Sacramento, Calif. – Hundreds of new California laws are about to go into effect starting January 1, 2024. From paid sick leave expansion and equal pay and anti-retaliation to climate responsibility laws, state lawmakers and the governor approved a swath of new rules for the Golden State’s businesses.

As a CMTA-member exclusive benefit, read on for bills going into effect on January 1, 2024, plus others CMTA’s Government Relations team is closely following. Watch CMTA’s Vice President of Communications explain a few of them in the video player below.

New Laws Starting January 1, 2024


AB 1305 (Gabriel) Voluntary Carbon Market Disclosures Business Regulation Act (VCMDA)

Going into effect on January 1, 2024, AB 1305 creates new disclosure obligations on all businesses that operate in California or make climate-related claims within the state.

These claims could be statements of carbon neutrality, net-zero emission, or a statement that a product does not add CO2 or greenhouse gases to the atmosphere. If the entity does not disclose on its website how the climate-related information is verified, they are subject to substantial financial penalties by the state.

As a manufacturer, act quickly to prepare for the disclosure, plan for preparing disclosures as appropriate, and take an inventory of any and all climate-related claims and/or goals.

SB 616 (Gonzalez) Paid Sick Leave Expansion 

Effective January 1, 2024, California employers must increase the minimum amount of paid sick leave for employees from 24 hours (3 days) to 40 hours (5 days). It also increases the cap on an employee’s accrual of paid sick leave from 48 hours (6 days) to 80 hours (10 days).

Manufacturers should update their written sick leave policies, employee handbooks, and training materials to ensure compliance, and review the new law with your company’s payroll processor.  Learn more from CMTA’s associate member Fisher Phillips here.

SB 497 (Smallwood-Cuevas) Equal Pay and Anti-Retaliation Protection Act

Effective January 1, 2024, SB 497, also known as the Equal Pay and Anti-Retaliation Protection Act, makes it easier for California employees to make retaliation claims.

The legislation amends part of the California Labor Code to create a rebuttable presumption of retaliation if an employee is disciplined or discharged within 90 days of certain protected activity. The legislation thus makes it easier for employees to establish a prima facie case of retaliation.

Employers should carefully review their policies and procedures for managing their workplace complaints and review how they approach disciplinary actions.

Bills Going Into Effect Later in 2024


SB 244 (Eggman) Right to Repair Act

California is the third state to pass an electronics right-to-repair act. Starting July 1, 2024, SB 244 creates obligations for manufacturers to provide documentation and materials to servicers and consumers for various electronics and appliances.

SB 553 (Cortese) Workplace Violence Prevention Plan

Effective July 1, 2024, SB 553 requires employers to develop general industry workplace violence prevention plans as part of their Cal/OSHA Injury and Illness Prevention Plans. Employers will need to maintain a violent incident log and provide training to employees on the plan.

Manufacturers should take active steps to review workplace policies and work with their HR departments to update their Cal/OSHA Injury and Illness Prevention Plans by July 1, 2024, to ensure compliance. Employers must also update these plans on an annual basis.

SB 496 (Limon) Biomarker Testing

Going into effect on July 1, 2024, SB 496 requires Medi-Cal and a health plan contract or a health insurance policy to cover medically necessary biomarker testing for diagnosis, treatment, appropriate management, or ongoing monitoring.

With regulatory development happening in 2024, there are a few challenges in the future for California’s manufacturers will include:


SB 253 (Wiener) Climate Corporate Data Accountability Act

California’s Climate Corporate Data Accountability Act was passed by the legislature in 2023, and CMTA fully anticipates regulatory rulemaking to begin in 2024 to implement this highly problematic legislation for California’s manufacturers and businesses.

The legislation imposes burdensome greenhouse gas reporting requirements on any partnership, corporation, limited liability company, or other U.S. business entity with total annual revenues in excess of $1 billion and that does business in California.

SB 261 (Stern) Greenhouse Gases: Climate-Related Financial Risk

Alongside SB 253, SB 261 is part of California’s climate package that CMTA is closely monitoring. Expected to take effect in 2026, this legislation requires companies that do business in California and have gross revenues exceeding $500 million annually to report on their climate-related financial risk.

Bills CMTA is Tracking Through the Legislature


CMTA plans to bring forth AB 52 (Grayson) in front of the legislature in 2024. Investing in a manufacturing tax credit is the only way to encourage manufacturing growth. AB 52 is a tax credit bringing California in line with 38 other states that cover the taxes on qualified manufacturing purchases.

CMTA’s GR team is preparing for additional legislation on PFAs in consumer products, legislation promoting circularity, extended producer responsibility obligations, and various proposals associated with climate change, energy, and labor and employment.


About CMTA:
The California Manufacturers & Technology Association has advocated for pro-growth laws and regulations before the California legislature and administrative agencies since 1918. The total output from manufacturing in California is $300 billion per year, roughly 10 percent of the total economic output of the state. Manufacturers employ 1.3 million Californians, paying wages more than $25,000 higher than other non-farm employers in the state. For more information, visit the CMTA website.

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