As we head into the New Year, RPNA has been keeping abreast of a myriad of new state laws affecting employers, some of which will have an immediate impact on the business community. Some of the most critical are:
1. Minimum Wage Increase:
The state minimum wage has increased from $16.00 to $16.50 per hour, based on adjustments tied to the Consumer Price Index. This increase will apply to all employers, regardless of their size. However, certain industries, such as fast food and healthcare, will continue to be subject to higher minimum wage rates. In addition, this wage increase will also impact the minimum salary required for exempt employees. The new minimum salary for exempt workers will rise from $66,560 to $68,640 per year.
Employers should also be aware that some local jurisdictions have set even higher minimum wages. These cities include:
- City of Hayward: $17.36/hour (for employers with 26 or more employees)
- City of Mountain View: $19.20/hour
- City of San Diego: $17.25/hour
- City of San Jose: $17.95/hour
Action Item for Employers: Employers should review the applicable minimum wage rates for their location and industry to ensure compliance.
2. Intersectionality in Harassment and Discrimination:
Another significant change in 2025 is the expansion of harassment and discrimination laws under Senate Bill 1137, which introduces the concept of “intersectionality.” This means that if an employee experiences harassment or discrimination based on a combination of protected characteristics (e.g., gender and race), employers must assess the situation through the lens of those combined factors, rather than treating each characteristic separately.
Action Item for Employers: Employers need to update their harassment and discrimination prevention policies to account for the possibility of multiple protected characteristics being involved. Training and workplace policies should reflect this broader approach to ensure all forms of harassment and discrimination are effectively addressed.
3. Captive Audience Meetings:
Under the California Worker Freedom from Employer Intimidation Act (Senate Bill 399), employers are now prohibited from holding mandatory meetings where employees are forced to listen to political or religious discussions. This law aims to protect employees from being pressured into sharing personal views on sensitive topics.
4. Paid Family Leave:
A change under Assembly Bill 2123 now prohibits employers from requiring employees to use their accrued vacation time before utilizing paid family leave benefits. This ensures employees have more flexibility in using their paid family leave without impacting their vacation days.
Action Item for Employers: Employers should update their workplace policies to align with these new regulations and ensure compliance.
RPNA will continue to keep you informed of new laws throughout 2025. We encourage any employers with questions about the new laws or its effect on their businesses to contact us.
Contact Us Today:
- Laura H. Park: lhp@rpnalaw.com
- Michael B. Adreani: mba@rpnalaw.com
- Phone: 818-992-9999
Laura H. Park is a Senior Attorney that has filed over a dozen class-action lawsuits against workers’ compensation insurance carriers. She has also worked as a Senior Associate in business and real estate law and served as General Counsel and COO for a medical device start-up.
