California’s 2026 Employment Law Updates

What Every Business Needs to Know

California’s legislature has enacted a series of new employment laws for 2026, reshaping workplace obligations and employee protections for businesses of all sizes. 

These changes reflect the state’s ongoing commitment to transparency, fairness, and worker rights. Below is a comprehensive summary of the most impactful updates, along with practical steps for compliance.

Key Changes Include:

  • Employment Repayment Contracts (AB 692): Employers can no longer impose penalties or repayment fees on employees who leave employment within a set period, with limited exceptions for tuition reimbursement and government programs or other conditions.
  • Workplace Know Your Rights Act (SB 294): Mandatory annual written notice of workplace rights for all employees, including notice of protections related to compensation, unionization, and immigration. New employer obligations related to detention or arrest of employees while at work.
  • Paid Sick Leave for Victims of Violence (AB 406): Expanded eligibility and confidentiality for employees and family members affected by crime, plus new coverage for jury duty and court appearances.
  • Paid Family Leave “Designated Person” (SB 590): Employees may now take paid family leave to care for anyone with a close personal relationship, not just traditional family members.
  • Personnel Records (SB 513): Employers must maintain and provide detailed training and education records as part of personnel files.
  • California WARN Notice Requirements (SB 617): Enhanced notice requirements for mass layoffs, including information about food assistance and employer contacts.
  • Bias Mitigation Training (SB 303): New legal protections for employers offering bias mitigation training, clarifying that participation cannot be used as evidence of discrimination.
  • Pay Scale Disclosures (SB 642): More specific requirements for pay scale transparency in job postings and applicant communications.
  • Wage Judgments (SB 261): Increased penalties for delayed payment of wage judgments, with joint liability for successor employers.

What Should Employers Do Next?

  • Review and update employment contracts, handbooks, and policies to reflect new requirements.
  • Prepare to deliver updated workplace rights notices and collect emergency contacts.
  • Ensure compliance with expanded sick leave, family leave, and personnel recordkeeping.
  • Audit job postings for pay scale disclosures and train managers on new procedures.

Stay Ahead of the Curve:

California’s employment laws are evolving rapidly. To protect your business and support your workforce, review your policies now and consult with legal counsel for tailored guidance. For more information or assistance, contact Scali Rasmussen or visit the California Civil Rights Department website.

Nothing contained in this article is, nor should it be, construed as complete recitations of the law, or legal advice. No attorney/client relationship or privilege applies to this communication.