New employment laws from 2025

What the law currently requires

Under existing law, there is a rebuttable presumption that specified injuries, such as cancer, developed or manifested in the course of employment of a specified member of law enforcement or a specified first responder arose out of and in the course of employment. These provisions are applicable to certain active firefighting members, including volunteers who are partly paid or fully paid by, among others, the Department of Forestry and Fire Protection or a county forestry or firefighting unit.

How this bill changes the law

Under this bill, these provisions will also apply to active firefighting members of a fire department that provides fire protection to a commercial airport.

Action items

No action required

What the law currently requires

The California Public Employment Relations Board (PERB) has jurisdiction to resolve disputes and enforce the statutory duties and rights of specified public employers and employees under various acts regulating collective bargaining. Under existing law, PERB has the power and duty to investigate an unfair practice charge and to determine whether the charge is justified and the appropriate remedy for the unfair practice.

Existing law, the federal National Labor Relations Act (NLRA), establishes a comprehensive statutory scheme regulating unfair labor practices on the part of employers and labor organizations in industries affecting interstate commerce, and vests in the National Labor Relations Board (NLRB) the power to conduct elections to determine employee representatives and to prevent unfair labor practices affecting commerce.

How this bill changes the law

Due to the disfunction in the NLRB and lack of quorum to process unfair labor practice cases, some states are stepping in to fill the void. This bill expands the PERB’s jurisdiction to protect and enforce prescribed worker rights under specified circumstances, including if the worker is employed in a position subject to the NLRA as of January 1, 2025 (including in the private sector), and NLRA coverage is lost because the NLRB has expressly or impliedly ceded jurisdiction or a change in the law. The bill would authorize PERB to, among other things, decide unfair labor practice cases pursuant to a specified timeline and order all appropriate relief for a violation, including civil penalties.

In order to pursue relief from PERB, the bill would require a covered worker or their representative to file an unfair practice charge or petition that includes specified information, including, where applicable, the original charge or petition filed with the NLRB. The bill would authorize PERB to rely on its own decisions and precedent under the NLRA and would authorize review of its decisions by a state appellate court, as specified.

The NLRB will be deemed to have ceded jurisdiction to the state if any of the following conditions are satisfied as of January 1, 2026:

1. For cases where a certification of the results of an election, or administrative law judge decision has been issued, or where challenges or objections to a representation election are pending before the NLRB, when there is a lack of a quorum of the NLRB, or when the NLRB has lost its independence as a result of the Supreme Court finding that NLRB members are unconstitutionally protected from removal or when the continued processing of a case is enjoined by a court due to constitutional challenges to the board’s structure or authority.
2. For cases where no certification or complaint or decision has been issued, when there are processing delays resulting in the worker’s case remaining pending before a regional director for more than six months without the issuance of a complaint or certification of an election, or remaining pending more than six months after a complaint has been issued without the issuance of a decision by an administrative law judge or without the issuance of a decision about the certification by the NLRB.
3. For cases where a certification of the results of an election or other reviewable order has been issued by the regional director or administrative law judge, when there are processing delays resulting in failure by the National Labor Relations Board to accept or decline review or grant special permission to appeal for more than six months following the filing of a request for review or for special permission to appeal.
4. For cases on review or exceptions before the National Labor Relations Board, when there are processing delays resulting in the case remaining pending for more than 12 months without the issuance of a final decision.

Action items

Employers should be aware that private sector workers will be able to petition the California PERB for unfair labor practice claims in certain circumstances where the NLRB is deemed unable to.

Note: The NLRB is now challenging AB 288 in a federal district court in California. As of October 15, the agency asked the court to strike down the new labor law as unconstitutional and to temporarily block California and the state’s Public Employment Relations Board from enforcing it while the lawsuit plays out in court.

What the law currently requires

The Public Utilities Act authorizes the Public Utilities Commission to require every public utility to construct, maintain, and operate its line, plant, system, equipment, apparatus, tracks, and premises in a manner so as to promote and safeguard the health and safety of its employees, passengers, customers, and the public, and authorizes the commission to prescribe the installation, use, maintenance, and operation of appropriate safety or other devices or appliances.

