New and Updated HR Laws for 2025

What’s New/Updated

Steps You Need to Take:

State Minimum Wage & Exempt Salaries:

The State’s minimum wage is increasing to $16.50/hour for all employers on January 1, 2025. This will impact all of our non-medical centers.

The minimum exempt employee salary (i.e., professional, administrative, executive exemptions) for 2025 is $68,640/year.

Note that Prop 32 to increase minimum wage even further was narrowly defeated

• Budget to comply with new minimum wage (and minimum exempt salary) amounts
• Prepare to update Wage Theft Notices for non-exempt employees as needed
• Make sure to update the required minimum wage workplace posting.

Health Care Minimum Wage:

Although delayed several times, this law went into effect on October 16, 2025 and affects all our medical clinics.

To remain classified as exempt, covered health care employees must earn a monthly salary of 1.5 times the applicable healthcare minimum wage, OR 2 times California’s minimum wage, whichever is greater.

• If you were unaware that this went into effect – immediately back pay the difference between they were paid from 10/16 to now.
•  Make sure all salaried employees will receive $68.640 or more in 2025
•  Update Wage Theft Notices for non-exempt employees as needed
• Post Supplemental Healthcare Minimum Wage Poster which can be found at: dir.ca.gov/iwc/MW-2024-HC-SUPPLEMENT.pdf

Job Advertisements:

Precludes employers from including a statement in a job advertisement, posting, application etc. that an applicant must have a valid driver’s license unless: (1) the employer reasonably expects driving to be one of the job functions for the position, AND (2) the employer reasonably believes that satisfying the job function using an alternative form of transportation (walking, biking, taxi, etc.) would not be comparable in travel time or cost to employer.

• Review your job advertisements, postings, etc. for compliance.

Poster Updates:

Whistleblower Poster: AB 2299 mandates the Labor Commissioner to update its Whistleblower Are Protected poster, to ensure compliance with all current legal requirements. As of January 1, 2025, employers that post the model notice will be deemed in compliance with the requirement to prominently display the list of employees’ whistleblower rights and responsibilities.

Workers’ Compensation Poster: AB 1870 mandates that employers now add information to the workers’ compensation rights notice regarding an employee’s right to consult a licensed attorney to advise them of their rights under workers’ compensations laws, and specify that attorney’s fees will be paid from an injured employee’s recovery in most instances. The form and content of the notice will be made available to employers, and insurers will be required to provide it to policy holders.

·         Ensure you have an up-to-date Labor Law Poster at your worksites.

·         You can go to individual sites and download posters for each law – it is easier (and cheaper when you consider your time) to order an all-in-one Federal and State Poster.   Two good sites to order from are Cal Chamber and California Employers Association. 

Cal-Savers/Retirement:

In 2022, California passed SB 1126 to expand the CalSavers mandate to employers with at least one employee. If the employer does not offer a retirement plan, they must enroll employees in CalSavers, and employees have the ability to opt out. As of January 1, 2023, employers with an average of 1-4 employees (as reported to the EDD in the preceding calendar year), who are not otherwise exempt from participation, can register with CalSavers.

·         Employers with 1-4 employees who do not offer a qualifying retirement plan must enroll in CalSavers by December 31, 2025.

Note: some centers have been given a religious waiver and told they don’t have to register; others have not.

Workplace Violence Prevention Standard:

All employers, subject to few exceptions, must establish, implement, and maintain a written workplace violence prevention plan (WVPP), by July 1, 2024, and satisfy ongoing annual requirements.

By December 1, 2025, Cal/OSHA is required to propose a regulation, and by December 31, 2026, adopt the regulation. However, the law is currently enforceable by Cal/OSHA, as of July 1, 2024. Effective Date: For most relevant portions July 1, 2024 (Signed: September 30, 2023)

·         If you have not yet created a Workplace Violence Prevention Plan – do so now!

·         Make sure that you engage in engage in periodic hazard inspection and safety meetings.

·         On at least an annual basis, employers must:

o   Review and update the WVPP

o   Solicit feedback from employees and authorized representatives

o   Conduct staff training on the WVPP, satisfying specific requirements.

Local Ordinances:

Fair Chance/Ban the Box: California law prohibits almost all employers with five or more employees from inquiring into criminal history on job applications and during the interview process. In certain localities, employers may have additional criminal history restrictions and obligations, including most recently in LA and San Diego County.

Los Angeles County: On September 3, 2024, LA County’s Fair Chance Ordinance went into effect, which applies to businesses with five or more employees located in the unincorporated areas of LA. The local ordinance has additional requirements beyond State law, including related to job ad requirements, written offer letter disclosures, and the individualized assessment process. There is a new required notice that must be posted.

San Diego County: On October 10, 2024, San Diego County’s Fair Chance Ordinance will go into effect, which applies to employers located or doing business in unincorporated areas of San Diego County who employ five or more employees. The local ordinance has additional requirements beyond state law, including related to the individualized assessment process, and applies to remote work and contracts where services will be performed in San Diego County.

• If covered, post LA County Fair Chance Ordinance Notice in workplace;
• Update processes to comply with local requirements;