On September 29, 2004, California Governor Schwarzenegger signed Assembly Bill 1825 (AB 1825), requiring California organizations with 50 or more employees to provide supervisors with two hours of sexual harassment training every two years.

The employee count includes temporary service employees and independent contractors. Since the law does not specify that the 50 employees must be within the state, it would apply to California employers with 50 total employees including those outside the state.

Training must be provided to all employees who have "supervisory authority," a broadly defined term in California. It generally includes anyone having the authority to exercise independent judgment to: hire, transfer, suspend, lay off, recall, promote, discharge, assign, reward, or discipline other employees; direct the work of other employees or adjust their grievances; or effectively recommend any of these actions. Therefore, employees who make recommendations to managers about such matters must receive training if their recommendations are likely to be acted upon.

The training must include information and practical guidance regarding federal and state sexual harassment laws, including harassment prevention and correction, and remedies available to victims. The training must be "interactive," making it unlikely that video training would be sufficient without discussion, role-playing, and a question and answer session, or other similar techniques led by a qualified trainer (in a classroom setting). Web-based training that includes interactive components provided by qualified organizations such as interactive quizzes and/or testing will meet the law's requirements.

Meeting these requirements neither provides a defense to a sexual harassment claim nor does failure to do so establish liability for harassment under the Fair Employment and Housing Act. However, failure to do so may be looked upon by a court as grounds for punitive damages in a sexual harassment lawsuit. In any event, the Department of Fair Employment and Housing may order a non-compliant employer to provide the training, even after damages have been levied.