NEW CALIFORNIA EMPLOYMENT LAWS FOR 2025
By Ward Heinrichs Esq., San Diego Employment Attorney
ON BIG BLEND RADIO: San Diego attorney Ward Heinrichs gives an overview of the new California employment laws for 2025. Watch here in the YouTube player or download the episode on Podbean.
PAGA Reform: The Private Attorney General Act (PAGA) has plagued employers since its inception in 2003. Small wage violations could turn into back-breaking sums of money if those violations have occurred over lengthy periods of time. The California legislature decided to give employers some protection from those potentially devastating fines. Now, an employee must prove that he or she suffered that violation. Before, if an employee had suffered any violation, that employee was allowed to file claims for violations that he or she had not suffered. Additionally, employers can reduce the penalties they face. For instance, if employers correct the alleged violations within 60 days of receiving notice, they may reduce the penalties by as much as 85%. Additionally, employers who have more than 100 employees can request an early evaluation in which a neutral evaluator can propose corrections and penalties that can reduce court costs and fines. Employers with fewer than 100 employees can submit a cure plan, within 33 days of receiving notice, that can eliminate penalties if approved by the Labor and Workforce Development Agency.
Reproductive Loss Leave Mediation Program: California allows an employer, who has between 5 and 19 employees, to avoid court by requesting mediation for disputes related to the California Family Rights Act (CFRA) leave and bereavement leave. Now, that same mediation program is available for disputes related to reproductive loss leave.
Paid Family Leave (PFL) Vacation Protection: Employers were allowed to deduct two weeks from an employee’s accrued vacation for the two weeks that the employee did not work while waiting for approval of a PFL application. The new law allows an employee who returns to work after receiving PFL to get back those two weeks of paid vacation.
Leave for Victims of Crimes: AB* 2499 amends several employment laws. California law already allows victims of domestic violence, sexual assault, and stalking to use sick leave to take time off. Now, employees may take time off for other crimes that allege bodily harm, threats with weapons, or threats of bodily harm. Additionally, employers with five or more employees must give up to 12 weeks of unpaid leave under the California Family Rights Act (CFRA). Any of the above leave time is protected by the Fair Employment and Housing Act, under which the employee may sue if an employer denies the protected leave. Further, if the employee is a family member of a victim, as defined under the CFRA, that family member may take protected leave.
Minimum Wage & Salary: The minimum wage for all California employers will be at least $16.50 per hour. Fast-food workers and healthcare employees receive a greater minimum wage. Fast-food workers’ minimum wage is $20 per hour, assuming that the employer meets the specific requirements to be a fast-food employer. Healthcare employees have a minimum wage of anywhere from $18 to $23 per hour, depending on the size of the employer and area of practice.
The 2025 minimum salary for exempt employees increases to $68,640 per year because it is twice the California rate of pay for a minimum wage, hourly employee who works 40 hours per week (2 x $16.50 x 40 hours x 52 weeks). Forty hours is the number of hours that a full-time employee theoretically works per week. However, the minimum salary for fast-food employees is $83,200 (2 x $20 x 40 hours x 52 weeks). The minimum salary for healthcare workers is more complicated. It is only 1.5 times the hourly rate times 40 hours times 52 weeks (1.5 x $18-23 x 40 hours x 52 weeks), but if the minimum salary of $68,640 is greater, then the employer must pay that amount.
As many of you know, some local governments have greater minimum wage requirements than the state of California. For instance, the City of San Diego requires $17.25 per hour for its minimum wage, but that rate does not affect the minimum salary requirement.
Use of Driver’s License Restrictions: Employers may not post that a job requires a driver’s license, unless driving is actually an important component of the job, and no reasonable transportation alternative exists.
Freelance Worker Protection Act: SB* 988 requires employers to have contracts with independent contractors who earn at least $250 per engagement. The contract must address payment terms, the scope of the project, and any applicable timelines.
Voluntary Captive Audience Meetings: SB 399 outlaws mandatory meetings in which employers discuss political or religious topics. If an employer holds such meetings, employees may voluntarily participate, but the employer cannot require employees to attend.
*AB means California Assembly Bill, and SB means California Senate Bill.
Based in San Diego, California the Employment Law Office of Ward Heinrichs represents both employers and employees in almost all areas of labor law. He and his firm litigate cases that have been filed in many different parts of California. Visit www.BestEmploymentAttorneySanDiego.com
