A new year dawns upon us, and with it, there are a significant number of changes to California’s employment laws that organizations need to gear up for in 2026. CA’s upcoming labor law changes are set to redefine the regulations that govern the realm of employment, and any unplanned violations can leave businesses vulnerable to legal action. Understanding the full scope of California’s SB 294 notice for 2026 or other similar regulations can help businesses prepare for what’s to come, whether it’s the rising minimum wage for non-exempt employees or the expansion of employee rights.
California’s list of new employment laws goes into effect in 2026, and they provide key changes for employers and HR teams to review. (Image: Freepik)
Exploring the Changes to California’s Employment Laws in 2026
CA’s labor law updates for 2026 introduce a few different changes that alter the current regulations under which employers and employees operate, and many of them go into effect as soon as January 1. This leaves very little time to prepare for the changes, but it is still possible to make budgetary adjustments and compliance updates to avoid trouble with employees or state authorities.
California’s Wage Changes to Look Out for in 2026
To start with, as per California’s new employer laws for 2026, the minimum wage for non-exempt employees is going up slightly from $16.50 to $16.90 per hour. The minimum wage to qualify for exempt status is also going up, rising from $68,640 to $70,304 per year. There are also special exemptions to look out for, particularly among computer professionals, medical professionals, and certain commissioned salespeople, so HR teams need to review their employee base to understand how they will be affected in comparison to previous standards.
SB 294 Notice 2026: Workplace Know Your Rights Act
Employers will be required to issue written notices to employees describing their rights when they are hired and for all existing employees as well, effective February 1, 2026. The Labor Commissioner is expected to release a template that employers can use to share with their employees, and failing to do so can result in penalties of $500 per employee for each day of violation. This process of notice releases is expected to continue annually.
As per California’s SB 294 notice for 2026, employees will also be provided with the opportunity to nominate an emergency contact to ensure that employers have a fixed point of contact for any possible detentions and arrests. With the rise of ICE raids and other immigration checks, enforcement of the regulation is a must for all employers who want to stay prepared.
California AB 692 Notice: Prohibition Against Workers Contracting to Repay Debts
The AB 692 regulation puts an end to “Stay or Pay” contracts, where employers can bind employees into staying for longer periods to pay off the expense or “investment” into their employment. While this type of contract locks workers into paying off apparent debts to the employer, the regulation ensures that employees aren’t forced into working for the organization with threats of financial penalties hanging over them.
There are expectations for certain repayment contracts, however, which makes it essential for employers to review the terms to understand where the boundaries lie.
Senate Bill 59: Expansion of Paid Family Leave Coverage
Under regulations for Paid Family Leave allowances for employees, workers now have more room to take time off to care for a “designated person” that traditional regulations may not consider. Employees bear the responsibility of indicating how the designated individual is blood-related or how their association is familial.
SB 642: Pay Transparency and Equity
Another major consideration under California’s 2026 employment laws is that employers with 15 or more employees will now be required to add an estimate of the wage range for their job postings. The enforcement of pay transparency regulations has faced considerable challenges in the US and beyond, but this does move us one step closer to the goal post. Employers must also maintain careful records of each job title and the wage rate more carefully.
Consult with Experts to Ensure Your Organization Is Compliant with CA’s 2026 Labor Law Changes
While this list of regulations introduces some of the key employment laws to look out for in California in 2026, it is important for employers to dive deeper to understand their enforcement carefully. As the Workplace Know Your Rights Act 2026 demands, not only do employers need to stay on their toes with regard to regulations that affect them, but they also need to communicate them to workers.
Recording employment data and ensuring all filings are in order are essential regardless of whether these regulations apply to your business, but reviewing them regularly to ensure nothing is missed never hurts. Further regulations on AI use and transparency may emerge in the next year, making compliance oversight a continuous process.
There are a few other niche laws that may apply to your business, such as SB 464, which requires organizations with over 100 employees to report annual pay data to the Civil Rights Department (CRD). Similarly, SB 648 provides additional safeguards to ensure that employees are able to receive their tips without any detractions from employers, and SB 858 provides additional regulations for hospitality workers. Legal experts, HR leaders, and audit teams can help with compliance checks to ensure your business thrives as an example of an honest one.
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