Seyfarth Synopsis: With the Governor’s September 30 deadline to sign bills behind us, we review the employment bills that made the cut to become laws, as well as those that didn’t survive the season. The most notable new laws read intersectionality into FEHA protected categories, recast victims’ time off provisions, adjust paid family leave, and impact protections for freelance workers and whistleblowers.
We previously detailed the cornucopia of key bills California legislators introduced in 2024. Below is our summary of the labor and employment bills the Governor signed into law and key measures that were vetoed. All new laws are effective January 1, 2025, unless otherwise stated.
Soon-to-be-New Laws
SB 1137– Protected Characteristics: Intersectionality
SB 1137 makes California the first jurisdiction to explicitly adopt the concept of intersectionality and clarifies how courts should assess overlapping claims under the state’s anti-discrimination laws. As stated in the law, intersectionality “captures the unique, interlocking forms of discrimination and harassment experienced by individuals in the workplace and throughout society, particularly Black women, as compared to Black men and White women.” Under this new law, the Fair Employment and Housing Act (“FEHA”) will expressly protect the intersection, or any combination of the currently-enumerated protected characteristics from discrimination.
The bill amends Sections 12920 and 12926 of the Government Code (also amends the Unruh Act and Education Code).
AB 1815 – Race Discrimination – Hairstyles
AB 1815 expands the definition of “race” under the FEHA by removing the term “historically” and including traits associated with race beyond hair texture and protective hairstyles. The new law will also add definitions for “race” and “protective hairstyle” to the Unruh Act.
The bill amends Section 51 of the Civil Code, Section 212.1 of the Education Code, and Section 12926 of the Government Code.
SB 1340 – Discrimination: Local Enforcement
AB 1340 specifies that nothing in the FEHA limits or restricts efforts by any city, county or other political subdivision of the state to enforce local anti-discrimination laws if certain requirements are met. Local laws can be enforced when an employment complaint has been filed with the CRD after the CRD has issued a right to sue notice (but before the expiration of the time to file a civil action in the notice) and the local law at issue is at least as protective as the FEHA. The law requires the CRD to promulgate regulations governing local enforcement pursuant to these provisions.
The bill amends Section 12993 of the Government Code.
AB 2499 – “Victims” Time Off
AB 2499 expands and recasts jury, court, and victim time off provisions as unlawful practices under the FEHA (previously addressed in the Labor Code), placing them under the CRD’s enforcement authority. Specifically, the law prohibits the discrimination/retaliation/discharge of an employee who: takes time off for jury service; takes time off to appear in court as a witness under court order; is a victim and takes time off to obtain relief for their/their child’s health, safety, welfare; and (for employers with 25 or more employees) is a victim/has a family member who takes time off to assist the family member for various reasons related to a qualifying act of violence (instead of crime/crime or abuse).
Additionally, the new law expands eligibility for reasonable accommodations to include an employee who is a victim/has a family member who is a victim of a qualifying act of violence. Employees will be able to use vacation, personal, and paid sick leave for leaves granted as reasonable accommodations under this provision. Such leave will run concurrently with CFRA/FMLA (if the employee would have been eligible), and be subject to time use limitations. Employers will be required to inform employees of their rights in writing at hire and upon request.
The bill amends Section 214 of the Code of Civil Procedure, Section 48205 of the Education Code; add Section 12945.8 to the Government Code, and amends Section 246.5 of, and repeals Sections 230 and 230.1 of the Labor Code (among other things).
SB 1100 – Discrimination: Driver’s License
SB 1100 prohibits statements in employment materials (such as a job advertisement, posting, or application) that an applicant must have a driver’s license. The only exceptions are if the employer reasonably expects the position’s duties to require driving and reasonably believes that an alternative form of transportation would not be comparable in travel time or cost to the employer. Alternative forms of transportation may include a ride hailing service, taxi, carpooling, bicycling, or walking.
The bill amends Section 12940 of the Government Code.
