New Employment Laws Signed by the Governor: What Employers Need to Know

The Governor has recently signed several important bills into law that will impact employers across California. These new laws expand existing anti-discrimination protections and employee rights. Here’s a breakdown of the key changes that will go into effect January 1, 2025: 

AB 1815: Expanded Protections for Race

AB 1815 modifies the definition of “race” under the California Fair Employment and Housing Act (“FEHA”), the Unruh Civil Rights Act, and the Education Code. Currently, the Education Code and FEHA protect individuals from discrimination based on traits “historically” associated with race, such as hair texture and hairstyles like braids, locs, and twists. AB 1815 removes the word “historically” from this definition and adds a similar definition under the Unruh Civil Rights Act. This means that any traits associated with race, not just those with historical significance, would be protected from discrimination in both employment and business establishments (as well as in public schools). The law does not, however, specify how a trait will be considered “associated” with race, opening the door to litigation.  

SB 1100: New Restrictions on Driver’s License Requirements in Job Postings 

The Governor also signed SB 1100. It expands FEHA’s protections by restricting the use of driver’s license requirements in job advertisements and applications. Employers are prohibited from including 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 driving to be one of the job duties; and (2) the employer reasonably believes that satisfying the duty using an alternative form of transportation would not be comparable in travel time or cost to the employer. The bill defines “alternative form of transportation” to include using a ride-hailing service or taxi, carpooling, bicycling, or walking. 

AB 2499: Enhanced Leave Protections  

Next, we have AB 2499, which revises existing employee protections for victims of crime or abuse and expands California’s paid sick-leave law.  

Leave Protections 

Previously, the law protected employees from retaliation if they took time off for jury duty, to appear as a witness, or to seek certain types of relief as victims of crime or abuse—see, Labor Code sections 230 and 230.1. AB 2499 moves these protections from the Labor Code to FEHA. Now, it is an unlawful-employment practice for an employer to discharge, discriminate, or retaliate against an employee for taking time off for jury duty, for a victim to appear as a witness in a judicial proceeding, or for a victim to seek certain relief, such as a restraining order. 

Also, employers with 25 or more employees cannot discharge, discriminate, or retaliate against an employee who is a victim or who has a family member who is a victim for taking time off work for any of the following reasons: 

1. To get relief for a family member. Relief includes, but is not limited to, a temporary restraining order, restraining order, or other injunctive relief, to help ensure the health, safety, or welfare of the victim’s family member. 
2. To get medical attention for or to recover from injuries caused by a qualifying act of violence (as defined below). 
3. To get services from a domestic-violence shelter, program, rape-crisis center, or victim-services organization or agency as a result of a qualifying act of violence. 
4. To get psychological counseling or mental health services related to an experience of a qualifying act of violence. 
5. To participate in safety planning or take other actions to increase safety from future qualifying acts of violence. 
6. To relocate or engage in the process of securing a new residence due to the qualifying act of violence, such as securing temporary or permanent housing or enrolling children in a new school or childcare. 
7. To provide care to a family member who is recovering from injuries caused by a qualifying act of violence. 
8. To get civil or criminal legal services in relation to the qualifying act of violence. 
9. To prepare for, participate in, or attend any civil, administrative, or criminal legal proceeding related to the qualifying act of violence. 
10. To get childcare or care to a care-dependent adult if either is necessary to ensure the safety of the child or dependent adult as a result of the qualifying act of violence. 

A “qualifying act of violence” means: (A) domestic violence; (B) sexual assault; (C) stalking; or (D) an act, conduct, or pattern of conduct that includes any of the following: (i) when an individual causes bodily injury or death to another; (ii) when an individual exhibits, draws, brandishes, or uses a firearm or another dangerous weapon; or (iii) when an individual uses, or makes a reasonably perceived or actual threat to use, force against another to cause physical injury or death. 

AB 2499, however, permits employers to limit leave taken for these reasons:

1. Employers can limit leave to 12 weeks for any of the above reasons.  
2. If the employee’s family member is a victim of a non-fatal crime, and the employee is not a victim, leave to relocate or enroll a child in a new school or childcare can be limited to 5 days.  
3. If the employee’s family member is a victim of a non-fatal crime, and the employee is not a victim, total leave can be limited to 10 days. 

