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California's new employment laws for 2025: Updates to leave of absence and more
The new year brings significant changes in employment laws for California employers, particularly regarding leaves of absence. Governor Gavin Newsom signed several bills that will impact how employers manage leaves of absence, aiming to provide better support and flexibility for employees.
Among the key changes, employers will no longer be able to require employees to exhaust employer-provided vacation before receiving Paid Family Leave (PFL) benefitsi. This prohibition ensures that employees can access paid family leave benefits without depleting their vacation time, providing them with more financial stability during their leave.
In California, employees can take time off if they have been the victim of a crime. The new laws expand the list of eligible crimes to include serious felonies, such as domestic violence, sexual assault, stalking, human trafficking and other violent crimes. Additionally, employees can take protected time off to assist family members who are victims of those crimesii. This expansion provides greater support for employees dealing with personal or family crises, ensuring they have the necessary time to address these issues without fear of losing their jobs.
Employers must also be aware of The California Worker Freedom from Employer Intimidation Act (also known as the "Captive Audience" Meeting Ban), which prohibits mandatory meetings on religious or political mattersiii. This law aims to protect employees' rights to freedom of belief and expression in the workplace.
Absence Management
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These changes reflect California's commitment to enhancing employee rights and providing a more supportive work environment. Employers should review their leave policies and ensure they comply with the new regulations to avoid potential legal issues.
Additional details from California’s 2025 employment laws
There are several more updates to California's 2025 laws, including leave of absence, SDI/PFL benefit rates for 2025 and other significant legislative changes affecting employers and employees:
- California State Disability Insurance (SDI)/Paid Family Leave (PFL) Rates for 2025: The Employment Development Department (EDD) announced the 2025 rates, including an increase in the SDI/PFL contribution rate from 1.1% to 1.2%, and a rise in the maximum weekly benefit amount to $1,681.
- Voluntary Plan Text Updates: Employers with Voluntary Plans must update their plan text to reflect new legislative requirements and submit them to the EDD by December 2, 2024.
- Senate Bill 951: Starting January 1, 2025, the SDI/PFL weekly benefit formula will increase to 70% to 90% wage replacement, up from the current 60% to 70%.
- Assembly Bill 2123: Effective January 1, 2025, employers cannot require employees to use two weeks of earned vacation before receiving PFL benefits.
- Regulatory Updates: New regulations align with the 2021 expansion of PFL for military exigencies and eliminate the requirement for claimants to verify Social Security Numbers.
- Senate Bill 1090: This bill allows claimants to file SDI/PFL claims up to 30 days in advance and mandates benefit payments within 14 days of claim receipt.
- Assembly Bill 2499: This bill adds protections for employees taking time off for jury duty, court appearances or as victims of violence, effective January 1, 2025.
- Senate Bill 729: Effective July 1, 2025, large and small group health plans must cover certain infertility and fertility services.
Read the full Alight Compliance Alert here.
Absence Management
To navigate these changes effectively, consider leveraging Alight’s Absence Management services. Our comprehensive solutions help you manage employee leaves efficiently, ensuring compliance with the latest laws and providing the support your employees need. Learn more about how Alight can assist you in managing leaves of absence by visiting our website or contacting our team today.
