicas of living or deceased performers have restrictions (AB 2602).
• Worker’s Compensation Notices – your labor law poster and worker’s comp pamphlets must alert employees that they have a right to consult an attorney at the employer’s expense if they have worker’s comp concerns (AB 1870).

Overall, make sure you have the newest 2025 Labor Law posters posted at your site. We have them for very reasonable price if you need them. They are necessary to avoid opening yourself up to useless liability. And now it is on to 2025. Please let us know if you are aware of any pending legislation that will affect your industry or business. We love advocating for our members!