How this bill changes the law

This bill, the Justin Kropp Safety Act, requires a public utility, and an independent contractor or subcontractor of the public utility, to have available at every worksite that has transmission or distribution lines of any voltage an automatic external defibrillator (AED) and would require the public utility, and the independent contractor or subcontractor of the public utility, to comply with certain standards and ensure specified procedures are followed.

The bill would provide an exemption from civil liability for a public utility, and an independent contractor or subcontractor of the public utility, or a person when the person renders emergency care or treatment through the use, attempted use, or nonuse of an AED, except in case of gross negligence or willful or wanton misconduct by the person rendering aid.

Action items

Public utilities and independent contractors/subcontractors of public utilities are to implement AED availability for each worksite that has transmission or distribution lines of any voltage.

What the law currently requires

Under Labor Code section 230.1, an employer with 25 or more employees is prohibited from discriminating or retaliating against victim-employees who: (1) take time off to seek medical attention for injuries caused by crime or abuse; (2) obtain services from a domestic violence shelter, rape crisis center, or victim services organization; (3) obtain psychological counseling or mental health services; or (4) participate in safety planning or relocate for safety. These provisions require employer confidentiality and allow the use of accrued paid leave for these purposes.

Last year, this law’s coverage was expanded to include crime victim leave with additional covered reasons for crime victim coverage, and also expanded to include when a family member is a crime victim.

Also, previously, time off for jury duty and for appearing in court as a witness under subpoena were covered as unpaid leave.

How the bill changes the law

AB 406 expands upon last year’s AB 2499 legislation reorganizing California’s crime victim time off and accommodations law. AB 406 creates a different definition of “victim” which includes being subjected to one of 14 different crimes. It also revises notice requirements under California’s jury duty law, requiring reasonable advance notice, unless the “advance notice is not feasible.”

Covered proceedings include delinquency hearings, post-arrest release decisions, pleas, sentencing, post-conviction release decisions, and any proceeding where a victim’s rights are at issue. The term “victim” includes individuals harmed by violent felonies, serious felonies, and specific crimes such as vehicular manslaughter while intoxicated, felony child abuse, felony domestic violence, felony stalking, solicitation for murder, hit-and-run causing death or injury, felony DUI causing injury, and sexual assault.

In addition, this law expands the Healthy Workplaces, Healthy Families Act to allow employees to use paid sick leave for jury duty and for appearing in court as a witness under subpoena.

Action items

Employee handbooks and policies should be updated to reflect that paid sick leave now covers jury service and court appearances as a witness, and to update the new definitions and list of applicable crimes.

Employers should continue to provide to employees the latest written notice issued by the Civil Rights Department.

What the law currently requires

Under existing law, every contract by which anyone is restrained from engaging in a lawful profession, trade, or business of any kind to be void, except as expressly provided. Existing law provides for a system of labor standards enforcement administered by the Labor Commissioner.

How this bill changes the law

For contracts entered into on or after January 1, 2026, it will be unlawful to have any provision requiring a worker to execute as a condition of employment a contract that includes any term requiring the worker to pay an employer, training provider, or debt collector for a debt (or otherwise requiring the worker to pay any penalty, fee or cost) if the worker’s employment or work relationship with a specific employer terminates. Such contracts are deemed to restrain a person from engaging in a lawful profession, trade, or business, and as void and contrary to public policy, except as provided.

Note that “penalty, fee or cost” is defined to include a replacement hiring fee, retraining fee, replacement fee, quit fee, reimbursement for immigration or visa-related costs, liquidated damages, lost goodwill, and lost profit.

