STATE/LOCAL UPDATES
California: The deadline for the Governor to sign this year’s legislation was September 30. He vetoed some proposed new laws, such as regulation of AI in employment (but encouraged the legislature to make some changes and try again next year), more stringent COBRA notices, unemployment benefits for striking workers, and an extension of the statute of limitations for CRD class actions, but signed several others that will become law. All new laws are effective January 1, 2025, unless otherwise noted.
SB 1137 – Intersectionality. Although the EEOC has referenced intersectionality in its guidance, California is the first state to explicitly recognize that “different forms of inequality operate together, exacerbate each other, and can result in amplified forms of prejudice and harm”. While it doesn’t create a new protected class, it does require courts and employers to view discrimination and harassment claims as a combined whole rather than as separate and distinct claims.
SB 1340 – Local Enforcement of Discrimination Laws. Currently, only CRD enforces FEHA and related discrimination laws. Soon local governments (i.e. cities and counties) will be permitted to enact and enforce anti-discrimination laws that are at least as protective as state law. Local enforcement can only occur once CRD issues a right-to-sue notice, but it does add another layer of enforcement that employers will have to deal with before even reaching litigation. Importantly, the statute of limitations provided in the right-to-sue notice is tolled during any local enforcement, litigation timeframes are also expected to be extended. CRD is expected to develop regulations shortly to explain the coordination between CRD and local governments.
AB 2499 – “Victims” of Violence Rights. This new law reorganizes and expands existing protections for victims of crime or abuse and moves them from the Labor Code to FEHA, which will be placed under CRD’s enforcement authority rather than DLSE. The law combines separate statutes for crime and domestic violence, sexual assault, or stalking, and adopts the term “qualifying acts of violence” instead (domestic violence; sexual assault; stalking; or any act, conduct, or pattern of conduct that includes (i) bodily injury or death to another; (ii) brandishing, exhibiting, or drawing a firearm or other dangerous weapon; or (iii) a perceived or actual threat to use force against another to cause physical injury or death).
The new version of the law prohibits discrimination or retaliation, expands eligibility for reasonable accommodations, and allows employees to use vacation, paid sick leave, or PTO for leave. A family member is a child, parent, grandparent, grandchild, sibling, spouse, domestic partner, or qualifying designated person.
CRD will be publishing a form notice by July 1, 2025, at which time employers are required to notify employees of their rights and will also want to update their employee handbook.
SB 1100 – Driver’s License Discrimination. This law prohibits statements in employment materials (such as a job advertisement, posting, or application) that an applicant must have a driver’s license unless there is a reasonable expectation that the job duties require driving and the employer reasonably believes that an alternative form of transportation would not be comparable in travel time or cost to the employer. Alternative forms of transportation may include a ride-hailing service, taxi, carpooling, bicycling, or walking. Employers should review their job postings and applications to ensure that only those jobs that might reasonably require driving list a driver’s license as a requirement, and that they add “or other reliable form of transportation”.
SB 399 – California Worker Freedom from Employer Intimidation Act (Captive Audience). This law prohibits employers from subjecting or threatening discrimination or adverse action against any employee who declines to attend or participate in, receive, or listen to an employer-sponsored meeting or communications regarding the employer’s opinion about religious or political matters. The new law requires employers to continue paying employees who refuse to attend such meetings and imposes a civil penalty of $500 per employee for each violation.
AB 2123 – Paid Family Leave. This law eliminates an employer’s ability to require employees to take up to two weeks of earned and unused vacation before using Paid Family Leave benefits.
AB 3234 – Social Compliance Audit Disclosures. Employers who voluntarily conduct a “social compliance audit” will be required to include certain disclosures in the audit and post a clear and conspicuous link to the report on their website. A “social compliance audit” is defined as a voluntary, nongovernmental inspection or assessment of an employer’s operations or practices to evaluate whether the operations or practices comply with state and federal labor laws, including wage and hour and health and safety regulations, including those regarding child labor”.
SB 988 – Freelance Worker Protection Act. This law requires employers to provide a written agreement to freelance workers (independent contractors) and keep a copy for at least four years. The contract must include the name and address of each party, an itemized list of services, the rate and method of compensation, a payment date, and a date by which the worker must submit the list of services rendered. If a payment date is not specified, payment is due no later than 30 days after completion of services. Hiring parties are also prohibited from discriminating against an IC for asserting rights under these provisions, and the law creates a private right of action with injunctive relief, damages, fees, and costs available.
AB 2299 – Whistleblower Protections Posting. This law directs the Labor Commissioner to develop, and an employer to post, a model list of employees’ rights and responsibilities under the State’s whistleblower laws. The poster is not a new requirement – it just wasn’t previously clear what needed to be posted and the state’s sample notice included a disclaimer that it didn’t necessarily fulfill the requirements of California law. The new model notice will provide employers with a safe harbor if they elect to use it.
AB 1815 – Crown Act Amendments. This law retroactively “clarifies” the definition of race and protective hairstyles by making it clear that race is “inclusive of traits associated with race, including but not limited to hair texture and protective hairstyles.” “Protective hairstyles” now include but are not limited to such hairstyles as braids, locs, and twists. Some code sections refer to traits “historically” associated with race. This was deemed vague and confusing, so the word “historically” has been removed.
SB 1105: Agricultural Workers Paid Sick Leave. This law confirms that agricultural employees are entitled to use accrued paid sick days if they (i) work outside and (ii) request sick leave to avoid smoke, heat, or flooding conditions created by a local or state emergency, including sick days necessary for preventive care due to their work or such conditions.
Washington: The legislature had a short 60-day session this year, but passed several new laws that employers should be aware of.
