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Top 5 New Laws in California for 2025

Writer's picture: Garrett A. HeckmanGarrett A. Heckman

Happy New Year! Thank you for bearing with me as I complete my review. Every year, January 1 brings with it a slate of new laws. My criteria as to what constitutes a “top new law” are: what I find interesting, what will impact my clients the most, and how broad the change will be in general. Unless otherwise stated, these laws went into effect on January 1, 2025.

 

And I have done the same for Texas here.

 

As with last year, our honorable mention is the federal Corporate Transparency Act. I've addressed the federal Corporate Transparency Act a few times before (here, here, and here, and on LinkedIn and Twitter). However, the CTA is not currently being enforced (due to a court injunction). As yet, we do not know what the fate of the CTA will be. Check with your business attorney.

 

5.            Increase in Time to Respond to Eviction Complaint (AB 2347)

 

AB 2347 amended Code Civ. Proc. section 1167, increasing the number of days to respond to an unlawful detainer complaint from 5 days to 10 days.

 

4.            Prohibition on Requiring Proof of Driver’s License for Employment (SB 1100)

 

SB 1100 prohibits employers from including a statement in employment materials that an applicant must have a driver’s license in most circumstances. Employers may include this statement if the employer reasonably expects the duties of the position to require driving and the employer reasonably believes that satisfying that job function using an alternative form of transportation would not be comparable in travel time or cost to the employer.

 

3.            Prohibition on “NIMBY” Zoning Requirements (SB 450)

 

California passed SB 9 in 2021, allowing homeowners to split their lots into smaller lots in some circumstances. SB 450 prevents some of the workarounds that local governments have developed for SB 9 by prohibiting jurisdictions from creating zoning requirements that would apply to an underlying single-family zoning.

 

2.            Minimum Wage Increase (SB 3, 2015-16 Legislative Session)

 

Pursuant to its authority under Lab. Code section 1182.12, the Director of Finance increased the minimum wage for all employers to $16.50 per hour, up from $16.00 per hour last year. Notably an effort to increase the minimum wage to $18.00 per hour was rejected by California voters in November (Proposition 32).

 

1.            Freelance Worker Protection Act (SB 988)

 

The new law sets out the minimum requirements for agreements with freelancers. Employers relying on freelance work will want to familiarize themselves with the new law as well as the Dynamex and Borello cases. The new requirements include a written contract with each parties’ name and mailing address, a list of services, and the date of compensation or how it is determined. The new requirements are included at Cal. Bus. & Prof. Code section 18100 to 18107.

 

Conclusion

 

California’s legislature is a bit more active than other states (for example, Texas). These are the highlights. If you have your own picks, let us know in the comments or send us an email. Happy 2025!

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