Thursday, May 15, 2025

Content Courtesy of California DIR


 

The California Labor Commissioner's Office (LCO) is responsible for enforcing the California Labor Code, including compliance with newly enacted or amended laws. This letter seeks to inform and ensure that employers understand their legal requirements and potential consequences for noncompliance with California state law. Each of these provisions are effective as of January 1, 2025.

California's New Minimum Wage Effective January 1, 2025

The minimum wage in California, effective January 1, 2025, is $16.50 per hour for all employers, regardless of employee headcount. "Fast food restaurant" employers and certain health care employers have a higher minimum wage. Get more information regarding the applicable minimum wage here.

Repeal of Special Minimum Wage for Persons with Disabilities

In 2022, Senate Bill (SB) 639 went into effect, ending California's participation in the federal subminimum wage program for persons with disabilities under Labor Code sections 1191 and 1191.5. Labor Code section 1191 allowed the Labor Commissioner to issue a one-year license to a person with a disability, authorizing employment at a wage less than the legal minimum wage. Labor Code section 1191.5(a) allowed the Labor Commissioner to issue a license to a nonprofit organization, e.g., a sheltered workshop or rehabilitation facility, to employ workers at a special minimum wage. As a result of SB 639, effective January 1, 2025, Labor Code section 1191 is inoperative, and Labor Code section 1191.5 is repealed. Beginning January 1, 2025, an employee with a disability shall not be paid less than the legal minimum wage required or the applicable local minimum wage ordinance, whichever is higher.

California Worker Freedom from Employer Intimidation Act

SB 399 enacted Labor Code section 1137, which prohibits an employer from subjecting, or threatening to subject, an employee to discharge, discrimination, retaliation, or any other adverse action because the employee declines to attend an employer-sponsored hearing held for the purpose of communicating the employer's opinion regarding political or religious matters, or affirmatively declines to participate in, receive, or listen to any communications from the employer or its agents or representatives on the same topics. An employee working at the time of a meeting who elects not to attend the meeting shall continue to be paid while the meeting is held. In addition to any other remedy, an employer who violates this section shall be subject to a $500 civil penalty. The Labor Commissioner may enforce this section, and any employee who has suffered a violation may also bring a civil action for damages and injunctive relief.

Labor Code section 1137 expressly does not prohibit the following:

• An employer from communicating to its employees any information that the employer is required by law to communicate.
• An employer communicating any information that is necessary for those employees to perform their job duties.
• An institution of higher education from meeting with or participating in any communications with its employees that are part of coursework, any symposia, or an academic program at that institution.
• A public entity employer from communicating to its employees any information related to a policy of the public entity or any law or regulation that the public entity is responsible for administering.

Additionally, Labor Code section 1137 does not apply to:

• A religious corporation, entity, association, educational institution, or society that is exempt from the requirements of Title VII of the Civil Rights Act of 1964 or is exempt from employment discrimination protections of state law requiring employees who perform work connected with the activities undertaken by that religious corporation, entity, association, educational institution, or society to attend employer-sponsored meetings or to participate in any communications with the employer, the purpose of which is to communicate the employer's speech on religious matters.
• A political organization or party requiring its employees to attend an employer-sponsored meeting or to participate in any communications with the employer, the purpose of which is to communicate the employer's political tenets or purposes.
• An educational institution requiring a student or instructor to attend lectures on political or religious matters that are part of the regular coursework at the institution; and to a nonprofit, tax-exempt training program requiring a student or instructor to attend classroom instruction, complete fieldwork, or perform community service hours on political or religious matters as it relates to the mission of the training program or sponsor.
• An employer requiring employees to undergo training to meet the employer's legal obligations, including obligations under civil rights laws and occupational safety and health laws; or to a public employer holding a new employee orientation or a provider holding an orientation.

Expanded Use of Paid Sick Leave for Agricultural Employees

Labor Code section 246.5(a)(3) now provides that agricultural employees who work outside and who qualify for paid sick days may use paid sick days to avoid smoke, heat or flooding created by a local or state emergency, including when the employee's worksite is closed due to the smoke, heat, or flooding conditions. This provision was added due to the passage of SB 1105 and Assembly Bill (AB) 2499.

Alignment of LCO's Claims Period against Public Works Performance Bonds

AB 2705 amended Labor Code section 1743 to provide that the limitations period for the Labor Commissioner to sue on a payment bond be governed by the 18-month limitations period in Labor Code section 1741 and the tolling provisions in Labor Code section 1741.1., as opposed to the 6-month limitations period in Civil Code section 9558.

Expansion of Victims of Crime Protections and Transfer of Jurisdiction to CRD

AB 2499 expanded and strengthened protections for victims of crime. AB 2499 moved the protections under Labor Code sections 230 and 230.1 to the Government Code as part of the Fair Employment and Housing Act (FEHA) enforced by the Civil Rights Department (CRD). Labor Code sections 230.2 and 230.5 protections for crime victim's time off remain under the LCO's jurisdiction and were not impacted by the bill. LCO will also continue to handle paid sick leave claims for victims and family members of victims under Labor Code section 246.5, which has been updated to reference the new Government Code section.

Whistleblower Protections: Model List of Rights and Responsibilities

AB 2299 required the LCO to develop a model list of employees' rights and responsibilities under existing whistleblower laws for employer use to meet existing posting requirements. The LCO developed a model list that complies with the requirements of Labor Code section 1102.8(a), whistle blower posting, which is now available on our website. An employer shall be deemed in compliance with the posting requirement if the employer posts the model list developed by the LCO.

Please reach out to our Business Engagement Program if you have questions or are interested in having our team provide a presentation on employers' legal obligations. Inquiries and requests should be sent to MakeItFair@dir.ca.gov.