In this month’s Employment Law Bulletin, we bring to you our 2025 Employment Law Update Action Items from the Employment Law Update seminar held via Zoom on January 8, 2025.  Employers can use this handy list to help ensure their organization is in compliance with new laws that took effect in January 2025.  Please reach out to an SMT employment attorney if you have questions.  We are here to help.

Labor Law Poster

• Get your poster, complete, and display.

2025 CA Minimum Wage Increase

• Review hourly pay rates and raise if necessary
• Review exempt EE salaries and raise if necessary
• Review commissioned EE compensation to determine if they still meet the threshold
• Analyze any formula based on new MW
• Post the current CA MW poster (typically included in state/federal Labor Law poster)

CA Healthcare Worker Minimum Wage

• Review hourly pay rates and raise if necessary
• Review exempt EE salaries and raise if necessary
• If you didn’t increase hourly rate/salary as of 10/16/2024 as required, audit and retroactively pay EEs any wages owed with interest

Disabled Worker Minimum Wage

• Review hourly pay rates and raise if necessary

CA Fast Food Industry Minimum Wage

• Increase MW if the law applies to your EEs

2025 City Minimum Wage Ordinances

• If you have EEs who work any hours in cities with MW ordinances, check to see if the EEs fit the ordinance definition of EE; if so, the MW ordinance applies to them
• Review hourly pay rates and raise if necessary
• Notify EEs of new local MW
• Print and post the required local city ordinance MW posters

Overtime For Agricultural Workers Act of 2016

• All ERs:  verify you are applying the 8/day, 40/week OT standard, and 12/day DT standard
• If you weren’t compliant by the required deadline, audit and retroactively pay EEs any wages owed plus interest

PAGA Reform:  Preventative Care

• Create, implement, and train supervisors, payroll and HR staff on compliant wage/hour practices
• Audit pay stubs, time records and your wage/hour practices annually and correct any errors
• If an EE says they are not being paid properly or getting their breaks – take it seriously and involve HR staff or legal counsel right away

PAGA Reform:  Act timely upon receipt of PAGA notices

• Develop/implement best practices for receiving and handling mail
• Stamp all mail with the date received
• Deliver mail promptly to the addressee (the same day it arrives)
• Mail addressed to the ER in general should be delivered to a specific person who will read it and provide it to the proper person right away
• Contact legal counsel right away if the document asserts legal claims, wage/hour violations – the clock is ticking.

2025 IRS Mileage Rate

• Ensure EEs using personal vehicles for business are being properly reimbursed for business mileage
• Inform your payroll/finance department of the mileage rate change so EEs are properly reimbursed

Social Compliance Audits (AB 2324)

• If your company does social compliance audits
• audit your child labor practices
• post results on your website via a conspicuous link

New Protected Time Off Work/Leaves of Absence (AB 2499)

• Update Employee Handbooks/policies
• Train supervisors and HR personnel about the new leaves
• Watch for the new CRD notice and distribute to EEs

New Uses of Paid Sick Leave (AB 2499)

• Update Employee Handbooks/policies
• Train supervisors, HR personnel, and payroll personnel regarding new uses of sick leave

CalSavers (SB 1126-2022)

• If you do not offer a retirement plan and you have ≥5 EEs and haven’t already enrolled:
• Register with CalSavers
• Issue required notices to EEs
• Facilitate EE deductions
• If you do not offer a retirement plan and you have 1-4 EEs get in compliance by 12/31/2025

CA Paid Family Leave Insurance (AB 2123)

• Update Employee Handbooks/policies
• Train personnel responsible for managing payroll and leaves of absence

Discrimination Based on Intersectionality (AB 1137)

• Review EE Handbook and policies

Race as a Protected Class Clarified (SB 1815)

• Revise EE Handbook and policies

Caselaw: Single Racial Slur Gives Rise to Discrimination Claim

• Train supervisors and HR staff; take all reports seriously and promptly investigate

Whistleblower Protections (AB 2299)

• Print and post LC’s model list whistleblowersnotice.pdf

Driver’s License Statements (SB 1100)

• Check postings, applications, advertisements and other employment materials for compliance

Captive Meetings Ban (SB 399)

• Train leadership and supervisors on legal requirements of SB 399
• If planning a meeting re: unionization, ensure safe harbor compliance by making sure notice and terms of attendance are in writing

Authority for Local Enforcement (SB 1340)

• Be vigilant of local laws that are more protective than FEHA.  Seek guidance if local law enforcement comes calling

Implicit Bias Training for Perinatal Healthcare Providers (AB 2319)

• Prepare training program or coordinate the training with a trusted resource
• Ensure timely training occurs
• Maintain records
• Prepare report to AG and calendar deadlines for training and reporting compliance

Workers’ Compensation Notice (AB 1870)

• ERs should ensure that their WC notices are updated to reflect this additional information. NoticePoster.pdf

WC Presumption for Heat-Related Injuries (SB 1299)

• Develop HIPP if you do not already have one heatillnessqa.html
• Ensure foremen, supervisors and employees are adequately trained on HIPP and Outdoor Heat Illness Prevention

Cal/OSHA Indoor Heat Prevention Measures

• Prepare HIPP
• Train supervisors and employees on HIPP and Indoor Heat Illness Prevention

Workplace Violence Prevention Plan and Training Reminder

• Develop WVPP if you have not done so
• Make sure you are compliant with the training requirements and continue training on an annual basis
• Ensure compliance with recordkeeping obligations

WVRO Changes

• Contact SMT for help in evaluating whether a WVRO is the right course of action.

Freelance Worker Protection Act (SB 988)

• Review Ikor classification under ABC test and Borello if applicable.
• Draft/Review contracts

COVID Right to Recall – Reminder

• Prepare list of layoffs that occurred on or after 3/4/2020 and review the reasons for the layoff
• Determine whether the layoff was due to COVID and if recall responsibilities exist or if there is sufficient evidence to rebut the presumption
• Ensure written offers and notices are delivered as required

COVID-19 Notification Requirements

• Continue to manage positive test notifications with investigation, notices to close contacts, and exclusion of EEs as needed to keep the workplace safe
• Offer testing at no cost to close contacts
• Consider masking if circumstances require
• Continue to document any information received from EEs indicating that COVID was contracted outside the workplace

Please reach out to an SMT employment attorney if you have questions or need assistance interpreting this new law.

¿No hablas español?

SMT employment attorneys can provide your company with employment policies, forms and employee disciplinary documentation in Spanish. Providing such important information to employees in the language they understand is critical to employee performance, providing a welcoming diverse work environment, and protecting your company against employment claims. Contact an SMT attorney today to get started.

Spaulding McCullough & Tansil LLP
Employment Law Group

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