SB 399 – Captive Meetings Ban
SB 399 prohibits an employer from subjecting or threatening discrimination or adverse action against any employee who declines to attend or participate in, receive, or listen to an employer-sponsored meeting or communications regarding the employer’s opinion about religious or political matters. The new law requires employers to continue paying employees who refuse to attend such meetings, and imposes a civil penalty of $500 per employee for each violation. We may well see challenges to this new law, as opponents of the bill were vocal that it is preempted by the NLRA.
The bill adds Chapter 9 (commencing with Section 1137) to Part 3 of Division 2 of the Labor Code.
AB 2123 – Paid Family Leave
Under AB 2123, employers can no longer require employees to take up to two weeks of earned and unused vacation before the employee’s initial receipt of paid family leave benefits during any 12-month period in which employees are eligible for these benefits.
The bill amends Section 3303.1 of the Unemployment Insurance Code.
AB 1888 – DOJ Labor Trafficking Unit
Governor Newsom approved AB 1888 to establish a Labor Trafficking Unit within the DOJ that will “increase leadership and coordination among state agencies to combat labor trafficking in California.” The Governor signed three other non-employment-related human trafficking bills the same day: AB 2020, SB 963, and SB 1414.
The bill adds and repeals Section 12530.5 to the Government Code.
AB 3234 – Social Compliance Audit
AB 3234 requires an employer that has voluntarily subjected itself to a “social compliance audit” relating to labor laws (regardless of whether the audit is to determine if the employer uses child labor) to post a report detailing the findings of its compliance with child labor laws on its website. The new law defines a “social compliance audit” as a voluntary, nongovernmental inspection or assessment of an employer’s operations or practices to evaluate whether the operations or practices are in compliance with state and federal labor laws, including wage and hour and health and safety regulations, including those regarding child labor.
This bill adds Chapter 1.5 (commencing with Section 1250) to Part 4 of Division 2 of the Labor Code.
AB 2738 – Labor Code Enforcement and OSHA Training
In an effort to address worker injuries and fatalities at concert festivals, this law requires contracts with entertainment events vendors to provide in writing that upon hire for a live event, the vendor will furnish to the contracting entity certain information about the federal and Cal/OSHA trainings its own employees and subcontractors’ employees have completed.
This new law also authorizes public prosecutors enforcing Labor Code violations to recover all remedies available under the Labor Code, which would go first to workers for unpaid wages, damages, or penalties, and the remainder to the General Fund. It also authorizes recovery of fees and costs to the prevailing plaintiff in such an action.
This bill amends Sections 181, 9251, and 9252 of, and adds Section 9252.1 to the Labor Code.
AB 1034 – PAGA exemption: Construction Industry Employees
AB 1034 extends the current January 1, 2028 expiration date of the PAGA exemption for employees in the construction industry applicable to work performed under a valid collective bargaining agreement in effect any time before January 1, 2025, to 2038.
This bill amends Section 2699.6 of the Labor Code.
SB 988 – “Freelance Worker Protection Action Act”
SB 988 requires a “hiring party” (not limited to an employer) to pay an Independent Contractor (“IC”) on the date specified by the contract, or if unspecified, no later than 30 days after completion of the freelance worker’s services. This new law prohibits requiring the freelance worker to accept less compensation than what is specified by the contract, to provide more goods or services, or to grant additional intellectual property rights as a condition of timely payment. The hiring party and IC will need to enter into a written contract that the hiring party must retain for no fewer than four years. Hiring parties are also prohibited from discriminating against an IC for asserting rights under these provisions, and the law creates a private right of action with injunctive relief, damages, fees, and costs available.
The bill adds Part 5 (Section 18100 et seq) to Division 7 of the Business and Professions Code.
AB 224 – Newspaper Distributors and Carriers AB 5 Exemption Extension
AB 224 extends the exemption from the application of Dynamex to newspaper distributors working under contracts with publisher/carriers until January 1, 2030, and extends the corresponding mandatory LWDA payroll and wage reporting requirements.
The bill amends Section 2783 of the Labor Code.