Excepted from this law are certain contract terms that will still be permitted as follows:

• Retention bonuses, defined as “discretionary or unearned monetary payment, including a financial bonus, at the outset of employment that is not tied to specific job performance,” provided that all of the following conditions are met:
  1. The terms of any repayment obligation are set forth in a separate agreement from the primary employment contract.
  2. The employee is notified that they have the right to consult an attorney regarding the agreement and provided with a reasonable time period of not less than five business days to obtain advice of counsel prior to executing the agreement.
  3. Any repayment obligation for early separation from employment is not subject to interest accrual and is prorated based on the remaining term of any retention period, which shall not exceed two years from the receipt of payment.
  4. The worker has an option to defer receipt of the payment to the end of a fully served retention period without any repayment obligation.
  5. Separation from employment prior to the retention period was at the sole election of the employee, or at the election of the employer for misconduct.
• Tuition reimbursement pertaining to a transferable credential that meets all of the following requirements:
  1. The contract is offered separately from any contract for employment.
  2. The contract does not require obtaining the transferable credential as a condition of employment.
  3. The contract specifies the repayment amount before the worker agrees to the contract, and the repayment amount does not exceed the cost to the employer of the transferable credential received by the worker.
  4. The contract provides for a prorated repayment amount during any required employment period that is proportional to the total repayment amount and the length of

What the law currently requires

Under current law, certain employees who hold safety-sensitive positions at petroleum facilities are exempt from California’s rest period mandates until January 1, 2026. The exemption applies to the extent that the employee is required to carry and monitor a communication device and to respond to emergencies or is required to remain on the employer premises to monitor the premises and respond to emergencies.

How the bill changes the law

This bill extends this exemption indefinitely. It also specifies that the exemption also applies to employees who hold a safety-sensitive position at a refinery that produces fuel through the processing of alternative feedstock.

Action items

No action except that petroleum/refinery-industry employers who employ workers in applicable safety-sensitive positions should be aware that the rest break exemptions are extended indefinitely.

What the law currently requires

Before AB 845, existing law already established the LWDA, ALRB, DLSE, and Cal/OSHA, each with their specified jurisdictions over labor, agricultural labor relations, wage/hour laws, and occupational safety and health.

How the bill changes the law

AB 845 adds Section 57.2 to the California Labor Code. The bill requires that when an agricultural employee files a complaint to any entity within the Labor and Workforce Development Agency (LWDA) such as the Agricultural Labor Relations Board (ALRB), the Division of Labor Standards Enforcement (DLSE), or the Division of Occupational Safety and Health (Cal/OSHA) — the receiving entity must collaborate with the others and make all reasonable efforts to transmit the complaint to the appropriate agency for processing and investigation.

The bill also prohibits the transmitting entity from disclosing the identity and personal information of the agricultural employee complainant to the extent prohibited by law without their consent.

Action items

None.

What the law currently requires

The registrar of contractors is required to initiate disciplinary action against a licensed contractor within 18 months upon receipt of the Labor Commissioner’s finding of a willful or deliberate violation of the Labor Code.

How this bill changes the law

Under this bill, the Attorney General is authorized to bring a civil action to impose discipline upon, to deny an application for, or to deny continued maintenance of, a contractor’s license for failing to pay its workers the full amount of wages the workers are entitled to under state law or because the contractor has not fulfilled a wage judgment or is in violation of an injunction or court order regarding the payment of wages to its workers. The Attorney General must notify the registrar 30 days prior to bringing a civil action and the contractor’s board may intervene within 60 days of the filing of the initial complaint. The court may direct the registrar to exercise its authority to suspend or revoke, to deny an application for, or to deny the continued maintenance of, a contractor’s license under terms specified by the court.

Action items

Licensed contractors should be aware of these additional enforcement provisions and potential consequences to their licenses for failure to comply with state wage payment obligations.

What the law currently requires

Existing law establishes the California Community Colleges under the administration of the Board of Governors of the California Community Colleges. Existing law authorizes the establishment of community college districts under the administration of community college governing boards and authorizes these districts to provide instruction at community college campuses throughout the state.

Existing law authorizes the governing board of a community college district to terminate the employment of a temporary employee at its discretion at the end of a day or week, whichever is appropriate.

How the bill changes the law

This bill requires, if the governing board of a community college district terminates the employment of a temporary employee, that the procedure for terminating the temporary employee comply with the provisions of the local collective bargaining agreement that pertain to the termination of a temporary employee. The bill provides that, in all cases, part-time faculty assignments are temporary in nature, contingent on enrollment and funding, and subject to program changes, and no part-time faculty member has reasonable assurance of continued employment at any point, irrespective of the status, length of service, or reemployment preference of that part-time, temporary faculty member.

