As the first half of 2025 draws to a close, California’s in-house counsel and compliance leaders might find themselves at a crossroads. The regulatory space is accelerating. Each new law, enforcement action, and compliance requirement feels less like a box to check and more like a call to strategic action.
You’re likely balancing a dozen priorities: HR needs clarity on pay scale postings, your sustainability officer is asking about Scope 3 emissions, and the IT team wants to know if your AI-powered hiring tool is compliant.
Each compliance requirement is a moving target, and the stakes for corporate compliance have never been higher. Join other legal teams across the state who are leaning on trusted resources like CEB’s practice guides and daily law alerts to keep pace.
Meanwhile, here’s how the first half of 2025 unfolded and what it means for your next steps.
Wage Transparency, Enforcement, and Best Practices
California’s pay transparency law has been in effect since January 1, 2023, but 2025 has seen a surge in enforcement. Employers must include pay scales in all job postings (remote or onsite) and provide them to current employees upon request. Penalties for noncompliance range from $100 to $10,000 per violation.
For legal teams, the compliance requirements are not optional. But the CEB California Wage and Hour Law and Litigation guide offers practical templates to help you:
- Update postings
- Conduct pay equity audits
- Train HR teams
For any legal team, this resource turns regulatory obligations into a foundation for trust and transparency.
Paid Sick Leave Compliance Requirements for 2025
Paid sick leave has shifted dramatically. Since January 1, 2024, California’s Paid Sick Leave Law requires a minimum of 40 hours (five days) of paid sick leave per year, with one hour accruing for every 30 hours worked. SB 1105, effective January 1, 2025, extends these protections to agricultural employees.
For many organizations, updating policies and payroll systems is only the beginning. Moreover, local ordinances in cities like Los Angeles may require even more generous benefits, and the cost of noncompliance is steep. Case in point, in October 2022, Saravanaa Bhavan restaurants settled for $2.2 million, including sick leave violations affecting 317 workers.
Take advantage of Employment Law procedural guides, which help you update handbooks, train managers, ensure your compliance requirements are met, and that your workforce is protected.
SB 553 and Corporate Compliance Workplace Safety
Workplace safety is more than a checklist. It’s a core element of corporate compliance culture. SB 553, effective July 1, 2024, requires most California employers to:
- Implement a written workplace violence prevention plan
- Provide training
- Maintain records under Section 6401.9 (Cal/OSHA SB 553 Guidance)
Enforcement is already ramping up. In April 2025, Cal/OSHA cited Oroville Hospital for deficiencies in its heat illness prevention program, reflecting the agency’s heightened focus on workplace safety.
The best way to ensure your organization remains audit-ready and keeps employees safe is to use legal resources like our Workplace Safety Compliance video series. Take your team through each step as you develop, document, and train on workplace violence prevention plans.
You can also integrate these plans with your existing Injury and Illness Prevention Programs to create a unified compliance strategy.
Navigating Procedural Guides, AI, and Data Privacy
The compliance regulations for AI and data privacy are evolving fast. In January 2025, the California Attorney General clarified that AI systems must comply with the OAG CCPA Guidance and:
- California Consumer Privacy Act (CCPA)
- California Privacy Rights Act (CPRA)
- The Unruh Civil Rights Act
These systems require transparency, opt-out options, and non-discrimination in automated decision-making. The CPPA’s draft Automated Decision-Making Technology (ADMT) regulations signal that more specific mandates are coming. However, recent CPPA Enforcement Actions and existing laws have already demanded attention.
Privacy Law Essentials guides helps you remain proactive and avoid high settlements for deficient privacy practices, such as inadequate AI transparency. With these procedural checklists, you can audit AI systems and vendor contracts, and therefore stay ahead of compliance requirements and regulatory scrutiny.
ESG and Climate Corporate Compliance
Environmental, Social, and Governance (ESG) and climate disclosure requirements are no longer a distant concern. The Act under the California Air Resources Board requires companies with over $1 billion in revenue to report Scope 1–2 emissions in 2026 (using 2025 data) and Scope 3 in 2027.
Additionally, SB 261 requires firms with over $500 million in revenue to submit biennial climate-related financial risk reports, beginning January 1, 2026. It further mandates alignment with the TCFD framework (California SB 261).
These developments underscore the importance of early preparation and cross-team collaboration in meeting California’s evolving ESG compliance regulatory requirements. Legal teams should work closely with finance and sustainability departments to ensure complete alignment with Environmental Law and Regulation.
Compliance Timeline: Key Dates and Requirements
| Regulation | Key Requirement | Deadline |
| Labor Code 432.3 | Disclose pay scales in job postings | Ongoing (since 2023) |
| Paid Sick Leave (2024/SB 1105) | Update policies to 40 hours minimum | Jan 1, 2024/2025 |
| SB 553 | Workplace violence prevention plans | July 1, 2024 |
| CCPA/CPRA (AI) | AI transparency and opt-out mechanisms | Ongoing, 2025 |
| SB 261 | Climate risk report (>$500M revenue) | Jan 1, 2026 |
| SB 253 | Scope 1–2 emissions disclosure (>$1B) | 2026 (TBA) |
Strengthen Corporate Compliance Systems
Mid-year is the perfect time to refine your procedural guides and audit strategies. Conduct internal audits to align policies across jurisdictions, refresh manager training on privacy and safety, and test your incident response protocols.
Board engagement is also essential. Brief all your directors on 2025 updates to ensure alignment and show the strategic value of the legal function. These practical trends highlight the need for strong documentation, regular training, and a culture of compliance.
With our practice guides, on-demand videos, and daily law alerts, your legal team can transform compliance requirements from a burden into a competitive advantage. Proactive governance prevents penalties, protects your people, and builds lasting trust.
As you plan for the second half of 2025, leverage CEB’s expertise and resources to ensure your organization not only meets its compliance regulatory obligations but thrives because of them.