AB 2754 – Port Drayage Motor Carriers Contracts – Liability
AB 2754 extends existing Labor Code provisions to port drayage motor carriers. These provisions prohibit a person or entity from entering into contracts for labor or services with certain types of contractors if they know or should have known that the contract does not include sufficient funds to allow the contractor to comply with all applicable employment laws. The law also imposes joint and several liability for customers of port drayage motor carriers where the motor carriers misclassify drivers as independent contractors.
The bill amends Sections 2810 and 2810.4 of the Labor Code.
AB 2364 – Property Service Worker (Janitorial) Protections
AB 2364 increases the payment provided to qualified organizations that provide mandatory sexual violence and harassment prevention training to janitors. The rates will jump from $65 per participant to $200 per participant for training sessions having fewer than 10 participants, and $80 per participant for training sessions with 10 or more participants, except as specified. These enumerated rate hikes will be in effect until January 1, 2026, and then increase each year thereafter. The new law also requires the DIR to contract with the UCLA Labor Center to study opportunities to improve janitorial industry worker safety and rights.
The bill amends Sections 1420 and 1429.5 of, and adds and repeals Section 1429.6 of, the Labor Code.
Bills Already Signed Into Law
Some laws were ahead of the curve, and were signed into law much earlier in the legislative session.
AB 2299 – Whistleblower Protections Posting
AB 2299, signed into law July 15, 2024, requires the Labor Commissioner to develop, and an employer to post, a model list of employees’ rights and responsibilities under the State’s whistleblower laws. An employer is considered compliant with the posting requirement set forth in Labor Code section 1102.8 if the employer posts the model list.
The bill amends Section 1102.8 and adds Section 98.11 to the Labor Code.
AB 2288 and SB 92 – PAGA Compromise
We previously detailed the sweeping PAGA reforms effectuated by AB 2288 and SB 92, which were signed into law on June 21, 2024 and are retroactively effective as of June 19, 2024.
The bills amend Sections 2699 and 2699.5 of the Labor Code, and amend, repeals and add Section 2699.3 of the Labor Code.
AB 2049 – Summary Judgment Filing Deadlines
AB 2049, signed into law on July 15, 2024, changes the deadline for a party to file a motion for summary judgment or summary adjudication from the current 75 days to at least 81 days before the hearing on the motion. The deadlines for filing an opposition are likewise extended from 14 days to at least 20 days before the hearing, and for filing a reply from 5 days to at least 11 days before the hearing. The new law prohibits a party from filing more than one motion for summary judgment against an adverse party (multiple motions for summary adjudication are excluded from this prohibition) without leave of court, and expressly prohibits the introduction of new facts in a reply to an opposition to a motion for summary judgment.
This bill amends Section 437c of the Code of Civil Procedure.
Bills That Did Not Make the Cut
SB 1022 – CRD Group/Class Civil Action Filing Extension: This bill would have made a variety of changes to FEHA administrative timelines, including changes to tolling rules and extending the deadline for the Civil Rights Department (CRD) Director to file a group or class complaint to seven years from the date of the alleged violation. This would have tacked years onto the CRD’s current time limits to bring systemic complaints, and was the very reason why the Governor vetoed the bill. Despite the veto, the Governor encouraged the Legislature to try again next year with a more reasonable period for CRD to initiate a group or class complaint.
AB 1832 – CRD Human Trafficking Task Force: This bill would have established a Labor Trafficking Task Force within the CRD, “tasked” with taking various actions and working with various state agencies, to combat labor trafficking. Governor Newsom vetoed the bill as redundant of AB 1888.
SB 1116 – Benefits for Striking Workers: Under this bill, after two weeks of an employee’s absence due to a trade dispute or strike, the employee would have been eligible for unemployment benefits under the Unemployment Insurance Code.
AB 2494 – Employer Notification: This bill would have required all employers, public and private, to provide employees with a written notice of coverage under COBRA, in-person and via email, following termination or reduction in hours.
AB 2930 – AI & Automated Decision Systems: This bill would have regulated the use of automated decision tools in employment pay, promotion, hiring, termination, or task allocation for purposes of determining employment terms or conditions. Expect more action on this topic in years to come, as the Governor’s veto message on AB 1047 previewed.
Workplace Solutions
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