California’s New Laws for 2025: Key Updates for Employers and Businesses

Several new laws in California are set to take effect in 2025, impacting businesses and employers. Here’s an overview of the key legislation:

1. Whistleblower Protection (AB 2299)

Starting January 1, 2025, employers in California must update workplace notices regarding whistleblower rights. This law requires employers, including those with remote employees, to display a notice in a 14-point font or larger, prominently featuring a whistleblower hotline. The California Labor Commissioner is tasked with developing a model notice by the effective date, and posting this notice will ensure compliance with existing whistleblower protection laws. Employers may use their own notices, but using the state-provided template offers the benefit of legal certainty in fulfilling the requirement.

2. Workers’ Compensation Notices (AB 1870)

This law, effective in 2025, requires employers to inform employees about their right to consult an attorney for workers’ compensation claims. The notices must clarify that attorney fees are often paid from the recovery on the claim. The aim is to ensure workers are aware of their rights and options when navigating workers’ compensation processes. The Labor Commissioner has until January 1, 2025—the effective date of the statutes—to create the model list and post it on the website for employers to access at no cost.

3. Restraining Orders for Workplace Harassment (SB 428)

Effective January 1, 2025, this legislation allows employers to seek restraining orders against individuals who engage in harassment targeting employees. Harassment is defined as behavior intended to alarm, annoy, or seriously disturb an employee, without legitimate purpose. The law also offers employees the option to remain unnamed in the legal petition, providing additional protection for their identity.

4. Venture Capital Reporting (SB 54)

Beginning in March 2025, venture capital firms will be required to disclose demographic information about the founding teams of businesses they invest in. This transparency aims to promote diversity in investment practices, reflecting broader efforts to create equitable opportunities within the venture capital space.

These laws underscore the state’s commitment to improving workplace transparency, protecting worker rights, and fostering diversity in business practices. Employers should begin preparing for these changes to ensure compliance by the 2025 deadlines.

As the new regulatory requirements are set to take effect in 2025, navigating these changes can be complex. At Anelya Law Offices, we are committed to providing effective guidance and support to ensure your timely compliance. If you need assistance understanding and adapting to these new regulations, please don’t hesitate to reach out to us. Our team is here to help you every step of the way.