If you’re a small business owner in California, you’ve got a lot on your plate. Keeping your employees happy, complying with regulations, and running the day-to-day operations can be challenging enough without having to stay up-to-date with every change in employment law. But here’s the thing: California’s employment laws are changing dramatically on January 1, 2025—and if your employee handbook isn’t updated before that, your business could face serious risks.
Key California Labor and Employment Law Updates for 2025
1. Expanded Whistleblower Protections
- AB 2299 now requires you to display employee rights regarding whistleblowing in your workplace prominently – to make sure employees know how to report any wrongdoing—whether it’s fraud, corruption, or violations of law. Not having the correct whistleblower notices could put your company in violation of the law.
- AB 2455 extends whistleblower protections to contractors working for local governments. If you’re a small business that works with or for local government, you’ll need to update your policies accordingly to cover these whistleblowers as well.
If your employee handbook doesn’t explicitly outline these procedures and protections, you’re setting yourself up for potential trouble. The last thing you want is a costly lawsuit that could have been avoided with a simple update to your handbook.
2. Expanded Whistleblower Protections
- AB 2364 adds a key requirement for employers that serve specific sectors. It mandates increased fees for funding sexual violence and harassment prevention programs. But even if you’re not in the specified sectors, you still need to be on top of California’s overall sexual harassment training mandates, which keep expanding each year.
3. Employee Benefits – Fairness in Health Care and Leave Policies
- AB 2434 addresses small-group employer health plans and requires employer associations offering group plans to offer more fair, and transparent options.
- AB 2499 expands leave protections for employees who are victims of violence (or have family members who are). These employees are now entitled to take protected leave—and can even use paid sick leave for time spent addressing safety concerns related to domestic violence or other personal violence.
4. Artificial Intelligence in the Workplace
- The AB 2602 law prohibits employment contracts from allowing companies to create or use digital replicas of an employee’s voice or likeness for performing tasks that the employee would otherwise do in person.
This law is a direct response to concerns about AI and automation potentially displacing human workers, or being used to exploit employees’ likenesses without consent. If you employ contractors or staff involved in creating or distributing content, you need to ensure your employee handbook includes guidelines on digital rights and artificial intelligence policies.
5. Workplace Safety Regulations
- AB 2738 allows local prosecutors to enforce labor code violations in the live entertainment and concert industries. If your company is part of the live event industry (even in a small capacity), make sure to outline safety policies clearly to ensure that all contractors and employees are aware of how to mitigate risks.
- AB 2975 focuses on workplace violence in hospitals, requiring hospitals to introduce weapons detection measures in their facilities.
6. Enhanced Paid Family Leave and Sick Leave Protections
- SB 1090 gives employees the ability to file claims for paid family leave before their first qualifying day, which will make it easier for your employees to plan and take time off when they need it.
- AB 2123 stops employers from requiring employees to exhaust two weeks of vacation before they can take paid family leave. This eliminates a potential barrier for workers and promotes fairer access to leave benefits.
7. Freelance and Contract Worker Protections
Freelancers and independent contractors are becoming a bigger part of the workforce, and California’s Freelance Worker Protection Act (SB 988) is designed to safeguard their rights. Employers must now provide clear, written contracts that spell out payment terms and timelines. This change protects you from misunderstandings or legal disputes over compensation.
The Real Cost of Ignoring These Laws!
Compliance delays are dangerous for small businesses. Let’s be clear about the risks:
- Lawsuits Can Bankrupt You: Employment lawsuits for non-compliance can exceed six figures.
- Financial Penalties Are Severe: State regulators don’t give warnings—violations lead straight to fines.
- Reputation Damage Is Irreversible: Employee complaints can ruin your standing in the community.
Your employee handbook is the first line of defense. If it’s outdated, unclear, or incomplete, you’re leaving yourself wide open to legal trouble.
Why Wait for a Lawsuit to Arise? Update Your Employee Handbook NOW!
The countdown is on. January 1st, 2025 is coming fast, and with it, a tidal wave of new California employment laws that will impact your business and employees. If you’re not prepared, you could find yourself facing expensive lawsuits, government fines, and much more.
Updating your Employee Handbook is the best way to protect your business from these costly risks.
What You Will Gain:
In this easy-to-follow guide, we break down:
- The 8 critical reasons you can’t afford to overlook these changes.
- How to revamp your employee handbook to meet all new legal requirements.
BONUS! You’ll receive a free video explanation from one of our attorneys who will walk you through the critical changes and what you need to do before the deadline.
Don’t risk costly legal problems when you can avoid them with one simple step. Act now and download the FREE guide—time is running out!