SUMMARY OF 2025 KEY CHANGES
Minimum Wage:
Effective 2025, the new California state minimum wage will increase to $16.50 an hour (up from $16 an hour). This fifty-cent increase also moves the minimum salary test for the primary overtime exemptions (administrative, executive, professional) to $68,640 annually or $5,720 monthly. If you are not paying your exempt employees who are qualified under these exemptions a salary of at least this much starting on January 1, 2025, they will not qualify as exempt.
Paid Family Leave:
Effective January 1, 2025, AB 2123 eliminates the ability of California employers to require their employees to use up to two weeks of accrued vacation time before they start receiving Paid Family Leave benefits under the EDD’s paid family leave program.
Sick Leave Expansion
Starting next year, under AB 2123, employees in California can now use sick leave to assist any family member who is a victim of certain types of violent incidents or threats of violence. California employers should provide notice of this change to their employees and alter their sick leave policies and practices. California employers should also consider training their management and human resources professionals, so that they are aware of these new changes and that leave is no longer limited to victims of domestic violence, sexual assault and stalking.
Captive Audience Meetings
With AB 399, California joins several other states in banning mandatory captive audience meetings. Effective January 1, 2025, under the California Worker Freedom from Employer Intimidation Act, California employers can no longer discharge, discriminate, or retaliate against, or threaten to carry out such actions because an employee refused to attend any employer-sponsored meeting related to religious matters, political matters, or matters related to the decision to support or not support a labor organization/union.
Restrictions on Requiring Drivers’ Licenses for Job Openings
Effective January 1, 2025, SB 1100 prohibits California employers from including statements in job advertisements, job applications, or other employment materials that an applicant must possess a valid driver’s license unless the employer can prove that it: (1) reasonably suspects driving to be one of the job functions of the position; and (2) reasonably believes that using an alternative form of transportation (such as biking, public transportation, etc.) that does not require a driver’s license would not be comparable in travel time or cost to the employer.
This is only a brief summary of some of the key changes to California employment law for 2025. For the most comprehensive summary of the key changes and suggestions on how these changes should be implemented in the workplace, contact Rothmeyer Rothmeyer.