New Laws in 2025—What Employers and Businesses Should Know, Part II

2.13.25

New Consumer Protection Laws

     A. Click-To-Cancel

AB 2863 makes it easier to cancel online subscriptions. In 2025, it will be illegal for companies to automatically renew subscriptions in a clear and conspicuous manner of its terms. Once the time for renewal comes up, companies need to get a customer’s “express affirmative consent to the automatic renewal.”

“AB 2683 is the most comprehensive ‘Click to Cancel’ legislation in the nation, ensuring Californians can cancel unwanted automatic subscription renewals just as easily as they signed up—with just a click or two,” said California Assemblymember Pilar Schiavo.

However, businesses should note that this law only applies to subscriptions that are signed or renewed on or after July 1, 2025.[1]

     B. No More Insufficient Funds Fees

AB 2017 makes it such that certain banks and credit unions can no longer charge a fee when someone tries to make a transaction and is declined due to insufficient funds.  More specifically, this applies to banks and credit unions subject to the examination authority of the Commissioner of Financial Protection and Innovation.[2]  Additionally, SB 1075 sets limits on the amount credit unions can charge for overdraft fees.

Landlord-Tenant Laws

     A. Tenancy of Commercial Real Property: Agreements

SB 1103 gives small businesses and nonprofits greater tenant protections.  The Commercial Tenant Protection Act of 2024 applies only to businesses with 5 employees or less, restaurants with 10 employees or less, and nonprofits with 20 employees or less, and adds new notice and disclosure requirements for landlords leasing to small businesses.

The protections include ensuring that a written lease is written such that the business owner understands it. Landlords must also provide 60-days’ notice before evicting a tenant or increasing their rent.  Finally, the law requires more transparency around community-area maintenance fees, and requires that those fees be allocated proportionally per tenant for maintenance within the last 18 months or expected within the next year.

     B. More Time for Tenant Evictions

AB 2347 gives tenants 10 business days to respond to an eviction notice—notably, this is five more days than the former five-day time to respond. 

Tenants that do not respond within 10 days will automatically lose their eviction case.

     C. No Fees for Rent Paid With A Check

SB 611 will prohibit landlords from charging a fee it a tenant pays their security deposit or rent by check.  This law is not effective until July 1, 2025.

Laws for Employers*

     A. Voluntary Social Compliance Audits for Child Labor

In September 2024, Governor Newsom signed AB 3234 into effect, which outlines new reporting requirements for employers and businesses that choose to conduct social compliance audits.  AB 3234 defines “social compliance audit” as a “voluntary, nongovernmental inspection or assessment or an employer’s operations or practices to evaluate whether the operations or practices are in compliance with state and federal labor laws, including, but not limited to, wage and hour and health and safety regulations, including those regarding child labor.”

Such businesses will be required to post the results of the audits to a conspicuous link on their website, and the audit report must include five things:

(1) the year, month, day, and time that the audit was conducted, and whether it was during a night shift;

(2) whether your business engages in or supports the use of child labor ;

(3) a copy of any written policies and procedures your business has regarding child employees;

(4) whether your business exposes children to any workplace situations that are hazardous or unsafe to their physical and mental health and development; and

(5) whether children work for your business within or outside regular school hours or during night hours.

Remember, there is no requirement under the law that your business conduct a social compliance audit.  However, if you choose to conduct such an audit, you must follow the reporting requirements laid out in AB 3234. The new legislation takes effect on January 1, 2025.[3]

     B. Driver’s License Requirements on Job Postings

Starting in January 2025, California’s Fair Employment and Housing Act will prohibit employers from requiring driver’s licenses for job applications unless the employer reasonably anticipates that driving will be an essential job function that cannot be performed by alternative means.  The stated purpose of this new amendment is to help facilitate employment for unlicensed or non-driving employees who rely on public transportation, walking, biking, and ride-sharing as their primary means of transportation.

Any job postings for which employers (1) do not reasonably expect driving to be a function of the position or (2) believe that using an alternative form of transportation would be comparable in travel time or cost to the employer, employers should revisit the job postings and consider removing any driver’s license requirements in light of SB 1100.

Workplace Safety Developments

     A. New Changes In Lead Exposure Standards

Cal/OSHA and OSHSB’s new regulations regarding lead exposure in the Construction and General Industry Safety Orders will take effect on January 1, 2025.

Existing regulations that established enforcement criteria for permissive lead exposure are based on lead toxicity information and medical and epidemiological data that is now over 40 years old.  Current evidence demonstrates that even at low exposure levels, harmful health effects can occur.

Pursuant to recommendations submitted to Cal/OSHA by the California Department of Public Health to revise the lead standards, and following SB 83, which amended the Labor Code, Cal/OSHA has made several revisions to the current lead standards.

The new standards are comprehensive and revise essentially all permissible exposure limits, blood-level limits, time-weighted averages, and modify the testing requirements for zinc protoporphyrin.

For example, regarding General Industry Safety Orders, section 5155, for airborne contaminants, the new regulations lower the permissible exposure limits for lead and inorganic compounds, dust, and fumes.  They also lower the permissible exposure limits for lead chromate.[4]

The revised lead standard, as approved by the Office of Administrative Law is available here: https://www.dir.ca.gov/oshsb/documents/Lead-apprvdtxt.pdf

     B. Look Out for Updates In AB 2975 and AB 1976

AB 2975 and AB 1976 direct the Occupational Safety and Health Standards Board within Cal/OSHA to address certain new topics in their future laws.

By March 2027, the Board must revise the existing violence prevention within health care regulations to require hospitals to implement weapons-detection screening policies.

AB 196 will require the Board to submit a proposal including medications to block the effects of opioids within all first-aid kit materials.

Existing directives to revise outdoor heat illness prevention and wildfire smoke regulations are still in effect and set for December 2025.  Federal OSHA is still considering a national indoor and outdoor heat illness prevention standard, which could prompt Cal/OSHA to revise its regulations in accordance with the federal laws.

These laws will bring no immediate impact upon California businesses and employers, but it’s worth noting that these changes may require updates in the near future.[5]

This is not legal advice.  For detailed legal advice or assistance, reach out to the attorneys at Schwartz Semerdjian Cauley Schena & Bush, LLP. This article was written by Sofia Carrasco.

 

[5] James W. Ward https://tinyurl.com/mswrmrra.

*For more Employment-Law-specific updates, please see previous article written by attorney Mikayla Preus.