As we usher in 2025, California introduces several workplace laws that not only impact employers across various sectors but also hold particular significance for estate planning law firms. Understanding these changes is crucial to ensure compliance and to provide informed guidance to clients.

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Below is an overview of the key legislative updates effective January 1, 2025:

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1. Minimum Wage Adjustments

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The statewide minimum wage has increased from $16 to $16.50 per hour. Consequently, the minimum salary threshold for exempt employees in administrative, executive, and professional roles now stands at $68,640 annually, or $5,720 monthly. It's important to note that certain local ordinances may mandate higher minimum wages, so firms should verify the requirements specific to their jurisdictions.

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2. Paid Family Leave Modifications

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Assembly Bill 2123 has revised the Paid Family Leave program, prohibiting employers from requiring employees to use up to two weeks of accrued vacation before accessing paid family leave benefits. This change necessitates a review and possible update of existing leave policies to align with the new regulations.

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3. Independent Contractor Protections

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Senate Bill 988, known as the Freelance Worker Protection Act, mandates that hiring parties provide independent contractors with a written contract detailing services, payment amounts, and due dates. Full payment is required by the specified due date or within 30 days of task completion if no date is provided. Non-compliance can result in legal action, including the recovery of attorney fees by the freelancer. Firms must ensure proper classification of workers to avoid potential legal complications.

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4. Restrictions on Mandatory Meetings

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Senate Bill 399, the California Worker Freedom from Employer Intimidation Act, prohibits employers from requiring employees to attend meetings that discuss political or religious matters, including topics related to unionization. Given the potential for legal challenges based on federal preemption, firms should exercise caution and seek legal counsel before holding such meetings.

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What These New Laws Mean for You

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As California continues to update workplace protections, it's important to stay informed about how these changes might affect you—whether you're an employee, a business owner, or an independent contractor. These new laws impact wages, family leave, workplace rights, and how businesses work with freelancers.

Understanding your rights and responsibilities can help you make informed decisions, whether you're negotiating a salary, taking leave, or working as a freelancer. If you're unsure how these changes apply to you, consider reaching out to a legal professional or reviewing your workplace policies to ensure you're up to date.

Stay informed, stay empowered, and be prepared for the changes coming in 2025!

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