{"id":340602,"date":"2025-12-12T15:49:48","date_gmt":"2025-12-12T15:49:48","guid":{"rendered":"https:\/\/peraltafinancing.com\/business\/legal\/california-labor-and-employment-law-updates-for-2026-employers-lawyers-blog\/"},"modified":"2025-12-12T15:49:48","modified_gmt":"2025-12-12T15:49:48","slug":"california-labor-and-employment-law-updates-for-2026-employers-lawyers-blog","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=340602","title":{"rendered":"California Labor and Employment Law Updates for 2026 | Employers&#8217; Lawyers Blog"},"content":{"rendered":"<p> <br \/>\n<\/p>\n<div>\n<div id=\"attachment_2832\" style=\"width: 160px\" class=\"wp-caption alignright\"><img loading=\"lazy\" decoding=\"async\" aria-describedby=\"caption-attachment-2832\" class=\"size-thumbnail wp-image-2832\" src=\"https:\/\/www.employerslawyersblog.com\/wp-content\/uploads\/2024\/11\/bouka-adam-150x150.jpg\" alt=\"\" width=\"150\" height=\"150\" srcset=\"https:\/\/www.employerslawyersblog.com\/wp-content\/uploads\/2024\/11\/bouka-adam-150x150.jpg 150w, https:\/\/www.employerslawyersblog.com\/wp-content\/uploads\/2024\/11\/bouka-adam-300x300.jpg 300w, https:\/\/www.employerslawyersblog.com\/wp-content\/uploads\/2024\/11\/bouka-adam.jpg 500w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\"\/><\/p>\n<p id=\"caption-attachment-2832\" class=\"wp-caption-text\">Adam Bouka<\/p>\n<\/div>\n<p>By\u00a0<a href=\"https:\/\/www.hollandhart.com\/aebouka\">Adam Bouka<\/a><\/p>\n<p>As we move into 2026, California continues its trend of enacting expansive and complex new employment laws. The legislative updates for 2026 span a wide range of critical workplace issues, including pay transparency, layoffs, training repayment requirements, workplace rights notices, protected leave, minimum wage, and the increasingly regulated use of artificial intelligence in employment decisions. Employers should promptly update policies, agreements, and HR practices to align with these significant changes. Below is a summary of the most impactful new laws and what employers need to know.<\/p>\n<p><strong><em>Training Repayment and \u201cStay-or-Pay\u201d Restrictions<\/em><\/strong><\/p>\n<p>AB 692 establishes one of the most consequential changes for 2026 by banning most hiring-related \u201cstay-or-pay\u201d repayment provisions. Employers may no longer require workers to reimburse training costs, repay signing bonuses based on early resignation, or pay \u201cquit fees,\u201d unless the repayment fits within narrow statutory exceptions such as certain legally required training, government-backed educational programs, or approved apprenticeships. Agreements imposing prohibited repayment obligations are void, and employees may seek statutory damages and attorneys\u2019 fees.<span id=\"more-2947\"\/><\/p>\n<p><strong>Employer action:<\/strong>\u00a0Review and revise offer letters, signing bonus agreements, training reimbursement policies, and relocation repayment provisions to ensure they do not contain repayment-for-resignation terms.<\/p>\n<p><strong><em>New Mandatory \u201cKnow Your Rights\u201d Notice<\/em><\/strong><\/p>\n<p>Beginning February 1, 2026, SB 294 requires employers to distribute a new \u201cKnow Your Rights\u201d notice to all current employees annually and to all new hires at the time of hire. The notice will cover workers\u2019 compensation rights, immigration-related protections, labor-organizing rights, and rights related to interactions with law enforcement. Employers must retain proof of distribution for three years.<\/p>\n<p>The law also requires employers to collect and maintain employee emergency contacts by March 30, 2026, and to notify such contacts if an employee is arrested or detained at the worksite under certain circumstances.<\/p>\n<p><strong>Employer action:\u00a0<\/strong>Update and properly distribute the new notice forms.