Freelancers’ Rights
Businesses cannot require freelancers to accept less pay than agreed upon or provide additional services after work has begun as a condition for timely payment. Importantly, the law also prohibits retaliation against freelancers who assert their rights, such as raising complaints about violations or seeking enforcement of the law.
Noncompliance can lead to significant penalties. If a written contract is not provided, employers may face a $1,000 penalty. Late payments can result in damages up to twice the amount owed, while other violations may require businesses to pay damages equal to the value of the contract or the work performed.
Indoor Heat Illness
These new requirements took effect at the end of last summer, making 2025 the first full year of implementation. Cal/OSHA’s indoor heat illness prevention rules require employers to protect workers in indoor workplaces when temperatures reach 82 degrees Fahrenheit or higher. These regulations mainly affect restaurants, warehouses, and manufacturing facilities.
At 82 degrees, employers must ensure workers have cool, potable water nearby and access to a cool-down area where temperatures remain below 82 degrees. Workers should be encouraged to take rest breaks to prevent heat-related illness and be monitored for symptoms during these breaks. If clothing restricts heat removal or radiant heat sources are present, these measures apply immediately.
At 87 degrees, employers must take additional steps, such as cooling work areas, providing personal heat-protective equipment, and implementing work-rest schedules. Affected employers should evaluate options like installing air conditioning to maintain safe temperatures. While this is feasible for smaller spaces, larger facilities like warehouses may require alternative compliance strategies.
PAGA Reform
In July 2024, Gov. Newsom signed two measures aimed at curbing abuse of the Private Attorneys General Act (PAGA), which has been costly for businesses in California. PAGA allows workers alleging labor violations, like unpaid overtime or denied meal breaks, to file suit against their employers instead of filing a claim with the state Department of Labor Standards Enforcement.
The new laws reward employers with reduced penalties if they address issues in good faith. For example, the reforms cap assessments at 15% of the available penalty for employers that take immediate steps to comply with state law. Employers addressing issues within 60 days of receiving a PAGA notice will face a maximum penalty of 30%.
The reforms also require a worker to personally experience violations to bring action and increase workers’ share of awards to 35% (up from 25%). The rest of the funds go to the Labor & Workforce Development Agency.
Family Leave Changes
Under a new law, AB 2123, employers can no longer require workers to use up to two weeks of accrued vacation time before benefits from the state’s Paid Family Leave Program begin.
Driver’s License Queries
Starting Jan. 1, employers are prohibited from listing in job ads and applications that a driver’s license is required unless:
- The employer reasonably expects that driving will be part of the job.
- The employer reasonably believes that using alternative forms of transportation (e.g., ride-sharing, taxi, or bicycle) would require more time or higher costs.
Poster Updates
Employers must update two mandatory workplace posters this year. The workers’ compensation rights poster now includes language stating that employees may consult an attorney for advice and may have to pay attorneys’ fees if they hire a lawyer. Additionally, businesses must post an updated paid leave notice reflecting the changes from AB 2499 regarding leave for crime and abuse victims.
Minimum Wage
California’s minimum wage increased to $16.50 an hour on Jan. 1, applying statewide except for jurisdictions with their own higher minimum wage due to local cost-of-living adjustments.