It’s that time of year again! The California legislature has been quite busy enacting and Governor Newsom has signed into law several new laws affecting California employers. As 2025 winds down, here are 10 new laws California employers should watch out for in 2026.
Minimum Wage: California’s state minimum wage increases to $16.90 per hour for non-exempt employees, regardless of size (several local governments have higher minimum wages); the minimum salary for exempt employees increases to $70,304 per year.
Bias Mitigation Training: SB 303 amends the Fair Employment and Housing Act (FEHA) to provide that an employee’s assessment, testing, admission or acknowledgment of their own personal bias — made in good faith or as part of a bias mitigation training — does not constitute unlawful discrimination. This new law is meant to address concerns that bias-related training information could be misused to discriminate against employees.
Pay Data Reporting: SB 464 amends California’s pay data reporting law to require employers with 100 or more employees to collect and store separately from employees’ personnel files, the demographic information gathered by an employer or labor contractor for purposes of submitting annual pay data reports. SB 464 further amends the law to require a court to impose a mandatory civil penalty against an employer who fails to file a pay data report requested by the Civil Rights Department. Starting January 1, 2027, SB 464 will require employees to report data across 23 job categories, more than double the current 10.
Equal Pay Act: SB 642 amends California’s Equal Pay Act to clarify that “pay scale,” for the purposes of job-posting disclosures, means “the salary or hourly wage range that the employer reasonably expects to pay for the position upon hire.” Further, the law defines wages to include stock options and other forms of compensation not previously specified in the law.
WARN Act: SB 617 amends the California WARN Act to require employers to include in the WARN notice whether the employer plans to coordinate services through the local workforce development board or another entity, and information regarding the statewide food assistance program known as CalFresh. The notice also must provide the email and telephone number for the local workforce development board and a description of the rapid response activities offered by the local workforce development board, as well as a functioning email and telephone number of the employer which the impacted employees may use to contact the employer.
Workplace Protections for Victims of Violence: AB 406 provides that an employee may use paid sick leave to take protected, unpaid leave if the employee or a family member is a victim of certain crimes and is attending judicial proceedings (including delinquency proceedings, post arrest release decisions, pleas, sentencings, postconviction release decisions, or any proceeding where a right of the employee or family member is an issue). For the purpose of this new provision, a “victim” is a person against whom a violent felony, serious felony, and/or felony theft or embezzlement is committed, as well as a person who suffers direct or threatened physical, psychological, or financial harm due to the commission or attempted commission or specific crimes or delinquent acts.
Workplace Know Your Rights Act: SB 294 provides that employers must provide each employee with a stand-alone, written notice summarizing employees key rights, including: 1) the right to workers’ compensation benefits; 2) the right to be notified of immigration-agency inspections; 3) protections against “unfair immigration-related practices”; 4) the right to organize a union or engage in concerted activity; 5) constitutional rights when interacting with law enforcement at the workplace; 6) information on new legal developments deemed material by the Labor Commissioner; and, 7) a list of relevant enforcement agencies. This notice must be provided by February 1, 2026, and every year thereafter. The Labor Commissioner must create and update a template notice by January 1, 2026. In addition, by March 1, 2026, employees must be allowed to name an emergency contact to be notified in case of their arrest or detention during work.
Employee Debt Repayment Limitation: AB 692 prohibits employment contracts that require employee to repay a debt if their employment ends. Exceptions are provided for 1) contracts entered into under a federal, state, or local loan repayment assistance or forgiveness program; 2) contracts to repay the cost of tuition for a transferrable credential; 3) contracts related to approved apprenticeship programs; 4) contracts for discretionary or unearned payments at the beginning of employment and not tied to specific job performance criteria; and, 5) contracts relating to the lease, finance or purchase of residential property.
Personnel Records Inspection: SB 513 provides that an employee’s right to inspect and receive copies of their personal records relating to the employee’s performance or any grievance concerning the employee, to include records relating to the employee’s education and training. In addition, an employer who maintains education and training records must ensure that the records include the employee’s name, the name of the training provider, the duration and date of the training, the core competencies of the training (including skills in equipment or software), and the resulting certification or qualification.
Independent Contractors and Employee Vehicle Business Expense: SB 809 provides that mere ownership of a vehicle, whether it is a personal or a commercial vehicle, used by a person in providing labor or services for pay does not make that person an independent contractor. The law also provides that the duty of an employer to indemnify their employees for all necessary expenses or losses applies to the use of a vehicle owned by an employee and used by that employee in the discharge of their duties. The law also creates a Construction Trucking Employer Amnesty Program by which contractors may avoid penalties if they enter into a settlement agreement negotiated by or approved by the Labor Commissioner prior to January 1, 2029, in which the contractor agrees to properly classify all drivers performing construction work as employees and pay all wages, benefits and taxes owed.
Dive Deeper on December 9
Join us on Tuesday, December 9, as we break down these impactful changes and offer practical strategies during our webinar, California Compliance Countdown: 2026 Employment Law and Wage & Hour Updates. Our Labor & Employment team will unpack these and other key developments for employers navigating California’s complex legal landscape. Whether you’re based in California or operate nationally with California-based employees, understanding these updates is critical to staying compliant and minimizing risk.
