2025 Law Changes: Key Updates for Consumers, Families, and Businesses

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Our legal staff compiled a list of the most meaningful law changes in Riverside and San Bernardino counties to prepare the community for changes in public programs, policies, and more as a result of bills enacted by the California Legislature.

New laws taking effect in 2025 are aimed at addressing critical challenges in consumer rights, family law, and small business operations. Here’s an overview of these changes:

Consumer Law Updates

Transaction Fees (AB 2017):
Starting January 1, state-chartered banks and credit unions can no longer charge fees for declined transactions due to insufficient funds, sparing consumers from added penalties.

Credit Score Protection (SB 1061):
Medical debt will no longer appear on credit reports, ensuring that medical expenses won’t negatively impact a consumer’s credit score or loan eligibility.

Subscription Services (AB 2863):
Effective July 1, 2025, companies offering free trials or subscriptions must obtain clear consent before charging customers after the trial ends. Annual reminders for recurring charges and notifications of price changes are required, with simple cancellation processes mandated.

Family and Child Welfare Updates

California Paid Family Leave (SB 951):
Workers earning less than $63,000 annually can now receive up to 90% of their regular pay while on paid family leave, with higher-income earners eligible for 70%.

Juvenile Dependency (AB 81):
Child custody cases involving Native American children must adhere to the California Indian Child Welfare Act, ensuring proper inquiry into tribal heritage.

Collections from Minors (AB 1186):
Minors are no longer responsible for restitution fines uncollected after 10 years.

Preserving Vacation Time (AB 2123):
Workers can now retain vacation time when accessing State Disability or Paid Family Leave benefits.

Youth Residential Treatment Protections (SB 1043):
Transparency requirements have been strengthened to protect minors from inappropriate restraints or isolation in treatment facilities.

Domestic Violence Tenant Protections (SB 1051):
Tenants experiencing domestic violence can request lock changes within 24 hours at the landlord’s expense to ensure safety.

Small Business Law Updates

Minimum Wage Increase:
The statewide minimum wage rises to $16.50 per hour for all employers, though local rates may vary.

These legislative updates reflect California’s ongoing commitment to fairness and equity across diverse sectors. Stay informed and empowered by understanding how these changes may impact you.