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Breaking: California’s Latest Legislative Changes Impacting Businesses

Breaking California's Latest Legislative Changes Impacting Businesses


California is known for its progressive legislative environment, and once again, the state has implemented several significant changes that will impact businesses across various industries. In this blog post, we will explore the latest legislative changes in California and their potential implications for businesses.

New Employment Laws

California has always been at the forefront of labor rights, and this year is no exception. Several new employment laws have been enacted, aiming to provide greater protections for workers. One notable change is the expansion of the Family and Medical Leave Act (FMLA), which now includes smaller businesses with as few as 5 employees. This means that more employees will have access to job-protected leave for family and medical reasons.

Additionally, California has introduced stricter regulations on independent contractors. Assembly Bill 5 (AB5) establishes a new test, known as the “ABC test,” to determine whether a worker should be classified as an employee or an independent contractor. This change could have significant implications for businesses that rely on independent contractors, as they may now be required to provide benefits and protections to these workers.

Consumer Privacy Laws

California’s commitment to consumer privacy is evident in the implementation of the California Consumer Privacy Act (CCPA). This act gives consumers more control over their personal information and requires businesses to be transparent about how they collect and use data. Under the CCPA, consumers have the right to request that businesses disclose what personal information they have collected, delete their personal information, and opt-out of the sale of their data.

Furthermore, the CCPA introduces stricter regulations for businesses that handle the personal information of minors. Businesses must now obtain affirmative consent from individuals under the age of 16 before selling their personal information.

Environmental Regulations

California has long been a leader in environmental regulations, and the state continues to prioritize sustainability and combat climate change. One significant legislative change is the California Recycling and Plastic Pollution Reduction Act, which aims to reduce single-use plastic waste. This act requires businesses to meet specific recycling and composting standards and places restrictions on the use of certain single-use plastic products.

Additionally, California has implemented stricter emissions standards for vehicles, with the goal of reducing greenhouse gas emissions. This change will impact businesses that rely on transportation, as they may need to update their fleet to meet the new requirements.

Taxation Changes

California has made several taxation changes that will affect businesses. One notable change is the implementation of the California Competes Tax Credit, which aims to attract and retain businesses in the state. This credit provides incentives for businesses to create jobs and make investments in California.

Furthermore, California has increased the minimum franchise tax for LLCs and S-Corporations, which could result in higher tax burdens for businesses operating under these structures.


California’s latest legislative changes have far-reaching implications for businesses operating in the state. From new employment laws to consumer privacy regulations and environmental requirements, businesses must stay up to date with these changes to ensure compliance and avoid potential penalties. It is crucial for businesses to consult legal and tax professionals to navigate these changes effectively.

Remember, staying informed and adapting to these legislative changes will not only help businesses comply with the law but also demonstrate a commitment to the well-being of employees, consumers, and the environment.

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