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(323) 652-9451 - LAStarting February 1, 2026, California’s SB 294, the Workplace Know Your Rights Act, will require employers to give every new and current employee a standalone notice explaining their key workplace rights.
The notice must cover workers’ compensation, immigration protections, union activity, and constitutional rights when law enforcement visits the workplace. It must also include a summary of new legal developments under laws enforced by the California Labor & Workforce Development Agency, as identified by the Department of Industrial Relations as “material and necessary.”
The state will provide a model notice that must be shared in the employee’s language and sent to any union representative. Employers must also notify an employee’s emergency contact if the employee is arrested at work. Penalties are steep, up to $10,000.
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Effective January 1, 2026, Assembly Bill 692 bans most “stay-or-pay” agreements. These agreements require employees to repay training, relocation, or similar advanced costs after leaving a job before a designated time. The California legislature sees these clauses as unfair limits on job mobility. Only true loans or legitimate retention bonuses are exempt. Employers should review offer letters, training and relocation agreements, and any repayment terms now. If repayment depends on staying employed, it’s probably unlawful. Replace claw-backs with retention bonuses or tiered incentives that reward commitment instead of penalizing departures. |
Pay equity refers to the idea that people doing essentially the same work should be paid the same, regardless of their sex, race, or ethnicity.
Governor Newsom has signed SB 642, the “Pay Equity Enforcement Act,” expanding California’s Equal Pay Act and related disclosure rules. Labor Code § 1197.5 already bars pay differences based on sex, race, or ethnicity for substantially similar work unless justified by seniority, merit, productivity, or another bona fide factor.
California continues tightening its focus on transparency and pay equity. This new law strengthens enforcement and ties those duties to California’s pay-scale disclosure law (Labor Code § 432.3), requiring employers with 15 or more employees to list pay ranges in all job postings and provide pay information on request.
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In Iloff v. LaPaille (Aug. 2025), the California Supreme Court clarified two key issues. First, liquidated (double) damages for minimum wage violations are not automatic: employers may avoid them only by showing a documented, reasonable effort to comply with wage laws. Mere ignorance is insufficient. Second, employees cannot sue directly under the Healthy Workplaces, Healthy Families Act, but may pursue claims through the Labor Commissioner, the Unfair Competition Law, or PAGA. For employers, the message is clear—classify carefully, document compliance efforts, and preserve records to demonstrate good faith if wage or paid leave disputes arise. |
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On August 4, 2025, the California Court of Appeal, in Hirdman v. Charter Communications, held that outside salespeople qualify as “exempt” under the Labor Code, meaning employers may calculate their paid sick leave at the same rate used for vacation or paid time off. The court rejected the Labor Commissioner’s narrower view that only executive, administrative, and professional employees were “exempt,” emphasizing that “exempt” is a statutory term of art covering all overtime-exempt categories. This published decision provides employers a clearer, more practical method of determining sick-leave pay rates for overtime-exempt employees, reducing compliance uncertainty under California’s paid sick leave law. |
Governor Newsom signed Senate Bill (SB) 648, closing a longstanding enforcement gap in California’s wage and hour law. While the Labor Code already prohibits employers from taking or withholding employee tips, the Labor Commissioner previously lacked authority to issue citations for violations.
Effective January 1, 2026, SB 648 authorizes the Commissioner to investigate complaints of tip theft and pursue civil penalties or legal actions directly against offending employers. This new enforcement tool underscores California’s continued focus on wage integrity and creates additional liability exposure for restaurants, hospitality employers, and any business where gratuities are part of compensation.
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Recognizing more frequent heat exposure threatens employee health, the California Occupational Safety and Heath Administration (Cal/OSHA) issued an Advisory on August 5th, spotlighting mandated worker protections both indoors and outdoors. Outdoor Regulations require employers to provide fresh water, shade when temperatures hit 80°F, and permit cool-down rest breaks on request. Once temperatures reach 95°F, Cal/OSHA imposes stricter rules for agriculture, construction, landscaping, oil and gas, and transport of heavy or agricultural materials. In high heat, employers must also monitor workers for signs of heat illness and maintain effective communication. California’s indoor heat rule applies when temperatures reach 82 °F, unless exposure is brief (15 minutes or less). Employers must provide cool-down areas kept below 82 °F, water, training, emergency procedures, acclimatization for new or returning staff, and a written plan. At 87°(or 82° when facing radiant heat or wearing restrictive clothing), extra steps apply, including monitoring and controls. Missed cool-downs require premium pay. Employers should verify plans, train supervisors, audit hot spots like kitchens and warehouses, document acclimatization, and use an 82°F checklist to reduce enforcement risk. |
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Two new laws effective January 1, 2025, reshaped small-employer leave duties. Assembly Bill (AB) 2499 expanded protected leave when an employee or family member is the victim of certain crimes. Denying or retaliating against such leave is treated as unlawful under the Fair Employment and Housing Act (FEHA), creating discrimination liability. AB 2123 ends the long-standing rule that employees must exhaust vacation before accessing Paid Family Leave (PFL) benefits. Employers must now allow PFL to run independently. Both laws require immediate policy updates and manager training. Even unintentional violations pose risk, especially for small employers with limited HR support or inconsistent leave records. Why highlight this now? Small employers often notice new laws only after guidance or enforcement, hence this August reminder. |
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California is rapidly moving to regulate workplace use of AI and surveillance tools. Pending bills would require written notice before deploying monitoring technology, ban invasive systems like facial or emotion recognition, and prohibit surveillance in private spaces such as bathrooms and break rooms. Employers may also need to maintain and disclose an inventory of automated tools to the Department of Industrial Relations (DIR). The proposed “No Robo Bosses Act,” Senate Bill (SB) 7 mandates human oversight of automated hiring, firing, or promotion decisions. Finally, new Civil Rights Council regulations, effective October 1, 2025, require bias testing, record keeping, and anti-discrimination safeguards. |
Effective July 1, 2025, California’s statewide minimum wage increases to $16.50 per hour, with some cities like San Francisco and West Hollywood exceeding $19.
Employers must apply the highest applicable rate based on work location, update pay stubs and Labor Code section 2810.5 notices, and ensure compliance across all worksites. Wage violations can lead to penalties, PAGA claims, or class actions—especially for multi-location employers.
Learn MoreCalifornia requires nonexempt employees receive a 30-minute unpaid, duty-free, meal break by the end of the 5th hour of work.
However, the Labor Code permits an employee to take an on-duty meal break, but only when the nature of the work prevents relief from duty and there’s a written agreement between employer and employee. This agreement must state the employee can revoke it at any time. The meal period must be at least 30 minutes and is considered paid time.
If an employee revokes their on-duty meal break agreement, they may not be given an on-duty meal break until a new agreement is signed by both the employer and employee.
Learn MoreCalifornia law requires a 30-minute unpaid, duty-free meal break after five hours, and a second after ten hours. The first break can be waived if the shift is six hours or less; the second only if the shift is 12 hours or less and the first was not waived. Waivers must be mutual, voluntary, and written. Violations trigger premium pay.
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