2025 Employment Law Update

Newsletters

by Gerald L. Sauer

As 2025 begins to unfold, S&W is continuing its tradition of providing a brief summary of new and updated laws that impact employers and workers. In the event that you have any questions about the summary below, please contact Michele Desoer, Cara Sherman, or Gerald Sauer.

Wage & Hour Laws

  • California’s minimum wage base has increased to $16.50/hour. However, there are higher minimum wages in some cities and/or counties. (For example, in Los Angeles County, the current minimum wage is $17.27 and rises to $17.81 on July 1, 2025.) Unionized employees may be exempt from certain laws if they are paid 1.3 times the minimum wage. Reminder: some industries, such as fast food or healthcare workers, have different minimum wages.
  • California’s minimum salary for an employee to be classified exempt has risen to $68,640. This minimum salary is not the only factor to determine whether employees can be considered exempt.
  • With regard to properly classifying independent contractors, the law now requires that contractors be paid no later than the date specified in their contract. If the contract does not specify a date, the contractor must be paid no later than thirty (30) days after completion of services. Contracts must be in writing and preserved for at least four (4) years. Certain terms must be included. Beware: the worker still must legitimately qualify as an independent contractor and not an employee.

Captive Audience Meetings

  • Employees can no longer be required to attend “Captive Audience Meetings” which are meetings held by an employer to discourage employees from unionizing or to discuss “political matters” or “religious matters.” An employer cannot discriminate or retaliate against employees who decline to attend and must pay all employees their wages during this time, even if they do not attend. Note: challenges are expected to this law on the grounds that (1) the NLRA preempts the law and (2) the restrictions on political and religious speech violate the First and Fourteenth Amendments, although the outcome of any such challenges remains uncertain. 

New Posting Requirements

  • There are new posting requirements in connection with (a) Workers’ Compensation, (b) whistleblower laws, and (c) discrimination categories. The law now specifies that discrimination is forbidden when based on a combination of two or more of protected characteristics.

CROWN Act

  • With regard to protected characteristics, the CROWN Act has been expanded. The language now broadens the definition of “race” and includes “protective styles” such as braids, locs, and twists.

Antidiscrimination Laws

  • Cities, counties, or other political subdivisions can enforce local antidiscrimination laws that are at least as protective as state laws under specific circumstances.

Paid Family Leave

  • The Paid Family Leave (“PFL”) law has been amended to delete an employer’s right to have an employee take two weeks of accrued but unused vacation time (if available) before receiving PFL wage replacement. In other words, an employee who applies for PFL benefits is entitled to such benefits immediately upon taking leave.

PAGA

  • PAGA laws have incorporated several changes including, among others:
      • A PAGA exemption for construction workers who are covered by collective bargaining agreements.
      • An employee may only bring a PAGA claim if they personally experienced the violation asserted in their claim.
      • Employers now have the opportunity to cure violations in certain instances, possibly eliminating or reducing the possibility of penalties.

Job Posting

  • If an employer specifies in a job posting that an employee must have a driver’s license, the employer must reasonably expect that the employee’s duties will require driving and that an alternative mode of transportation will not be comparable in terms of time and cost.

Domestic Violence Leave

  • The Domestic Violence Leave law has been significantly expanded. The new requirements eliminate the term “crime and abuse” and replace it with “qualifying acts of violence.” It also broadens the circumstances during which an employer must provide job-protected, unpaid time off, with the time varying based on specific circumstances. These changes likely require modifications of the applicable policy in employee handbooks.

Climate Emission Disclosures

  • Please take note that climate-related Emission Disclosures will be due in 2026.

New Laws

  • In addition to the PAGA exemption for construction workers with collective bargaining agreements, there are new laws affecting certain industries such as agriculture, healthcare, household workers, warehouse workers, performers (AI protections), venture capital, event hosting, and employers who employ children or who need to determine if there is child labor involved in their operations.
  • With respect to safety standards, the new laws also contain requirements relating to maximum indoor heat and the mandatory inclusion of Narcan in all first aid kits. 

