The Future of Work: California Employment Legislation in 2025

Quick Hits

• California lawmakers are considering bills ranging from legislation to require transparency with the use of artificial intelligence (AI), or “automated decision systems,” in the workplace to proposals to expand pay equity reporting requirements and limit workplace surveillance.
• The California Legislature has until September 12, 2025, to pass legislation before the 2025 recess. Governor Gavin Newsom has until October 12, 2025, to sign any bills passed.

California Employment Bills

Bill	Summary	Current Status
SB 7	Disclosure of automated decision systems. The bill would require employers to provide written notice that an “automated decision system” (ADS) is in use in the workplace for the purpose of making employment-related decisions. The bill would require employers to notify employees who are subject to discipline or employment termination based on a decision made by ADS and give those employees the right to appeal the decision. Further, employers would be required to provide notice to job applicants if ADS is used in the hiring process.	Passed in Senate, pending in Assembly committee.
SB 261	Posting of Labor Commissioner awards. The bill would mandate that the Labor Commissioner’s Office post to its website any unsatisfied awards against employers. The bill would impose a penalty equal to three times the award if the award remains unsatisfied after 180 days.	Passed in Senate, pending in Assembly committee.
SB 294	Workplace poster and notice. The bill would mandate that employers post a state agency poster and thereafter provide a stand-alone written notice to each employee addressing independent contractor misclassification protections, heat illness prevention, workers’ compensation, paid sick days, protection against unfair immigration-related practices, right to notice of federal immigration inspections, right to organize a union in the workplace, and constitutional rights when interacting with law enforcement at the workplace. Further, the bill would require employers to notify an employee’s emergency contact in the event that the employee is arrested or detained while at work.	Passed in Senate, pending in Assembly committee.
SB 464	Pay data reporting. The bill would require employers to store pay equity data, including demographic information related to race, ethnicity, or gender, separately from personnel records. It also would create a civil penalty for employers that fail to submit pay data reports to the California Civil Rights Department. Beginning in May 2027, public employers (currently exempt from the requirements) with one hundred or more employees would be required to submit annual pay data reports to the Civil Rights Department.	Passed in Senate, pending in Assembly committee.
SB 642	Pay equity. The bill would set the state statute of limitations for civil actions brought under Section 1197.5 of the California Labor Code at three years after the last discriminatory pay act occurred and expand the look-back period for relief to ten years. The bill would clarify that “pay scale” for the purposes of job-posting disclosures means “the salary or hourly wage range that the employer reasonably expects to pay for the position upon hire.”	Passed in Senate, pending in Assembly Committee.
SB 648	Tip Theft. The legislation authorizes the Labor Commissioner to investigate and issue citations or file civil lawsuits for gratuities taken or withheld in violation of the California Labor Code.	Signed into law by the governor on July 30, 2025.
AB 596	Right to wear masks. The bill would prohibit employers from preventing employees from wearing face masks, unless wearing face masks would be a safety hazard. It would give employers the right to require employees to remove their face coverings briefly at the worksite for identification purposes.	Passed in Assembly, pending in Senate.
AB 692	Limitations on reimbursement for training costs and other debts. The bill would prohibit employment contracts from requiring employees to repay any debt, including but not limited to training expenses, in the event of a termination of employment. There would be a limited exclusion for certain retention bonuses.	Passed in Assembly, pending in Senate committee.
AB 858	Post-emergency reinstatement rights. This bill would expand a COVID-era reinstatement rights law to cover employees laid off due to any state- or locally declared emergency. The bill would cover certain airport service and hospitality providers, building service providers, hotels, private clubs, and event centers.	Passed in Assembly, pending in Senate committee.
AB 1234	Revised Labor Commissioner procedures, enhanced penalties. The bill would authorize the Labor Commissioner to “impose an administrative fee of up to 30 percent” of any Labor Commissioner award and would create short deadlines regarding notice to parties, conducting investigations, hearing dates, and the issuance of awards.	Passed in Assembly, pending in Senate committee.
AB 1251	Job postings. The bill would require employers to state in any public job posting whether the posting is for a vacant position.	Passed in Assembly, pending in Senate committee.
AB 1331	Limitations on workplace surveillance. The bill would limit the use of workplace surveillance devices (video, audio, electronic, GPS, etc.), including by prohibiting surveillance in employee-only areas such as bathrooms and breakrooms (with some exceptions for worker safety purposes). The bill would require that workplace surveillance tools be turned off during off-duty hours. It also would prohibit employers from requiring workers to implant subcutaneous devices that collect or transmit data.	Passed in Senate, pending in Assembly committee.

Ogletree Deakins’ California offices will continue to monitor developments and will provide updates on the California blog as additional information becomes available.

In addition, the Ogletree Deakins Client Portal tracks developments and provides real-time updates on California employment laws. (Full law summaries and template policies are available for Premium-level subscribers; Snapshots and Updates are available for all registered client-users.) For more information on the Client Portal or a Client Portal subscription, please reach out to clientportal@ogletree.com.

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