Labor & Employment Law Blog

On August 1, 2024, California’s Director of Finance certified that the Golden State’s minimum wage for all employers will increase to $16.50 per hour, effective on January 1, 2025. 

Effective October 10, 2024, San Diego County adopted its new Fair Chance Ordinance (“SDFCO”). The SDFCO imposes additional restrictions that covered employers must follow regarding the use of criminal history in employment, on top of what California law already requires. 

The new SDFCO applies to employers that do business in the unincorporated areas of the County of San Diego and have 5 or more employees. Applicants and current employees who are in or are seeking a position involving at least 2 hours of work, including remote work, on average each week in the unincorporated areas of the County, receive protections under the SDFCO. Unlike the California state Fair Chance Act (“FCO”), the SDFCO expressly defines an “applicant” to include those applying for employment but also current employees seeking promotions or transfers.

Back in February, 2024, the Los Angeles County Fair Chance Ordinance for Employers (the “FCO”) was adopted by the County Board of Supervisors. The FCO became operative and subject to enforcement on September 3, 2024 and adds a variety of additional compliance obligations for covered employers and added protections for covered applicants and employees, above and beyond what existing state law requires. Covered employers must ensure that they comply with the stricter of state and local laws governing the use of criminal history in employment.

With the close of the California legislative season, there are a variety of employment law bills which will become law on January 1, 2025. Golden State employers should be aware that several of these new laws necessitate updates to employment policies and handbooks. Specifically:

California health care employers will recall that Governor Newsom signed SB 525 into law in October 2023, setting into motion planned increases to the required minimum wage for certain health care employees who work at covered health care facilities. SB 525 required increases to the health care minimum wage to begin in June 2024, but the law’s start date became a matter of confusion and chaos, with the State first delaying SB 525’s start date to July 1, 2024 based upon budgetary concerns, only to then delay it again until at least October 15, 2024.

On January 1, 2024, California’s statewide minimum wage rate increased to $16 per hour. Alongside this hike to the minimum wage, the base salary requirement for California employees exempt under the administrative, professional, and executive exemptions increased to an annualized salary of $66,560.

The local minimum wage will increase on July 1, 2024 in the following locations in California:

As an update to our previous post on the Fast Food Industry Minimum Wage (A.B. 1228:  Implications for Exempt Employees in the Fast Food Industry), on March 26, 2024, Governor Newsom signed Assembly Bill (AB) 610 which amends the definition of “fast food restaurant” to exempt restaurants in airports, hotels, theme parks, museums, event centers, and other locations from the Fast Food Council requirements, which took effect April 1, 2024.

Last year, Governor Newsom signed AB 1228, which repealed the FAST Recovery Act but established a modified version of the Fast Food Council (Council) through January 1, 2029. Importantly, the bill set forth minimum wage increases for fast food restaurant employees, with an increase to a minimum wage of $20.00 per hour for such employees effective April 1, 2024. 

On October 4, 2023, Governor Newsom signed SB 616, which expands paid sick leave entitlements for California employees effective January 1, 2024 by amending California Labor Code sections 245.5, 246, and 246.5.

On July 31, 2023, California’s Director of Finance certified that the state’s minimum wage for all employers will increase to $16 per hour, effective on January 1, 2024. 

This announcement followed the completion of an annual review by the state’s Department of Finance in order to determine if the minimum wage must be increased due to inflation and, if so, to calculate the new minimum wage in accordance with state Labor Code requirements.