S&W provides counseling, advice, and litigation services concerning employment matters. Please feel free to contact Michele Desoer at mdesoer@swattys.com, Cara Sherman at csherman@swattys.com, or Gerald Sauer at gsauer@swattys.com for inquiries.   

Reminder: Tell Your Beloved Employees About Their Noncompetes

Newsletters

by Sonya Goodwin

Next week, in addition to giving heart-shaped chocolates to their employees on Valentine’s Day, employers who have required their current and former (who were employed after January 1, 2022) employees to sign noncompete agreements must provide them with written notice that the noncompete clause or agreement is void. Pursuant to Business & Professions Code Section 16600.1, the notice must be provided no later than February 14, 2024, and must be sent to each current and former employee individually, via mail and email. 

While there are a few exceptions to this requirement, it is best to check with an employment attorney to determine if you are required to provide notice pursuant to this statute.

If you have any questions, please contact Sonya Goodwin. Sonya provides mediation services, advice, and counsel to employers and litigates all types of employment matters. For Sonya’s mediation availability, contact Candace Yang at cyang@swattys.com. For employment counseling, contact Sonya at sgoodwin@swattys.com.

2024 Employment Law Update

Newsletters

by Sonya Goodwin

As we start the new year, California employers should be aware of the new employment laws that went into effect on January 1, 2024.  This is also a good time for employers to update their Employee Handbooks to ensure they are in compliance with these new laws.  Here is a summary of some of the new or updated laws:

Cannabis Use Added as a Protected Category (AB 2188, SB 700)

AB 2188 (which was signed into law in 2022, but goes into effect January 1, 2024) expands the FEHA to make it unlawful for an employer to discriminate against applicants or employees in hiring, termination, or any term or condition of employment, or to otherwise penalize an individual for (1) off-duty cannabis use outside the workplace, or (2) the results of an employer-required drug test that comes back positive for nonpsychoactive cannabis metabolites in the individual’s hair, blood, urine, or other bodily fluids.  This does not impact an employer’s policy prohibiting the use or possession of cannabis on the job, or prohibiting employees from being under the influence of drugs or alcohol while at work. 

SB 700 also expands the FEHA to protect applicants from discrimination for prior cannabis use and prohibits employers from asking applicants information relating to their prior use of cannabis. 

Expansion of Paid Sick Leave Law (SB 616)

SB 616 expands California’s existing paid sick leave law to require employers to provide 5 days/40 hours of paid sick leave (the previous law required 3 days/24 hours).  While employers may still use the “frontload” method to provide the entire amount of paid sick leave upfront, for those employers who use the accrual method, employees must be able to accrue 40 hours by their 200th day of employment. It is important to note that employees can still accrue at the rate of 1 hour of sick leave for every 30 hours worked.  Annual usage may be limited to 40 hours (instead of the previous 24 hours), and the total accrual may be capped at the greater of 10 days/80 hours (formerly 6 days/48 hours). 

Reproductive Loss Leave (SB 848)

SB 848 permits eligible employees to take up to 5 days of unpaid leave after a “reproductive loss event,” which is defined under the law as a failed adoption, failed surrogacy, miscarriage, stillbirth, or an unsuccessful assisted reproduction.  The leave must be taken within 3 months of the reproductive loss event, and does not need to be taken consecutively.  This new law applies to employers with at least 5 employees, and an employee must be employed at least 30 days prior to the start of the leave.

Prohibition of Noncompete Agreements (SB 699, AB 1076)

Although noncompete agreements have been, for the most part, unenforceable for some time in California, under SB 699, employers are prohibited from entering into or attempting to enforce noncompete agreements with employees no matter where the employee worked when the agreement was entered into or where the employee signed the agreement.  Additionally, AB 1076 requires all employers who previously required employees (current and former if employed after January 1, 2022) to sign noncompete agreements to inform those employees, in writing, by February 14, 2024, that the noncompete agreements previously signed are void.  A violation of the notice provision constitutes an act of unfair competition.  