<\/p>\n<p><strong><em>Expanded CalWARN Notice Requirements<\/em><\/strong><\/p>\n<p>SB 617, effective January 1, 2026, substantially expands the informational content required in California \u201cCalWARN\u201d notices. Employers must now include:<\/p>\n<ul>\n<li>Specific language describing the availability of \u201crapid response\u201d services;<\/li>\n<li>Confirmation of whether the employer is coordinating such services with the regional workforce development board;<\/li>\n<li>Information on eligibility for CalFresh food assistance programs; and<\/li>\n<li>Updated employer and local workforce board contact information.<\/li>\n<\/ul>\n<p><strong>Employer action:<\/strong>\u00a0Employers conducting layoffs or plant closures should update their CalWARN templates and factor these new requirements into RIF planning.<\/p>\n<p><strong><em>Equal Pay and Pay Transparency Revisions<\/em><\/strong><\/p>\n<p>California continues to refine pay transparency and pay equity obligations through SB 642, which takes effect January 1, 2026. Key changes include:<\/p>\n<ul>\n<li>Narrowing the definition of a \u201cpay scale\u201d to the actual range an employer reasonably expects to pay upon hire;<\/li>\n<li>Broadening the definition of \u201cwages\u201d to include bonuses, commissions, equity awards, and other forms of non-base compensation;<\/li>\n<li>Replacing \u201copposite sex\u201d with \u201canother sex\u201d to reflect coverage for non-binary employees; and<\/li>\n<li>Extending the statute of limitations to three years and allowing up to six years of back-pay recovery for Equal Pay Act violations.<\/li>\n<\/ul>\n<p><strong>Employer action<\/strong>: Employers should ensure posted pay ranges reflect accurate hiring practices and should revisit pay equity audits in light of the expanded wage definition.<\/p>\n<p><strong><em>Strengthened Pay Data Reporting<\/em><\/strong><\/p>\n<p>Under SB 464, pay data reporting becomes more rigorous starting in 2026, including:<\/p>\n<ul>\n<li>Mandatory civil penalties for non-compliance;<\/li>\n<li>A requirement to maintain demographic data segregated from personnel files; and<\/li>\n<li>New expanded job categories\u2014growing from 10 to 23\u2014mandatory beginning in 2027.<\/li>\n<\/ul>\n<p><strong>Employer action:<\/strong>\u00a0These changes will require alignment between HRIS systems, job architecture, and compensation teams.<\/p>\n<p><strong><em>Workplace Notices, Records, and Personnel File Rights<\/em><\/strong><\/p>\n<p>SB 513 expands an employee\u2019s right to access personnel records to include detailed education and training records, such as:<\/p>\n<ul>\n<li>Training providers;<\/li>\n<li>Dates and duration of courses;<\/li>\n<li>Core competencies; and<\/li>\n<li>Certifications earned.<\/li>\n<\/ul>\n<p>Failure to comply may result in misdemeanor liability, increasing the importance of disciplined, centralized training documentation practices.<\/p>\n<p><strong>Employer action<\/strong>: Update policies regarding employee access to personnel records.<\/p>\n<p><strong><em>Minimum Wage Increases<\/em><\/strong><\/p>\n<p>Effective January 1, 2026, the California minimum wage increases to $16.90 per hour, raising the minimum exempt salary threshold to at least $70,304 annually (higher for certain industries or local jurisdictions).<\/p>\n<p><strong>Employer action:<\/strong>\u00a0Employers should prepare for adjustments to pay ranges, overtime calculations, and wage statements.<\/p>\n<p><strong><em>Tips and Gratuities Enforcement<\/em><\/strong><\/p>\n<p>SB 648, effective January 1, 2026, strengthens protections for tipped employees and authorizes new enforcement mechanisms. Employers must:<\/p>\n<ul>\n<li>Distribute credit-card tips no later than the next regular payday;<\/li>\n<li>Maintain detailed tip records; and<\/li>\n<li>Avoid any deductions from tips, including credit-card processing fees.<\/li>\n<\/ul>\n<p>The Labor Commissioner is authorized to investigate and pursue civil actions related to withheld gratuities, making compliance essential for hospitality and service employers.<\/p>\n<p><strong>Employer action<\/strong>: Employers in the hospitality industry must update all payroll processes.<\/p>\n<p><strong><em>Expanded Crime-Victim Leave and Jury Duty Protections<\/em><\/strong><\/p>\n<p>Under AB 406, California expands protected leave rights for crime victims and certain family members, strengthens anti-retaliation protections, and clarifies expectations around reasonable advance notice for jury duty.