As California continues to lead the way in progressive employment legislation, businesses must stay informed of evolving requirements. In 2025, significant updates to employment laws will impact medical practices and other industries across the state. This article provides an overview of the key legislative changes, their implications, and practical guidance for compliance.
- Minimum Wage Increases
California’s minimum wage continues to rise in 2025, with a state minimum of $16.50 per hour, reflecting a 3.18% inflation adjustment. Local jurisdictions may mandate even higher rates—e.g., Berkeley at $18.67 and Emeryville at $19.36. Specific provisions under SB 525 require higher minimum wages for healthcare workers, with rates reaching up to $25.00 per hour for large health systems by 2027. Employers must evaluate these increases and adjust exempt employee salaries to maintain compliance with overtime exemption thresholds.
- Expanded Sick Leave and Family Leave Protections
AB 2123 eliminates the requirement for employees to exhaust vacation time before accessing Paid Family Leave (PFL) benefits. Additionally, AB 2011 expands reproductive loss leave under the California Family Rights Act (CFRA) mediation program. Employers must ensure updated policies reflect these changes and communicate them effectively to employees.
- Intersectionality in Anti-Discrimination Protections
SB 1137 codifies the concept of intersectionality under the Fair Employment and Housing Act (FEHA). This law expands discrimination protections to combinations of protected characteristics, such as race and gender identity. Meanwhile, AB 1815 broadens race-based protections under the CROWN Act, emphasizing inclusivity in workplace policies.
- The Pregnant Workers Fairness Act (PWFA)
Effective June 2024, PWFA requires accommodations for pregnancy-related conditions unless an undue hardship is demonstrated. Examples include telework, modified schedules, and facility adjustments. Employers with 15 or more employees must assess their workplace practices to ensure compliance.
- Workplace Safety and Security
AB 2975 mandates hospitals to implement advanced security mechanisms at key entrances by March 2027, aiming to prevent workplace violence. Similarly, AB 1976 introduces requirements for naloxone hydrochloride in first-aid kits, reflecting the state’s commitment to addressing the opioid crisis.
- The Freelance Worker Protection Act (SB 988)
Taking effect in January 2025, SB 988 introduces written contract requirements for freelance engagements exceeding $250. Employers must provide detailed contracts and ensure timely payments, promoting transparency and fairness in independent contractor arrangements.
- Recent Case Law Highlights
Noteworthy California Supreme Court rulings further clarify employment law:
- Bailey v. San Francisco District Attorney’s Office (2024): A single racial epithet may establish a hostile work environment under FEHA.
- Naranjo v. Spectrum Sec. Servs., Inc. (2024): A good faith belief in compliance can preclude wage statement penalties under Labor Code Section 226(e).
Compliance Strategies for Employers
Given these changes, employers must:
- Update employment handbooks, wage posters, and training materials.
- Audit compensation structures and exemption classifications.
- Prepare for enhanced whistleblower protections and expanded leave rights.
- Seek legal counsel for drafting contracts and addressing specific compliance challenges.
Conclusion
California’s legislative landscape underscores the importance of proactive compliance strategies. Medical practices, in particular, must navigate these changes carefully to ensure alignment with evolving employment standards. Consulting with legal experts like Thakur Law Firm can provide businesses with the tailored guidance needed to thrive in this dynamic environment.
For more information or assistance, contact Thakur Law Firm, APC, by sending us an email or calling our office at (844) 394-6430 today.