What the law currently requires

Under current law, there is a disputable presumption, applicable to officers and employees in the Department of Corrections and Rehabilitation, that heart trouble that develops or manifests during a period when the employee is in the service of the department arose out of and in the course of employment. The bill adds peace officers at state hospitals to this category

How this bill changes the law

The bill adds peace officers at state hospitals to the covered category of employees under this law. As such, if these officers develop heart trouble while working or within a specific time after leaving service, it will be presumed to be job-related. The presumption is "disputable," which means the employer can present contrary evidence, but if not successfully challenged, the workers' compensation appeals board must accept that the heart condition is work-related.

Action items

None

What the law currently requires

Existing law establishes procedures for the resolution of disputes regarding the compensability of an industrial injury, including the use of a qualified medical evaluator (QME) to perform a comprehensive medical-legal evaluation to address all contested medical issues arising from all injuries reported in a claim. Existing law also requires all communications with a panel QME before a medical evaluation to be in writing served on the opposing party 20 days in advance of the evaluation, and any subsequent communication with the QME to be in writing and served on the opposing party when the communication is sent to the QME.

How this bill changes the law

Effective January 1, 2027, the Administrative Director of the Division of Workers’ Compensation (DWC) must develop and make available:

• A Joint Medical Evaluation Request Form: This standardized form will be used by all parties for communicating with a panel QME in advance of an evaluation.
• A Template QME Report Form: This crucial innovation will provide a structured outline for quality QME reports, incorporating all necessary statutory and regulatory requirements for a complete report that constitutes substantial evidence.

This bill also requires the Administrative Director to promulgate regulations by January 1, 2027. It establishes a formal process for parties to submit medical-legal reports alleged to be inaccurate or incomplete to the medical director for review.

Action items

None

What the law currently requires

California law requires a 3-part test, commonly known as the “ABC” test, to determine if a worker is an employee or independent contractor and exempts specified occupations and business relationships from the application of the test. These exemptions include licensed manicurists and commercial fishers working on an American vessel.

How the bill changes the law

AB 1514 deletes the end date for the manicurist exemption, which expired on January 1, 2025, and requires that, until January 1, 2029, the exemption is reapplied to certain licensed manicurists. It also amends the end date for an exemption for certain commercial fishers, which made such workers eligible for unemployment insurance benefits subject to certain conditions, from January 1, 2026 until January 1, 2031.

Action items

Applicable employers should ensure they are availing themselves of these extensions.

What the law currently requires

There was a failed attempt last year to pass a broader AI safety bill that was criticized as being too heavy handed. It required kill switches and showdown mechanisms for frontier models, extensive pre-launch testing, and strict liability provisions for developers.

How the bill changes the law

This is the nation’s first comprehensive safety and transparency law as to large and powerful AI systems. It is known as the Transparency in Frontier Artificial Intelligence Act. This law pertains to technology companies and employers that use AI. However, it focuses on large frontier developers (more than $500 million in annual revenue). It requires annual frameworks for AI, transparency reports, critical safety incident reporting (within 15 days of a qualifying incident (such as loss of control or malicious misuse), and whistleblower protections.

Action items

The law could indirectly impact employers who use AI systems. Employers should ask vendors if they are complying with this law and be on the lookout for more AI-related laws in the future.

What the law currently requires

Under existing law, a judgment creditor in a wage claim or the Labor Commissioner, as assignee of the judgment creditor, is entitled to court costs and reasonable attorney’s fees for enforcing a judgment, as specified.

Existing law provides for enforcement if a final judgment against an employer arising from the employer’s nonpayment of wages for work performed in this state remains unsatisfied after specified periods of time, including prohibiting the employer from conducting business in the state, as specified, if a final judgment against the employer remains unsatisfied for 30 days.

How this bill changes the law

This bill strengthens enforcement mechanisms on wage claim judgments by requiring the award of court costs and reasonable attorneys’ fees to the judgment creditor, and adds a public prosecutor as a possible judgment creditor assignee in addition to the Labor Commissioner.

In addition, the employer is now subject to a civil penalty not to exceed 3 times the outstanding judgment amount if a final judgment against an employer arising from the employer’s nonpayment of work performed in this state remains unsatisfied after a period of 180 days.

