Attention California Families – 3 New Laws Impacting Savings in 2025

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As 2025 begins, new laws in California are set to impact families and their finances. These changes, signed into effect by Governor Gavin Newsom and state lawmakers, range from enhanced paid family leave benefits to protections for child influencers and relief from medical debt. Here’s what you need to know about these key updates and how they may shape your financial goals.

Paid Family Leave

One of the most significant changes for 2025 is the increase in paid family leave and disability benefits. Under Senate Bill 951 (SB 951), authored by Senator Maria Elena Durazo, wage replacement rates for these benefits will rise from 60-70% to 70-90%, depending on income.

This change allows workers to take more time off for life events such as illness, childbirth, or bonding with a newborn without facing as much financial strain. Additionally, employers are now prohibited from requiring employees to use vacation time before accessing paid family leave.

Benefits for Families

  • More financial security during medical leave or parental leave.
  • Greater flexibility to recover from illness or care for a newborn.
  • Relief from the stress of managing finances during extended absences.

Protections for Child Influencers

With the rise of social media, many children and teens earn substantial income as content creators. Assembly Bill 1880 and Senate Bill 764 expand the Coogan Act protections (previously designed for child actors) to young influencers.

What the Law Requires

  • Parents or guardians must place a portion of their child’s earnings into a trust.
  • Funds will be accessible to the child when they reach adulthood.

Key Impacts

  • Prevents financial exploitation of young influencers.
  • Ensures children’s earnings are responsibly managed.
  • Offers long-term financial security for children earning from platforms like YouTube, Instagram, or TikTok.

This law ensures that families relying on a child’s digital success will have a safeguard for their child’s financial future, reducing the risk of misuse or mismanagement of funds.

Relief from Medical Debt

Medical debt is a heavy burden for many families, but Senate Bill 1061 brings a significant change starting in 2025. The law prohibits consumer credit agencies from including medical debt on credit reports.

Benefits for Families

  • Medical bills will no longer negatively affect credit scores.
  • Easier access to loans, apartments, and car purchases despite unpaid medical expenses.
  • Peace of mind for families dealing with unexpected medical emergencies.

This change helps families avoid long-term financial damage due to healthcare costs, allowing them to focus on recovery and stability.

Better Financial Future

These new laws reflect California’s efforts to provide families with stronger financial protections. From more generous paid leave benefits to safeguarding young influencers’ earnings and offering relief from medical debt, 2025 brings promising changes.

Staying informed about these updates can help families navigate financial challenges more effectively, ensuring they can take full advantage of these new opportunities and protections.

FAQs

What is the new wage replacement for paid leave?

The replacement rate is now 70-90%, up from 60-70%.

Who is protected under the child influencer laws?

Children earning income from social media platforms.

Can medical debt affect my credit score in 2025?

No, medical debt is excluded from credit reports under the new law.

When can child influencers access their earnings?

They can access their trust funds when they reach adulthood.

Are employers allowed to require vacation use for paid leave?

No, employers cannot require vacation use before paid leave.

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