INCREASED MINIMUM HOURLY WAGE
Effective January 1, 2025, California’s minimum hourly wage will increase to $16.50 per hour. Please see that all minimum wage workers have their hourly wage adjusted accordingly. Below is a link to the new minimum wage poster. Please replace your current poster with the new poster on January 1, 2025: https://www.dir.ca.gov/iwc/MW-2025.pdf
Be reminded that some cities have higher minimum wage requirements than the State. The jurisdiction where the employee works is the rate that controls. When a city or county has a higher minimum wage than the State, the higher rate applies. For example, effective January 1, 2025, the City of San Diego’s minimum wage will increase to $17.25 per hour. All San Diego workers should be paid at least $17.25 per hour as opposed to $16.50 per hour. Below is a link to the new minimum wage poster for the City of San Diego. Please replace your current poster with the new poster on January 1, 2025: https://www.sandiego.gov/sites/default/files/2024-mwo-notice-english.pdf
There are other cities and counties in California that also have minimum wage rates that are higher than the state minimum wage. If you have workers in multiple cities, you will want to be sure you are paying the correct minimum hourly wage for all employees in the new year. If you need assistance determining which minimum wage rates apply to your business, Daly Law Firm can provide guidance to your business.
INCREASED MINIMUM SALARY REMUNERATION
The change to California’s minimum hourly wage also affects the minimum salary an employee must earn to be properly classified as exempt. Effective January 1, 2025, the minimum remuneration required to be paid to employees who otherwise qualify for the white-collar exemption (administrative, professional, or executive tasks) will increase to $68,640.00.
Certain professions may also have different minimum remuneration requirements. For example, computer professionals must be paid at least $118,657.43 annually to qualify for the exemption. Additionally, healthcare workers must be paid 1.5 times the applicable health care minimum wage, or two times the State minimum, whichever is greater. Please be sure that you are paying the correct minimum salary to your exempt employees in the new year. If you are uncertain which rates apply to your business, please reach out to our office.
NEW WHISTLEBLOWER POSTER
This year California passed a new law requiring California employers to post information for employees regarding whistleblower protections. Below is a link to a poster issued by the California Labor Commissioner you can make available for your employees to reference: https://www.dir.ca.gov/dlse/WhistleblowersNotice.pdf
EXPANDED SICK LEAVE USE
Beginning January 1, 2025, California employees may use paid sick leave if the employee or any member of their family are victims of certain types of violent incidents, or threats of violence. Employers should make their teams aware that following this expansion, use of sick leave is no longer limited to victims of domestic violence, sexual assault, or stalking.
BAN ON CAPTIVE AUDIENCE MEETINGS
This year California also passed a new law banning mandatory captive audience meetings. Beginning January 1, 2025, the California Worker Freedom from Employer Intimidation Act prohibits employers from discharging, discriminating, retaliating against, or threatening to take such actions against an employee who refuses to attend any employer-sponsored meeting relating to religious matters, political matters, or matters relating to the decision to support or not support a labor organization or labor union.
RESTRICTION ON REQUIRING PROOF OF A DRIVER’S LICENSE FOR JOB APPLICANTS
Finally, beginning January 1, 2025, California employers will no longer be able to mandate that prospective employees have a driver’s license unless the individual is applying for a job where driving is an essential function of the position. Notably, driving is not an essential function if biking or using public transportation would be a feasible alternative to driving. Please note this new law also prohibits employers from including a statement in a job advertisement or job application that a driver’s license is mandatory unless driving is actually necessary for the job.
Happy New Year!
The Daly Law Firm