AB 2499 also expands eligibility for reasonable accommodations. Previously, only employees who were victims of domestic violence, sexual assault, or stalking were entitled to reasonable workplace accommodations. AB 2499 broadens the coverage to employees requesting accommodations for the safety of family members, and it covers victims who have experienced a qualifying act of violence. 

Finally, AB 2499 introduces new notice requirements for employers. They must inform employees about their rights under the updated leave provisions, provide this notice to new employees upon hire, to all employees annually, upon any employee’s request, and whenever an employee notifies the employer that they or a family member is a victim. The Civil Rights Department (“CRD”) will develop and post a form by July 1, 2025, which employers can use to comply with this requirement. Employers are not obligated to meet these notice requirements until the CRD publishes the form. 

Paid-Sick Leave  

AB 2499 also made a few notable changes to California’s paid-sick-leave law. Previously, employers had to provide paid sick days to employees who were victims of domestic violence, sexual assault, or stalking. The new law expands this eligibility to allow employees to use paid-sick leave whenever (1) the employee or the employee’s family member is a “victim,” as defined under the new FEHA rules above, and (2) the employee seeks the leave for a purpose specified under the new law. 

SB 399: Protection from Employer Intimidation 

Subject to limited exceptions, SB 399 prevents employers from disciplining or retaliating against employees who refuse to attend employer-sponsored meetings or participate in communications that express the employer’s views on political or religious matters. Employees working during the meeting who choose not to attend must still be paid for that time. Employers violating this rule face a $500 penalty, and the Labor Commissioner can enforce these provisions. Employees affected by violations may also bring civil actions and seek injunctive relief. 

SB 988: Freelance Workers

SB 988 sets minimum requirements for contracts between a hiring party and a freelance worker. A “freelance worker” is defined as a person hired as a bona fide independent contractor to provide professional services for $250 or more. The law mandates that the hiring party pay the freelance worker as specified in the contract, or within 30 days of work completion if no payment date is specified. Once a freelance worker has started working under the contract, the hiring party cannot require as a condition of timely payment that the freelance worker (1) accept less compensation than specified in the contract, or (2) provide more goods or services or grant more intellectual property rights than agreed to. Whenever a hiring party retains the services of a freelance worker, the contract must be in writing, and the hiring party must retain it for at least four years. A hiring party cannot penalize or discriminate against a freelance worker for asserting their rights, opposing prohibited practices, or participating in enforcement proceedings. Freelancers or public prosecutors can bring civil actions to enforce this law, and if the freelancer prevails, they can obtain attorney’s fees, injunctive relief, and damages.  

AB 2299: Whistleblower Posting 

Currently, employers must prominently post a list of employees’ rights and responsibilities under the whistleblower laws. Under AB 2299, the Labor Commissioner must create a model list of employees’ rights and responsibilities that employers can use to comply with the existing law. Employers who display the model list will be considered in compliance with the posting requirement.  

SB 1137: Discrimination Based on Intersectionality

SB 1137 clarifies that the Unruh Civil Rights Act, the Education Code, and FEHA prohibit discrimination based not only on individual protected characteristics but also on “any combination of those characteristics.” This new law is intended to recognize the concept of “intersectionality” in California’s civil-rights laws. 

AB 2123: Paid Family Leave

Currently, employers can require employees to use up to two weeks of earned, unused vacation before receiving family temporary disability insurance benefits in a 12-month period. AB 2123 eliminates that option starting January 1, 2025. 

Conclusion 

These new laws bring significant changes for California employers, many of which require proactive attention to ensure compliance. While these new measures expand protections for employees and impose additional responsibilities on employers, they also present opportunities to fine-tune workplace policies and procedures. It is essential for employers to stay informed and be prepared to implement these changes by the specified deadlines, such as the notice requirements and new rules regarding driver’s licenses in job postings. With careful planning and appropriate legal guidance, employers can successfully navigate these new requirements while minimizing potential risks.  

Best, 

Keith W. Carlson and Nima A. Jalali