While it’s still early in the legislative session, employers may want to get a head start on reviewing the avalanche of employment-related bills introduced in the 2025 legislative session. State lawmakers have proposed several bills that collectively impact nearly every aspect of employment, from recruitment and hiring, to monitoring and surveillance, and everything in between and beyond. For a sneak peek at what’s in store over at the California Legislature, check out these highlights of significant legislation that may be headed your way.
Job Posting Requirements
SB642: The bill seeks to eliminate broad pay scales in job postings. Among other things, the bill would:
- Require the pay scale provided to applicants to be “no more than 10% above or below the mean pay rate within the salary or hourly wage range”; and
- Extend the time to commence a civil action to recover wages based on discriminatory pay practices to three years after the cause of action occurs, or four years if the cause of action arises out of a willful violation.
AB1251: The bill seeks to address “ghost job postings.” Among other things, the bill would require private employers to include in publicly advertised job postings a statement disclosing whether or not the posting is for an existing vacancy.
Artificial Intelligence
AB1018: The bill would regulate the development and deployment of an “automated decision system” (ADS) used to make “consequential decisions,” including employment-related decisions. ADS is defined as a computational process derived from artificial intelligence, machine learning, statistical modeling, or data analytics that issues a simplified output (e.g., score, classification, or recommendation) used to assist or replace human decision-making.
Among other things, the bill would require deployers to:
- Provide affected individuals with written disclosures before using an ADS to facilitate a consequential decision, before finalizing an ADS-facilitated consequential decision, and after finalizing an ADS-facilitated consequential decision;
- Provide affected individuals with an opportunity to opt out of ADS use;
- Provide affected individuals with an opportunity to appeal the outcome of an ADS-facilitated decision; and
- Submit the ADS to third-party audits.
SB7: The bill seeks to regulate the use of ADS in employment-related decisions. Among other things, the bill would require employers – and vendors engaged by the employer – to:
- Provide affected workers with written notice that an ADS is being used in the workplace;
- Provide affected workers with written notice that an employment-related decision was made by an ADS, including a form or link to an electronic form to appeal the decision within 30 days of the notice;
- Respond to an appeal within 14 days;
- Designate a human reviewer to evaluate an appeal; and
- If the human reviewer determines the decision should be overturned, rectify the decision within 21 days.
Workplace Surveillance
AB1331: The bill seeks to limit employers’ use of “workplace surveillance tools,” defined as a system or device that collects or facilitates the collection of worker data, activities, communications, actions, biometrics, or behavior – or those of the public – by means other than direct observation by a person (e.g., video or audio surveillance, work pace trackers, geolocation trackers, electromagnetic or photoelectronic trackers, and photo-optical systems).
Among other things, the bill would:
- Prohibit worker monitoring or surveillance in private, off-duty areas, including breakrooms, cafeterias, and lounges; and
- Require workplace surveillance tools to be disabled during off-duty hours, including rest and break periods.
Wage & Hour Violations
SB310: The bill would allow employees to recover statutory penalties through an “independent civil action” for an employer’s failure to pay wages.
AB485: The bill would require state agencies to deny the issuance or renewal of state licenses or permits to employers with outstanding wage theft judgments.
SB261: Among other things, the bill seeks to incentivize employers to pay outstanding judgments resulting from proceedings before the Division of Labor Standards Enforcement (DLSE) by:
- Requiring the Labor Commissioner to post a copy of the order on the DLSE’s website no later than 15 days after the time to appeal has expired, if no appeal is pending;
- Establishing a civil penalty not to exceed three times the outstanding judgment for employers who fail to satisfy the judgment within 180 days; and
- Allowing employees to recover all reasonable attorneys’ fees and costs for enforcing the judgment.
AB1234: The bill would revise the procedures for the Labor Commissioner to investigate, hear, and decide wage theft complaints. Among other things, the bill would require the Labor Commissioner to do the following:
- Within 30 days of receiving the defendant’s answer, notify parties of whether or not any action will be taken.
- If no determination is made, within 90 days of receiving the defendant’s answer, investigate the complaint; assess all wages, damages, penalties, expenses, and other compensation owed; and determine party liability.
- Within 90 days of issuance of the formal complaint, set forth a hearing date and procedures for the hearing.
- Within 15 days of the hearing – or upon the defendant’s failure to answer or appear – file with the DLSE a copy of the order, decision, or award.
State Paid Family Leave
SB590: The bill seeks to expand eligibility benefits under the state’s paid family leave program to include individuals who take time off to care for a “seriously ill designated person,” defined as “any individual related by blood or whose association with the employee is the equivalent of a family relationship.”
Pay Data Reporting
SB464: The bill would expand the coverage and scope of annual pay data reports submitted to the Civil Rights Department. If enacted, the bill would:
- Require public employers with 100 or more employees to submit annual pay data reports; and
- Expand the scope of pay data reports to include “sexual orientation” as a category.
Safety & Health
AB1371: The bill seeks to expand employees’ rights under the California Occupational Safety and Health Act (Cal/OSHA) by:
- Allowing an employee to refuse to perform an assigned task if it would violate Cal/OSHA safety standards or if the employee has a reasonable apprehension that performing the task would result in injury or illness to the employee or other employees;
- Requiring employers to continue paying full wages to the employee during scheduled hours until the employee can reasonably conclude that the task will no longer result in the risk of serious injury or illness to the employee or other employees; and
- Prohibiting an employer from retaliating against an employee for refusing to perform an assigned task as permitted under this law.
Discrimination and Harassment Training
AB1015: The bill would provide flexibility to establish compliance with the state’s discrimination and harassment prevention training requirements by allowing an employer to demonstrate that the employee possesses a certificate of completion within the past two years.
EMPLOYER TAKEAWAYS
As we continue to monitor legislative developments, employers should keep the following dates in mind:
- September 12, 2025: Legislative session ends – bills that pass both the Senate and Assembly will advance to the Governor’s desk.
- October 12, 2025: Deadline for Governor Newsom to sign or veto passed bills.
If you have any questions related to these bills, please reach out to the NFC Attorney with whom you typically work or call us at 619.292.0515.