New California Laws for 2025 and Beyond: What Employers Should Know

At a Glance

• California Gov. Gavin Newsom signed several laws in 2024 addressing a variety of topics including reforms to the California Private Attorneys General Act, discrimination, victims of domestic violence and paid family leave.

California Governor Gavin Newsom signed several laws impacting California employers in 2024. Some of the new laws became effective in 2024 and others, including some that were signed into law just weeks ago, take effect January 1, 2025, or later. These new laws address several topics, including reforms to the California Private Attorneys General Act, discrimination, victims of domestic violence and paid family leave.

As a reminder, the minimum wage in California is increasing to $16.50 per hour on January 1, 2025, for all employers — regardless of the number of workers employed by an employer.¹  Also, many cities and local governments in California have enacted minimum wage ordinances exceeding the state minimum wage.

All employers with operations in California should be aware of these new laws, understand how these laws may affect their operations and consult with counsel to address any compliance questions, including whether existing employment policies should be updated or whether new employment policies should be created. The effective date and/or operative date of each new law is indicated in the heading of the Assembly Bill (AB) or Senate Bill (SB). Unless otherwise indicated, the list below is in numerical order by AB or SB.

Please note that the summary below does not address all new California laws that impact employers or employees; rather, it is a summary of the new California laws that we believe to be the most significant in terms of scope and impact of individuals or employers with business operations in California.

AB 224 – Independent Contractors: Newspaper Distributors and Carriers (Effective January 1, 2025)

Under the ABC Test, as established by the California Supreme Court in Dynamex Operations W. Inc. v. Superior Court (2018) 4 Cal.5th 903 and later codified in Labor Code Sections 2775 et seq., there is a presumption that a worker who performs services for a hiring entity is an employee and not an independent contractor. Existing law exempts specified occupations and business relationships from the application of the ABC Test. Newspaper distributors working under contract with a newspaper publisher and newspaper carriers have benefited from this exemption, which is set to expire on January 1, 2025.

AB 224 extends the exemption until January 1, 2030, with additional extensions regarding prescribed information on carrier payroll taxes, wage rates and wage claims to the Labor and Workforce Development Agency (LWDA).

This bill amends section 2783 of the Labor Code.

AB 375 – Disclosure of Delivery Drivers’ Identity for Food Delivery Platforms (Effective March 1, 2025)

Existing law (the Fair Food Delivery Act of 2020) regulates third-party food delivery platforms that transport ready-to-eat foods and defines a “food delivery platform” as an online business that acts as an intermediary between consumers and multiple food facilities. Commencing on March 1, 2025, AB 375 requires the platforms to disclose to the customer the driver’s first name and picture when the customer is notified that their purchase is out for delivery. An exemption applies to food delivery platforms if: the food facility uses its own delivery drivers for the delivery of the order; or receives the order through the food facility’s internet website or a third party that is not the food delivery platform.

This bill adds section 22599.3 to the Business and Professions Code.

AB 1034 – PAGA Exemption: Construction Industry Employees (Effective January 1, 2025)

Under existing law, until January 1, 2028, Private Attorneys General Act (PAGA) contains an exemption for employees in the construction industry with respect to work performed under a valid collective bargaining agreement in effect any time before January 1, 2025. AB 1034 extends the construction industry exemption to the PAGA until January 1, 2028. The exemption covers employees in the construction industry working under a collective bargaining agreement that, among other things, expressly provides for the wages, hours of work and working conditions of employees, premium wage rates for all overtime hours worked, and for the employee to receive a regular hourly pay rate of not less than 30% more than the state minimum wage rate. The agreement must also prohibit all violations of the Labor Code that would be redressable under PAGA and provide for a grievance and arbitration procedure to address any such violations.

This bill amends section 2699.6 of the Labor Code.

AB 1815 – Race Discrimination (Effective January 1, 2025)

Under existing law, the California Fair Employment and Housing Act (FEHA) and anti-discrimination provisions of the Education Code define the term “race” to include "traits historically associated with race," including, but not limited to, hair texture and protective hairstyles.

AB 1815 removes the term “historically” from the definitions of race, thus defining race to include traits associated with race, including, but not limited to, hair texture and protective hairstyles (which include but are not limited to such hairstyles as braids, locs and twists), and would add those definitions for “race” and “protective hairstyles” to the Unruh Civil Rights Act.

This bill applies retroactively and amends section 51 of the Civil Code, section 212.1 of the Education Code, and section 12926 of the Government Code.

AB 1870 – Workers’ Compensation Notice Requirements (Effective January 1, 2025)

Existing law mandates that employers participating in the workers’ compensation system display a notice in a location accessible to employees. The notice must outline details such as where to report injuries, the right to select or change a treating physician, and protections against discrimination. The Administrative Director of the Division of Workers’ Compensation provides the form and content for this notice to employers.

