California Labor Law Changes Every Employer Should Know in 2025

As of January 1, 2025, several critical updates to California labor laws have taken effect—and more are on the way. These changes impact everything from wages and leave rights to protected activities and workplace policies. Staying current isn’t just smart—it’s essential for compliance, retention, and risk management.

Here’s what every California employer should be tracking this year:

1. Statewide Minimum Wage Hike

Effective January 1, 2025, the California state minimum wage increased to $16.50/hour for all employers, regardless of company size. This also raises the minimum salary threshold for exempt employees to $68,640/year.

Tip: Cities like San Francisco, Menlo Park, and Mountain View have higher local minimums—check your city’s ordinance.

2. Industry-Specific Wage Changes: Healthcare Workers

Healthcare workers now have their own wage schedule. As of 2025:

• Minimum wage is set at $23/hour

• Increases to $24/hour in July 2025

• Reaches $25/hour in July 2026

Applies to hospitals, dialysis clinics, behavioral health facilities, and more.

3. Ban on Mandatory Political or Religious Meetings (SB 399)

Effective Date: January 1, 2025

Senate Bill 399, the Worker Freedom from Employer Intimidation Act, prohibits employers from requiring employees to attend meetings where the employer expresses opinions on:

• Political beliefs

• Religious views

• Unionization or labor matters

Employees who decline to participate are protected from retaliation or adverse employment action.

4. Paid Family Leave Now More Accessible (AB 2123)

Effective Date: January 1, 2025

Employees can now access California’s Paid Family Leave (PFL) without being forced to use vacation time first. AB 2123 removes the previously allowed employer requirement to exhaust up to two weeks of vacation before PFL eligibility.

5. Expanded Protections for Crime Victims (AB 2499)

Effective Date: January 1, 2025

AB 2499 broadens protections for employees who:

• Are victims of certain serious crimes

• Are supporting family members who are victims

Employees may use state-paid sick leave and take time off to attend related proceedings. Employers must provide reasonable accommodations and may not retaliate.

6. Pending Legislation to Watch

California lawmakers are considering several bills that could affect your workplace:

• AB 858 – Rehiring and retention rights for workers displaced during emergencies

• AB 1163 – Mandatory workplace violence prevention plans and training

• AB 1015 – Expanded harassment prevention training requirements

These bills are still under committee review and may be enacted later this year.

7. Key California Supreme Court Cases

🔹 Brown v. City of Inglewood (S280773)

Issue: Are elected officials “employees” under whistleblower protection laws?
Status: Argued April 8, 2025 – pending decision
Why it matters: Could redefine the scope of whistleblower protections in public agencies.

🔹 CDCR v. Workers’ Comp Appeals Board (S282013)

Issue: Can Industrial Disability Leave (IDL) be included when calculating enhanced benefits for serious misconduct?
Decision: No – only workers’ comp benefits apply.
Impact: Clarifies how enhanced benefits are calculated for state employees.

Labor laws in California aren’t static—and your compliance strategy shouldn’t be either.

👉 Need a compliance check? Schedule a session here.