Every year on January 1st, a slate of new laws goes into effect in California (just as in other states.) These “new” laws sometimes consist of revisions to existing statutes, while others are entirely new statutes. A full list of these new laws would be far too large to include in this blog, but below are the new additions that are perhaps most likely to affect Lanza & Smith clients.
Although a significant portion of Lanza & Smith’s practice occurs in federal courts, it is typically these yearly updates to state laws that affect our clients most. Due to a rule of law called “the Erie Doctrine” –and related principles like the 10th Amendment to the U.S. Constitution–the “default” law that governs most citizens’ day-to-day activities is the law of the state where they live, or where any incident occurred. State laws can still be (for the most part) enforced in federal courts.
Summary Judgment/Adjudication Proceeding Changes (Effective January 1, 2025)
Filing, opposition, and reply deadlines have been lengthened in new amendments to Code of Civil Procedure section 437c. A summary/adjudication must now be filed 81 days before the hearing date (previously 75 days), with opposition papers due 20 days before the hearing (previously 14 days) and reply papers due 11 days before the hearing (previously 5 days). Additionally, parties are now limited to filing only one summary judgment motion unless granted leave by the court. Finally, a party is prohibited from introducing new facts or evidence in reply briefs, which was previously allowed at the court’s discretion.
AB 2283 – Civil Actions: Electronic Service (Effective July 18, 2024)
Existing law permits California courts in a civil action to serve documents action by electronic means, and required a court, on and after July 1, 2024, to electronically transmit those documents to a party who is subject to mandatory electronic service, or who has consented to accept electronic service. Because the courts are unable to meet this deadline, AB 2283 extends the deadline until July 1, 2025. It also changes the court’s obligation to electronically “transmit” documents to an obligation to electronically “serve” documents.
Minium Wage Increase (Effective January 1, 2025)
The minimum wage in California is increasing to $16.50/hr. for all employers, regardless of the number of employees. Many cities and local governments in California have enacted minimum wage ordinances exceeding the state minimum wage.
AB 2011 – Unlawful Employment Practices: Small Employer Family Leave Mediation Program: Reproductive Loss Leave (Effective January 1, 2025)
AB 2011 expands existing law requiring the California Civil Rights Department (“CRD”) to create a small employer (5-19 employees) family leave mediation pilot program to resolve family care and medical and bereavement leave violations, to include resolution of reproductive loss leave violations. Generally, CRD must initiate mediation within 60 days following a request. Employees cannot file a civil action until mediation is completed, during which the employee’s statute of limitations is tolled. AB 2011 also extends the operation of the program indefinitely.
AB 2123 – Paid Family Leave (Effective January 1, 2025)
The paid family leave (PFL) program provides wage replacement to workers who take time off work to care for seriously ill family members, to bond with a minor child within one year of birth or placement, or qualifying active duty. AB 2123 eliminates an employer’s ability to require employees to use accrued vacation before receiving PFL benefits.
AB 2499 – Unlawful Discrimination and Paid Sick Days: Victims of Violence (Effective January 1, 2025)
AB 2499 expands leave protections and accommodations for employees who are victims of “qualifying acts of violence,” like domestic violence, sexual assault, or stalking, allowing them to take time off work to seek medical attention, counseling, or safety planning without fear of retaliation, and also extends these protections to family members of victims.
AB 2499 also moves certain requirements regarding jury duty, court duty, and time off for victims of crime from the Labor Code to the FEHA. Specifically, it moves employer prohibitions on discrimination and retaliation against an employee who takes time off for (1) jury duty; (2) to appear in court pursuant to a court order or subpoena; (3) is the victim of a crime and takes time off work to obtain relief, and (4) for employers with 25 or more employees, is the victim of a “qualifying act of violence” and takes time off for other enumerated purposes.
SB 1090 – Unemployment Insurance: Disability and Paid Family Leave (Effective January 1, 2025)
Existing law requires workers to contribute to the Unemployment Compensation Disability Fund, based on wages, to compensate individuals unable to work due to sickness or injury. It also establishes eligibility standards for unemployment disability benefits. Additionally, the paid family leave program, under the state disability insurance program, provides up to eight weeks of wage replacement for workers taking time off for specific purposes (i.e. caring for a seriously ill family member, bonding with a new child). Current law mandates the Employment Development Department (EDD) to issue initial disability benefit payments within 14 days of receiving a properly completed claim and aligns paid family leave benefits with general unemployment and disability compensation laws.
SB 1090 revises these laws by requiring the initial disability payment to be issued within 14 days of receiving a completed claim or when eligibility begins, whichever is later. It also allows workers to file disability or paid family leave claims up to 30 days before the first compensable day and applies the same initial payment schedule for both programs. The bill repeals the requirement that paid family leave benefits align with general unemployment and disability compensation laws. These changes will take effect once the EDD incorporates them into its integrated claims management system under the EDDNext project.
SB 1100 – Prohibition on Discrimination Based on Driver’s License Status (Effective January 1, 2025)
SB 1100 prohibits employers from requiring an applicant to have a driver’s license unless: (1) the job duties require driving; and (2) the employer reasonably believes an alternative form of transportation (i.e. using a ride hailing service or taxi, carpooling, bicycling or walking) is not comparable in travel time or cost to the employer.
SB 988-Independent Contractors
The Freelance Worker Protection Act, SB 988, introduces minimum requirements for freelance contracts. The FWPA requires that the terms and conditions of a freelance worker’s services be in writing and include certain minimum obligations. This law aims to enhance protections for independent contractors performing professional services.
AB 2622 – Contractors: Exemptions for Work and Advertising (Effective January 1, 2025)
Existing law, under the Contractors State License Law, exempts individuals from licensing requirements for construction projects, and advertising thereof, if the total contract price for labor, materials and other expenses is under $500. A new bills has now increased the amount to $1,000. However, hiring others to perform the work (such as subcontractors) disqualifies the exemption. The bill also revises rules related to advertising for unlicensed contractors, allowing individuals to advertise construction services for projects under $1,000 (previously $500), provided they clearly state in the advertisement that they are not licensed.
This bill expands the scope of activities considered misdemeanors by narrowing the exemption from licensing requirements.
SB 940 – Civil Disputes (Effective January 1, 2025)
SB 940 modifies several laws involving civil disputes.
The Consumer Contract Awareness Act of 1990: SB 940 prohibits sellers from requiring consumers to agree to arbitration outside California or under another state’s laws for claims arising in California. Additionally, if arbitration is required but the dispute qualifies under the Small Claims Act, consumers may choose small claims court instead.
The California Arbitration Act: This Act provides a framework for enforcing contractual arbitration, including the requirement for neutral arbitrator to disclose potential conflicts. For consumer arbitration cases, neutral arbitrators must disclose certain solicitations made after January 1, 2025. Soliciting parties or their lawyers during arbitration is prohibited. The bill also allows parties to take depositions and obtain discovery during arbitration. However, in a limited civil case, an arbitrator must grant leave before depositions can be taken.
The State Bar Act: SB 940 requires the State Bar to create a program to certify alternative dispute resolution firms, providers or practitioners, and authorizes the State Bar to charge a fee to cover the reasonable costs of administering the program.
Brodie Smith and Anthony Lanza, litigation and trial attorneys licensed in California, practice in business litigation and civil litigation. They can be contacted at (949) 221-0490.
The information in this blog post does not constitute legal advice, nor create and attorney-client relationship. Laws constantly change, and this information may become outdated; moreover, the information here is only a general overview and may omit some aspects of the law. It is provided for discussion purposes only; not to be relied upon by the reader in making any real-world decisions.
