10 New California Laws Take Effect Today: What You Need to Know

As of July 1, 2025, a wave of new laws is going into effect across California, set to impact millions of residents.

These new regulations cover a broad range of policy areas including consumer rights, public safety, rising fuel costs, healthcare and mental health reforms, wage increases, retail theft, and more transparency in short-term rental fees. Another major update imposes tighter restrictions on cellphone use while driving.

Here’s a breakdown of the most important changes you should know about:

Minimum Wage Increase Across California Cities

Beginning July 1, many cities and counties across California will see a bump in the local minimum wage, raising it above the statewide base of $16.50 per hour.

• San Francisco and Berkeley now have a minimum wage of $19.18/hour

• Emeryville: $19.90/hour

• Fremont: $17.75/hour

Other areas, including regions in Alaska, Oregon, and Washington, D.C., are also seeing wage hikes. For a full breakdown of wage increases by city, visit HRWatchdog.

 Minimum Wage Hike for Health Care Workers

Healthcare workers statewide will also see an increase in wages. Employees at large health facilities with over 10,000 staff — such as Sutter Health — will receive a raise from $23 to $24 per hour. Dialysis clinic workers will receive the same adjustment.

Workers at Safety Net Hospitals (facilities that primarily serve Medi-Cal/Medicaid patients) will receive a smaller but still notable bump from $18 to $18.63/hour.

 Amazon Must Report Stolen Goods Sellers

To combat rising online fraud, Senate Bill 1144 now requires online marketplaces like Amazon to report stolen goods sold through their platforms. If the platform becomes aware that stolen items are being sold to Californians, they are obligated to report it to local, regional, or state law enforcement.

Third-party sellers are often used by organized theft rings. Last year, a California woman pleaded guilty to running an $8 million beauty product theft ring, reselling stolen items from Sephora, Ulta, and others — on Amazon.

Hands Off Your Phone While Driving

Though not part of the new July 1 laws, a recent ruling from a California appeals court in June clarifies that holding a phone for any reason while driving — including using maps — qualifies as distracted driving. To comply with the law and avoid getting pulled over, your phone must be mounted.

Airbnb Hosts Must Disclose All Fees

California is cracking down on hidden fees. Assembly Bill 2202 requires short-term rental hosts, like those on Airbnb, to clearly disclose all additional charges, such as cleaning fees, before final payment.

Any penalties for violating house rules must also be upfront. Hosts who fail to comply could face fines of up to $10,000.

Expanded IVF Insurance Coverage

Senate Bill 729 mandates that most health insurance plans cover infertility diagnosis and treatments, including in vitro fertilization (IVF). The law includes large employer plans (100+ employees) and expands coverage to LGBTQ+ individuals and single parents.

Religious employers, such as churches and nonprofits with religious purposes, are exempt.

 Easier Subscription Cancellations

Thanks to Assembly Bill 2863, it’s now easier for Californians to cancel online subscriptions. Companies can no longer auto-renew without providing clear notice and obtaining explicit consent.

Also, if you signed up through a website, the company must allow cancellation through the same platform.

Drink Lid Requirement at Bars

Starting July 1, bars and nightclubs with Type 48 alcohol licenses (those allowed to serve alcohol without food) must provide drink lids upon customer request — as a safeguard against drink spiking.

Under Assembly Bill 2375, venues must also post signs reading:
“Don’t get roofied! Drink lids and drug test kits available here. Ask staff for details.”
Reasonable fees for lids are allowed.

 Gas Prices Are Going Up

The state gas tax is rising by just over a cent for regular gas and under a cent for diesel:

• Gas: from 59.6¢ to 61.2¢/gallon

• Diesel: from 45.4¢ to 46.6¢/gallon

California drivers now pay nearly 90 cents per gallon in taxes and fees. The average gas price heading into the Fourth of July weekend is $4.59/gallon.

Analysts say due to a drop in global oil prices, the increase may not be felt immediately at the pump.

Mental Health Support for Students

Senate Bill 1063 requires all California public and private schools serving grades 7–12 to print the 988 Suicide and Crisis Lifeline on student ID cards. Schools may also include QR codes linking to local mental health resources and emergency contacts.