AB 1870 adds a requirement for the notice to include information about an injured employee’s right to consult with a licensed attorney for advice regarding their workers’ compensation rights. The bill also makes technical, non-substantive revisions to the existing provisions.

This bill amends section 3550 of the Labor Code.

AB 1888 – The Labor Trafficking Unit within the Department of Justice (Effective January 1, 2025)

AB 1888 establishes the Labor Trafficking Unit within the Department of Justice, which will receive labor trafficking reports and complaints from government entities and refer the reports and complaints to appropriate agencies for investigation, prosecution, or other remedies. The bill requires coordination and collaboration among the unit and state agencies, including Department of Industrial Relations and the Civil Rights Department (CRD). The bill’s operation is contingent upon adequate appropriation by the Legislature, and if the Legislature does not appropriate adequate funding by January 1, 2030, the bill will be repealed.

This bill adds section 12530.5 to the Government Code.

AB 1966 – Human Trafficking Notice Required by Primary Ticket Sellers (Effective January 1, 2025)

Existing law requires specified businesses and other establishments to post a notice that contains information regarding nonprofit organizations that a person can call for services or support in the elimination of slavery and human trafficking. AB 1966 will require a primary ticket seller of a mobile or electronic ticket for an event at an entertainment facility to include the following notice with the ticket purchase confirmation electronically to the buyer:

If you or someone you know is being forced to engage in commercial sex or labor trafficking, text 233-733 (Be Free) or call the National Human Trafficking Hotline at 1-888-373-7888 or the California Coalition to Abolish Slavery and Trafficking (CAST) at 1-888-KEY-2-FRE(EDOM) or 1-888-539-2373 to access help and services.

It is a felony in California to knowingly engage in commercial trafficking and perpetrators of this offense shall be prosecuted under the law.

An entertainment facility is defined as an arena, auditorium, concert hall, live performance venue, museum, racetrack, stadium, theater or other place where entertainment events are presented for a price of admission.

The notice must be provided in English, Spanish, and in one other language that is the most widely spoken language in the county where the entertainment facility is located and for which translation is required under federal voting laws.

This bill adds section 52.66 to the Civil Code.

AB 2011 – Unlawful Employment Practices: Small Employer Family Leave Mediation Program: Reproductive Loss Leave (Effective January 1, 2025)

Existing law requires that the CRD create a small employer family leave mediation pilot program to resolve alleged violations of family care and medical and bereavement leave requirements. That program is applicable to employers with between five and 19 employees. AB 2011 expands that program to include resolution of alleged violations of reproductive loss leave requirements.

Under this program, the CRD is generally required to initiate mediation within 60 days following a request. Employees are prohibited from filing a civil action until mediation is complete or deemed unsuccessful, and the statute of limitations on the employee’s claim is tolled during that time. AB 2011 also deletes the repeal date for the pilot program, extending the operation of the program indefinitely.

This bill amends section 12945.21 of the Government Code.

AB 2047 – Discrimination Prevention: Public Postsecondary Education (Effective January 1, 2025)

Existing federal law, known as Title IX, prohibits a person, on the basis of sex, from being excluded from participation in, being denied the benefits of, or being subject to discrimination, which includes sexual harassment, under any education program or activity receiving federal financial assistance. Existing law also prohibits a person from being subjected to discrimination on the basis of specified attributes, including, among others, disability or gender, in a program or activity conducted by a postsecondary educational institution that receives, or benefits from, state financial assistance or enrolls students who receive state student financial aid.

AB 2047 requires each California State University campus to establish, and each University of California campus to designate, a Title IX office, and imposes numerous requirements on each Title IX office, including that it (1) be under the administration of a Title IX coordinator who would be responsible for coordinating the campus' implementation of and compliance with systemwide nondiscrimination policies; (2) ensure, or oversee and ensure, timely and effective responses to reports and complaints of sex discrimination; and (3) provide a process, or oversee the process, of adjudicating and resolving complaints of sex discrimination. This bill also requires the California State University to establish, and the University of California to designate, on or before July 1, 2026, a systemwide Office of Civil Rights to be led by a systemwide civil rights officer. The California State University systemwide Office of Civil Rights will be responsible for establishing and adopting, and the University of California systemwide Office of Civil Rights will be responsible for identifying and maintaining, a systemwide nondiscrimination policy. Each systemwide Office of Civil Rights will also be responsible for developing and implementing a grievance procedure for sex discrimination complaints in which the respondent is a systemwide employee, a member of the systemwide governing body, or other specified person. Finally, the bill requires each systemwide Office of Civil Rights to, among other things, provide or oversee specified education and training, establish best practices guidance on sex discrimination prevention and complaint adjudication, and conduct compliance reviews.