An employer may seek a reduction of penalties if it can demonstrate by clear and convincing evidence good cause to reduce the amount of the penalty.

Penalties assessed by a court pursuant to this section shall be distributed as follows:

• 50% to the employee or employees in whose favor the judgment was rendered, shared proportionally according to the amount due to each employee in the judgment entered in superior court.
• 50% to the Division of Labor Standards Enforcement for enforcement of labor laws, including the administration of this part, and for education of employers and employees about their rights and responsibilities under this code, to be continuously appropriated upon appropriation, to supplement and not supplant the funding to the division for those purposes.

Moreover, an employer’s successors may be found to be jointly and severally liable for unsatisfied judgments.

Action items

Expansions in the scope of liability, enforcement and/or penalties for wage claims in California is a regular occurrence, so employers are to remain hyper-vigilant regarding compliance with wage payment laws. Should a judgment occur, employers must remain cognizant of the additional penalties for a delay in satisfying the judgment. Moreover, businesses involved in the transfer of ownership should remain cognizant that the successor employer may be held jointly and severally liable for unsatisfied judgments.

What the law currently requires

This is no existing framework for SB 294, so there is no current requirement.

How this bill changes the law

Written notice requirement

In response to recent federal immigration enforcement actions, this bill requires employers, no later than February 1, 2026, and annually thereafter, to provide a stand-alone written notice to each current employee and new hire of specified workers’ rights. The Labor Commissioner is required to develop a template notice that an employer may use to comply with the notice requirements, which the Labor Commissioner will post on its internet website on or before January 1, 2026, and to post an updated template notice annually thereafter. The notice is to be provided in a manner the employer normally uses to communicate employment-related information and may include, but is not limited to, personal service, email, or text message, if it can reasonably be anticipated to be received by the employee within one business day of sending. Written notice shall also be annually provided to the employee’s authorized representative, if any, by either electronic or regular mail.

The written notice will contain the following:

• The right to workers’ compensation benefits, including disability pay and medical care for work-related injuries or illness, as well as the contact information for the Division of Workers’ Compensation
• The right to notice of inspection by immigration agencies
• Protection against unfair immigration-related practices against a person exercising protected rights.
• The right to organize a union or engage in concerted activity in the workplace.
• Constitutional rights when interacting with law enforcement at the workplace, including an employee’s right under the Fourth Amendment to be free from unreasonable searches and seizures and rights under the Fifth Amendment to due process and against self-incrimination.

In addition, the notice shall contain:

• A description of new legal developments pertaining to laws enforced by the Labor and Workforce Development Agency that the Labor Commissioner deems material and necessary. The Labor Commissioner shall include a list of those developments, if any, in the template that will be developed.
• A list, developed by the Labor Commissioner, of the enforcement agencies that may enforce the underlying rights in the notice. The Labor Commissioner shall include this list in the template notice that will be developed.

The Labor Commissioner, on or before July 1, 2026, shall develop a video for employees advising them of their rights under the areas described above, which the employer may provide to its employees. The Labor Commissioner is also to develop a video for employers advising them of their rights and requirements under those areas

Notice to Designated Person

If an employee has designated an emergency contact for this purpose, the employer is to notify the designated emergency contact if the employee is arrested or detained on their worksite. If the arrest or detention occurs during work hours, or during the performance of the employee’s job duties, but not on the worksite, the bill requires the employer to notify the employee’s designated emergency contact only if the employer has actual knowledge of the arrest or detention of the employee. The employer is to provide an employee the opportunity to name an emergency contact <strong>on or before March 30, 2026</strong>, for an existing employee, and at the time of hiring for a new employee hired after March 30, 2026.

Anti-Retaliation Provisions

This bill would prohibit an employer from discharging, threatening to discharge, demoting, suspending, or in any manner discriminating or retaliating against an employee for exercising or attempting to exercise their rights under the bill, as provided.

