Business groups have challenged a new California law that bars employers from retaliatory actions against employees that refuse to attend so-called "captive audience meetings" on politics and religion in the workplace. Adobe Stock image

With 2025 in full swing, business owners should be aware of state new laws that were ushered in with the champagne toasts on Jan. 1.

This year’s slate of legislation touches the workplace ranging from paid family leave, protections for independent contractors and whistle blowers and a crackdown on retail theft.

Along with new laws, the California minimum wage increased from $16 to $16.50 for employers of all sizes.

There was also an increase in minimum salary requirements for full-time exempt employees — $68,640, or $5,720 per month.

These increases follow ones from last year for specific industries, such as for fast-food workers, who began getting $20 an hour last April.

The Business Journal has compiled some of the laws business should be aware of, and will continue to update readers on legislation throughout 2025.

Retail theft, property damage

 AB 2943: Shoplifting – Assemblymember Rick Chavez Zbur (D-Los Angeles)

This law makes the possession of more than $950 of stolen goods — with the intent to sell, exchange or return them — a felony.

It also allows prosecution of defendants without requiring district attorneys to prove that a defendant knew the goods were stolen.

AB 2943 allows the combination of stolen property from multiple victims or across different counties to meet the $950 felony grant threshold.

The law also clarifies that local law enforcement/jurisdictions are barred from bringing a nuisance action against a businesses for reporting retail crime, unless they make a false report.

It also extends the probation period for shoplifting and petty theft from one year to two.

SB 1242, Senator Dave Min (D-Irvine; now member-elect of the U.S. House)

This law is part of the effort to reduce smash-and grab robberies, imposing higher penalties for thieves who set fires to facilitate organized retail theft.

AB 1960 by Speaker Robert Rivas (D-Salinas)

AB 1960 will would mandate courts impose enhanced sentences for large-scale felony property theft crimes, and assist local law enforcement and prosecutors to hold criminals accountable.

It mandates steeper penalties for suspects that steal, damage or destroy property valued at over $50,000 in the commission of any theft, which includes retail theft.

Paid leave

AB 2123 Paid Family Leave, Diane Papan (D-San Mateo)

AB 2123 prohibits employers from requiring employees to use up to two weeks of company-provided vacation prior to the start of receiving paid family leave insurance benefits paid by the state or their employer’s approved voluntary plan.

The Family and Medical Leave Act and the California Family Rights Act require employers to keep the same level of benefits for employees, including health care.

However, if employees are required to contribute towards their benefits, such as through payroll deductions, employers can still continue to require their workers to make those contributions.

Previously, employers were permitted to require their employees to take up to two weeks of accrued vacation before employees could access benefits. 

Independent contractors

SB 988 Independent Contractors, Scott Wiener (D-San Francisco)

SB 988, The Freelance Worker Protection Act, creates new contract protections for freelance workers.

Under the new law, a “freelance worker” is defined as a person or organization hired as an independent contractor for professional services for a value of $250 or more.

It applies the definition “freelance worker” whether they are incorporated or not, or employing a trade name.

All work agreements are required to be documented in writing, with the hiring parties required to retain all the contracts for at least four years.

Freelance workers or public prosecutors can take legal action for violations, with employers having to pay for potential damages, including attorney fees and penalties for unpaid compensation.

Employers are urged to re-visit their contracts with independent contractors.

Political, religious meetings

SB 399 Captive Audience, Senator Aisha Wahab (D-Alameda)

SB 399, or the California Worker Freedom From Employer Intimidation Act, would limit an employer from communicating with employees in religious or political matters during mandatory meetings, which includes union organization issues.

So-called “captive audience meetings” are defined as mandatory meetings organized by the employers during work hours in which employees are paid and required to attend.

The law prohibits employers from intimidating their workers with the threats of discharge, discrimination, retaliation or any adverse action if they decline to attend such meetings.

Applicant protections

Discrimination: driver’s license, Senator Anthony Portantino (D-Burbank)

Employers can no longer require a job applicant to have a driver’s license unless the job requires driving under Senate Bill 1100.

Subscriptions

AB 2863 Subscription cancellation, Pilar Schiavo (D-Chatsworth)

AB 2863 requires a business to provide a way for people to cancel their automatic renewals and services in the same way they start their subscription.

It aims to make opting out of digital subscriptions simpler for subscribers.

The law requires a business to get a consumer’s affirmative consent for automatic renewal or continuous service offer terms.