The 2025 Legislative Session drew to a close in mid-September with a flurry of legislative activity following the summer recess. Not surprisingly, a number of employment bills passed both Legislative chambers and have been sent to Governor Gavin Newsom for signature or veto. There were also some employment bills that stalled this session, including another bill that would have imposed strict requirements on businesses that use Artificial Intelligence in employment decision making, several bills that would have restricted the use of workplace surveillance tools, and a bill that would have imposed administrative fees on Labor Commissioner awards. However, since this is the first year of a two-year legislative cycle, some of these could resurface in the forthcoming 2026-2027 legislative session.

In the meantime, we have identified our “Top Eight” potential employment law changes and a summary of the remaining notable employment bills currently pending, organized by subject matter. Unless otherwise indicated, each of these bills has passed both houses of the legislature and is awaiting Governor Newsom’s signature or veto. We have also included several references to notable new state and federal regulations and guidance.