Enforcement

The Labor Commissioner will enforce this bill and can also alternatively authorize enforcement by a public prosecutor. The bill subjects a violating employer to penalties of up to $500 per employee for each violation, except that the penalty for a violation of the provisions relating to emergency contacts would be an amount up to $500 per employee for each day the violation occurs, up to a maximum of $10,000 per employee. In a civil action, the petitioner may seek appropriate temporary or preliminary injunctive relief, including punitive damages, and reasonable attorney’s fees and costs.

Action items

• Employers are to develop/obtain a compliant written notice and provide such notice to employees no later than February 1, 2026.
• Incorporate the new written notice into the new hire documentation
• Develop processes and forms whereby employees can add a designated person for these purposes, possibly within the existing emergency contact information form
• Incorporate the new form containing designated person information into the employer’s new hire documentation and disseminate the form to existing employees
• Train managers/supervisors on the new requirement to contact the employee’s designated person in the event that the employee is detained.

What the law currently requires

Employers with 5 or more employees are required to provide anti-discrimination and anti-harassment training to all employees every two years. Supervisory employees must complete the training within six months of starting their position.

How the bill changes the law

It is intended to encourage employers to conduct bias mitigation training.

An employee’s assessment, testing, admission, or acknowledgment of their own personal bias, when made in good faith and solicited or required as part of a bias mitigation training, does not, by itself, constitute unlawful discrimination. This law amends the California Fair Employment and Housing Act (FEHA), which requires employers to prevent workplace discrimination, including providing specified harassment prevention training.

Action items

Employers should decide if they wany to provide bias mitigation training and implement it properly.

What the law currently requires

Existing law requires a private employer that has 100 or more employees to submit an annual pay data report to the Civil Rights Department that includes the number of employees by race, ethnicity, and sex in 10 specified job categories, the number of employees by race, ethnicity, and sex whose pay falls within federal pay bands, and additional hourly rate and hours worked data, as specified.

Existing law provides that upon the request of the Department, a court may impose a civil penalty upon any employer for failure to file the required report, which shall be payable to the Civil Rights Enforcement and Litigation Fund.

How this bill changes the law

This bill requires employers to collect and store any demographic information gathered for the purpose of submitting the pay data report separately from employees’ personnel records, and, beginning January 1, 2027, increases the number of job categories in the report from 10 to 23. This bill also requires a court to impose a civil penalty against an employer that fails to file the report if requested to do so by the department.

Action items

Employers must ensure that any demographic information gathered for the purpose of submitting the pay data report is collected and stored separately from other personnel documents, and to pay attention to the additional job categories that will be in the new 2027 report.

What the law currently requires

Before SB 513, California Labor Code Section 1198.5 defined personnel records broadly as records maintained by an employer “that relate directly to the employee's performance or to any grievance concerning the employee.”

The statutory language specifically covered documents such as performance appraisals, formal reviews, warnings, and documentation related to disciplinary actions or complaints.

California law did not have a single, comprehensive statutory definition of “personnel records,” leading to some ambiguity.

How the bill changes the law

The law amends California’s definition of personnel records to include “education or training records.” It requires employers who maintain education or training records to ensure the records include the following information: the name of the employee, the name of the training provider, the duration and date of the training, the core competencies of a training course, and the resulting certification or qualification.

Action items

Employers who provide education or training should maintain records accordingly.

What the law currently requires

Under California’s disability insurance program paid family leave provides wage replacement benefits for up to 8 weeks to workers who take time off work for prescribed purposes, including to care for a seriously ill family member. Under existing law, applicable family members include: child, parent, parent-in-law, grand parent, grand child, sibling, spouse, or registered domestic partner.

How this bill changes the law

This bill expands eligibility for benefits under the paid family leave program to workers who take time off to care for a seriously ill “designated person.” Under this law, “designated person” is defined as any care recipient related by blood or whose association with the individual is the equivalent of a family relationship. The employee is to identify the designated person and, under penalty of perjury, attest to how they are related by blood to the designated person, or how their association with the designated person is the equivalent of a family relationship.

Action items

Employers should review and update any policies as needed to add “designated persons” as covered family members under the paid family leave policy. Should an employee choose to designate a person for purposes of these benefits, employers should be prepared to ascertain such status.

