California 2025 Bill Signing Wrap Up: New Employment Laws
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California 2025 Bill Signing Wrap Up: New Employment Laws
"Soon-to-be-New Laws Anti-Discrimination and Harassment Laws According to Chris Micheli, Governor Newsom approved 794 and vetoed 123 of the 917 bills presented to him at the conclusion of this first year of the 2025-26 Legislative Session. Below is our summary of the key labor and employment laws that will soon impact California employers. All new laws are effective January 1, 2026, unless otherwise stated."
"SB 642 revises the definition of "pay scale" to mean a "good faith" estimate of the salary or hourly wage range that the employer reasonably expects to pay for the position upon hire. The bill also expands the statute of limitations to assert pay equity claims from two years to up to three years after the cause of action occurs, and allow recovery of lost wages for the entire time during which the violation occurred, up to six years."
Governor Newsom approved 794 bills and vetoed 123 of 917 bills during the first year of the 2025-26 Legislative Session. New employment laws take effect January 1, 2026, unless otherwise stated. Pay equity rules are strengthened by redefining "pay scale" as a good-faith estimate of expected salary or hourly wage range and by broadening remedies for pay equity claims. Statutes of limitation for pay equity claims increase from two to up to three years, with recovery of lost wages for violations up to six years. Wage and wage-rate definitions are expanded to include salary, overtime, bonuses, stock and benefits. The package also amends Cal‑WARN, modifies leave laws, and extends meal and rest period exemptions for certain industries.
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