This bill adds sections 66279, 66279.5, 66280 and 66280.5 to the Education Code.

AB 2048 – Sexual Harassment: Community Colleges (Effective January 1, 2025)

AB 2048 requires the Chancellor of the California Community Colleges, on or before December 1, 2025, and in consultation with stakeholders, to submit a report to the Legislature with recommendations for establishing systemic campus reforms that effectively prevent, detect and address sexual harassment on community college campuses. The report shall include recommendations for, among other things, baseline standards for policies and procedures that detect, address and prevent the reoccurrence of sexual harassment that are consistent with best practices; protocols for system and campus reporting on sexual harassment complaints that provide transparency on the number and outcomes of sexual harassment complaints to the public; and the recruitment, hiring and training of campus-based, district-based and systemwide staff to adequately prevent, detect and address sexual harassment on community college campuses.

This bill adds and repeals section 66281 of the Education Code.

AB 2049 – Summary Judgment Motion Deadlines (Effective January 1, 2025)

Existing law requires motions for summary judgment or adjudication in civil cases to be filed at least 75 days before the hearing, with oppositions due 14 days before the hearing and replies due five days before.

AB 2049 revises these deadlines, requiring motions for summary judgment or adjudication to be filed at least 81 days before the hearing, oppositions at least 20 days before, and replies at least 11 days before. The bill also limits parties to one summary judgment motion per adversary without court approval and prohibits introducing new facts in reply briefs to ensure fairness.

This bill amends section 437c of the Code of Civil Procedure.

AB 2123 – Paid Family Leave (Effective January 1, 2025)

Existing law establishes, within the state disability insurance program, a family temporary disability insurance program, also known as the paid family leave (PFL) program, for the provision of wage replacement benefits to workers who take time off work to care for certain seriously ill family members, to bond with a minor child within one year of birth or placement, or to participate in a qualifying exigency related to the covered active duty or call to covered active duty of certain family members. Existing law also authorizes an employer to require an employee to take up to two weeks of accrued vacation before, and as a condition of, the employee’s initial receipt of PFL benefits during any 12-month period in which the employee is eligible for these benefits.

AB 2123 eliminates an employer’s ability to require employees to use accrued vacation before receiving PFL benefits.

This bill amends section 3303.1 of the Unemployment Insurance Code.

AB 2337 – Workers’ Compensation: Electronic Signatures (Effective January 1, 2025)

AB 2337 permits electronic signatures on documents filed with the California Workers Compensation Appeals Board, subject to some limitations. The bill defines “electronic signature” as “an electronic sound, symbol, or process attached to or logically associated with an electronic record and executed or adopted by a person with the intent to sign the electronic record, where the electronic signature is attributable to a person” per the Uniform Electronic Transactions Act and other law.

This bill adds sections 110.5 and 3206.5 to the Labor Code.

AB 2283 – Civil Actions: Electronic Service (Effective July 18, 2024)

Existing law permits California courts in a civil action to serve documents action by electronic means pursuant to rules adopted by the California Judicial Council, and required a court, on and after July 1, 2024, to electronically transmit those documents to a party who is subject to mandatory electronic service, or who has consented to accept electronic service.

According to Judicial Council, the sponsor of the bill, the courts are unable to meet the statutory deadline for implementing electronic service. AB 2283 extends the deadline until July 1, 2025, and it changes the court’s obligation to electronically “transmit” documents to an obligation to electronically “serve” documents. This allow courts to complete service by sending a party a link to a download rather than emailing large documents (which may be too large to be sent over email).

This bill amends section 1010.6 of the Code of Civil Procedure.

AB 2288 & SB 92 – PAGA Reforms (Effective June 19, 2024)

Our team previously published a summary regarding AB 2288 and SB 92, which can be found on our website.

AB 2299 – Whistleblower Protections (Effective January 1, 2025)

Existing law requires employers to display a list of employees’ rights and responsibilities under California’s whistleblower laws. AB 2299 requires the Labor Commissioner to develop a model list of employees’ rights and responsibilities under California’s whistleblower laws, and states that an employer shall be deemed in compliance with the posting requirements if it posts that model policy.

This bill adds section 98.11 to the Labor Code and amends Labor Code section 1102.8.

