14 | 2025 Employment Laws on the Horizon © Seyfarth Shaw LLP Arbitration and Termination of Employment employers to make changes. (21-0027A1; Announcement; Seyfarth Post RE: Agreement; A.B. 2288; S.B. 92; Seyfarth Post RE: New Legislation) Termination Notices CO (Eff. 1/1/25 & 6/1/25) – Two laws require delivery network companies (DNC) and transportation network companies (TNC) to notify drivers when their accounts have been deactivated: (1) beginning January 1, 2025, DNC’s must provide written notice of deactivation and (2) beginning June 1, 2025, within 24 hours of suspending a driver, the TNC must send a written disclosure to the driver in their preferred language. (H.B. 24-1129 and S.B. 24-75) Seattle, WA (Eff. 1/1/25) – The City of Seattle requires network employers with 250 or more app-based workers worldwide to notify workers 14 days prior to deactivating the worker from the company’s worker platform. The ordinance has been challenged. (Ord. 126878; Seyfarth Post) Workforce Management Independent Contractors/Gig Workers/Contingent Workers CA (Eff. 1/1/25) – CA extended its exemptions from the “ABC” test, which determines who is an independent contractor, for newspaper distributors working under a contract with a newspaper publisher and newspaper carriers until January 1, 2030. (A.B. 224) CA (Eff. 1/1/25) – The Freelance Workers Protection Act requires contracts for $250 or more to be in writing. The hiring party must retain a copy of the contract for no less than 4 years. (S.B. 988) Non-Competes CO (Eff. 1/1/25) – The highly compensated employee threshold is updated: non-competes may only be entered into with employees earning $127,091+ and covenants not to solicit customers may only be entered into with an employee earning approx. $76,254.60. (7 CCR 1103-14) IL (Eff. 1/1/25) – Non-compete and non-solicitation provisions entered into after January 1, 2025 are unenforceable if the provision is likely to result in an increase in cost or difficulty for any veteran or first responder seeking mental health services from a mental health professional licensed in IL. (S.B. 2737) IL (Eff. 1/1/25) – IL makes non-competes and non-solicitation agreement with a person employed in construction void and illegal, regardless of a CBA. (S.B. 2770) LA (Eff. 1/1/25) – LA restricts non-compete agreements with physicians that limit their ability to practice medicine, excluding certain physicians in rural hospitals or under federal contracts. Non-competes with (a) primary care physicians may not exceed 3 years or (b) 5 years for all other physicians, beginning from the effective date of the initial contract. Agreements must include qualified parish-specific geographic limitations and subsequent agreements may not contain a non-compete provision. (S.B. 165) PA (Eff. 1/1/25) – Noncompetes with a health care practitioner entered into after January 1, 2025 are prohibited. Noncompete covenants are agreements between employers and health care practitioners that have the effect of impeding the health care practitioners ability to continue treating patients or accepting new patients, either independently or with a competing employer. Patients with an ongoing relationship with the practitioner of 2 or more years must be notified of their departure within 30 days. (H.B. 1633)
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