Intro to California Labor Laws

On September 28, 2024, Governor Newsom signed the Freelance Worker Protection Act (FWPA) into law, effective on January 1, 2025. The FWPA will require written contracts for freelance workers (independent contractors) providing professional services over $250, as well as prompt payment and anti-retaliation protections. The law mandates that hiring parties retain copies of contracts for four years and strictly prohibits pay reductions as a condition for timely payment. Employers should determine whether they engage freelancers who meet these criteria and update contracts to ensure compliance.

Starting January 1, 2025, California will expand protections for employees affected by violent crime, with specific requirements for employers with 25 or more employees. The new law provides protected time off under California's sick leave requirements, workplace safety accommodations, and protection from discrimination and retaliation for employees impacted by crime, as well as for those whose family members are victims. Employers should update their handbooks and train managers on these new protections to maintain compliance.

Governor Newsom has signed the “Worker Freedom from Employer Intimidation Act”, which will prohibit employers from holding mandatory “captive audience” meetings that discuss religious or political matters, including unionization. The law aims to prevent employers from disciplining or retaliating against employees who choose not to attend such meetings or listen to employer communications on these topics. It also allows employees to bring civil action if an employer violates this rule. California employers should prepare by consulting legal counsel, training managers, and updating handbooks to align with the new requirements.

Starting January 1, 2025, California’s Fair Employment & Housing Act (FEHA) will prohibit employers from requiring a driver’s license in job advertisements unless driving is considered an essential function for the role. This change aims to improve job opportunities for non-drivers who rely on public transportation, biking, or walking. Employers should take caution not to include driver’s license requirements in their job ads unless they can prove that driving is necessary for the position. As a next step, employers should review and update their job advertisements and pre-employment documents to comply with these new requirements.

On October 10, 2024, San Diego County introduced the  Fair Chance Ordinance (FCO), which closely aligns with California's Fair Chance Act (CFCA). Similar to the CFCA, the FCO  restricts when, and how,  employers may consider an applicant’s criminal history in hiring decisions. The FCO expands on the CFCA and places additional requirements  on employers’ use of applicants’ criminal histories in their hiring processes.  San Diego County employers must provide applicants with a written assessment of how their criminal history impacts their fitness for the role they applied for, and a notice of their rights. Employers in San Diego County with 5 or more employees, including those with remote workers, should review their hiring practices to meet these new requirements.

Effective January 1, 2025, employers can no longer require employees to use up to 2 weeks of vacation leave before they receive paid family leave (PFL) insurance benefits paid by the state or their employer (if applicable). This new law may also affect other local paid family leave ordinances such as San Francisco.  

Employers should update their leave of absence and paid time off (PTO) policies in accordance with the new law.