AB 2319 – California Dignity in Pregnancy and Childbirth Act (Effective January 1, 2025)

The California Dignity in Pregnancy and Childbirth Act was enacted to promote respectful and equitable maternity care and establishes protections for pregnant individuals, with a particular focus on preventing racial and ethnic disparities in maternal health outcomes. The Act emphasizes the importance of providing maternity care in a respectful manner that acknowledges and supports the dignity of all pregnancies, regardless of race, ethnicity or background, with the goal of eliminating racial disparities in childbirth and maternity care.

The Act requires hospital and alternative birth centers to provide annual, evidence-based implicit bias training to care staff. The training is intended to address unconscious biases that may affect the quality of care provided to pregnant women of color. The initial basic training for the implicit bias program must be completed by June 1, 2025, for current health care providers, and within six months of their start date for new health care providers, unless exempted. This bill also requires that, commencing on February 1, 2026, and each year thereafter, specified facilities provide the Attorney General with proof of compliance with training.

The Act further requires health care providers to provide patients with information about their rights in pregnancy and childbirth, including to have their individual needs considered in care decisions. Hospitals and health care providers must also collect and report data on maternal health outcomes by race and ethnicity. The Act authorizes the Attorney General to pursue civil penalties, as well as attorney’s fees and costs, for violations of these provisions. Civil penalties will be assessed at $5,000 for the first violation and $15,000 for the second and each subsequent violation. The Attorney General is also authorized to post on its website: a list of facilities that did not timely submit proof of compliance, a list of facilities required to pay penalties for violating the Act, or any other compliance data the Attorney General deem necessary.

This bill adds amends sections 123630.1, 123630.2 and 123630.3 of, and adds sections 123630.6 and 123630.7 to, the Health and Safety Code.

AB 2499 – Unlawful Discrimination and Paid Sick Days: Victims of Violence (Effective January 1, 2025)

AB 2499 moves certain requirements regarding jury duty, court duty and time off for victims of crime from the Labor Code to the FEHA. Specifically, it moves the prohibitions on discrimination and retaliation against an employee who (1) takes time off for jury service; (2) takes time off to appear in court as a witness or victim pursuant to a court order or subpoena; (3) is the victim of a crime and takes time off work to obtain relief including, but not limited to, a temporary restraining order, restraining order or other injunctive relief; and (4) for employers with 25 or more employees, is the victim of a “qualifying act of violence” and takes time off for other specific purposes.

“Qualifying act of violence” is defined as any of the following, regardless of whether anyone is arrested for, prosecuted for or convicted of committing any crime:

(a) domestic violence;
(b) sexual assault;
(c) stalking; and
(d) an act, conduct, or pattern of conduct that includes any of the following:

(i) In which an individual causes bodily injury or death to another individual.
(ii) In which an individual exhibits, draws, brandishes, or uses a firearm, or other dangerous weapon, with respect to another individual.
(iii) In which an individual uses, or makes a reasonably perceived or actual threat to use, force against another individual to cause physical injury or death.

In addition, AB 2499 adds a prohibition for employers with 25 or more employees on discriminating or retaliating against an employee for taking time off for various reasons related to a family member’s being the victim of a qualifying act of violence, and expands the list of crimes for which victims or their family members can take time off work. It defines “family member” to mean a child, parent, grandparent, grandchild, sibling, spouse or domestic partner, as those are defined by the California Family Rights Act, or a designated person. Under this new law, “designated person” is defined as any individual related by blood or whose association with the employee is the equivalent of a family relationship. The designated person may be identified by the employee at the time the employee requests leave, and an employer may limit an employee to one designated person per 12-month period.

AB 2499 limits this leave to 12 weeks total; five days for the purposes of helping a family member relocate, if the family member is a victim and the employee is not a victim; and 10 days if the employee’s family is a victim who is not deceased, and the employee is not a victim.

AB 2499 also expands California’s paid sick leave requirements to cover the above additional purposes and expands the eligibility for reasonable accommodations to include an employee who is a victim or whose family member is a victim of a “qualifying act of violence.”

Finally, AB 2499 requires employers to notify employees of these rights upon hire, annually, at any time upon request, and at any time an employee informs the employer that the employee or the employee’s family member is a victim. The CRD is required to develop and post a model form by July 1, 2025.

This bill, in relevant part, adds section 12945.8 to the Government Code, repeals sections 230, and 230.1 of the Labor Code, and amends section 246.5 of the Labor Code.

AB 2622 – Contractors: Exemptions for Work and Advertising (Effective January 1, 2025)

Existing law, under the Contractors State License Law, exempts individuals from licensing requirements for construction projects, and advertising thereof, if the total contract price for labor, materials and other expenses is under $500. Additionally, hiring others to perform the work disqualifies the exemption.

