Legal and Labor Relations Newsletter - Winter 2025

This Legal and Labor Relations Update highlights some salient changes that recently took effect or will take effect shortly. The material recapped in this newsletter is general information we are providing as a courtesy on subjects that may be of interest to you. We encourage you to consult with your legal advisors about the applicability of these changes and updates to your organization’s specific circumstances, and how best to handle them.

Legal Updates:  Prior Legal Alerts 

It is important to Entertainment Partners (EP) that we keep our clients updated with the latest information as it becomes available, highlighting major enacted legislation, “best practice” guidance, and current industry practices.  Please see prior EP alerts we have released since our last newsletter for more information on the following topics:

• CA Keeps Current Loan-Out UI Status; New Reporting Starts in 2026
• District Judge Undoes Federal Rule Increasing Salary Thresholds

Legal Updates:  California

California Protects Against Unauthorized Digital Replicas

With artificial intelligence’s increasing ability to blur the lines between what appears real or fake in video and audio, California passed AB 2602.  Effective January 1, 2025, individuals are protected from the unauthorized creation and use of a digital replica to perform work that would otherwise have been performed in person.  A “digital replica” is defined as a “computer-generated, highly realistic electronic representation that is readily identifiable as the voice or visual likeness of an individual that is embodied in a sound recording, image, audiovisual work, or transmission in which the actual individual either did not actually perform or appear, or the actual individual did perform or appear, but the fundamental character of the performance or appearance has been materially altered.”  Although the law does not specifically refer to actors and performers, they are clearly the beneficiaries of the new protection.  

California Bans Captive Audience Meetings 

California has joined many other states across the country that now ban captive audience meetings through its passage of SB 399.  As of January 1, 2025, California employers are prohibited from imposing any type of adverse employment action (or threat of such action) against an employee who declines to attend an employer-sponsored meeting or who declines to receive or listen to any communication with the employer that is intended to communicate the employer’s opinion about religious or political matters (including labor union issues).  What is more, an employee who is working at the time of any such meeting and elects not to attend such meeting still must be paid while the meeting is held.  

SB 399 carries a $500 civil penalty per employee for each violation of the law.  The California Labor Commissioner also may enforce SB 399 by investigating and issuing a citation or filing a civil action.  And the law carries a private right of action as well.  California employers should consult their labor counsel to ensure compliance with SB 399.   

New California Whistleblower Poster Requirement Takes Effect January 1, 2025

Whistleblower protections have existed in California for years, requiring employers to prominently display a list of employees’ rights and responsibilities provided under the whistleblower laws. However, until recently, it was unclear what information the prominently displayed posting was required to include.  Effective January 1, 2025, California’s AB 2299 clarifies that it is the responsibility of the Labor Commissioner to develop a model list of employees’ rights and responsibilities under existing whistleblower laws that employers can then display in the workplace.  Employers who display the new model notice or a compliant notice created by the employer (lettering must be at least 14-point typeface and the State’s whistleblower hotline number (800-952-5225) must be included) will be considered compliant with the State’s posting requirements.  The updated "Whistleblowers Are Protected" notice is now available for download here. 

California Enacts its Own Freelance Worker Protection Law

Modeled, in part, on New York’s freelance worker protection law, California’s new law takes effect on January 1, 2025.  Under this new California law, businesses engaging the services of an individual independent contractor or a company owned and operated by a single independent contractor for over $250 will need to comply with certain requirements for the contractor engagement.  Unlike New York’s equivalent, California’s version is limited to those contractors providing professional services.  The reach of professional services is intended to be focused because this new law incorporates the same definition of professional services that serves as an exemption from California’s AB 5 (ABC test independent contractor legislation).  Professional services include trades like travel agents, graphic design, human resources consultation, and estheticians; categories related to entertainment production could be photographers, fine artists, and gig writers/editors.  

