Public Policy

NAWBO Silicon Valley has been the voice of women business owners—making sure we are at the table with key decision makers and speaking out on the issues that are most important. To best represent the diversity within our membership, all the business advocacy issues we engage in are bipartisan in nature.

See also: NAWBO National’s Advocacy Updates

The basic policy or set of policies forming the foundation of public laws, especially such policy not yet formally enunciated. ~ Heritage Dictionary ~

Public policy can be generally defined as a system of laws, regulatory measures, courses of action, and funding priorities concerning a given topic promulgated by a governmental entity or its representatives.

Public Policy impacts our daily lives and our businesses.

Watch the Advocacy 101 video on Congress here.

Watch the Advocacy 102 video on the Executive Branch here.

Watch the Advocacy 103 video on How NAWBO Can Be an Advocate here.

NAWBO National Advocacy Updates

NAWBO CEO and Board Chair Advocate for Women Business Owners in Washington, D.C.

End of February, NAWBO CEO Jen Earle and National Board Chair Dr. Janis Shinkawa met with key lawmakers in Washington, D.C., to advocate for policies affecting women business owners. Here are the key takeaways:

  • Women-Owned Small Business (WOSB) Program: The House Small Business Committee will consider a bill that removes self-certification for WOSBs. NAWBO is advocating for the program’s continued accessibility while addressing concerns about fraud.
  • Tax Policy & Small Business Support: NAWBO leaders presented their 2025 Advocacy Survey priorities to the House Ways and Means Committee, emphasizing:
  • Support for the 20% pass-through deduction (199A)
  • Support for the Paid Family and Medical Leave Tax Credit (45S)
  • Inclusion of the beauty industry in the FICA tax tip credit
  • Childcare & Workforce Support: NAWBO engaged with lawmakers on two key proposals:
  • 45S Bill – Extends and enhances the Paid Family and Medical Leave Tax Credit.
  • Britt-Kaine Childcare Package – Increases childcare tax credits and expands workforce support programs.

  • Rep. Marcy Kaptur (D-OH): Continues to champion women business owners, focusing on tech skills for workforce development.
  • Sen. James Lankford (R-OK): Engaged in discussions on tax priorities, micro business definitions, and energy policy.
  • Sen. Deb Fischer’s Staff: Thanked NAWBO for its advocacy on the Paid Family Leave tax credit and discussed WOSB concerns.
  • Sen. Katie Britt’s Staff: Confirmed plans to reintroduce the Child Care package next week, which NAWBO continues to support.
  • House Energy and Commerce Committee: Discussed artificial intelligence and alternative energy, including natural gas.

SBA Administrator Patrick Loeffler issued a “Day One Memo” outlining priorities such as:

  • Promoting U.S. manufacturing and “Made in America” policies
  • Conducting an agency-wide financial audit
  • Cracking down on fraud and restoring loan underwriting standards
  • Restricting foreign nationals and undocumented immigrants from SBA assistance
  • Relocating regional offices out of sanctuary cities

NAWBO members are encouraged to weigh in on legislative priorities, particularly the 45S Bill vs. Britt-Kaine Childcare Proposals. Share your thoughts with Elle Patout at epatout@nawbo.org.

As Congress works through budget negotiations, NAWBO remains committed to ensuring women business owners have a seat at the table. Stay engaged and watch for updates as these discussions continue.

Summary Updates on California Labor Laws for 2025!

California has just rolled out a series of groundbreaking labor laws in 2025 that are designed to improve the working environment, protect employees, and ensure fair pay across the state. Whether you’re an employer, an employee, or someone who’s just curious about how these changes could impact your workplace, here’s a quick rundown of the most significant updates.

These legislative changes underscore California’s commitment to enhancing worker protections and adapting labor laws to evolving employment practices.

Below is a summary of the key changes, we include the most relevant changes, the below is informational only and doesn’t constitute legal advice, if any questions consul your attorney:

  • Effective January 1, 2025, the state minimum wage increased to $16.50 per hour for all employers. This adjustment also raised the minimum annual salary for exempt employees to $68,640. 
  • Minimum hourly rate for inside sales exemption rises from $24 per hour to $24.75 per hour.
  •   Tool rate increases from $32 per hour to $33 per hour.

 

  • Certain fast-food workers are now entitled to a minimum wage of $20 per hour.
  • Healthcare workers must receive at least $23 per hour through June 30, 2025, with the rate increasing to $24 per hour thereafter. 

 

  • As of January 1, 2025, employers are prohibited from requiring employees to use paid vacation time before accessing PFL benefits. 

  • AB 2499, effective January 1, 2025, broadens the categories of crimes for which employees can take protected time off. It also allows employees to assist family members who are victims of specified crimes and permits the use of state-paid sick leave for these purposes.

 

  • SB 399, effective January 1, 2025, establishes the California Worker Freedom from Employer Intimidation Act, which prohibits employers from requiring employees to attend meetings aimed at communicating the employer’s opinions on religious or political matters. 

  • The Freelance Worker Protection Act, effective January 1, 2025, mandates that private employers provide written agreements to certain independent contractors, specifying payment terms and deadlines, ensuring timely compensation for freelance work. 

HR Compliance in 2024: Essential Legal Changes and Trends

It’s crucial to be well-informed about these new regulations to ensure that our workplace policies and employee rights are in line with legislative changes. Seeking advice from a legal advisor will be instrumental in achieving full compliance.

To end your year in a good way, review 2024 regulations and adjust quickly.