Workplace Violence Prevention Plan (SB 553)

Effective July 1, 2024, SB 553 will require employers to create a written workplace violence prevention plan.  As part of the plan, employers must, among other things, train all employees regarding workplace violence prevention; maintain records related to the plan; record incidents or threats in an incident log; and create procedures to accept and respond to reports of workplace violence, and how to prevent retaliation against employees who report workplace violence.  There are some exceptions to this new law for employers with fewer than 20 employees in certain industries.  If you have fewer than 20 employees, you should seek legal advice to determine what your obligations are under this law. 

Increased California Minimum Wage

Effective January 1, 2024, the state minimum wage will increase to $16/hour for all employers regardless of number of employees.  This means that the salary basis test for most salaried exempt positions will increase to a minimum of $66,560.  Note that many local counties and cities, including Los Angeles (both county and city), have local minimum wages that are higher than the state minimum wage.  Employers must use the higher applicable rate in their jurisdiction.

If you have any questions, please contact Sonya Goodwin.  Sonya provides mediation services, advice, and counsel to employers and litigates all types of employment matters.  For Sonya’s mediation availability, contact Candace Yang at cyang@swattys.com.  For employment counseling, contact Sonya at sgoodwin@swattys.com.

Are Pre-Mediation Calls Worth It?

Newsletters

by Sonya Goodwin

I was talking to a colleague recently, and he told me that he was surprised to receive a request by a mediator for a pre-mediation call on an upcoming mediation. I was just as shocked as he was, but my astonishment was because he then revealed that, in over 40 years of litigating, he had never had a pre-mediation call with a mediator. As an attorney, I always appreciated pre-mediation calls because I felt that it showed that the mediator was truly invested in resolving my case. Now, as a mediator, I always offer pre-mediation calls with the attorneys on both sides. Here are just a few reasons why pre-mediation calls are beneficial:

  • It allows the attorney to inform the mediator of the dynamics of the parties and the attorneys, which then allows the mediator to start the mediation with the appropriate tone.
  • If briefs are provided before the call, it allows the mediator to ask follow-up questions and request additional evidence that might be helpful to resolve the case at the mediation.
  • It allows the attorney to tell the mediator about any issues that the attorney might not want to discuss in front of the client, or inform the mediator of sensitive subjects to be aware of – this is particularly true in highly emotional employment matters.
  • It allows the attorney to emphasize what the mediator should not disclose to the other side during the mediation.
  • It allows the attorney to express possible hurdles to settlement (e.g., party relations, procedural posture, factual context, etc.).
  • It allows the mediator to determine what information has been shared with the other side and, particularly in PAGA and class action mediations, encourage the parties to share information that might impact the valuation of the case.
  • In multi-party mediations, it allows the mediator to ask the attorneys how they want to proceed during the mediation (e.g., co-defendants or co-plaintiffs in separate rooms, global offers/demands vs. separate for each party, etc.).
  • It allows the attorney and mediator to build a rapport before the mediation, especially if the mediator and attorney have not previously worked together, which may help the client build trust in the mediator. 
  • It allows the mediator to discuss defense counsel’s relationship with insurance carriers and any issues regarding insurance that might play a role in settling the case.

Of course, pre-mediation calls are voluntary. However, I encourage every attorney to take advantage of this highly useful tool when it is offered. 

Do you need to mediate an employment dispute? For information regarding mediation availability, contact Candace Yang at cyang@swattys.com. 

CA Companies May Have To Reimburse More Remote Work Costs

Newsletters

by Sonya Goodwin

Read Sonya Goodwin’s recent article that was published on Law360 about California employers’ obligations to reimburse employees for necessary business expenses when they work remotely. As discussed in the article, this obligation was reiterated in a recent California Court of Appeal decision, Thai v. International Business Machines Corp., which was brought by an employee who was required to work remotely during the COVID-19 pandemic and was not reimbursed by his employer for the necessary costs associated with having to work from home.

Sonya mediates and litigates a wide range of employment disputes including issues related to unreimbursed business expenses. For information regarding mediation availability, contact Candace Yang at cyang@swattys.com. For more information regarding litigation, contact Sonya at sgoodwin@swattys.com.

Click here to read the full article.

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