Major Employment Law Updates in California for 2025 Series
In just a short amount of time, California has instituted a number of sweeping updates to paid leave, captive audience rules, and day-to-day operations. Workplace privacy laws and anti-discrimination rules are also undergoing major changes. With a little preparation, you can make sure your company is ready for the legal updates.
Changes to Anti-Discrimination and Privacy Laws
In 2025, California will be modifying the Consumer Privacy Act to create more privacy protections. Hairstyle discrimination laws, anti-preemption statutes, and intersectional discrimination rules are just a few of the upcoming changes in store for employers. Because so many new laws are slated to take effect in the next year, we’ve compiled a four-part series on major employment law changes in California.
California Expands Opt-Out Rights Under the Consumer Privacy Act
Under AB 3048, mobile operating systems and browsers must have opt-out options by January 1, 2026. This is an important change to how information is collected about consumers. Currently, users would have to go through each website’s privacy policy and opt out of each individual site.
With the new update to the Consumer Privacy Act, browsers must include the option to opt out. Then, these preference signals are given to each business and website. If your company receives an opt-out signal, you must honor it. Once a customer decides to opt out, you must respect their privacy by not selling or sharing their personal signals.
California Amends Definitions of Sensitive Personal Information Under the Consumer Privacy Act
Additionally, California signed additional privacy bills, SB 1223 and AB 1008, into law on September 28, 2024. These bills clarify what is considered personal information by adding a consumer’s neural data to the definition of sensitive personal information.
Neural data is any kind of data that’s generated by activity in your central or peripheral nervous system. Basically, this is any data type that isn’t inferred by other forms of information. Biometric and health data are also protected under the Consumer Privacy Act.
California Amends Consumer Privacy Act To Clarify Definition of Personal Information
As a part of the SB 1223 and AB 1008 bills, the definition of personal information has also been updated. Now, personal information is anything that exists in a physical format, digital format, or abstract digital format. Physical formats include paper documents, video tapes, and photos. Meanwhile, digital formats include audio, text, video, and image files.
The newest addition to this definition is abstract digital formats. Abstract digital formats may include metadata, encrypted files, or compressed files. It may also refer to any artificial intelligence systems that can generate personal information.
California Amends Hairstyle Discrimination Law
In 2019, California was the first state in the country to define hair as a part of racial discrimination under the CROWN Act. As it was written, the CROWN Act protected hair texture, hairstyles, and traits that were historically associated with a specific race. Now, the law has been amended to remove the word “historically.” These changes also apply retroactively.
While this may seem like a minor modification, it can have important implications for your company’s policies. Some of the wording and implementation in your appearance and dress codes may need to be updated to ensure you’re in compliance with the law.
California Amends Protections for Crime Victims
Thanks to AB 2499, the Fair Employment and Housing Act (FEHA) will be getting an important update. This new legislation provides added protections for crime victims. Under the modified law, employees are covered if they have been affected by an act of violence. This act is broadly defined as bodily injury to another, perceived threats of force, drawing a firearm, and similar violent measures. These added protections are extended to someone who has a family member impacted by violence if the employer has at least 25 employees. For instance, someone who is a victim of violence must be allowed to use their accrued sick leave or other leave.
No matter how large or small your business is, you are also required to give the employee reasonable accommodations at work through an interactive process. For example, this may involve extra safety measures, switching their schedule, or giving them a different work telephone number.
Under AB 2499, employers are prohibited from retaliating against employees who ask for accommodations or take leave because of violence. To ensure your workplace is prepared for these changes, it’s a good idea to update your employee handbook and make sure managers have been properly trained on it.
California Prohibits Intersectional Discrimination
SB 1137 amends the FEHA, Unruh Civil Rights Act, and Education Code to protect workers from intersectional discrimination in workplace settings. Intersectionality is the concept that different social categories can cause overlapping types of discrimination. For example, someone may be discriminated against for their race and gender at the same time.
California’s new prohibition on intersectional discrimination is the first law of its type in the country. To comply with this regulation, you’ll need to update your discrimination policies and training materials. Additionally, you should make sure you’re documenting complaints and investigative processes at your company.
California Anti-Preemption Law Takes Effect
With SB 1340, California specifically says that the Unruh Civil Rights Act, FEHA, and other laws do not limit cities, counties, and other political units from enforcing local laws. However, to be considered legal, these local laws must be at least as protective as the Unruh Civil Rights Act.
Discover the Latest Compliance and Regulatory Changes
As a small business owner, navigating today’s evolving anti-discrimination and privacy laws can be challenging. With the help of the best HR team, you can get notified about upcoming changes and receive assistance in building your company’s policies. Through this support, you can train managers on your compliance measures and ensure you are following California’s many employment laws.
To learn more about major updates to California’s employment laws and business regulations, reach out to our team of small business HR and payroll experts today.