California has enacted another wave of progressive employment laws, set to take effect on January 1, 2025. These laws expand worker protections, increase compliance requirements for employers, and align with key frameworks, including the Americans with Disabilities Act of 1990 (“ADA,” 42 U.S.C. § 12101 et seq.), the California Fair Employment and Housing Act (“FEHA,” Cal. Gov. Code § 12900 et seq.), the Unruh Civil Rights Act (“Unruh Act,” Cal. Civ. Code § 51 et seq.), and the California Disabled Persons Act (“DPA,” Cal. Civ. Code § 54 et seq.). What follows is a review of key changes, their practical implications, and how they interrelate with existing civil rights laws.
1. Intersectional Discrimination Protections (SB 1137)
California now explicitly recognizes intersectional discrimination, addressing situations where employees experience compounded bias based on overlapping traits, such as age and gender. Equal Rights Advocates, a sponsor of SB 1137, provided the example that a Black woman might encounter workplace discrimination not solely based on her race or gender independently, but due to the combined impact of both identities. This intersection could subject her to specific stereotypes and assumptions that are not typically directed at Black men or white women. Intersectionality, originally coined by Kimberlé Crenshaw, has long been acknowledged in academic and legal theory but is now being codified into California law.
What Employers Need to Do: Update nondiscrimination policies and train HR teams to recognize and investigate intersectional claims.
Legal Interrelation: Enhances FEHA and the Unruh Act by ensuring protections against complex forms of workplace discrimination.
2. Local Enforcement of Discrimination Claims (SB 1340)
Local governments soon will have the authority to enforce employment discrimination laws alongside the state’s Civil Rights Department ("CRD"). This measure was introduced to alleviate the workload of the CRD, which struggles with a high volume of complaints. Increased enforcement may lead to inconsistencies in interpretations of state law, requiring businesses to stay attuned to varying local standards.
What Employers Need to Do: Ensure compliance with FEHA and local ordinances and prepare for potential local enforcement actions.
Legal Interrelation: Increases enforcement capacity for discrimination laws already rooted in FEHA and the Unruh Act.
3. Captive Audience Meeting Ban (SB 399)
Employers can no longer require employees to attend mandatory meetings on religious or political matters, including anti-union discussions. Supporters of SB 399 noted the troubling employment practice used by Uber during the 2020 Proposition 22 campaign, when drivers reported that the company pressured them to support the proposition by displaying messages within the app promoting the company's political stance, such as "Prop 22 is progress." These messages required acknowledgment before drivers could log in to accept rides, effectively compelling them to engage with the stance to perform their jobs.
California’s approach may lead to broader discussions about employer influence in the workplace. This law could inspire similar legislation in other states, adding to a growing trend of limiting employer speech on political and union matters.
What Employers Need to Do: Train supervisors on compliance and ensure meeting attendance is voluntary.
Legal Interrelation: Protects employees’ rights to freedom of expression, aligning with FEHA and labor laws.
4. Freelance Worker Protection Act (SB 988)
Freelancers soon will require a written contract with specific terms and timely payment provisions. SB 988 defines freelancers as independent contractors who provide professional services for $250 or more per service contract in categories such as marketing, human resources, graphic design, photography, and consulting, as outlined in California Labor Code § 2778(b)(2). It does not apply to all independent contractors, focusing instead on specific professional service providers while excluding manual labor or non-professional roles.
The law aims to provide greater protections for freelance workers by requiring written contracts that outline clear terms, timely payment, and recordkeeping requirements. The law ensures fair treatment and transparency for independent contractors, addressing power imbalances and reducing exploitation in freelance work arrangements, which historically left some workers without recourse for nonpayment or contract disputes. Similar laws in New York City inspired California’s legislation.
What Employers Need to Do: Standardize contracts and establish recordkeeping practices.
Legal Interrelation: Aligns with Unruh Act principles by ensuring fair treatment of freelance workers.
5. Driver’s License Discrimination (SB 1100)
Starting January 1, job postings cannot require a driver’s license unless driving is an essential function and alternative transportation methods are infeasible. The law ensures that driving is only mandated when essential to the role, promoting equitable access to employment for individuals with disabilities, financial limitations, or alternative transportation preferences, while aligning with California’s broader anti-discrimination and environmental goals. For example, this law aligns with California’s efforts to combat environmental inequities by reducing barriers to employment for individuals who rely on public or alternative transportation.