Businesses working with covered professional services independent contractors are required to have written contracts covering, at a minimum, the name and mailing address of each party, a description of services to be provided by the contractor, a due date for payment of services, and an invoice deadline  Hiring customers are also prohibited from retaliation against contractors for exercising rights under this law, and aggrieved contractors can sue in court for violations and recover attorneys’ fees and costs as well as an additional $1,000 penalty for a hiring customer’s refusal to sign a written contract, double damages for any amounts paid late, and additional damages equal to the contract value for any other violations (like retaliation).   

California Expands Protections for Victims of Crime and Violence 

Since January 1, 2025, California has expanded time-off protections for victims of crime and violence (or family member of victims) by allowing them to use paid sick leave for this purpose without fear of discrimination or retaliation for taking such time off.  Employees may use vacation, personal leave, or paid sick leave for this purpose; although, the law does not create the right for an employee to take unpaid leave that exceeds the unpaid leave time allowed by the federal Family Medical Leave Act (FMLA)’s 12 weeks when the employee is the victim (as the leave runs concurrently with FMLA and California Family Rights Act (CFRA) if the employee is eligible for either).  Employers may limit the total leave time to five days when the employee’s family member is the victim and the leave is intended to help the family member relocate, and may limit the total leave time taken to 10 days for any other allowable reason under the law when the employee’s family member is the victim and is not deceased as a result of the crime.  

Employees also are entitled to reasonable accommodations under this law to accommodate for the safety of the employee while at work (i.e., changed workstation, installed lock, permission to carry phone at work, etc.).  

Pursuant to the text of the bill, the government must develop a notice/form called “Survivors of Violence and Family Members of Victims Right to Leave and Accommodations” on or before July 1, 2025, and employers must provide notice of employees’ rights under this law once the government posts the notice/form on its website.

California employers should consult their labor counsel to ensure compliance with both the leave entitlements as well as the notification requirements of this law.  

California Improves Access to Paid Family Leave

California’s AB 2123 amends Section 3303.1 of the Unemployment Insurance Code.  And it breaks down barriers that inhibited or deterred eligible recipients from applying for and receiving Paid Family Leave (“PFL”), which provides workers with partial wage replacement when they are off work so that they can provide care for a family member in special circumstances.  Previously, employers could require an employee to take up to two weeks of accrued vacation before they could access PFL benefits; however, since January 1, 2025, employers are prohibited from requiring employees to draw down on accrued vacation before they qualify for PFL.  This ensures that employees are not deterred from seeking PFL if they are eligible, merely because they are reluctant to use their accrued vacation time.  It also allows eligible employees to receive the benefit immediately.

New Two-Part Test for Driver’s License Requirement in Hiring

California’s SB 1100 amends the state’s Fair Employment and Housing Act by introducing a new two-part test governing when an employer may require a job applicant to possess a driver’s license. As of January 1, 2025, employers must satisfy the following two conditions before including a statement in a job advertisement, posting, application or other hiring material that an applicant must have a driver’s license: (1) the employer reasonably expects driving to be one of the job functions for the position; and (2) the employer reasonably believes that satisfying the job function using an alternative form of transportation would not be comparable in travel time or cost to the employer.  An “alternative form of transportation” includes, but is not limited to, using a ride hailing service, using a taxi, carpooling, bicycling, or walking.  To ensure compliance and lower the risks associated with allegations of discrimination, California employers are encouraged to evaluate all policies, procedures, and hiring materials that reference the need for a driver’s license, applying the new two-part test.  It is further recommended that managerial and/or supervisory staff be trained on SB 1100’s requirements and be familiar with which positions the statute impacts.   