AB 2622 increases the exemption limit from $500 to $1,000, specifying that the exemption applies only if the project does not require a building permit and does not involve employing another person to assist with the work. The bill also revises rules related to advertising for unlicensed contractors, allowing individuals to advertise construction services for projects under $1,000 (previously $500), provided they clearly state in the advertisement that they are not licensed.

This bill expands the scope of activities considered misdemeanors by narrowing the exemption from licensing requirements, potentially imposing additional obligations on local agencies. However, it stipulates that no state reimbursement for these costs is required.

This bill amends sections 7027.2 and 7048 of the Business and Professions Code.

AB 2705 – Labor Commissioner: Public Works (Effective January 1, 2025)

Under existing law, the Labor Commissioner has the power to issue a civil wage and penalty assessment to a contractor or subcontractor for violations of the Labor Code for work performed on a public works project. AB 2705 clarifies that both contractors and subcontractors are jointly and severally liable for any unpaid wages or penalties, as determined by a final order or judgment. The Labor Commissioner is required to exhaust all reasonable means to collect from the subcontractor before seeking payment from the contractor. Moreover, any money collected is distributed with a priority towards wage claims over penalties. The bill further outlines a contractor’s liability when using out-of-state fabrication facilities.

Portions of this bill will remain in effect until January 1, 2026, and as of that date, will be repealed and replaced with the full bill on January 1, 2026.

This bill amends section 1743 of the Labor Code.

AB 2738 – Labor Code: Alternative Enforcement (Occupational Safety) (Effective January 1, 2025)

AB 2738 strengthens enforcement mechanisms related to workplace safety for stage production workers in the live entertainment industry. This bill was motivated by tragic workplace accidents at major music festivals, such as Coachella and BottleRock, where stage workers died due to unsafe conditions, and aims to prevent such accidents by holding entertainment vendors accountable for ensuring that workers are properly trained and certified.

Entertainment venders must certify that workers involved in setting up, operating or tearing down live events at public venues have completed required safety training (such as applicable trainings under the United States Department of Labor’s Occupational Safety and Health Administration, the Cal/OSHA-10, the OSHA-10/General Entertainment Safety training, or the OSHA-10). Heads of departments and leads must hold relevant Cal/OSHA certifications, including from the Entertainment Technician Certification Program. Vendors must certify in writing that they have verified the required training for all workers, including subcontractors.

The bill extends enforcement authority to local public prosecutors to hold vendors accountable for safety violations. Penalties for violations may be imposed. Injunctive relief may be pursued as well as a maximum penalty of $500 per violation. Prevailing plaintiffs in such cases are also entitled to recover reasonable attorney’s fees. This law will remain in effect until January 1, 2029, and repealed as of that date, allowing time for the effectiveness of the measures to be assessed. That said, the repeal date shall not apply to any action initiated in court by a public prosecutor prior to January 1, 2029.

This bill amends sections 181, 9251 and 9252 of, and adds section 9252.1 to, the Labor Code.

AB 2754 – Employment Contracts: Port Drayage Motor Carriers (Effective January 1, 2025)

Existing law prohibits a person or entity from entering into a contract for labor or services with construction, farm labor, garment, janitorial, security guard or warehouse contractors if the person or entity knows or should know that the contract does not include funds sufficient to allow the contractor to comply with all applicable local, state, and federal laws or regulations governing the labor or services to be provided, and creates a rebuttable presumption affecting the burden of proof that there has been no violation of the above-described prohibition if the contract meets specified requirements, including being in a single document and containing a list of the current local, state and federal contractor license identification numbers that the independent contractors are required to have under local, state, or federal laws and regulations.

AB 2754 extends the existing law to any contract with a port drayage motor carrier, other than such a contract involving 30 days or fewer of cumulative labor or services within a one-year period. “Port drayage motor carrier” is defined as: (A) an individual or entity that hires or engages commercial drivers in the port drayage industry; (B) a registered owner, lessee, licensee, or bailee of a commercial motor vehicle, as defined in subdivision (b) of Section 15210 of the Vehicle Code, that operates or directs the operation of a commercial motor vehicle by a commercial driver on a for-hire or not-for-hire basis to perform port drayage services in the port drayage industry; or (C) an entity or individual who succeeds in the interest and operation of a predecessor port drayage motor carrier consistent with the provisions of Section 2684.

This bill amends sections 2810 and 2810.4 of the Labor Code.

AB 3089 – Formal Apology for Gross Human Rights Violations and Crimes Against Humanity (Effective January 1, 2025)

AB 3089 creates the “Apology Act for the Perpetration of Gross Human Rights Violations and Crimes Against Humanity, with special consideration for African Slaves and their Descendants.” The bill provides that the State of California recognizes and accepts responsibility for the harms and atrocities committed by the state, its representatives thereof, and entities under its jurisdiction who promoted, facilitated, enforced and permitted the institution of chattel slavery and the enduring legacy of ongoing badges and incidents from which the systemic structures of discrimination have come to exist.

