California’s 2025 Labor Laws Explained — And Why Businesses Are Looking to Nevada
What every California employer needs to know about new leave, compliance, and hiring rules — and how they compare to Nevada’s more business-friendly environment.
New Year, New Rules — and New Reasons to Consider Nevada
Starting January 1, 2025, California businesses will face a fresh wave of labor laws. While these new regulations are designed to protect employees, they also create new layers of administrative complexity and cost — especially for industrial employers managing multi-shift workforces or planning expansion.
Here’s a breakdown of the top five changes on deck for California employers — and why they’re prompting more businesses to explore Nevada for future growth.
1. AB 2123 – Paid Family Leave Just Got More Expensive
This bill removes an employer’s ability to require workers to use vacation time before tapping into Paid Family Leave (PFL) benefits. In practice, that means:
Employees can now take PFL without exhausting their banked PTO first
Employers lose a key cost-offsetting tool
Businesses may face longer, more expensive absences
Impact: Payroll coverage gaps become harder to manage — and small-to-mid-size industrial users are disproportionately affected.
2. AB 2499 – Expanded Leave for Crime Victims Under FEHA
AB 2499 expands protections under the Fair Employment and Housing Act (FEHA) to cover employees who are victims of any qualifying act of violence — including crimes beyond domestic violence or stalking.
Employers must now:
Offer job-protected leave for a broader group of incidents
Ensure FEHA compliance across more scenarios
Potentially revise handbooks and training to stay aligned
Impact: More leave-related risk and broader HR liability across all industries, even when incidents occur off-site or outside of work hours.
3. SB 399 – “Captive Audience” Meetings Now Prohibited
SB 399 prohibits employers from requiring employees to attend meetings on political, religious, or ideological topics — even those related to unionization or ballot measures.
Violations carry a $500 per employee penalty.
Impact: Manufacturers and distribution centers that once held mandatory “all hands” or shift-start meetings must now carefully separate operational updates from anything that could be construed as political or belief-driven.
4. AB 2299 – Whistleblower Notice Mandates Expanded
AB 2299 updates Labor Code section 1102.5 by requiring employers to provide written notice of employee whistleblower protections.
The posting must include:
Summary of employee rights under the law
Protection from retaliation for reporting violations
Impact: More HR documentation requirements — and more liability exposure for companies that aren’t current on their notices or policies.
5. SB 1100 – New Rules Around Job Ad Language
This bill limits employers from requiring a valid driver’s license in job advertisements unless the role specifically requires it.
Impact: Industrial and logistics users with standard driver license requirements for warehouse or yard roles must now revise job ads and descriptions to avoid discrimination claims.
Bottom Line
These new California laws reflect a broader trend: rising employer obligations across hiring, leave, communication, and compliance. For industrial users who already face cost pressure from labor, utilities, and land constraints, these updates add another reason to assess expansion in more business-friendly states — like Nevada.
Erik Riekenberg
Broker | Industrial Specialist
Cushman & Wakefield – Northern Nevada
NV License # S.199834
The views expressed in this blog are my own and do not necessarily reflect those of Cushman & Wakefield.
Coming up next in the series:
We’ll break down Nevada’s current incentive programs — including tax abatements, wage requirements, and what it really takes to qualify.