6. PAGA reform
In July 2024, Gov. Newsom signed into law two measures aimed at curbing rampant abuse of the Private Attorney General Act, which has become a costly thorn in the side of businesses in California.
PAGA allows workers who allege they have suffered labor violations, like unpaid overtime or being denied mandatory meal and rest breaks, to file suit against their employers rather than take the more typical route of filing a claim with the state Department of Labor Standards Enforcement.
The new laws aim to reward employers with reduced penalties if they address in good faith issues raised by an employee.
For example, the reforms cap the assessment at 15% of the available penalty for employers that take immediate and proactive steps to bring themselves into compliance with California Labor Code. Employers that take “reasonable” steps to address issues within 60 days of receiving a PAGA notice would face a maximum penalty of 30% of the available penalty under the law.
The new PAGA also requires a worker to personally experience violations alleged in a claim if they want to bring action. It also increases workers’ share of awards to 35%, from 25%. The rest of the funds go to the Labor & Workforce Development Agency.
However, legal pundits predict the changes won’t reduce the amount of PAGA lawsuits being filed in the state.
7. Family leave change
A new law, AB 2123, bars employers from requiring that workers who plan to take time off under the state’s Paid Family Leave Program first take up two weeks of accrued vacation time before benefits kick in.
8. Driver’s license queries
Starting in 2025, employers are barred from listing in help-wanted ads and job applications that having a driver license is a prerequisite for a job, unless the employer:
- Reasonably expects that driving will be part of the job, and
- Reasonably believes that allowing the employee to use alternative forms of transportation (including ride-sharing, taxi or bicycle) would take more time or require the business to incur higher costs.
9. Poster updates
Employers have to update two mandatory work posters this year.
The standard poster that informs employees about their rights under workers’ compensation laws, needs to be updated. The new poster must include language stating that employees may consult with an attorney for advice about workers’ comp law and that they may have to pay attorneys’ fees if they hire a lawyer as part of their claim.
Also, businesses are required to post an updated paid leave law notice to reflect the changes ushered in by AB 2499, the paid leave law for crime and abuse victims discussed above.
10. Minimum wage
California’s minimum wage increased to $16.50 an hour on Jan. 1. This rate is for all areas of the state, except for those jurisdictions that have implemented their own minimum wage to reflect the higher cost of living in their area.