AB 3089 requires, among other things, that (a) a plaque memorializing this apology to be publicly and conspicuously installed and maintained in the State Capitol Building; (b) the Legislature to prepare the formal apology and be signed by specified state leaders; and (c) the Secretary of State to submit a final copy of this formal apology to the State Archives, where it would be available for viewing by the general public in perpetuity.

This bill adds Chapter 4.5 (commencing with sections 8301) to Division 1 of Title 2 of the Government Code.

AB 3105 – Exemption for Faculty at Private Institutions of Higher Education (Wage and Hour) (Effective January 1, 2025)

AB 3105 focuses on wage and hour exemptions for faculty at private higher education institutions. Specifically, this bill amends current law to revise the definition of an independent institution of higher education, in order to allow instructors at independent institutions of higher education that are incorporated out-of-state to qualify as exempt professionals under state wage and hour regulations, provided that the institution meets certain conditions. The conditions include that: (1) the institution must be a nonprofit higher education institution, accredited by an agency recognized by the U.S. Department of Education; (2) the institution must have been incorporated prior to January 1, 2023; and (3) faculty members must meet existing criteria for professional exemptions in California. The bill seeks to ensure that faculty at out-of-state nonprofit institutions operating in California are treated similarly to those at in-state institutions. This bill also declares that these provisions are declaratory of existing law.

This bill amends section 515.7 of the Labor Code.

AB 3234 – Social Compliance Audit (Effective January 1, 2025)

Faegre Drinker previously published a summary regarding AB 3234 which can be found on our website.

AB 3280 – Superior Court Lactation Rooms (Operative July 1, 2026) & SB 949 – Superior Court Lactation Accommodation (Operative July 1, 2026)

Existing law requires employers, including superior courts, to provide lactation rooms for employees to express milk in private, with certain conditions such as cleanliness and safety. Starting July 1, 2026, superior courts must also make lactation rooms available to court users in courthouses where such rooms are provided for employees.

AB 3280 permits courts to designate lactation rooms for court users that do not meet all employee lactation room requirements to maximize the availability of these rooms across courthouses. Additionally, the bill mandates the Judicial Council to submit annual reports to the Legislature, beginning March 1, 2025, detailing the progress in constructing, installing and renovating lactation rooms in superior courts to comply with these requirements. The reporting obligation continues until either the courts fully comply with the access requirements or all allocated funds for compliance are exhausted.

This bill amends section 69894, and adds Section 69894.2, to the Government Code.

SB 399 – California Worker Freedom from Employer Intimidation Act (Effective January 1, 2025)

Existing California employment law prohibits employers from making, adopting, or enforcing rules, regulations or policies that forbid or prevent employees from engaging or participating in politics or from becoming candidates for public office, and from controlling or directing, or tending to control or direct, the political activities or affiliations of employees.

AB 399 enacts the California Worker Freedom from Employer Intimidation Act, which prohibits covered employers from subjecting, or threatening to subject, an employee to termination of employment, discrimination, retaliation, or any other adverse action because the employee declines to attend an employer-sponsored meeting or affirmatively declines to participate in, receive, or listen to any communications with the employer or its agents or representatives, the purpose of which is to communicate the employer’s opinion about religious or political matters. The law also requires employers to pay an employee who refuses to attend any such meeting during the time the meeting is held, imposes a civil penalty of $500 per employee for each violation by an employer, and creates a private right of civil action to seek injunctive or monetary relief, including punitive damages.

The new law exempts certain types of employers from coverage, including any religious corporation, entity, association, educational institution or society that is exempt from the requirements of Title VII of the Civil Rights Act of 1964, a political organization or party requiring its employees to attend an employer-sponsored meeting or to participate in any communications with the employer or its agents or representatives, the purpose of which is to communicate the employer’s political tenets or purposes, and an employer requiring employees to undergo training to comply with the employer’s legal obligations, including obligations under civil rights laws and occupational safety and health laws.

This bill adds Chapter 9 to Part 3 of Division 2 of the Labor Code.

SB 940 – Civil Disputes (Effective January 1, 2025)

SB 940 modifies several laws involving civil disputes.

The Consumer Contract Awareness Act of 1990: This Act prohibits an employer from requiring specified employees, as a condition of employment, to agree to a provision that would require the employee to adjudicate outside of California a claim arising in California or deprive the employee of the substantive protection of California law concerning a controversy arising in California.

For contracts entered into, modified, or extended on or after January 1, 2025, SB 940 prohibits a seller from requiring a consumer, as a condition of entering into a contract, to agree to a provision that would require the consumer to arbitrate outside of California a claim arising in California or to arbitrate a controversy arising in California under the substantive law of a state other than California. Further, if a consumer contract requires arbitration and the dispute may be adjudicated pursuant to the Small Claims Act, the consumer has the option to adjudicate the dispute in small claims court.

The California Arbitration Act: This Act provides a statutory framework for the enforcement of contractual arbitration under California law including the proposed neutral arbitrator’s disclosures of all matters that could cause a person aware of the facts to reasonably entertain a doubt that the proposed neutral arbitrator would be able to be impartial.

In a consumer arbitration case, SB 940 provides that the proposed neutral arbitrator must disclose any solicitation made after January 1, 2025, and within the last two years by, or at the direction of, a private arbitration company to a party or lawyer for a party. During the pendency of the consumer arbitration, the bill prohibits the solicitation of a party or lawyer for a party to the arbitration. The bill provides that parties to an arbitration have the right to take depositions and to obtain discovery regarding the subject matter of the arbitration as if the matter was pending before a superior court in a civil action; however, if the subject matter of the arbitration is that of a limited civil case, depositions shall not be taken unless the arbitrator grants leave.

The State Bar Act: This Act provides for the licensure and regulation of attorneys by the State Bar of California. SB 940 requires the State Bar to create a program to certify alternative dispute resolution firms, providers or practitioners, and authorizes the State Bar to charge a fee to cover the reasonable costs of administering the program.

SB 940 adds Article 10.1 (commencing with Section 6173) to Chapter 4 of Division 3 of the Business and Professions Code; adds Section 1799.208 and 1799.209 to the Civil Code; amends Section 1281.9, 1282.6, 1283.05 of the Code of Civil Procedure; adds section 1281.93 to the Code of Civil Procedure; and repeals section 1283.1 of the Code of Civil Procedure, relating to civil disputes.

SB 963 – Human Trafficking or Domestic Violence (Effective January 1, 2025)

SB 963 requires all general acute care hospitals with an emergency department to adopt and implement policies and procedures to facilitate the self-identification of an emergency department patient as a victim of human trafficking or domestic violence to hospital personnel. The policies and procedures are required to meet certain minimum requirements, including, among others, providing for patient confidentiality and facilitating a reasonably prompt, private and voluntary interview of the patient by medical personnel for the purpose of providing certain information to the patient relating to local services and resources for victims of human trafficking or domestic violence, if any. SB 963 limits the liability of a general acute care hospital acting in compliance the law.

This bill adds section 1281.5 to the Health and Safety Code.

SB 988 – Freelance Worker Protection Act (Effective January 1, 2025)

Commencing on January 1, 2025, SB 988 imposes minimum requirements relating to contracts between a hiring party and a freelance worker that is hired or retained as a bona fide independent contractor by a hiring party to provide professional services in exchange for an amount equal to or greater than $250. The bill requires, among other things, that (a) a hiring party pay a freelance worker the compensation specified by a contract for professional services on or before the date specified by the contract or, if the contract does not specify a date, no later than 30 days after completion of the freelance worker’s services; (b) a contract between a hiring party and a freelance worker to be in writing; and (c) the hiring party to retain the contract for no less than four years.

SB 988 prohibits a hiring party from discriminating or taking adverse action against a freelance worker relating to the enforcement of the provisions in the law. An aggrieved freelance worker or a public prosecutor may bring a civil action to enforce the law.

This bill adds Part 5 (commencing with Section 18100) to Division 7 of the Business and Professions Code.

SB 1090 – Unemployment Insurance: Disability and Paid Family Leave (Effective January 1, 2025)

Existing unemployment compensation disability law requires workers to pay contribution rates based on, among other things, wages received in employment and benefit disbursement for payment into the Unemployment Compensation Disability Fund, for purposes of compensating in part for the wage loss sustained by any individual who is unable to work due to the employee’s own sickness or injury, among other reasons. Existing law sets forth standards for eligibility to receive unemployment compensation disability benefits.

Existing law establishes, within the state disability insurance program, the paid family leave program for the provision of wage replacement benefits for up to eight weeks to workers who take time off work for prescribed purposes, including to care for a seriously ill family member, to bond with child following birth, adoption or foster care placement, or to participate in a qualifying event because of a family member’s military deployment.

Existing law also requires, for purposes of unemployment compensation disability benefits, the Employment Development Department to issue the initial payment for unemployment compensation disability benefits to an eligible claimant within 14 days of receipt of the claimant’s properly completed first disability claim, and that for purposes of the paid family leave program eligible workers shall receive benefits generally in accordance with unemployment and disability compensation law.

SB 1090 changes existing law by requiring, for purposes of unemployment compensation disability benefits, the issuance of the initial payment for those benefits within 14 days of receipt of the claimant’s properly completed first disability claim or as soon as eligibility begins, whichever is later. The new law also authorizes workers to file a claim for disability benefits or paid family leave up to 30 days in advance of the first compensable day with respect to the claim, applies the same initial payment issuance schedule applicable to unemployment compensation disability benefits to the paid family leave program, and repeals the requirement that eligible workers receive benefits generally in accordance with unemployment and disability compensation law. The law makes these changes operative when these changes are incorporated in the Employment Development Department’s integrated claims management system as part of the EDDNext project.

This bill amends and repeals Sections 2701.5, 2706.1, 3301 and 3304 of, and adds Sections 2701.5.5, 2706.1.5, 3301.5 and 3304.5 to, the Unemployment Insurance Code.

SB 1100 – Prohibition on Discrimination Based on Driver’s License Status (Effective January 1, 2025)

The FEHA prohibits various forms of employment and housing discrimination, including various types of discrimination because of national origin, defined to include discrimination on the basis of possessing a driver’s license granted pursuant to existing law that requires the Department of Motor Vehicles to issue an original driver’s license to a person who is unable to submit satisfactory proof that the applicant’s presence in the United States is authorized under federal law, as specified.

SB 1100 makes it unlawful for an employer to include a statement in a job advertisement, posting, application or other material that an applicant must have a driver’s license unless: (1) the employer reasonably expects the duties of the position to require driving; and (2) the employer reasonably believes that satisfying that job function using an alternative form of transportation would not be comparable in travel time or cost to the employer. For purposes of the new law, “alternative form of transportation” includes, but is not limited to, all of the following: using a ride hailing service, using a taxi, carpooling, bicycling or walking.

This bill amends section 12940 of the Government Code.

SB 1303 – Public Works (Effective January 1, 2025)

Under existing law, employers on public works projects must pay their workers not less than the general prevailing rate of per diem wages as determined by the Director of Industrial Relations. “Public works” includes construction, alteration, demolition, installation or repair work done under contract and paid for using public funds.

An awarding body may contract payments when, among other things, payroll records are delinquent or inadequate.

SB 1303 requires prior to withholding funds for an alleged violation, the private labor compliance entity must confer with the negotiating parties to review relevant public works law, and would prohibit the entity from withholding an amount that exceeds the alleged underpayments and penalty assessments. Further, the private labor compliance entity seeking to withhold funds must provide a venue for a public works contractor or subcontractor to review and respond to evidence of alleged violations.

This bill adds section 1771.8 to the Labor Code.

SB 1105 – Paid Sick Leave for Agricultural Employees (Effective January 1, 2025)

SB 1105 expands California’s paid sick leave requirements to allow agricultural employees who work outside to use paid sick leave to avoid smoke, heat, or flooding conditions created by a local or state emergency. The law states that it is declaratory of existing law, given that sick days are already allowed to be used for “preventive care.” This signals a potentially expansive interpretation of “preventive care,” beyond things like doctors’ visits and vaccinations.

This bill amends section 246.5 of the Labor Code.

SB 1137 – Discrimination: Combinations of Protected Characteristics (Effective January 1, 2025)

SB 1137 amends the Unruh Civil Rights Act, the provisions of the Education Code prohibiting discrimination in public education, and the FEHA to prohibit discrimination on the basis not just of individual protected characteristics, but also on the basis of the intersectionality or combination of two or more protected characteristics. Specifically relevant to employers, this bill amends the FEHA to clarify that the protected characteristics enumerated in the law include a combination of those characteristics. This bill makes California the first state to explicitly recognize “intersectionality” in anti-discrimination laws and affirms the Ninth Circuit’s decision of Lam v. University of Hawaii, 40 F.3d 1551 (9th Cir. 1994), which held that discrimination and harassment may be based on a combination of characteristics as opposed to just one protected characteristic alone.

This bill amends section 51 of the Civil Code, sections 200 and 210.2 of the Education Code, and sections 12920 and 12926 of the Government Code.

SB 1340 – Discrimination: FEHA Does Not Limit Other Laws (Effective January 1, 2025)

SB 1340 makes clear that while the FEHA is intended to occupy the field of regulating discrimination in employment and housing, it does not limit or restrict the application of the Unruh Civil Rights Act, which prohibits businesses from operating with discriminatory practices. The bill further clarifies that nothing in the act limits or restricts efforts by any city, county or other political subdivisions of the state to enforce a local law that is at least as protective as FEHA.

This bill amends section 12993 of the Government Code.