As of July 1, 2024, all Injury Illness Prevention Programs (IIPPs) must integrate a Workplace Violence Prevention Plan. This plan must include:

  • Designated Personnel: Identify individuals responsible for the implementation of the plan.
  • Employee Involvement: Develop effective procedures to engage employees in both the development and execution of the plan.
  • Coordination: Establish methods for coordinating with other employers when applicable.
  • Incident Response: Implement procedures to handle reports of workplace violence and ensure there is no retaliation.
  • Compliance Monitoring: Develop procedures to ensure ongoing compliance.
  • Communication: Set up communication methods with employees about the plan, I Including reporting mechanisms and investigation processes.
  • Emergency Response: Create procedures for handling emergencies.
  • Training: Develop and execute training procedures for employees.
  • Hazard Management: Identify, evaluate, and correct workplace hazards.
  • Post-Incident Protocols: Establish procedures for responding to and investigating incidents.
  • Plan Review: Regularly review the plan’s effectiveness.
  • State Requirements: Include other procedures mandated by the state.

Additional Requirements:

  • Incident Log: Maintain a log of violent incidents.
  • Record Keeping: Keep records of hazard identification, evaluation, and corrections for at least five years.
  • Training Records: Retain training records for at least one year and provide initial and annual training, with additional sessions as new hazards are identified or the plan changes.

Recommendations:

  • Ensure employees receive the required training by the new regulations

California Senate Bill 699

  • Non-Compete Validity: Non-compete agreements are deemed invalid regardless of where they are signed, impacting California companies hiring out-of-state employees bound by non-compete clauses from other states.
  • Legal Actions: This change may lead to increased legal disputes and “race to the courthouse” scenarios.
  • Attorney’s Fees: Employees who prevail in disputes may recover attorney’s fees.

California Assembly Bill 1076

  • Void Agreements: Non-compete clauses not falling under specific exceptions (e.g., sale of a business) are void.
  • Notification Requirement: Employers must inform employees hired after January 1, 2022, that any non-compete clauses in their contracts are invalid.

NLRB Memorandum GC 23-08

  • Section 7 Rights: Non-compete agreements may interfere with employees’ rights to engage in protected activities under the NLRA, potentially discouraging employees from changing jobs.

Recommendations:

  • Review and justify non-compete agreements, especially for roles outside California, to identify any “special circumstances.”
  • Stay informed about broader trends in states restricting non-compete clauses.

McLaren Macomb Case

  • Ruling: The NLRB ruled that standard non-disparagement and confidentiality clauses in severance agreements violate federal law.
  • Supervisors Excluded: The ruling does not apply to supervisors, who are not covered by Section 7 of the NLRA.

Recommendations:

  • Consider separate severance agreement forms for supervisors versus non-supervisors.
  • For non-supervisors: Work with legal counsel to adjust confidentiality and non-disparagement clauses or potentially remove the non-disparagement clause.
  • For supervisors: Decide whether to use the same or a separate form of agreement.

Recent Settlements & Verdicts

  • $20M Verdict Against Marriott: Disability discrimination for inadequate accommodations. Recommendation: Ensure a robust interactive process for accommodating disabled employees.
  • $1.1M Verdict Against Google: Gender-based pay disparity and retaliation. Recommendation: Conduct periodic compensation audits and investigate discrimination complaints thoroughly.
  • $36M Settlement by Equinox: Unpaid pre-shift work and missed meal periods. Recommendation: Ensure payment for all time under employer control and compliance with meal and rest period laws.
  • $18M Settlement by HP: Age bias in layoffs. Recommendation: Perform disparate impact analyses for layoffs based on race, gender, and age, and scrutinize selection criteria.

California Fair Chance Act

  • Inquiry Restrictions: Employers cannot ask about criminal history until after a conditional offer is made. Specific procedures are required for denying or rescinding offers based on criminal history.

Revised Regulations (Effective October 1, 2023)

  • Expanded Definitions: Includes entities evaluating conviction history or acting as agents of employers.
  • Individualized Assessment: Employers must consider various factors, including the nature of the offense and time elapsed since the offense.
  • Disclosure Prohibitions: Employers cannot advertise that they will not consider applicants with criminal histories.

Recommendations:

  • Update policies to comply with new definitions and requirements.
  • Ensure adherence to the pre-adverse and final adverse action notice procedures.

Cannabis Use

Assembly Bill 2188 (Effective January 1, 2024)

  • Discrimination Prohibition: Employers cannot discriminate based on off-job cannabis use or non-psychoactive cannabis metabolites.
  • Exceptions: Employers can still enforce drug-free workplace policies and conduct pre-employment drug screens not testing for non-psychoactive metabolites. Does not apply to positions requiring federal security clearances or in building and construction trades.

SB 700 (Effective January 1, 2024)

  • Inquiry Restrictions: Employers cannot request information about prior cannabis use unless required by law.

California Paid Sick Leave

SB 616 (Effective January 1, 2024)

  • Sick Leave Increase: From 24 hours or 3 days to 40 hours or 5 days. Accrual caps are increased to 80 hours or 10 days.
  • Annual Usage Cap: Increased to 40 hours or 5 days.
  • PTO Policies: PTO can be used in place of separate sick leave if it meets accrual and usage requirements.

Recommendations:

  • Review and update sick leave policies to align with new requirements.
  • Update Labor Code notices and payroll practices to reflect the changes.

Reproductive Loss Leave

SB 848 (Effective January 1, 2024)

  • Coverage: Applies to employers with 5 or more employees.
  • Leave Entitlement: 5 days of leave following a reproductive loss event, such as miscarriage or failed adoption.
  • Usage: Leave does not need to be consecutive but must be used within three months of the event.

Recommendations:

  • Update leave policies to include reproductive loss leave.
  • Ensure confidentiality and compliance with the new provisions.
Helpful articles: