Navigating New Laws: What California Nonprofits Need to Know from 2025
By Analiese Rivera
2025 brought one of the most significant waves of legal and administrative updates California nonprofits have faced in recent years. From new security team regulations to DOJ audits and employment law changes, the state continues to refine how ministries operate.
These updates can feel complex, but understanding them helps you stay protected, compliant, and free to focus on what matters most: your calling to lead people and build the Church.
New Oversight of Church Security Teams
Senate Bill 1454, which took effect January 1, 2025, expanded the reach of California’s Bureau of Security and Investigative Services (BSIS) and removed certain exemptions that once applied to faith-based organizations with security teams.
Churches that employ uniformed, unarmed security personnel who interact with the public may now qualify as Proprietary Private Security Employers (PSEs) and must register with BSIS. Their team members may also need to become licensed as Proprietary Private Security Officers (PSOs).
These changes apply when a church’s security personnel:
- Are paid employees, not volunteers
- Wear uniforms and interact with the public
- Are hired directly by the church rather than through a contracted security company
Churches relying solely on volunteer safety teams may still be exempt, as the law is new and enforcement standards are still being developed. If your church uses armed security, those individuals must comply with Private Patrol Operator (PPO) requirements and hold valid firearm permits through BSIS.
Action Steps:
- Review your current security team structure and compensation.
- Seek legal counsel to confirm whether your church qualifies as a PSE or must license PSOs.
- Prepare for record-keeping and training requirements under BSIS supervision.
- Monitor BSIS updates for clarifications as the law evolves.
DOJ Audits and Live Scan Compliance
Under Assembly Bill 506, churches and other youth-serving organizations are required to complete Live Scan background checks and adhere to strict data policies. The California Department of Justice (DOJ) has now begun auditing churches statewide to ensure compliance.
Auditors are reviewing:
- Signed Authorizations: Every individual monitored through Live Scan must have a written, signed authorization renewed annually.
- Active Participants Only: Churches may monitor only those who are currently serving. Monitoring former volunteers or employees is a violation.
- Secure Data Practices: Live Scan records must be securely stored and accessed only by authorized personnel.
According to Church Law Center, noncompliance can result in penalties that may include fines up to $10,000 per violation or misdemeanor charges.
Action Steps:
- Confirm all Live Scan authorizations are current and renewed annually.
- Remove inactive volunteers and staff from monitoring lists.
- Review data-storage policies to ensure privacy and security.
- Register with the DOJ for your ORI (Originating Agency Identifier) if you have not done so.
Firearms and Church Campus Policies
Firearm laws affecting churches in California remain in flux. While Senate Bill 2 sought to classify places of worship as “sensitive places” where firearms would be prohibited (even for concealed-carry permit holders), ongoing litigation (May v. Bonta) has blocked portions of the law.
This means that, as of early 2025:
- Concealed carry may be allowed in churches in some counties, depending on local enforcement and court rulings.
- Churches still retain the right, as private property owners, to prohibit firearms by posting clear signage and communicating their policy to attendees.
- Churches that use armed security personnel must comply with all BSIS or PPO licensing requirements.
Action Steps:
- Establish and document your church’s firearms policy.
- Post visible signs if firearms are not allowed.
- Review local laws and stay informed as court decisions continue to be made.
- Consult legal counsel before making policy changes.
Employment and HR Law Updates
In January 2025, California raised the minimum salary required for employees to be considered exempt from overtime pay. Most staff members must now earn at least $68,640 per year, almost twice the state’s minimum wage, to qualify. While the federal limit is $58,656, California’s higher standard is the one that applies here.
Ministers are typically exempt under separate rules, but church employees, such as office, facilities, or support staff who earn less than the state threshold, must now be treated as non-exempt and eligible for overtime pay.
Other updates:
- Paid sick leave increased to a statewide minimum of five days.
- New clarity on independent contractor classification further limits the use of 1099s for regular church staff roles.
- Employee record retention and notice rules were strengthened.
Action Steps:
- Audit job descriptions and pay rates.
- Reclassify positions that no longer qualify as exempt.
- Update employee handbooks and HR policies to meet 2025 standards.
Property-Tax Exemptions and Annual Filings
Churches in California remain eligible for property-tax exemptions under the state’s Church Exemption program, administered by county assessors and the California State Board of Equalization (BOE).
Key reminders:
- File Form BOE-262-AH by February 15 each year to claim full exemption.
- Late filings may reduce your exemption to only 85% – 90%.
- Leased properties used exclusively for worship may still qualify, but the owner and lessee must file jointly.
- Parking lots used “necessarily and reasonably” for worship services can be included.
Action Steps:
- Review property use annually.
- Mark the February 15 filing deadline on your calendar.
- Coordinate with your county assessor if your property use changes.
Leading with Confidence
The laws have changed, but your mission remains the same. Staying compliant is more than just checking boxes; it’s about how you protect your people, your church, and the vision God has given you.
With clear systems, wise counsel, and trusted partners like StartCHURCH, you can navigate every regulation with peace and keep doing what matters most: building the Kingdom.
If you need to update your bylaws with these firearm, security, youth volunteer, or HR policies, give us a call at 770-638-3444.