<\/p>\n<p><strong>Employer action:<\/strong>\u00a0Employers should ensure victim-related and jury-related leave policies reflect these updated protections.<\/p>\n<p><strong><em>Artificial Intelligence and Automated Decision-Making Systems<\/em><\/strong><\/p>\n<p>California continues to address workplace uses of AI through new FEHA regulations, effective October 1, 2025, with practical compliance implications throughout 2026. Employers using algorithmic tools in hiring, promotion, testing, or performance evaluation must:<\/p>\n<ul>\n<li>Provide required notices to applicants and employees;<\/li>\n<li>Evaluate automated systems for discriminatory effects;<\/li>\n<li>Maintain decision-making data and vendor documentation for at least four years; and<\/li>\n<li>Ensure that third-party vendors\u2019 tools comply with FEHA, as employers may be responsible for discriminatory outcomes.<\/li>\n<\/ul>\n<p><strong>Employer action<\/strong>: Employers should assess all automated hiring and employment-related systems for compliance with these new requirements.<\/p>\n<p><strong><em>What Employers Should Do Now<\/em><\/strong><\/p>\n<p>California employers should prepare for 2026 by:<\/p>\n<ul>\n<li><strong>Refreshing policies and agreements<\/strong>\u00a0to align with new requirements on pay, leave, workplace conduct, and technology.<\/li>\n<li><strong>Updating required notices and templates<\/strong>, including onboarding materials and layoff communications.<\/li>\n<li><strong>Adjusting payroll and HR systems<\/strong>\u00a0for new wage rates and expanded reporting obligations.<\/li>\n<li><strong>Training managers and HR staff<\/strong>\u00a0on updated rights, responsibilities, and compliance expectations.<\/li>\n<li><strong>Strengthening documentation and processes<\/strong>\u00a0to ensure accurate recordkeeping and consistent policy application.<\/li>\n<\/ul>\n<p>Taking these foundational steps will help employers stay compliant and navigate the significant legal changes taking effect in 2026.<\/p>\n<div class=\"printfriendly pf-button pf-button-content pf-alignleft\">\n                    <a href=\"#\" rel=\"nofollow\" onclick=\"window.print(); return false;\" title=\"Printer Friendly, PDF &amp; Email\"><br \/>\n                    <img decoding=\"async\" src=\"https:\/\/www.employerslawyersblog.com\/wp-content\/uploads\/2016\/08\/share-icons.jpg\" alt=\"Print Friendly, PDF &amp; Email\" class=\"pf-button-img\" style=\"\"\/><br \/>\n                    <\/a>\n                <\/div>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"<p>Adam Bouka By\u00a0Adam Bouka As we move into 2026, California continues its trend of enacting expansive and complex new employment laws. The legislative updates for 2026 span a wide range of critical workplace issues, including pay transparency, layoffs, training repayment requirements, workplace rights notices, protected leave, minimum wage, and the increasingly regulated use of artificial [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":298984,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[97],"tags":[3767,531,13856,18224,15371,12685,14075,12572],"dealstore":[],"offerexpiration":[],"class_list":["post-340602","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-legal","tag-blog","tag-california","tag-employers","tag-employment","tag-labor","tag-law","tag-lawyers","tag-updates"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.4 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>California Labor and Employment Law Updates for 2026 | Employers&#039; Lawyers Blog - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=340602\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"California Labor and Employment Law Updates for 2026 | Employers&#039; Lawyers Blog - Som2ny Network\" \/>\n<meta property=\"og:description\" content=\"Adam Bouka By\u00a0Adam Bouka As we move into 2026, California continues its trend of enacting expansive and complex new employment laws. 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