Q: We have relationships over time with customers that renew unless canceled, but now as of July 1 this has changed. It would be appreciated if you would clarify just what is required now?

S.C., Santa Ana

A: Both California and the Federal Trade Commission recently updated the rules that apply to auto-renewals. The rationale is to enhance consumer protections from what are known as “negative option” programs (subscriptions or services that continue indefinitely until the customer actually cancels).

In sum, cancellation is to be made as simple and straightforward as signing-up. Your business is required to obtain a separate and clear consent for auto-renewal terms, not solely for the subscription or contract itself. Records showing the consent are to be retained for at least three years, and you are to send annual notifications.

Failure to comply can result in an enforcement action and fines, and could damage the reputation of your company or business. So it is very important to make sure you get fully up to speed on California’s updated Automatic Renewal Law.

Q: We own three fast food restaurants; each is part of the same well-known chain. There is now a revised minimum wage required in California. Can you fill us in on that? Also, my wife works in health care and we think that minimum too has been changed, right?

W.M., Long Beach

A: Since Jan. 1, most California employees are entitled to an hourly minimum wage of $16.50. This amount is regardless of tips.

As to fast food chain employees — applicable to an operation with 60-plus locations — the minimum wage is $20 per hour (actually this has been in effect since April 2024).

The minimum wage for health care workers, for large employers, is $24 per hour effective July 1, and increases to $25 per hour July 1, 2026.

Note that some (quite a few) California cities and counties have adopted minimum hourly wage rates higher than the state’s baseline. For example, Los Angeles’ is $17.87 per hour; Pasadena’s is $18.04 per hour and West Hollywood’s is $19.65 per hour.

New laws in California

Effective July 1, there are various new laws that took effect in California. My suggestion is go to your web browser, and type in “California, new laws as of July 1, 2025.” These include upfront fee disclosure for short-term rentals, and that California insurance companies are to cover fertility treatments.

Ron Sokol has been a practicing attorney for more than 40 years, and has also served many times as a judge pro tem, mediator and arbitrator. It is important to keep in mind that this column presents a summary of the law, and is not to be treated or considered legal advice, let alone a substitute for actual consultation with a qualified professional.