On July 1, 2025, several new California laws will take effect. These include mandates for health insurance plans to cover infertility treatments, including IVF. Additionally, vehicle manufacturers will be required to allow drivers to disable remote vehicle access and tracking. Also, companies must provide a clear path for customers to cancel subscription services, and companies using AI in hiring must demonstrate that their criteria are job-related and necessary.
Following is a rundown of those key laws going into effect in July.
Infertility Treatment Coverage
Health insurance plans will be required to cover the diagnosis and treatment of infertility, including in vitro fertilization (IVF).
Senate Bill 729 will require that large group health plans — that is, employers that cover at least 100 people — provide coverage for the diagnosis and treatment of infertility. This includes a maximum of three egg retrievals and unlimited embryo transfers.
The law pertains to approximately nine million Californians enrolled in large group, state-regulated health plans. The new law does not apply to people who get their health coverage from religious employers, or people enrolled in Medi-Cal.
Remote Vehicle Access
SB 1394: Access to connected vehicle service.
Vehicle manufacturers must provide a mechanism for drivers to disable remote access to their vehicles.
Consumer Protection
Companies must make it easy for customers to cancel subscription services, similar to how they signed up. AB 2863 by Assemblymember Pilar Schiavo (D-Santa Clarita Valley) will strengthen consumer rights around subscription services and free trials. Starting July 1, companies must get clear consent before charging customers after a free trial ends, send annual reminders about recurring charges, and make cancellation just as simple as signing up. Customers will receive advance notice of any price changes, allowing time to decide whether to continue the subscription.
AI in Hiring
Employers using AI to filter applicants must demonstrate that their criteria are job-related and necessary. On March 21, the California Civil Rights Council adopted its final regulations regarding automated decision-making systems. In the employment context, automated decision-making systems can include a wide range of tools that employers use to increase efficiency, such as AI systems to assist in hiring, firing, promotion, cost-cutting, and more. In response to businesses’ growing interest in utilizing automated decision systems, California legislators are looking to address legal concerns associated with such systems.
