PAGA Notice Changes Coming

California is moving to tighten PAGA notice requirements, raising the bar for specificity before a claim can proceed. Proposed regulations from the California Labor and Workforce Development Agency would require employees to include detailed facts, legal theories, and identification of affected employees—curbing boilerplate notices.

The rules are not yet in effect (comment period closed March 2026), but likely later this year. Employers should evaluate every PAGA notice with their employment law counsel early and consider challenges to deficiencies.

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Mandatory Arbitration Takes Backseat to Sexual Harassment and Assault Claims

Many employers require employees to agree in writing that any dispute will be resolved out of court by arbitration. However, The Ending Forced Arbitration of Sexual Assault and Sexual Harassment Act allows employees alleging sexual harassment or assault to elect to proceed in court notwithstanding a signed arbitration agreement.

Recent authority confirms that the statute is being applied broadly—often eliminating arbitration for entire lawsuits, not just harassment claims. In Casey v. Superior Court, the court held that where a complaint includes a qualifying harassment claim, the arbitration agreement is unenforceable as to all claims in the action, and employers cannot contract around that result.

This reflects a clear litigation trend heading into 2026: plaintiffs are using harassment allegations as a gateway to avoid arbitration altogether, and courts are largely permitting it.

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Expansion of Workplace Violence Restraining Orders

Employers should take any threat of workplace violence seriously. One tool to prevent violence is to seek a workplace restraining order. The practical reach of the California statute providing for Workplace Violence Restraining Orders, Code of Civ. Procedure § 527.8, is expanding. In County of Los Angeles v. Niblett, a California appellate court last year upheld a three-year restraining order based on aggressive, escalating conduct—including shouting, close physical intimidation, and references to workplace violence—without an explicit threat.

The decision confirms courts will act on credible intimidation and escalation patterns, not just overt threats.

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The Craigie Law Firm Prevails on Trade Secret Trial

On March 23rd, a jury in the Los Angeles Superior Court returned a verdict in favor of our client, Skilled Wound Care, against its former employee. The successful claims included misappropriation of trade secrets, intentional interference with contractual relations and prospective advantage and breach of contract.

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If Test is Met, Nonprofits Can Use Volunteers Without Violating California Wage Laws

Many nonprofits must rely on individuals volunteering their time in lieu of a paid staff. Last month, a California appellate court, in Spilman v. The Salvation Army, adopted the following two-part test to relieve nonprofits of potential wage and hour liability:

Did the worker freely agree to serve for personal or charitable purposes, not compensation, and is the nonprofit’s use of unpaid labor a subterfuge to evade wage laws.

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Are You Using AI to Make Employment Law-Related Decisions? Read this.

I previously boasted how much our firm is leveraging AI to provide our clients greater efficiency and most savings.

This is only half the story. Although we were early adopters of AI technology for improving our practice, and we believe it will transform the practice of law (and everything else), we have serious trust issues with AI bots–and you should too!

To say that AI occasionally gives us wildly incorrect information is a major understatement. If employers rely too heavily on AI without having a working, up-to-date knowledge of federal, state and local employment laws, or without fully confirming accuracy of the advice, the risks are huge.

So, we caution employers against using AI alone to make important employment law-related decisions, at least as the technology currently exists. Pick up the phone and confirm or clarify with us that the advice you are getting from your AI bot will help, not hurt you.

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We’re Saving Clients Money By Incorporating AI Into Our Practice

Like everyone, we are awestruck by this thing called Artificial Intelligence (AI). It’s crazy, right? Civilization is turning a page.

We first want to share with our clients that we leverage AI responsibly, ethically and judiciously to enhance efficiency and reduce attorney fees wherever possible. We use AI to assist in conducting preliminary legal research, early document drafting, revision, and strategy development.

We aim to save our clients as much as 20% of attorney fees over the year by our incorporation of AI into our practice. As AI evolves, we will evolve with it and continue to pass savings on to our clients.

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Increased Job Posting Transparency Required

Starting January 1, 2026, Senate Bill (SB) 642 tightens California’s pay-equity and transparency rules. Employers must include a genuine, good-faith salary range in every job posting, not a placeholder or open-ended figure.

The law also expands the Equal Pay Act by adding “another sex” as a protected category and broadening “wages” to include bonuses, benefits, stock options, and allowances. It lengthens the statute of limitations for pay-equity claims, increasing long-term exposure for employers and the need for careful compensation audits.

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Mandatory Workplace “Know Your Rights” Notice Starting February 1st

The compliance deadline for compliance with new California mandatory workplace “Know Your Rights” notice requirement is February 1, 2026.

More specifically, the new law requires giving a standalone written notice to all employees and new hires at hire. The notice addresses wage-hour, discrimination, retaliation and other issues. Penalties can reach $10,000 per violation, making advance planning critical.

Good news: compliance is not difficult! The Department of Industrial Relations (DIR) has issued a template you can download and distribute to employees. A Spanish translation is also available. Both are available at the DIR website, https://www.dir.ca.gov/dlse/Know-Your-Rights-Notice/Know-Your-Rights-Notice-English.pdf

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Employee Handbooks for Multi-State Employers

Employers sometimes ask how to provide a comprehensive Employee Handbook to employees across multiple states, where the laws differ dramatically from California.

This is an easy fix and we do it all the time: provide an addendum to the California Handbook identifying the “exceptions” to the California Handbook for every state in which an employee performs work. Since California has a very comprehensive body of employment law, the exceptions for other states tend to be minimal.

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Get Ready for New Minimum Wage

Starting January 1, 2026, California’s statewide minimum wage will rise from $16.50 to $16.90/hour for all employers.

That increase also bumps the minimum exempt-employee salary to $70,304/year. Recall certain exempt-employee categories, such as the Executive, Administrative and Professional exemptions require the exempt employee earn a monthly salary that is no less than twice the state minimum wage for full-time employment (defined as 40 hours/week).

Importantly, many cities (e.g., Los Angeles, San Francisco, Emeryville) maintain higher local minimum wages, sometimes well above the statewide minimum. Be sure to confirm you are meeting the new wage requirement for your specific location.

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The Workplace Know Your Rights Act

Starting 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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