California Privacy Rights Act Expands Definition of Personal Information to Include Output by Artificial Intelligence

As artificial intelligence (AI) continues to revolutionize industries, concerns about data privacy are becoming increasingly critical, especially as AI systems increasingly rely on vast data sets often containing personal information. To combat this concern, California Governor Newsom signed AB 1008 on September 28, 2024, which went into effect on January 1, 2025, and  expands the definition of personal information under the California Privacy Rights Act (CPRA) to include a wide array of formats, including AI models. Thus, it broadens the scope of privacy protections to data utilized by automated systems and machine learning models or large language models. This will impose new requirements on businesses using AI, significantly altering the governance and management of AI models, particularly those trained on personal information. Even if personal information is collected from public sources, such data remains protected under the CPRA, requiring businesses to comply with privacy regulations, including obtaining consent and respecting consumers’ data rights. 

Legal Updates:  New York 

Artificial Intelligence Digital Replica Requires Specific Consent in New York

Not to be outdone by California, New York passed an almost identical law on the subject of the specific consent required to use an AI-generated digital replica (Senate Bill S7676B), which also became effective on January 1, 2025. New York’s definition of “digital replica” is slightly different from California’s, however, in that it is defined as “a digital simulation of the voice or likeness of an individual that so closely resembles the individual’s voice or likeness that a layperson would not be able to readily distinguish the digital simulation from the individual’s authentic voice or likeness.”  

New York Requires Paid Prenatal Leave Starting January 1, 2025

Effective January 1, 2025, New York now requires employers of any size to provide paid prenatal leave to its employees in New York, a separate benefit from New York’s existing paid sick leave.  The paid prenatal leave does not accrue based on hours worked like sick leave does, but instead 20 hours is automatically available at the start of each year for each employee.  There is no waiting/eligibility period before being entitled to use New York’s new paid prenatal leave.  Employers cannot require employees to use another type of leave before using this leave, but rather it is up to the employee to choose what type of leave to use.  After exhausting paid prenatal leave, the employee can still use any New York paid sick leave or any other leave the employee has available.  Because the prenatal leave is only for prenatal health care, it does not apply to post-natal or postpartum issues.  Employers cannot ask employees to disclose confidential information about their health condition(s) as a requirement to request or use this new paid prenatal leave.  The State’s FAQs about the new law are available here. 

Legal Updates:  U.S. Federal/Canada

Nationwide Injunction on Corporate Transparency Act Mandatory Filing of Beneficial Ownership Information Reports Requirement Remains in Effect

The Corporate Transparency Act (CTA) established certain beneficial ownership information (BOI) reporting obligations for most non-exempt entities either formed or registered to do business in the United States.  Ahead of FinCEN’s original January 1, 2025 BOI reporting deadline, a Texas District Court issued an injunction temporarily suspending the reporting obligations in Texas Top Cop Shop, Inc., et al. v. Garland, et al., Case No. 4:24-cv-478, on the basis that the CTA was unconstitutional.  As a result, BOI reporting obligations were temporarily suspended on December 23, 2024.  On December 26, 2024, however, the Fifth Circuit Court of Appeals lifted the injunction imposed by the Texas District Court and FinCEN responded by providing a slight extension for reporting companies to comply by January 13, 2025.  Two days later, the Fifth Circuit reversed its decision and re-imposed the injunction, putting further uncertainty on the future of the CTA’s BOI reporting obligations.  And, most recently, the U.S. Supreme Court lifted one federal court’s nationwide injunction but not another federal court’s similar injunction and thus a nationwide injunction remains which will be addressed in March 2025.  For the time being, BOI reporting obligations are entirely voluntary but companies are advised to pay close attention to the quickly-shifting landscape and may consider gathering the requisite information in the event the CTA and associated reporting obligations are ultimately deemed constitutional.  For more information about the BOI reporting obligations, please visit FinCEN’s website at www.fincen.gov/boi. 

New Regulations Address Pay Transparency and Job Posting Requirements in Ontario, Canada

New pay transparency and job posting requirements amending Ontario’s Employment Standards Act, 2000 (ESA) were introduced last month via Bill 190 and Bill 149.  Effective July 1, 2025, employers with 25 or more employees must provide new employees with the legal name of the employer, contact information for the employer, a general description of the anticipated work location, the starting wage rate, the established pay period and pay day, and the initial hours of work.

