California’s Employment Law Updates For 2025

By Swerdlow Florence Sanchez Swerdlow & Wimmer

October 9, 2024

As the California legislative session wrapped up, California Governor Gavin Newsom signed several bills impacting California employers that will go into effect on January 1, 2025.

1. Ban on Captive Audience Meetings

Under the new “California Worker Freedom from Employer Intimidation Act,” employers will no longer be able to hold mandatory meetings that discuss political or religious matters, including union representation. The new law defines “political matters” to include “matters relating to elections for political office, political parties, legislation, regulation, and the decision to join or support any political party or political or labor organization.” An employer that violates the law would be subject to a $500 penalty per employee for each violation. In addition, employees can bring civil actions for compensatory and punitive damages.

In other states, business groups have filed lawsuits challenging similar captive audience bans, asserting that the bans are preempted by the Federal National Labor Relations Act and violate employers’ First Amendment rights. We expect a similar challenge to the new law here in California.

2. Expanded Victim Leave Protections

The Healthy Workplaces, Healthy Families Act (“HWHFA”), i.e., the law that is often referred to as California’s paid sick leave law, will be expanded as follows:

  1.  Paid sick leave will be available if the employee is a victim of conduct where someone: (a) causes bodily injury or death to another individual; (b) exhibits, draws, brandishes, or uses a firearm, or other dangerous weapon, with respect to another individual; or (c) uses, or makes a reasonably perceived or actual threat to use, force against another individual to cause physical injury or death;
  2.  Employees can take paid leave if a family member is a victim of a qualifying violent act; and
  3.  Employees can take leave for new reasons, including to relocate due to safety concerns or place a child in a new school.

3. Paid Family Leave Changes

Employees can no longer be required to exhaust up to two weeks of vacation before receiving paid family leave (PFL) benefits paid by the state (or the employer, if the company has an approved voluntary plan that applies). This may result in employees returning from an extended leave of absence with accrued vacation time still available to them for use in accordance with company policy.

4. Driver’s License Discrimination

Employers will be prohibited from including in a job posting a requirement for a driver’s license unless the employer reasonably (a) expects driving to be one of the job functions for the position, and (b) believes that using an alternative form of transportation to satisfy the functions of the position would not be comparable in travel time or cost to the employer.

5. Protections for Freelance Workers

When engaging the services of freelancers who qualify as independent contractors, the hiring entity will be required to provide written agreements outlining specific terms and must adhere to timely payment protocols, under the “Freelance Worker Protection Act” (“FWPA”). Specifically, the contracts must include: (1) the name and address of each party; (2) an itemized list of all services that will be provided; (3) the date the hiring party will pay, or how the date will be determined; and (4) the date by which the freelance worker will submit a list of services rendered. In addition, the FWPA requires payment as specified in the contract, or no later than 30 days after the workers complete the services if no date is specified. The FWPA also prohibits discrimination and retaliation against those who oppose any practices prohibited by the FWPA. However, simply complying with these rules does not necessarily mean that a freelancer is properly classified as an independent contractor. Instead, a complex legal analysis is needed in order to make that determination.

6. Local Enforcement of Discrimination Claims

Local governments will gain the authority to enforce local anti-discrimination laws that are at least as protective as state law.

Action Steps for Employers

As these laws take effect, employers are encouraged to:

•  Review and update their Employee Handbooks and procedures;
•  Determine whether existing agreements with freelancers need to be revised or drafted to comply with the FWPA; and
•  Train management and HR staff on the implications of these changes.

Navigating the ever-changing legal landscape for employers in California is challenging. Do not hesitate to contact your SFSSW attorney for guidance on how to update your company policies in response to these new laws.

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