What the law currently requires

The California Worker Adjustment and Retraining Act prohibits an employer, with certain exceptions, from ordering a mass layoff, relocation, or termination at a covered establishment without giving prescribed written notice to the employees, the Employment Development Department, and other local agencies. It applies to employers in California that have employed within the past 12 months, at least 75 or more people. The law requires at least 60 days’ notice before a mass layoff, closure or relocation of more than 100 miles. The notice must have the dates, job titles, and number of affected employees.

How this bill changes the law

This bill requires employers to include in the notice whether the employer plans to coordinate services, such as a rapid response orientation, through the local workforce development board, the employer plans to coordinate services through a different entity, or the employer does not plan to coordinate services with any entity.

• Regardless of whether the employer chooses to coordinate services with the local workforce development board or another entity, the employer shall include in the notice a functioning email and telephone number of the board and the following description of the rapid response activities offered by the local workforce development board in accordance with Chapter 32 (commencing with Section 3102) of Title 29 of the United States Code:

  “Local Workforce Development Boards and their partners help laid off workers find new jobs. Visit an America’s Job Center of California location near you. You can get help with your resume, practice interviewing, search for jobs, and more. You can also learn about training programs to help start a new career.”

• If the employer chooses to coordinate services with the local workforce development board or another entity, the employer shall arrange services within 30 days from the date of the notice.
• The notice must include a description of the statewide food assistance program known as CalFresh, the CalFresh benefits helpline, and a link to the CalFresh internet website.
• The notice must also include a functioning email and telephone number of the employer for contact.

Action items

Any employer who is otherwise required to provide a WARN notice under California law must update their notice to conform with these additional notice requirements.

What the law currently requires

Existing law requires employers to provide pay scale information for a position to an applicant or in a job posting, as provided. Existing law defines “pay scale” as the salary or hourly wage range that the employer reasonably expects to pay for the position.

Existing law also prohibits an employer from paying its employees at wage rates less than the rates paid to employees of the opposite sex or another race or ethnicity for substantially similar work, except under specified circumstances. Existing law requires a civil action to recover wages for a violation of those provisions to be commenced no later than 2 years after the cause of action occurs or, if the cause of action arises out of a willful violation, no later than 3 years after the cause of action occurs.

How this bill changes the law

This bill revises the definition of “pay scale” to mean a <strong>good faith estimate of the salary or hourly wage range that the employer reasonably expects to pay for the position upon hire</strong>. of this expected wage range that an employer reasonably expects to pay for the position upon hire and is made in good faith.

This bill further expands the statute of limitations from 2 years to 3 years after the last date the cause of action occurs, and allows recovery of lost wages for the entire time during which the violation existed up to a maximum of 6 years.

This bill clarifies that a cause of action occurs when: 1) an alleged unlawful compensation decision or practice is adopted, 2) when an individual becomes subject to the decision or practice, or 3) when an individual is affected by the application of the decision or practice.

Lastly, “wages” and “wage rates” are defined as covering all forms of pay, such as salary, overtime pay, bonuses, stock, stock options, profit sharing and bonus plans, life insurance, vacation and holiday pay, cleaning or gasoline allowances, hotel accommodations, reimbursement for travel expenses, and benefits.

Action items

Employers should audit their job postings and other required pay disclosures under the Equal Pay Act to conform to the new definition of “pay scale.” This new definition focuses more specifically on what a new hire in the position would receive, rather than the broader potential pay for the position. Employers should also remain aware that “wages” and “wage rates” for purposes of equal pay compliance include a broad category of compensation forms (as set forth above).

What the law currently requires

Existing law creates the Department of Industrial Relations, and establishes within the department the Division of Labor Standards Enforcement (ADLSE), which is headed by the Labor Commissioner. The DLSE is generally charged with enforcing employment statutes and regulations, either in administrative actions or through litigation. Existing law imposes various administrative sanctions, civil fines and penalties, and criminal penalties for violations of employment statutes or regulations.

Existing law prohibits an employer or agent from collecting, taking, or receiving any gratuity or a part thereof that is paid, given to, or left for an employee by a patron, or deducting any amount from wages due an employee on account of a gratuity, or requiring an employee to credit the amount, or any part thereof, of a gratuity against and as a part of the wages due the employee from the employer, and requires the Department of Industrial Relations to enforce these provisions.

