California Legislative Update 2024

At A Glance

• Updates and expansions to the following programs will take effect January 1, 2025:
  • Paid Sick Leave Expansion
  • Paid Family Leave Update
  • Driver's License Discrimination Act
  • Freelance Worker Protection Act
  • Intersectional Discrimination

Introduction

To close the 2023-2024 legislative session, California Governor Gavin Newsom had until September 30, 2024, to approve or veto passed legislation. The governor signed multiple employment-related bills into law which will become effective on January 1, 2025.

Paid Sick Leave Expansion

Governor Newsom approved two bills that amend California’s Healthy Workplaces Healthy Families Act. First, AB 2499 makes three significant changes:

• Allows for ‘safe’ leave when a family member is a victim
• Victim status extends to additional crimes if the individual is a victim of an act, conduct, or pattern of conduct that includes bodily injury or death by another individual; exhibits, draws, brandishes, or uses a firearm, or other dangerous weapon, with respect to another individual; or uses, or makes a reasonable or actual threat to use, force against another individual to cause physical injury or death.
• Expands the acceptable uses for which an employee can use paid sick leave for ‘safe’ time purposes

Second, SB 1105 will require employers of agricultural employees who work outside to use paid sick leave to avoid smoke, heat, or flooding conditions determined by a local or state emergency proclaimed by the governor or local authority.

Paid Family Leave Update

AB 2123 will eliminate an employer’s ability to require employees to use up to two weeks of company-provided vacation before they start receiving paid family leave insurance benefits.

Driver’s License Discrimination Act

SB 1100 prohibits statements about the need for a driver’s license in job advertisements, postings, applications, and similar employment material. Under the law, an employer may not include a statement that an applicant must have a driver’s license unless the following conditions are satisfied:

• The employer reasonably expects driving to be one of the job functions of the position.
• The employer reasonably believes using an alternative form of transportation would not be comparable in travel time or cost to the employer.

Freelance Worker Protection Act (FWPA)

SB 988 creates protections for freelance workers with non-compliance penalties and anti-retaliation provisions. Hiring parties are required to provide written agreements that contain certain terms and conditions of the work, pay, and associated deadlines. Terms of the agreement cannot be changed as a condition for timely payment after the work has begun.

The FWPA requires that covered workers receive payment on, or before, the deadline in the contract. If no date is specified in the contract, no later than 30 days after the work has been completed.

Retaliation against workers seeking to enforce provisions of this law is prohibited. Workers may initiate a lawsuit to enforce the provisions of this law with penalties for violations, including:

• An additional $1,000 if the worker requests a written contract and the hiring party refuses to provide one.
• If the worker requested a contract and the employer did not provide one, and payment was not complete, the amount due will be the rate the worker reasonably believed would apply.
• Failure to pay for work performed may entitle the worker to receive up to twice the amount that was not paid by the date payment was due. 
• Damages equal to the value of the contract may be awarded in instances of violations.

Intersectional Discrimination

SB 1137 amends the California Fair Employment and Housing Act to prohibit employment discrimination on the basis of intersectionality (or combination) of two or more protected characteristics, which includes a perception that the person has any of the characteristics below or is associated with a person who has, or is perceived to have, any of those characteristics.

Protected characteristics include “race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, age, sexual orientation, reproductive health decision-making, or veteran or military status.

Next Steps

Employers should review and update their handbooks and current policies and practices to ensure compliance before January 1, 2025.

Thank you for choosing Paylocity as your payroll tax and HCM partner. This information is provided as a courtesy, may change, and is not intended as legal or tax guidance. Employers with questions or concerns outside the scope of a Payroll Service Provider are encouraged to seek the advice of a qualified CPA, Tax Attorney, or Advisor.