You know what they say: new year… new laws. OK maybe only lawyers say that, but still, it’s true. From laws related to drinking in public, to a ban on certain mandated meetings (who doesn’t love that?), to more stringent criminal laws, here are some of the most important new California laws you need to know as we move into 2025.

1. Drinking in Public is Legalized in Some Areas

Starting January 1, 2025, local governments can designate “entertainment zones,” where bars and restaurants can sell alcoholic beverages that people can drink on public streets and sidewalks. This law is Senate Bill 969. See more about Alcohol Laws in California.

2. Ban on Employer-Mandated Captive Meetings

As of January 1, 2025, California employers can’t require workers to attend any meetings related to the boss’s political or religious views. This includes any anti-union meetings, where the boss seeks to intimidate and dissuade employees from joining a union. Workers cannot be disciplined for refusing to attend such meetings.

The new law is Senate Bill 399, which is sometimes known as the captive audience meeting ban. Also see our guide to Can My Boss Make Me Do That?

3. Increased Time to Respond to Eviction Notice

Tenants have more time to respond to an eviction notice starting in 2025. The amount of time tenants have to respond to this notice increases from 5 business days to 10. See our Guide to Tenants Rights in California.

4. Ban on Fees for Declined Withdrawals from ATM

Under the new law AB 2017, banks can no longer charge customers who attempt to take out cash from an ATM machine but it is declined for insufficient funds. See our Guide to Consumer Rights in California.

5. Increased Penalties for Drug and Theft Crimes

Voters passed Proposition 36 in the November 2024 election, which reclassifies some misdemeanor theft and drug crimes as felonies. The measure creates a new category of crime — a “treatment-mandated felony.” For these, if you plead guilty and don’t contest the charges, you could be eligible to complete drug treatment instead of going to prison. But if you don’t finish treatment, you can still face up to 3 years in prison.

This new law makes changes to Proposition 47, which passed in 2014.

6. Medical Debt No Longer Listed on Credit Report

As of July 1, 2025, medical debt will no longer included on consumer credit reports in California. Any medical debt listed on a credit report may not be used as a negative factor when making credit decisions. See more about the new law, SB 1061, and see our Guide to Healthcare Laws in California.

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