It’s That Time Again: New California Workplace Laws for 2025

California Governor Gavin Newsom recently signed into law a number of employment-related assembly bills ("AB") and senate bills ("SB"), once again altering the landscape of workplace regulation in California. With several key new laws taking effect as soon as January 1, 2025, now is the time for employers to prepare for compliance.

Freelance Worker Protections - SB 988

The new Freelance Worker Protection Act (the "FWPA") introduces minimum terms required in a contract between a hiring entity and a "freelance worker." The FWPA defines "freelance worker" as a person (or organization comprised of no more than one person, such as a sole proprietor) hired or retained as an independent contractor to provide professional services in exchange for $250 or more.

Under the FWPA, a person or organization in California engaging freelance services must use a written freelancer contract, provide a signed copy to the worker, and retain a copy of the contract for at least four years. Freelancer contracts must include: the name and mailing address of each party; an itemized list of services, the value of services, and rate and method of compensation; the payment due date or how that will be determined (if not set in advance); and the date by which the worker must submit an invoice so that the hiring party can make the payment in a timely manner. If the contract does not specify a payment deadline, payment must be made within 30 days from the service completion date. Also, a hiring party may not, as a condition of timely payment, require the freelancer to accept less than the amount specified in the contract, provide more goods or services than specified in the contract, or grant additional intellectual property rights beyond what is stated in the contract.

FWPA protections may not be waived, and the FWPA prohibits discrimination or retaliation against a freelancer who asserts or seeks to enforce their rights. A freelancer may bring a civil action for violations, and, if successful, can obtain injunctive relief and recover attorney's fees and costs and specified damages, as follows: $1000, if the freelancer requests a written contract prior to commencing services and the hiring party refuses to provide one; double the unpaid amount under the contract, if a hiring party fails to pay in a timely manner; or damages equal to the value of the contract or the work performed, whichever is greater, if a hiring party violates any other provision of the new law. A public prosecutor can also bring an enforcement action.

The FWPA applies to contracts entered into or renewed on or after January 1, 2025. Businesses should take note of upcoming renewals for existing contracts with individual independent contractors and prepare or update agreement templates in advance of the new year. Businesses can also take this time to ensure that contractors are properly classified pursuant to California's strict worker classification test.

Paid Family Leave (PFL) Amendment - AB 2123

Under existing law, employers could require employees to use up to two weeks of accrued vacation before accessing benefits under the California Paid Family Leave (PFL) program, which is administered by the Employment Development Department to provide partial wage-replacement benefits for employees who take time off for certain qualifying family reasons. AB 2123 removes the option to require an employee to use accrued vacation as a condition of accessing PFL benefits, and employees will be able to access PFL benefits immediately. Employers should update their leave policies to reflect this new change.

Jury Duty, Court, and Crime Victim Time Off - AB 2499

AB 2499 makes significant changes to certain existing laws protecting jury duty leave, court leave, and crime victim leave.

First, the bill moves existing jury duty, court, and crime victim leave provisions from under the Labor Code to the Fair Employment and Housing Act (FEHA), rendering violations of these laws "unlawful employment practices" under FEHA. Second, the bill specifies that employees may use paid sick leave, vacation, or other personal paid time off for any of these types of leave.

Third, the bill revises crime victim protections as follows:

• Existing law allows employees to take protected time off for certain reasons if the employee is a victim of crime or abuse. The new law reframes the language of the statute to provide protections for employees who are victims of a "qualifying act of violence" (in lieu of "crime or abuse"). A qualifying act of violence includes domestic violence, sexual assault, stalking, or any act, conduct, or pattern of conduct in which (i) an individual causes bodily injury or death to another; (ii) an individual exhibits, draws, brandishes, or uses a firearm or other dangerous weapon on another; or (iii) an individual uses or makes a reasonably perceived or actual threat to use force against another to cause physical injury or death.

• Under existing law, employers with 25 or more employees must provide employees who are victims of crime or abuse with time off to seek or obtain medical attention, psychological counseling or mental health services, or assistance from organizations (such as domestic violence shelters or other victim service organizations), and to participate in safety planning. AB 2499 now requires these employers to provide crime victim leave for these and other purposes not only to employees who are victims of a qualifying act of violence but also when an employee's family member is a victim of a qualifying act of violence.

• A "family member" is a child, parent, grandparent, grandchild, sibling, spouse, or domestic partner, or designated person. A "designated person" is any individual related by blood or whose association with the employee is the equivalent of a family relationship. An employee may identify the designated person at the time the employee requests the leave, and an employer may limit an employee to one designated person per 12-month period.

• Under AB 2499, the purposes for which this leave may be used now include: to obtain or attempt to obtain relief for a family member; and to seek, obtain, or assist a family member to seek or obtain medical attention, services from a domestic violence shelter or other victim services organization, psychological counseling or mental health services, or legal services in connection with a qualifying act of violence. Permitted purposes for leave under this section also include participating in safety planning; relocating or securing a new residence; providing care to a family member who is recovering from injuries; preparing for, participating in, or attending any legal proceeding; or seeking, obtaining, or providing childcare or care to a care-dependent adult, in each case in connection with a qualifying act of violence.

• An employer can limit time off for this leave to a total of 12 weeks, although if the employee's family member is the victim of a non-fatal qualifying act of violence, an employer may further limit time off to (i) a total of 10 days or (ii) a total of five days for time off to assist a family member with their relocation or search for a new residence.

• It is important to note that employers of all sizes are still required, as is the case under existing law, to permit employees who are victims to take time off to obtain relief, including seeking a restraining order or other injunctive relief to help ensure the health, safety, or welfare of the victim of their child.

• Under existing law, all employers must also provide reasonable accommodations to employees who are crime victims to ensure their safety at work, unless it would be an undue hardship. AB 2499 expands the reasonable accommodation requirement to also cover employees who require accommodations to ensure their safety at work because a family member (as defined above) is a victim of a qualifying act of violence. Reasonable accommodations may include implementation of safety measures such as transfer, reassignment, modified schedules, changed work telephone, or permission to carry a phone at work. The new law also specifies that undue hardship includes, among other things, an action that would violate an employer's duty to furnish and maintain a place of employment that is safe and healthful for all employees as required by the Labor Code.

• Finally, employers will be required to notify employees of their rights under this new law, including at time of hire, annually, upon request, and when an employee informs the employer that the employee or their family member is a victim. The California Civil Rights Department will develop a notice that employers can use by July 1, 2025.

Employers should be certain to review and update their leave policies by the new year to reflect these new changes.

Expanded Paid Sick Leave for Agricultural Employees - SB 1105

SB 1105 expands California's paid sick leave law to allow agricultural employees who work outside to use their paid sick leave to avoid smoke, heat, or flooding conditions created by a local or state emergency. An "agricultural employee" means an individual employed in an agricultural occupation or related industry as provided under California's Industrial Welfare Commission Wage Orders 8, 13, and 14. The law specifies that smoke, heat, or flooding conditions exist when, among other things, the employee's worksite is closed due to smoke, heat, or flooding conditions; if the Governor proclaims a state of emergency, as specified; or a local emergency is proclaimed.

Intersectional Discrimination - SB 1137

SB 1137 bolsters California's anti-discrimination laws applicable to employment, business, and education to prohibit "intersectional" discrimination, which is discrimination based on a combination of protected characteristics, such as identity as a Black woman. In particular, the bill amends the California Fair Employment and Housing Act to provide that it is unlawful to discriminate not only on the basis of individual protected traits, but also based on any combination of protected characteristics, a perception that a person has any protected characteristic or combination of characteristics, or a perception that a person is associated with someone who has, or is perceived to have, a protected characteristic or any combination of those characteristics.

Employers should update their employee handbook, anti-discrimination and harassment policies, and other equal employment opportunity policies and training materials accordingly.

Discrimination Based on Driver's License Status - SB 1100

Under the California Fair Employment and Housing Act, as an extension of the prohibition against national origin discrimination it is currently unlawful for an employer to discriminate against an applicant or employee because they hold a form of driver's license that is issued to individuals who do not have proof of legal status in the U.S. but who otherwise satisfy the requirements for a California driver's license. SB 1100 strengthens this existing protection by also barring employers from stating in a job advertisement, posting, application, or other material that an applicant must have a driver's license, unless the employer reasonably expects driving to be a job function of the position and the employer reasonably believes that satisfying the job function through an alternative transportation mode, such as walking, ride-sharing, or cycling, would not be comparable in travel time or cost.

Employers should update any template job advertisements, interviews, or other recruitment materials to remove statements requiring driver's licenses unless the requirements above are satisfied for the position in question.

CROWN Act Amendments - AB 1815

The existing California CROWN Act (which stands for "Creating a Respectful and Open World for Natural Hair") specifies that the definition of race under the California Fair Employment and Housing Act and Education Code includes traits historically associated with race, including hair texture and protective hairstyles.

AB 1815 amends the CROWN Act to revise the definition of "race" by eliminating the requirement that a trait must be "historically" associated with race for it to be protected from racial discrimination. For context, the Legislature explained that determining whether a trait was "historically" as opposed to "culturally" associated with race was ambiguous and the focus should be on whether the trait is closely enough associated with race such that it was a proxy for race discrimination. AB 1815 also provides that the same definition of "race" applies under California's Unruh Act, which prohibits discrimination by businesses. Notably, the bill specifies that these amendments simply restate existing law and therefore the changes are retroactive.

Employers should review and update existing EEO policies and dress and grooming policies to ensure compliance with these amendments.

Workplace Captive Audience Prohibition - SB 399

As we discussed in a prior blog post, the new California Worker Freedom from Employment Intimidation Act prohibits employers from threatening or taking adverse employment action against an employee because the employee refuses to attend employer meetings about, or participate in, receive, or listen to, communications about the employer's opinion on religious or political matters. The new law is similar to, but more sweeping than, laws in several other states that attempt to decrease the influence of "captive audience" meetings communicating an employer's political or religious opinions.

Social Compliance Audits - AB 3234

AB 3234 introduces new child labor transparency requirements. Specifically, an employer that undergoes a "social compliance audit" to determine if child labor is involved in its operations or practices must post a link on its website to a report detailing the findings of compliance with child labor laws. A "social compliance audit" is a voluntary, nongovernmental inspection or assessment of an employer's operations or practices intended to evaluate compliance with state and federal laws, including those pertaining to child labor. The report must specify the timing of the audit and findings regarding child labor law compliance.

Workplace Notice Requirements - AB 1870 and AB 2299

Finally, two new laws impose additional workplace notice requirements on employers (in addition to the crime victim leave notice discussed above).

AB 1870 requires employers to include information concerning an employee's right to consult a licensed attorney in workers' compensation employee rights notices. The notice must be posted conspicuously and inform employees that attorneys' fees may be payable as part of the workers' compensation award. This law took effect on July 15, 2024. AB 2299 requires employers to prominently post a notice regarding employees' rights and responsibilities under California whistleblower laws. Employers will be deemed compliant with the requirement if they prominently display the model poster that will be published by the Labor Commissioner.

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