Beginning January 1, 2026, employers with 25 or more employees will have new obligations with respect to publicly advertised job postings.  Publicly advertised job postings must include the expected compensation range, whether artificial intelligence is being used to select applicants for a position, and whether the posting is for an existing vacancy.  Postings cannot include requirements related to Canadian work experience, and interviewees must be informed whether a hiring decision has been made within 45 days after the date of the applicant’s last interview.  Employers will be required to retain copies of job postings and applicant interview information for three years.

Legal Updates:  Multi-State

Alaska Passes Paid Sick Leave Law

Alaska’s new sick leave law (here) goes into effect on July 1, 2025.  Employers with 15 or more employees in the State are entitled to accrue and use up to 56 sick leave hours per year, and those with less than 15 employees, up to 40 sick leave hours per year.  Unused sick leave is carried over from year to year, up to the aforementioned accrual limits.  Sick leave accrues at the rate of 1 hour for every 30 hours worked.  There is no waiting period before employees can use sick leave under this new paid sick leave law in Alaska.  Payout of the accrued balance is not required upon separation of employment.  And if rehired by the same employer within 6 months of separation, previously unused sick leave is restored to the worker.  

The new Alaskan paid sick leave law is waivable by collective bargaining agreement.  And a notice of these rights must be given to employees at the time of hire and to existing employees within 30 days of the law’s effective date.  The law is silent as to whether the State will publish a model notice, and no FAQs are available yet at time of this article.

Paid Sick Leave Now Available to Motion Picture Industry Workers in Connecticut

While Connecticut was the first state to pass sick leave legislation back in 2011, it did not apply to workers in motion picture production.  However, as of January 1, 2025, the law applies to all employees working for an employer that employs 25 or more employees in the State.  Starting January 1, 2026, employers with 11 or more employees in the State, and starting January 1, 2027, employers with at least one employee in the State, must adhere to the law.  The paid sick leave legislation cannot be waived by a collective bargaining agreement (except for the construction industry).  Sick leave accrues at the rate of one hour for every 30 hours worked and there is a 120-day waiting period before employees can use sick leave.  Up to 40 sick leave hours can be accrued and used each year and carried over from year to year; although, payout of an employee’s unused balance is not required upon separation of employment.  Separation of employment resets the sick leave balance to zero, but if the 120-day waiting period has previously been met, the employee does not need to wait another 120 days to use sick leave upon rehire.  A poster must be posted at the workplace and individual notice must be given to each employee upon hire (both available here).  The full text of the law is available here and FAQs are available here.

Delaware Paid Family Medical Leave Employer/Employee Contributions Begin January 1, 2025

Delaware is launching a paid family medical leave program funded by employer and employee contributions.  Contributions begin on January 1, 2025, and eligible employees can begin applying for benefits on January 1, 2026.  Delaware’s program provides a combination of benefits and up to 6-12 weeks of job protection for participating employees, depending on the particular qualifying reason.  The combined contribution rate for employers with at least 25 employees is 0.8% of wages split up to 50/50 between employee and employer, respectively.  Please see the Delaware Department of Labor’s landing page (available here) for more details about Delaware’s paid leave program, including user guides and FAQs.

Pay Transparency in Illinois Effective January 1, 2025

Starting January 1, 2025, Illinois will require employers with 15 or more employees to include pay scales and benefits information in all job postings. Employers must disclose wages or salary ranges, describe benefits and other compensation, and notify current employees of promotional opportunities within 14 days of posting externally. Employers utilizing third-party services for job postings must provide them with the necessary pay and benefits information to ensure compliance. Further, businesses are required to maintain records of job postings, pay scales, and benefits for each position for at least five years.  The law applies to roles performed fully or partly in Illinois, including remote positions reporting to a supervisor, office or other work site in Illinois.  Non-compliance may result in fines ranging from $500 to $10,000, with opportunities to cure initial violations.

