Key Legal Updates Every California Employer Should Revisit Now

As Q3 begins, it’s a smart time for California employers to check in on recent legal changes and workplace practices. With several new developments in wage law, arbitration, and summer hiring, here’s what you should be reviewing to stay compliant—and protect your business from costly missteps.

1. Arbitration Agreements: Presentation Matters More Than Ever

A recent California Court of Appeal case (Velarde v. Monroe Operations, LLC) reinforced that how you present arbitration agreements can determine whether they’re enforceable. Even if an employee signs the agreement, it may be thrown out if it was presented in a confusing, rushed, or overly coercive way.

Action Step: Ensure your arbitration agreements are clearly written, explained during onboarding, and signed voluntarily. Consider a separate acknowledgment form to avoid challenges.

Learn more: New Rules for Arbitration Agreements With Employees

2. Minimum Wage Hike – Effective July 1, 2025

Local jurisdictions have increased minimum wage rates:

• City of Los Angeles: $17.87/hour
• Unincorporated LA County: $17.81/hour
• Santa Monica: $17.81/hour

This applies to any employee working at least two hours per week in those areas—including remote workers.

Action Step: Double-check that your payroll provider, HR systems, and wage statements reflect the correct rates by jurisdiction.

Learn more: Increase in Minimum Wage Effective July 1, 2025 for Los Angeles, unincorporated Los Angeles County and Santa Monica

3. Meal Break Waivers: One-Time Is Fine—If It’s Voluntary

In Bradsbery v. Vicar Operating, Inc., the court confirmed that a single, advance waiver is sufficient when an employee voluntarily agrees to skip a meal break on shifts under 6 hours.

Action Step: Use clear waiver language and document it properly. Remind supervisors not to pressure employees into skipping breaks.

Learn more: New California Court Decision Regarding Meal Break Waivers

4. Hiring Interns or Seasonal Workers This Summer? Know the Rules

Seasonal hires and interns (especially minors) come with strict compliance obligations in California. For minors under 18, you must obtain a valid work permit—even for part-time or summer work.

Action Step: Verify work permits, document internship terms, and confirm wage/hour compliance—even for short-term hires.

Learn more: What Employers Must Know: Summer Hires & Interns 

5. Remote Work Reimbursement: Still a Common Compliance Gap

If employees work remotely—full-time or part-time—you may be required to reimburse expenses like internet, phone use, and certain supplies.

Action Step: Conduct a quick reimbursement audit. Are you covering reasonable business-related costs as required under California Labor Code § 2802?

Learn more: Our 2023 article, Managing Remote Workers, remains a vital resource, but labor enforcement in this area is ramping up. We strongly recommend reviewing your remote-work policies and reimbursement calculations now to ensure compliance under current regulations.Employment laws are always changing—and staying compliant means staying proactive.

Don’t get caught off guard. Reach out to Chase Law Group for a check-in to make sure your policies, practices, and paperwork are all on the right side of the law. Contact our employment attorney Scott Liner at [email protected].

Schedule a consultation with Chase Law Group to ensure you’re compliant and protected.
Contact Chase Law Group

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310-545-7700

_{Please note that this article is for informational purposes only and should not be considered legal advice and does constitute an attorney-client relationship. It is recommended to consult with an attorney directly for specific guidance pertaining to your business and its practices.}