Employer obligations are changing, and the new employment laws for 2026 in California can impact how you present information to your employees and deal with internal human resource issues. These regulations were passed in October 2025, and most of them are taking effect on January 1. Knowing what to expect and having a plan in place can save you time and money in the long run by avoiding lengthy litigation.

With these new California employment laws, it’s important to be prepared for the shift and aim for a smooth transition. These regulations focus on more transparency, employee protection, and raising the minimum wage. As trends in this area become more complicated, it’s good practice to stay informed and know what has changed.

Key Points in the New California Employment Laws

There are several changes to the employment laws that can affect your daily practices with your employees. Reviewing the new regulations can help you stay knowledgeable and informed, but you don’t have to do it alone.

The laws contain complex language and specific actions that employers need to take. Consider consulting with a Fresno employment law attorney who can help you navigate the details and advise you on how to avoid litigation in the future. An experienced lawyer can make all the difference in employment cases.

Here are some of the highlights:

  • The Workplace Know Your Rights Act – SB 294. An employer must inform its employees of their rights in regard to workers’ compensation, unionization, and immigration inspections and protections. These rights must be communicated to the employees at least once a year and in a way they can understand.
  • Pay Equity Enforcement Act – SB 642. If an employer has more than 15 employees, the pay range estimate must be given in a job posting, allowing for more wage transparency.
  • Increased minimum wage. It’s been increased from $16.50 to $16.90. Employers must pay their employees at least minimum wage, or there may be issues with back pay or penalties. From 2022 to 2023, minimum wage violations rose by 56% in Southern California, with up to 1.5 million workers affected.
  • Employment Discrimination – AB 406. This is an expansion of the former discrimination laws. The revision included victims of violence. Employers must give employees paid sick time to attend court proceedings.
  • Contracts in Restraint of Trade – AB 692. When an employee is terminated, they can’t accrue any fees or debt. As an employer, you can’t ask for money from an employee after you’ve fired them.
  • Tips – SB 648. Amending the Labor Code, this allows for employee complaints about tips and gratuity to be investigated. This includes withholding or giving employees tips late.

To Do List for California Employers

Many of these changes can result in consequences for your business, leading to human relations nightmares and an unhappy workforce. Having a strategy in place is essential. Be proactive, and you may avoid headaches in the future.

Here are some steps you can take now to ensure a safe transition with the new employment laws:

  • Update policies to reflect the new laws, highlighting concisely how the policies are different.
  • Share the revised policies with your employees as soon as possible to give them time to understand and ask questions if needed.
  • Review job offers and agreements, including job postings, so you’re providing pay transparency and equality.
  • Refine your onboarding process to allow new employees to understand the importance of open communication, discussion, and asking and answering important questions.
  • Keep meticulous employee records, including emergency contact information, education, and training history, to refer back to, but also for overall documentation purposes.
  • Communicate clear leave policies and provide the new regulation involving paid time leave for court proceedings, if an employee is the victim of a violent crime.
  • Discuss preventive measures with a California employment lawyer, allowing them access to your contracts, agreements, and policies to find any area that may need attention.

Why Choose Us?

At Fishman, Larsen & Callister, we’re familiar with employment laws in California, and we work with employers in many industries. We focus on educating our clients on how to prevent employment litigation. We offer experience and strategic solutions when handling your employment case. Our team works with you to enhance your human resources and employee relations. Founding partner Robert G. Fishman boasts a Martindale-Hubbell ® Peer Rating of AV.

FAQs

Q: How Often Should I Communicate About New Policies to My Employees in 2026 in California?

A: You should communicate new policies with your employees as soon as you’ve rewritten them. They should also be shared with your employees at least once a year or whenever something has been added or changed. Keeping everyone informed and up to date is a helpful way to avoid legal issues.

Q: What Should I Put in My Job Postings According to New Employment Laws in CA?

A: For your job postings, you’ll need to include the typical range of the hourly rate or salary for the position. Applicants need to know what the responsibilities and expectations are for the job. If there’s the possibility of bonuses or stock options, that needs to be in the post. All compensation information must be clearly communicated.

Q: What Do the 2026 New Employment Laws Say About Tips and Gratuity in California?

A: The management of tips and gratuity in the service industry is being more strictly enforced in California, according to the new 2026 employment laws. An employee can file a complaint about not receiving their tips in a timely manner. The state can get involved under the new laws, so it’s important to monitor the distribution of tips in your business, if applicable.

Q: What’s the Minimum Wage in California, and Who Is Exempt?

A: The new minimum wage in 2026 is $16.90. Executive, administrative, and professional roles are exempt from minimum wage. They must meet detailed requirements for this exemption. The salary for exempt employees goes from $68,604 to $70,304 in 2026. This is for 40 hours a week for 52 weeks.

Hire an Employment Lawyer in California

Unlike other practices, our goal is to offer ideas before problems arise. If you need to hire an employment attorney with extensive knowledge and experience, contact Fishman, Larsen & Callister today for a consultation.