What Employers Need to Do: Review and revise job descriptions and hiring practices.
Legal Interrelation: Aligns with the ADA and DPA, removing unnecessary barriers for individuals with disabilities.
6. Paid Family Leave Changes (AB 2123)
Soon, employers will not be allowed to require employees to use vacation time before accessing California Paid Family Leave benefits. By removing requirements for employees to use accrued vacation time before accessing Paid Family Leave benefits, the law allows immediate access to wage replacement benefits for eligible workers, thereby promoting equity and financial security for employees balancing caregiving responsibilities and aligning with California’s broader commitment to family-friendly workplace policies. The change reflects an acknowledgment of financial insecurity among caregivers, especially women and lower-income workers, who are disproportionately impacted by caregiving responsibilities.
What Employers Need to Do: Update leave policies to reflect immediate access to Paid Family Leave.
Legal Interrelation: Supports equitable leave policies under FEHA and the ADA.
7. Expanded Protections for Victims of Violence (AB 2499)
This law broadens workplace protections for victims of violence, covering time off for legal proceedings, medical care, and relocation. The law aims to enhance support for vulnerable workers by broadening eligibility for accommodations and leave, reinforcing California's commitment to workplace equity and safety.
What Employers Need to Do: Update policies and provide accommodations for affected employees.
Legal Interrelation: Strengthens protections under FEHA and aligns with federal leave laws.
8. Voluntary Social Compliance Audits (AB 3234)
Employers conducting voluntary social compliance audits soon must post the findings publicly, with specific details regarding compliance with child labor laws. The law applies to voluntary social compliance audits conducted by employers to assess compliance with labor laws, including child labor, wage and hour regulations, and health and safety standards—but only when the audits are performed for external purposes (e.g., demonstrating compliance to stakeholders or publicly certifying ethical practices). The law addresses concerns that some employers may conduct internal compliance audits to superficially demonstrate adherence to labor laws without implementing meaningful changes, misleading stakeholders and obscuring ongoing labor violations.
This law may indirectly discourage employers from conducting social compliance audits due to the risk of reputational damage if violations are uncovered and disclosed, potentially shifting the balance toward government-initiated inspections.
What Employers Need to Do: Ensure applicable audit findings are transparent and comply with labor standards.
Legal Interrelation: Reinforces accountability in compliance with wage and hour laws.
9. Wage and Salary Updates
California’s minimum wage will increase to $16.50, with additional local adjustments possible. The increase accounts for inflation and cost-of-living increases, promoting economic equity. In addition, the salary threshold for overtime exemption is rising to $68,640. By raising the threshold, the law ensures that more low- to middle-income employees, especially those in managerial or administrative roles, are eligible for overtime pay if their salaries do not meet the new minimum. The law discourages employers from misclassifying workers as exempt to avoid paying overtime.
What Employers Need to Do: Update payroll systems and comply with local wage ordinances.
Legal Interrelation: Promotes economic equity, addressing systemic barriers in alignment with the Unruh Act and FEHA.
10. Landmark Reforms to PAGA (AB 2288 and SB 92)
New reforms to the Private Attorneys General Act (PAGA) will provide employers opportunities to cure wage and hour law violations and reduce penalties for noncompliance. The reforms reduce penalties for employers who take “all reasonable steps” to cure violations—up to 85% if cured before a claim is filed and up to 70% if cured within 60 days of notice. The reforms also eliminate employees’ ability to seek penalties for violations they did not personally experience and allow small employers with fewer than 100 employees to submit a confidential proposal to the Labor and Workforce Development Agency to resolve alleged violations. The laws represent a shift in California’s employment landscape, showing a new focus on curbing frivolous lawsuits while incentivizing employers to proactively address labor violations.
What Employers Need to Do: Conduct regular payroll audits, update policies, and act quickly to resolve violations upon receiving a PAGA notice.
Legal Interrelation: Aligns with FEHA and state labor codes, promoting proactive compliance to prevent costly litigation.
Key Takeaways
These laws signify California’s continued commitment to equity, transparency, and fairness in the workplace. Employers must proactively update policies, provide training, and ensure compliance to avoid statutory penalties, employee dissatisfaction, and potential litigation and regulatory action. Employees, meanwhile, will largely gain stronger protections and expanded remedies for workplace injustices.
For detailed guidance on navigating these changes, visit lumenlawcenter.com or contact Lumen Law Center for personalized assistance.
Comments