Illinois Enacts Wage Statement Requirements

Joining the states that already regulate employee wage statements (i.e., pay stubs) like California and New York, Illinois adopted a similar law that took effect January 1, 2025.  Illinois’ new pay stub law will require employers to provide their employees with pay stubs each pay period that contain expected information like pay rates and corresponding hours worked, gross wages and deductions for the check, and the total of wages and deductions year-to-date.  Employers are required to maintain copies of pay stubs for three years and must provide copies to employees within 21 days of their request (though not more than twice in a 12-month period or more than one year after the employee’s separation).  If an employer only provides stubs electronically and the employee cannot access stubs for at least a year after separation, the employer must offer to provide the departing employee the last year’s pay stubs before separation, documenting the offer and the employee’s response.  There is a $500-per-violation penalty in addition to any attorneys’ fees or damages awardable under existing Illinois wage protection legislation for noncompliance with this law.

Illinois (Like California) Bans Captive Audience Meetings

On July 31, 2024, Illinois Governor J. B. Pritzker signed into law Senate Bill 3649 the “Illinois Worker Freedom of Speech Act” or the “Act”), which prohibits employers in Illinois from discharging, disciplining, or otherwise penalizing employees who refuse to participate in employer-sponsored meetings if the meeting is designed to communicate the employer’s position on religious or political matters (including labor union issues).  The law went into effect on January 1, 2025, and also prohibits employers from punishing employees for declining to receive or listen to communications from the employer if the communication is intended to communicate the employer’s opinion on religious matters or political matters (including labor union issues), as well as for making a good faith report of a violation of this law.  

It is important to note that labor unions pushed the passing of the Act in order to prevent employers from holding “captive audience meetings” intended to discourage organizing efforts.  Illinois employers should consult their labor counsel to ascertain whether and how they are impacted by the Act.  

Expanded Whistleblower Protections in Illinois Took Effect on January 1, 2025

Effective January 1, 2025, Illinois House Bill 5561 amended the Whistleblower Act to enhance protections for employees and expand on its definitions. It prohibits employers from retaliating against employees who, in “good faith,” disclose or threaten to disclose information about activities they believe violate state or federal laws or pose substantial dangers to public health or safety. The amendment includes a definition for “adverse employment action,” which is described as an action a reasonable employee would find materially adverse.  An action is materially adverse if it “could dissuade a reasonable worker from disclosing or threatening to disclose” information protected by the law.  Employers found in violation of the Act may face additional damages and penalties, including interest on back pay, liquidated damages up to $10,000, and a civil penalty of $10,000.  

Illinois Is the Second State in the Nation to Ban Unauthorized AI-Generated Digital Replicas 

As of January 1, 2025, HB 4875 updated Illinois’ Right of Publicity law, making the production of digital replicas of individuals without their consent illegal, and holding those accountable who produce them.  For clarity, “digital replica” is defined in the statute as “a newly created, electronic representation of the voice, image, or likeness of an actual individual created using a computer, algorithm, software, tool, artificial intelligence, or other technology that is fixed in a sound recording or audiovisual work in which that individual did not actually perform or appear, and which a reasonable person would believe is that individual's voice, image, or likeness being imitated.” Recording artists themselves or parties contracting with recording artists to obtain an exclusive license for distributing audio recordings capturing the artist’s audio performances are each authorized to enforce their rights against unauthorized digital replicas prohibited by the new law.

Maine Paid Family and Medical Leave Employer/Employee Contributions Begin January 1, 2025

Maine is launching a paid family and medical leave program funded by employer and employee contributions.  Contributions begin on January 1, 2025, and eligible employees can begin applying for benefits on January 1, 2026.  Maine’s program provides a combination of benefits and up to twelve weeks of job protection for employees with qualified leave reasons.  The combined contribution rate for employers with at least 15 employees is 1% of wages split up to 50/50 between employee and employer, respectively.  Please see the Maine Department of Labor’s landing page (available here) for more details about the paid family and medical leave program, including user guides and FAQs.

