The following is a brief summary of key measures taking effect January 1, 2025, unless otherwise noted
Sacramento, Calif.—Hundreds of new laws are enacted every year that impact California automotive repair dealers. Below is a brief summary of key measures prepared by Jack Molodanof, ASCCA legislative advocate, taking effect January 1, 2025, unless otherwise noted.
• Minimum Wage Increase. Effective January 1, 2025, the statewide minimum wage will increase to $16.50 per hour for all employers, regardless of size. This change is based on a cost-of-living provision in the state’s minimum wage law. (SB 3 of 2017). Note: Local minimum wage ordinances may be higher.
• BAR Vehicle Safety Systems Inspection Program (VSSI). The BAR Brake and Lamp Inspection Program ended on September 27, 2024, and replaced with the Vehicle Safety Systems Inspection (VSSI). The DMV will no longer accept brake and lamp certificates of compliance for registration purposes and BAR will collect and refund all unused brake and lamp certificates. Implementation information on the VSSI program is on the BAR website, including steps to obtain a VSSI station and/or technician license.
• Beneficial Ownership – New Federal Law. This new law is part of the federal government’s anti-money laundering and anti-tax evasion efforts and is an attempt to look beyond shell companies that are set up to hide money. Most entities must file these reports by January 1, 2025. See this link for more information.
• Updated Smog Check Inspection Requirements. This new BAR regulatory proposal replaces the current On-Board Diagnostic Data Acquisition Device (DAD) specification with a more comprehensive and updated version to provide additional tools to combat Smog Check fraud and allows the DAD to communicate with new vehicles that use a communication protocol not supported by the current generation of Bureau-certified DADs. See this link for full regulatory text.
• Consumer Smog Check Assistance Program. This new BAR regulatory proposal increases the vehicle retirement option from $1,500 to $2,000 for income-eligible consumers and from $1,000 to $1,350 for other motorists. It also increases repair assistance contributions from $900 to $1,100 for 1995 and older vehicles and from $1,200 to $1,450 for 1996 and newer vehicles. Additionally, the proposal allows BAR to increase those amounts every three years if there has been at least a 10% increase in the Consumer Price Index. It also removes the eligibility restriction that prevents motorists from participating in the repair assistance option more than once. See this link for full regulatory text.
• Restrictions on Requiring Drivers’ Licenses for Employment. This new law prohibits California employers from including statements in job advertisements, job applications, or other employment materials that an applicant must possess a valid driver’s license unless the employer can prove that it: (1) reasonably expects driving to be one of the job functions of the position; and (2) reasonably believes that using an alternative form of transportation (such as biking, public transportation, etc.) would not be comparable in travel time or cost to the employer. (SB 1100)
• Captive Audience Meetings. Effective January 1, 2025, under the California Worker Freedom from Employer Intimidation Act, California employers can no longer discharge, discriminate, or retaliate against, or threaten to carry out such actions because an employee refused to attend any employer-sponsored meeting related to religious matters, political matters, or matters related to the decision to support or not support a labor organization/union. (AB 399)
• Paid Family Leave. This new law eliminates the ability of California employers to require their employees to use up to two weeks of accrued vacation time before they start receiving Paid Family Leave benefits under the EDD’s paid family leave program. (AB 2123)
• Sick Leave Expansion. Starting next year, employees in California can now use sick leave to assist any family member who is a victim of certain types of violent incidents or threats of violence. (AB 2123)
• Workers’ Compensation Rights. Effective January 1, 2025, California employers are required to include information in notices related to workers’ compensation rights and benefits that an injured employee has the right to consult an attorney for advice and that attorneys’ fees will be paid from the injured workers’ award in most instances. (AB 1870)
• Local Enforcement of Workplace Discrimination Laws. This law will enable local government entities in California to actively enforce local laws prohibiting employment discrimination, when such laws are at least as protective as the state law and certain additional requirements are met. (SB 1340)
• Expansion of Victims of Violence Workplace Protections. Under current law, crime victims have long been provided with employment protections, including accommodations and leave, to allow them to recover and appear in court. Effective January 1, 2025, this new law recasts the protections under FEHA, expands upon these existing laws by broadening the scope of who is entitled to these protections, and allows the use of paid sick leave for this time off. (AB 2499)
• PAGA Reforms. These new laws address and reform California Attorney General’s Act (PAGA) in order to address problems while protecting workers and limiting shakedown lawsuits that hurt employers. (AB 2288 & SB 92)
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