California Enacts Key Employment Law Changes for 2025 – Don’t Get Sued

California Enacts Key Employment Law Changes for 2025 – Don’t Get Sued

Call us if you need your employee handbooks updated.  Because effective January 1, 2025, California employers must comply with several significant updates to state employment laws. These include increases to minimum salary thresholds for overtime exemptions, amendments to paid family leave regulations, and expanded protections for crime victims.

Higher Minimum Pay for Overtime Exemptions

The California Department of Industrial Relations increased the salary thresholds for exempt employees, impacting categories such as computer software professionals, physicians, and administrative, professional, and executive roles.

 Key Details For Some of the Professions Affected

  • •Computer Software Employees:

    •      ○Minimum hourly rate: $56.97
    •      ○Monthly salary: $9,888.13
    •      ○Annual salary: $118,657.43
  • •Physicians

    •      ○Minimum hourly rate: $103.75
  • •Administrative, Professional, and Executive Employees

    •      ○Weekly salary: $1,320

    •      ○Annual salary: $68,640

Employers must ensure compliance with updated pay requirements to maintain overtime exemptions or risk lawsuits, class actions, governmental audit, etc.

Paid Family Leave Rule Amendments

Employers can no longer mandate that employees use accrued vacation before accessing paid family leave benefits.

Expanded Protections for Crime Victims

Categories of employee affected by “qualifying acts of violence” was broadened and includes specific provisions for employees supporting victimized family members.

Highlights

  • Definition of qualifying acts includes domestic violence, sexual assault, and other violent behaviors.

  • Expanded leave rights for activities such as seeking medical attention, relocating, or participating in legal proceedings.

  • Protections against retaliation for taking leave or requesting reasonable accommodations.

Additional Obligations for Employers with 25+ Employees
Employers must allow leave for employees to assist affected family members with medical, legal, or housing needs, among other actions.

Notice and Certification Requirements
Employers must provide employees with written notification of their rights under this law. Certification requesting leave may include police reports, court documents, or medical provider statements.

Action Items for Employers

  1. 1. Review and Update Policies:Ensure compliance with updated salary thresholds, leave entitlements, and anti-retaliation measures.

  2. 2. Train Supervisors:Educate management on new requirements and employee rights.

  3. 3. Prepare for Notice Obligations:Distribute updated notices and incorporate changes into employee handbooks and onboarding materials.

  4. 4. Monitor Updates:Look out for the Civil Rights Department’s model form, set to release by July 1, 2025.

California employers are advised to act promptly to align practices with these regulatory changes to avoid penalties and ensure fair treatment of employees. For tailored legal guidance, consult with a qualified labor and employment attorney.  Epps & Coulson, LLP can help you do this.  Please feel free to contact dawn@eppscoulson.com

Information contained in this Memo is intended for informational and educational purposes only and does not constitute legal advice or opinion, nor is it a substitute for the professional judgment of an attorney.  It is likely considered advertising.  Epps & Coulson, LLP encourages you to call to discuss these matters as they apply to you or your business.  Epps & Coulson, LLP has staff licensed in France and affiliated Counsel offices in New York and Connecticut with lawyers also admitted in Connecticut, District of Columbia Massachusetts (pending), New Jersey, Hawaii, European Union, England and Wales, France (Paris Bar) and Sweden.

EPPS & COULSON, LLP
Attorneys admitted to practice in California, New York, Colorado, Texas, and Oregon
www.eppscoulson.com
www.companiescounsel.com