New Paid Sick Leave Legislation Under Fire in Missouri

Missouri’s new sick leave law (available here) becomes effective May 1, 2025.  Sick leave accrues at the rate of one hour per 30 hours worked.  For employers with 15 or more employees in the State, employees are entitled to use up to 56 sick leave hours per year, and for employers with less than 15 employees, employees can use up to 40 sick leave hours per year.  Up to 80 unused sick leave hours can be carried from year to year and payout of the accrued balance is not required upon separation of employment.  There is no waiting period before employees can use sick leave.  If rehired by the same employer within nine months of separation, previously unused sick leave is restored to the worker.  The law cannot be waived by collective bargaining agreement.  Starting April 15, 2025, a poster must also be posted at the workplace, and individual notice must be given to each employee within 14 days of hire.  The State will create a model poster and notice, and presumably FAQs, but these are not yet available.  

Notwithstanding the above, paid sick leave is under attack from business groups seeking to repeal this new legislation.  In December, lawmakers introduced bills that would either provide an exemption for certain businesses, modify paid sick leave hours, or delay the implementation of paid sick leave for certain employees.  Hence, employers with employees in Missouri should watch for possible changes.

The King’s Legacy Lives on in Tennessee

Taking effect July 1, 2024, Tennessee’s aptly-named Ensuring Likeness, Voice, and Image Security Act (ELVIS Act) was the first law in the nation to protect musicians and other artists against AI.  While many states had already protected against the unauthorized commercial use of a person’s voice under their right of publicity statutes, the ELVIS Act was the first of its kind to specifically focus on AI-generated voice replicas. The new law allows a recording artist to sue over the commercial use of his or her voice and mandates that the unauthorized commercial use of a voice that is "readily identifiable and attributable to a particular individual" will constitute a misdemeanor and be subject to a private right of action for actual damages.  A separate provision of the ELVIS Act takes direct aim at AI platforms by allowing a lawsuit against any person who "makes available an algorithm, software, tool, or other technology, service, or device" with the "primary purpose or function" of creating unauthorized recordings of a person's voice. This is important in current times because as AI has continued to proliferate over the last year, models or platforms that allow a user to create high-quality and realistic-sounding AI-generated audio have become increasingly accessible to the public.

Minimum Wage Updates

Click here to see the Minimum Wage chart.

Labor Relations Key BTL Agreement Updates 

For Labor Relations Key BTL Agreement updates, please reach out to laborrelations2@ep.com.

EP Legal and Labor Relations Contacts

• Kirsten Richesson (Executive Vice President, Chief Legal Officer):  krichesson@ep.com
• Joseph Scudiero (Senior Vice President & Chief Labor Counsel):  jscudiero@ep.com
• Bob Pucher (Vice President, Labor Relations):  rpucher@ep.com
• Scott Bishop (Vice President, Employment Law):  sbishop@ep.com
• Ed Pak (Vice President, Lead Technology & Pvacy Counsel):  epak@ep.com
• Jennifer Liscio (Vice President, Tax Incentives/Business Affairs): jliscio@ep.com
• Alan Wu (Director, Employment & Labor Relations Counsel):  awu@ep.com
• Pantea Lili Ahmadi (Director, Corporate & Employment Law Counsel):  pahmadi@ep.com
• Robyn Coltin (Director, Employment Law & Litigation Counsel):  rcoltin@ep.com
• Lydiann Betzer (Labor Relations Senior Manager):  lbetzer@ep.com
• Jade Nguyen (Senior Privacy Manager):  jnguyen@ep.com
• Melissa Antuono (Senior Labor Relations Specialist):  mantuono@ep.com