California Employment Laws Effective Jan. 1, 2025 – Most new bills in California become effective on Jan. 1 of the following year once approved by the state Legislature and the state governor (though some exceptions are possible for emergency measures and when the bills specifically appoint a different effective date).

The minimum wage rate is expected to change in 2025 in the following states: Alaska, Arizona, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Illinois, Maine, Michigan, Minnesota, Missouri, Montana, Nebraska, New Jersey, New York, Ohio, Oregon, Rhode Island, South Dakota, Vermont, Virginia, and Washington.

States and localities have been adding pay transparency requirements since 2021. Most recently, Maryland’s Wage Range Transparency Act took effect on Oct. 1. New legislation in Hawaii was also enacted in 2024, while Colorado and the District of Columbia amended their pay transparency laws.

Pay transparency is when an employer uses established practices to openly communicate pay-related information to current or prospective employees.

On Nov. 26, 2024, the U.S. Department of Labor (DOL) filed a notice of appeal seeking to overturn the recent decision by the U.S. District Court for the Eastern District of Texas that vacated the DOL’s final rule. The final rule amended requirements that employees in white-collar occupations must satisfy to qualify for an overtime exemption under the Fair Labor Standards Act (FLSA). The District Court’s ruling set aside the final rule’s increases to the standard salary level nationwide, returning the salary threshold to the pre-July 2024 threshold.

Employee handbooks are important for establishing employee expectations, addressing workplace issues, and defending against potential lawsuits. Failing to update the employment policies in these handbooks regularly can make employers vulnerable to legal risks and liabilities that may result in costly fines, penalties, and attorney fees. Employment laws are often complicated, and employers must know about new regulatory developments that may impact their organizations and workforce. The start of the year provides employers with an excellent opportunity to review and update their policies.

On Nov. 5, 2024, Donald Trump won the presidential election. Employers can expect a number of changes to employment law policy under the Trump administration. Although these specific policy objectives remain to be seen, employers may look to the campaign policies on which President-elect Trump ran, as well as the initiatives that Trump took during his first term in office, as an indication of what is to come.

California Passes Broad Range of Labor and Employment Laws – In late September 2024, California passed a series of bills that will make several important changes to the state’s labor and employment laws. Each of these new laws will take effect on Jan. 1, 2025.

On Aug. 30, 2024, the DOL’s OSHA published a proposed rule to protect workers from heat injury and illness. The new standard would apply to all employers conducting indoor and outdoor work in all general industry, construction, maritime, and agricultural sectors where OSHA has jurisdiction, subject to limited exceptions. If finalized, the new standard would require employers to create a plan to evaluate and control heat hazards in their workplaces.

Many benefit plan limits have changed for the new calendar year. Plans such as 401(k), FSA, and HSA all have new maximums set for 2025.

Click the following link to access our Infographic – 2025 Limits to Know.