Upcoming Changes to Employment Law in California for 2025

by | Dec 21, 2024 | General Issues

As 2025 approaches, California continues to lead the nation in enacting progressive labor laws designed to protect workers’ rights. These upcoming changes will affect various aspects of employment, including wage transparency, worker classifications, and workplace safety. Here’s what employees need to know to prepare for the year ahead.

Wage Transparency Requirements

Starting January 1, 2025, California employers will face stricter regulations regarding pay transparency. Building on recent laws, all employers with 15 or more employees must include pay ranges in job postings, provide salary information upon request to current employees, and maintain records of job titles and wage history to ensure compliance with equal pay laws. This new requirement aims to address pay disparities and promote wage equality.

Expanded Worker Classification Protections

Changes to California’s AB 5 law will further clarify the “ABC test” used to determine whether a worker is classified as an independent contractor or employee. The updates focus on industries where misclassification has been prevalent, such as gig work, healthcare, and construction. Misclassified workers often miss out on essential protections like overtime, minimum wage, and benefits, making these changes significant for employee rights.

Increased Minimum Wage

California’s minimum wage will rise to $16.50 per hour statewide, with some local jurisdictions implementing even higher rates. This increase affects not only hourly workers but also salaried employees who must meet a higher threshold to qualify as exempt from overtime laws. Employees should review their pay rates to ensure compliance with the new minimums.

Remote Work Expense Reimbursements

As remote work continues to grow, California will strengthen its enforcement of Labor Code §2802, which requires employers to reimburse employees for necessary business expenses. Clarifications to the law will emphasize the reimbursement of internet and phone bills, utilities directly impacted by remote work, and office equipment like desks, chairs, and printers. Employees working from home should document these expenses and understand their rights to compensation.

Workplace Safety and Harassment Prevention

The California Division of Occupational Safety and Health (Cal/OSHA) is implementing updated guidelines for workplace safety, particularly in industries prone to hazards such as healthcare and agriculture. In addition, employers will face heightened obligations to prevent workplace harassment, including enhanced training and reporting mechanisms.

Preparing for the Changes

These updates reflect California’s commitment to protecting workers and addressing evolving workplace challenges. Employees should familiarize themselves with these laws to ensure their rights are upheld and seek assistance if they believe an employer is not in compliance.

The experienced employment lawyers at Rothschild & Alwill, APC can advise you on how to handle potential wage and hour violations, including reimbursement claims. Email us or call our Central Valley office in Bakersfield at (661-369-8510) or in Santa Barbara at (805-845-1190) to schedule an initial confidential consultation at no charge. Se habla Español.