As we move into 2025, it’s crucial to look back at the significant changes in California employment law throughout 2024. The past year brought several legislative shifts that employers and employees alike had to navigate, impacting everything from wages to workplace safety. Here’s a comprehensive look at the key developments:
Minimum Wage Adjustments
One of the most notable changes in 2024 was the increase in California’s minimum wage. Effective January 1, 2024, the state minimum wage increased to $16 per hour for all employers, up from $15.50, reflecting California’s ongoing commitment to addressing the cost of living. Additionally, there were sector-specific increases, with fast-food workers seeing their minimum wage jump to $20 per hour under AB 1228, and healthcare workers receiving tiered increases based on the type of facility, thanks to SB 525. This has led to a notable adjustment in payroll systems for many businesses.
Expansion of Paid Sick Leave
SB 616 marked a significant expansion of California’s paid sick leave policy, increasing the annual entitlement from three days (24 hours) to five days (40 hours). This law requires employers to provide this leave upfront or allow an accrual method where employees can carry over up to 80 hours. This change aimed at providing more robust health protections for workers, ensuring they have adequate time off to address personal or family health needs without financial strain.
Noncompete Agreements Overhauled
The landscape for noncompete agreements was dramatically altered with the passage of SB 699 and AB 1076. These laws not only rendered noncompete clauses void but also prohibited employers from enforcing such agreements regardless of where and when they were signed. Employers were mandated to notify employees by February 14, 2024, that existing noncompete clauses were void, introducing a new era of workforce mobility. This has significant implications for businesses, particularly those in tech and other industries where noncompetes were common.
Workplace Violence Prevention
SB 553 introduced a mandate for employers to implement and maintain a Workplace Violence Prevention Plan (WVPP) by July 1, 2024. This law underscores California’s focus on workplace safety, requiring detailed plans, training, and incident logs to prevent and respond to workplace violence. It’s a pioneering move, setting a new standard for workplace safety across the state.
Cannabis Use Protections
California further expanded protections for cannabis use with AB 2188, which became effective in January 2024. This legislation prohibits employers from discriminating against employees or job applicants based on their off-duty cannabis use or the presence of non-psychoactive cannabis metabolites in drug tests. This reflects a growing acknowledgment of changing societal norms regarding cannabis, though employers can still enforce rules against use, possession, or being under the influence at work.
Retaliation Presumptions and Protections
The introduction of SB 497 created a rebuttable presumption of retaliation if an employer took adverse action against an employee within 90 days of the employee engaging in protected activity like whistleblowing or asserting rights under equal pay laws. This law increases the scrutiny on employer actions and emphasizes the importance of documented, timely, and fair employment practices.
Looking Forward to California Employment Law in 2025
As we step into 2025, the implications of these laws are still unfolding. Employers are adapting to these changes by revising policies, updating employee handbooks, and ensuring compliance through training and new procedures. Employees, on the other hand, are gaining awareness of their rights, which could lead to an increase in legal actions related to these new protections.
These legislative updates from 2024 have not only shaped the immediate workplace environment but also set precedents that will influence future labor law considerations in California. Employers would do well to stay informed and proactive, possibly engaging with legal counsel to navigate this evolving landscape. For employees, understanding these laws can empower them to advocate for their rights more effectively.
Stay tuned to the California employment law scene as it continues to evolve, potentially setting trends for other states to follow. Remember, staying informed is key to thriving in California’s dynamic legal environment.