How the bill changes the law

This bill would authorize the Labor Commissioner to investigate and issue a citation or file a civil action for gratuities taken or withheld in violation of the above-described provisions, as prescribed. In addition, the bill enhances California’s existing protections around tips and gratuities by:

• Adding a private right of action: Employees can now sue directly for violations of California’s gratuity laws under Labor Code § 351.
• Allowing recovery of penalties: The new law authorizes civil penalties of $250 per violation and $1,000 for willful violations.
• Clarifying tip ownership: It reaffirms that tips are the sole property of the employee(s) for whom they are left.
• Expanding enforcement: Employees can bring claims individually or on behalf of others, similar to a representative action.

Action items

SB 648 goes into effect on January 1, 2026. Employers who hire employees to provide services for customers (specifically hotels and restaurants) should familiarize themselves with what is defined as a tip or gratuity under the Labor Code to avoid inadvertent violations of the Labor Code and face investigation or citation.

Specifically, tips and gratuities are defined in Labor Code section 350 as “any tip, gratuity, money, or part thereof that has been paid or given to or left for an employee by a patron of a business over and above the actual amount due the business for services rendered or for goods, food, drink, or articles sold or served to the patron. Any amounts paid directly by a patron to a dancer employed by an employer subject to Industrial Welfare Commission Order No. 5 or 10 shall be deemed a gratuity.”

What the law currently requires

Existing law, set forth in Labor Code section 512, generally prohibits an employer from employing an employee for a work period of more than 5 hours per day without providing the employee with a meal period of not less than 30 minutes. Existing law creates exceptions from this prohibition for employees in specified occupations, including employees of an electrical corporation, a gas corporation, or a local publicly owned electric utility covered by a valid collective bargaining agreement meeting certain conditions. Existing law charges the Labor Commissioner with enforcement of these provisions.

How the bill changes the law

This bill creates an additional exception from the above-described prohibition for employees of a water corporation which is defined in the Public Utilities Code as “every corporation or person owning, controlling, operating, or managing any water system for compensation within this State.”

Action items

None, unless you are a “water corporation” and then you are no longer restricted by Labor Code 512.

What the law currently requires

The default in California was that a worker is an employee, unless the hiring entity satisfies the ABC test.

For construction-trucking subcontractors, there was a statutory carve-out/exemption under Labor Code § 2781(h) (and precursor statutes) that permitted certain qualified entities/owner-operators to be treated as independent contractors — but only if very specific criteria were met, and that exemption was set to expire January 1, 2025.

How the bill changes the law

The law establishes the Construction Trucking Employer Amnesty Program (“CTEA Program”) and clarifies worker classification for certain construction trucking workers. Similar to California’s Motor Carrier Employer Amnesty Program, the CTEA Program allows eligible construction contractors to resolve misclassification claims involving construction drivers by entering into an agreement with the Labor Commissioner prior to January 1, 2029. These agreements must include certain elements, including, but not limited to, an agreement by the construction contractor to classify construction drivers as employees and to pay all wages, benefits, and taxes owed, if any. It also establishes that it is declarative of existing law that mere ownership of a vehicle used by a worker providing labor or services for remuneration does not render the individual an independent contractor. It further establishes that it is declarative of existing law that Labor Code Section 2802, which requires reimbursement of necessary business-related expenses, applies to an employee’s use of a vehicle, including a personal or commercial vehicle, which the employee owns and uses to perform their duties.

Action items

Relevant employers should consider participating in the program and assess their reimbursement policies.

What the law currently requires

Under existing law, certain employers in the hospitality and service industries were required to rehire employees who were let go due to the COVID-19 pandemic. That law has been set to expire on December 31, 2025.

How this bill changes the law

This bill extends the recall and reinstatement rights of employees laid off as a result of the COVID-19 pandemic until January 1, 2027.

Action items

Hotels, private clubs, event centers, airport hospitality operations, airport service providers, and building services to office, retail or other commercial buildings are affected by this extension to the reinstatement rights of laid-off employees and must continue to adhere to them until at least January 1, 2027.