Minimum Wage/Exempt Salary Thresholds Announced for 2025
The State of Washington just announced that the new minimum wage for 2025 will be $16.66/hour (a 2.35% increase and slightly lower than anticipated). Several localities have their minimum wage that is higher than the state, with varying phase-in requirements and inflation adjustments that are in process (Seattle ($20.76), Bellingham, Burien, Renton, Tukwila, SeaTac Hospitality/Transportation, Unincorporated King County).
The exempt salary threshold is based on a multiplier of the state minimum wage. This year the threshold was the same for both large and small employers, but in 2025 large employers (51+) will move to a 2.25 multiplier, resulting in a big jump that will also affect small employers in 2026. For 2025:
- Small employers (up to and including 50 employees): $69,305.60 annually
- Large employers (51 or more employees): $77,968.80 annually
- Computer professionals: $58.31/hour if paid at an hourly rate
Both are much higher than the federal threshold going into effect on January 1 ($58,656). As a reminder, exempt employees must also meet both the federal and state duties tests.
ESSB 5793: Paid Sick Leave Changes (eff.1/1/25). Paid sick leave will be slightly amended next year.
- In addition to existing provisions allowing leave when a child’s school or place of care closes for health-related reasons, employees will be able to use paid sick leave when such closures occur following a government-declared emergency (think extreme weather, wildfire smoke).
- The definition of “family member” will be expanded to include individuals who regularly reside in the employee’s home and there is an expectation of care, and to include individuals where the relationship creates an expectation that the employee will care for the individual and the individual depends on the employee for care. The definition excludes individuals who merely share the same residence without an expectation of care.
- The definitions of “child,” “grandchild,” “grandparent,” and “spouse” will be expanded. “Child” will also include a child’s spouse, which will then incorporate various in-law-type relationships.
- Reminder: eff. 1/1/24 Employers cannot require employees to use Paid Sick Leave, even for absences due to a PSL-qualifying reason, but can still count those absences as attendance violations. Be sure to document the employee’s refusal to use PSL.
SHB 1905: Pay Equity for ALL Protected classes (eff. 7/1/25). To date, Washington’s Equal Pay Act has only covered pay disparities based on sex. Next year it will be expanded to also cover other protected classes (age; sex; marital status; sexual orientation; race; creed; color; national origin; citizenship or immigration status; honorably discharged veteran or military status; presence of any sensory, mental, or physical disability; or the use of a trained dog guide or service animal by a person with a disability). Employers should review their pay scales, consider an audit, and make sure that any discrepancies are based on documented acceptable factors: education, training, experience, seniority, performance, regional differences in compensation or minimum wage, or differences in quantity or quality of work.
SSB 5935: Restrictive Covenants (eff 6/6/24). In the current atmosphere, employers should always be cautious when asking applicants or employees to enter into a noncompete agreement. Washington has historically prohibited noncompete agreements unless the applicant/employee meets an income threshold and is given timely notice. Nonsolicitation of customers and employees, confidentiality, protection of trade secrets, and noncompetes in connection with a sale of a business have been excluded from the definition of a regulated noncompete so have not been subject to the same limitations. That is changing with a new law intended to “facilitate workforce mobility”. The law expands the definition of a regulated noncompete to include any agreement that “directly or indirectly prohibits the acceptance or transaction of business with a customer” (no poach), and narrows the exception for nonsolicitation of customers to “current” customers only. Nonsolicitation of employees is still an exception, as are confidentiality agreements and trade secret protection, and most agreements in connection with a bona fide sale of a business. Employers are advised to consult with an attorney before entering into these types of agreements as Washington common law may include additional considerations, and although the FTC ban has been enjoined for now both the FTC and the NLRB have indicated that they believe noncompete agreements violate the laws they are charged with enforcing.
Okonowsky v. Garland (9th Circuit) – Off Duty Social Media Harassment. In a case that has garnered national attention, the 9th Circuit recently held that even off-duty, off-premises social media activity can be severe and pervasive enough that it creates a hostile work environment that legally requires an employer to take corrective action.
ESSB 5778 Employee Free Choice Act (eff 6/6/24). All employers, all employees. This is a standard “Captive Audience” law that prohibits employers from requiring employees to attend meetings, listen to speeches, or view electronic or other communications on religious or political matters. “Political Matters” are any matters relating to political office or parties, legislative or regulatory proposals, and the decision to join any political party or political, civic, community, fraternal, or labor association or organization. “Religious Matters” are any matters related to religious affiliation practice, and the decision to join or support any religious organization. There are exceptions for legally required communications, voluntary meetings, communications necessary for job duty performance, workplace anti-harassment or anti-discrimination training, and some exempt religious organizations with respect to religious speech.
ESSB 6069: Washington Saves Mandatory Retirement Savings (2027). Like many other states, Washington intends to create a state-run retirement plan that requires employers to auto-enroll employees in the state plan if the employer doesn’t offer one. There are no employer contributions, but employers will be required to register with the state and collect and submit employee contributions. Employees will be permitted to opt-out, or change their standard contribution amount at any time.
WAC 296-155-249 – Voluntary Use of PPE. As of October 1, 2024, L&I revised the Washington administrative code to officially permit workers who feel the who feel need to protect themselves from noise, dust or potentially infectious/contagious diseases to use PPE when it isn’t otherwise required on the job.
If you’d like to speak to an Asure HR expert about your business, connect with us.
Asure Software provides this information for general information purposes only. We are not attorneys, and the information in this update should not be relied upon or regarded as legal advice. This information may not be accurate or complete as it relates to a particular company or situation and does not reflect all developments or laws in all jurisdictions.