Major Employment Law Updates in California for 2025 Series
Employers in California can expect a number of important legal changes to take place after the turn of the year. In 2025, employers will have new rules about paid leave requirements, jury duty protections, and paid leave for agricultural workers.
Some changes, like the Small Employer Family Leave Mediation Program’s extension, will only apply to a select number of employers. However, some updates will apply to every worker in the state. Starting in 2025, California will be increasing the percentage of pay employees can receive during their paid leave. To ensure your company is ready for the new year, read on.
Major Employment Law Updates in California for 2025: Paid Leave Gets Important Changes
Because California has created so many updates to its HR and business regulations this year, we’ve compiled a four-part series on the topic. This is the fourth part of the series. For more information on changes to California’s anti-discrimination rules, minimum wage rate, and other business regulations, check out the first three parts of this series.
California Amends Paid Family Leave Benefits Requirements
AB 2123 was signed into law on September 29, 2024. Under the new law, employers are no longer allowed to make employees use their employer-sponsored vacation time before they begin using paid leave.
For businesses, the signing of AB 2123 means it’s time to update your company’s leave policies. Additionally, you’ll need to train your HR team and managers on the new policies.
California Paid Family Leave Benefits Increase
On January 1, 2025, employees will be paid a higher amount when they take paid family leave. Workers who make less than $63,000 per year will be paid 90% of their wages. Meanwhile, high-paid workers will receive 70% of their normal wages. This higher pay rate was funded by getting rid of the limit on taxable wages.
Besides the increase in benefits, the paid leave program will also be expanding coverage for incidents of violence. Instead of simply providing leave to employees who experience violence, the expansion will allow employees to also use paid leave if their families are victims.
California Extends Family Leave Mediation Pilot Program
The family leave mediation pilot program was permanently signed into law on July 18, 2024. Previously, it operated as a pilot program. The Small Employer Family Leave Mediation Program was designed to help small employers access free mediation services before the employee had to go to court. It is designed to help employers who have 5 to 19 employees.
California Expands Paid Sick Leave Reasons for Agricultural Employees
Under SB 1105, California is expanding the reasons why farm workers are able to take paid sick days. On top of existing reasons, agricultural workers can now receive paid sick days if they want to avoid heat, smoke, or flooding conditions. To be eligible for paid leave, these conditions must have occurred because of a local or state emergency. In essence, SB 1105 declares that these reasons are essentially preventative care. As a result, they would be appropriate reasons for getting paid sick leave.
California Expands Fair Employment and Housing Act To Include Jury Duty Leave Protections
Since it was passed on September 29, 2024, AB 2499 has created new protections for jury duty leave. As a part of the Fair Employment and Housing Act (FEHA), the updated provisions will be enforced by the Civil Rights Department (CRD). Under the law, employers with one or more workers are not allowed to retaliate or discriminate against workers who take time off for jury duty.
Jury duty wasn’t the only major change that occurred through AB 2499. This new legislation also included important protections for crime victims. Now, employees can take paid leave if their family member is a victim of a crime. Workers can also ask for accommodations if they are crime victims, such as a change to their schedule or switching their work phone number to a new number.
Learn More About Important Legal Changes in California
With so many updates underway, it can be overwhelming for employers to figure out what they need to do to be in legal compliance. By using the right HR and payroll provider, you can prepare your business for upcoming regulatory changes. At Asure, we offer HR compliance tools to help California companies.
If you’re ready to catalyze growth in your small business, we are here to help. To learn more about major changes in employment and HR laws, reach out to our team of small business HR and payroll experts today.