Major Employment Law Updates in California for 2025 Series
In 2025, a number of new laws are set to take effect in California. From whistleblower protection to prohibitions about captive audience meetings, California’s new rules will impact your company’s day-to-day operations. To ensure you’re ready for the new year, take some time to learn more about the upcoming legal updates in the second part of our four-part series on California employment law changes.
Major Employment Law Updates in California for 2025: Regulations Impacting Your Day-to-Day Operations
California has made several dozen major updates to employment laws that will be implemented in 2025. The following list includes the top updates that will impact your company’s day-to-day operations. For additional information on wage and hour laws, paid leave changes, anti-discrimination statutes, and other legal updates, check out the rest of our four-part series on California labor law updates for 2025.
California Employee Protections Against Captive Audience Meetings Take Effect
Signed in November 2024, SB 399 is expected to go into effect on January 1, 2025. Under this law, employers are restricted from hosting captive audience meetings with their employees. The law specifically applies to mandatory meetings on political or religious topics. Often, these meetings have occurred during major union drives.
However, only mandatory meetings are prohibited. Employers can still host meetings on these topics, but they can’t make attendance a requirement for employees. Certain organizations, like religious or political groups, are excluded from the prohibition. Violating the new provisions can result in a $500 per employee fine for each violation.
California Allows Alternate Whistleblower Notice to Be Posted
Starting on January 1, 2025, employers must post a whistleblower notice that discusses employees’ rights and protections. While the California Labor Commissioner has already created and published a model posting, workplaces are able to make their own posting as well. If you choose to make your own posting, you must include important information, such as the whistleblower hotline number. Additionally, you must use a 14-point typeface.
California Requires Employers to Disclose Findings of Any Voluntary Child Labor Audits
Some employers conduct compliance audits on a voluntary basis to make sure that they aren’t unintentionally hiring underage workers. Under AB 3234, employers who engage in these audits are required to disclose the results of the audit.
The report should include information about the date of the audit, whether the employer used child labor, copies of written policies, information about whether children worked during school hours or nighttime, and whether children were exposed to dangerous situations. Then, this information must be disclosed using a clear link on the company website.
It’s important to note that you aren’t legally required to conduct a child labor audit. This law only applies if you voluntarily decide to audit your labor practices. If you don’t perform child labor audits, you don’t have to disclose anything.
California Restricts Driver’s License Requirements
Starting on January 1, 2025, employers are no longer allowed to automatically require a driver’s license for every job position. Under the new regulations, you can require a driver’s license if the employee will be expected to perform driving as their regular duties. If they could reasonably substitute walking, public transportation, rideshares, or similar options for driving, then you cannot require a driver’s license in the job application.
California Amends Law to Permit Association Health Plans
Association Health Plans (AHP) are plans that let small businesses and self-employed workers join together to buy health insurance. On November 18, 2024, California amended AB 2434 to allow AHPs.
However, there are still some stringent requirements for associations. To be legal, the association must have been established prior to January 1, 1966. The multiple employer welfare arrangement (MEWA) they sponsor will have until June 1, 2025, to register with the Department of Managed Health Care.
California Amends Workplace Violence Restraining Order Law
Through California’s Workplace Violence Prevention Plan, the state made great strides in protecting workers from incidences of workplace violence. Now, the state has amended the law to allow employers to seek restraining orders. For example, an employer can seek a restraining order if one or more workers are being harassed, stalked, or threatened with violence.
Besides just employees, employers can seek protection for volunteers, board members, and independent contractors. The restraining order can apply to anyone who has stalked an employee, threatened violence, or acted violently. Only the employer is allowed to request a restraining order.
California Prohibits Digital Replica Usage in Employment Agreements
Under AB 2602, provisions in employment agreements are no longer enforceable if they relate to using a digital replica of the individual. A digital replica is essentially the individual’s voice or visual likeness. These provisions will become unenforceable on January 1, 2025.
Get Your Business Ready for the New Year
With so many changes underway in California, you need expert help you can count on. Employment laws and regulations frequently change from year to year. Through the assistance of the best compliance services, you can stay ahead of major HR updates and new employment laws.
If you’re ready to get your company ready for the new year, we can help. To learn more about major legal changes in California, reach out to our team of small business HR and payroll experts today.