Navigating California’s Ever-Changing Labor Laws: Stay Ahead & Stay Compliant!
Staying ahead of employment law changes is a must for California businesses. With frequent updates to labor laws, compliance requirements, and HR best practices, companies must remain informed to protect their employees and their operations.
Here’s a breakdown of key employment law updates in 2025 and what businesses need to do to stay compliant:
1. Minimum Wage Increase
California continues its commitment to wage growth, with the statewide minimum wage increasing to $16.50 per hour, effective July 1, 2025. Some cities and counties have set higher local minimum wages, so businesses should verify regional requirements.
2. Expanded Paid Leave Laws
Under the California Family Rights Act (CFRA), paid leave benefits have expanded to cover more family members, including siblings and grandchildren. Employers with five or more employees must ensure their policies reflect these new changes.
3. Employee Classification Updates
With ongoing refinements to AB 5, companies must reassess independent contractor classifications. The new amendments clarify the “ABC Test” and offer additional exemptions, affecting industries such as technology, healthcare, and gig work.
4. Workplace Safety Regulations
The Cal/OSHA Heat Illness Prevention Standards now apply to indoor workplaces. Employers must ensure climate control measures are in place and educate employees on heat-related illness prevention.
5. AI in Hiring and HR Compliance
California has introduced guidelines on AI-driven hiring practices to prevent bias in employment decisions. Businesses using AI for recruitment or performance tracking should audit their systems to comply with evolving fairness and transparency standards.
What Should Businesses Do?
To stay compliant:
✅ Conduct regular HR audits to update policies in line with new regulations.
✅ Provide employee training on updated rights and responsibilities.
✅ Consult legal experts for specific compliance concerns.
With these employment law shifts in 2025, California businesses must remain proactive in understanding and implementing changes. Keeping policies up to date ensures legal compliance and fosters a fair and productive workplace for all employees.
Stay Informed with AB Personnel
At AB Personnel, we believe that knowledge is power. That’s why we are dedicated to keeping our clients informed about the latest employment law updates and HR best practices. By staying proactive and informed, you can ensure your business remains compliant and your employees are well-supported. Contact us today to learn more about how we can help you navigate the ever-changing world of employment law.