Which California labor laws changed for 2026 and who is affected?
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Executive summary
California enacted a broad package of workplace laws taking effect mostly on Jan. 1, 2026, that raise the statewide minimum wage to $16.90/hour, require employers to give a new “Workplace Know Your Rights” notice to all employees by Feb. 1, 2026 and annually thereafter, expand pay transparency and pay-data reporting, and bar many “stay‑or‑pay” training repayment clauses [1] [2] [3] [4]. The changes affect virtually every California employer — with specific new obligations keyed to employer size (e.g., job-posting pay-scale rules apply to employers with 15+ employees; pay-data reporting to employers with 100+ U.S. employees) and to covered worker groups such as gig drivers and private‑sector employees in NLRA-covered roles [3] [2] [5].
1. A sweeping package, not a single law — who’s in scope
California’s 2026 changes are the result of many bills across topics — wage increases, notices, pay reporting, leave, recordkeeping, labor‑relations jurisdiction, AI whistleblower protections, and limits on contract terms — so “who’s affected” depends on the specific statute; in aggregate the new rules touch nearly all employers and most workers in California, with targeted rules keyed to employer headcount or industry for some provisions (e.g., pay‑scale posting for employers with 15+ employees; expanded pay data reporting for employers with 100+ U.S. employees) [3] [2].
2. The headline: minimum wage and pay transparency
Effective Jan. 1, 2026 California’s statewide minimum wage rises to $16.90 per hour for all employers regardless of size, directly affecting hourly workers and employers across sectors [1]. At the same time, pay‑transparency laws are tightened: employers with 15 or more employees must include a pay scale in job postings and the definition of “pay scale” is narrowed to the wage range the employer reasonably expects to pay, changing how recruiters and hiring managers craft listings [3] [6].
3. Workplace Know Your Rights notice — what employers must do
SB 294 (Workplace Know Your Rights Act) requires a standalone written notice to each current employee by Feb. 1, 2026 and to new hires at hire, and annually thereafter; the Labor Commissioner will publish a template by Jan. 1, 2026 and explanatory videos by July 1, 2026. The notice must describe workers’ compensation rights, immigration‑inspection protections, rights to organize and engage in concerted activity, and constitutional rights when interacting with law enforcement in the workplace [2] [7] [8].
4. Pay data reporting, personnel files and civil penalties
SB 464 and related changes expand annual pay data reporting requirements under Government Code §12999, require demographic data to be stored separately from personnel files, and convert optional civil penalties into mandatory ones for failures to file; these rules hit larger employers already in the reporting regime and raise compliance stakes for those with substantial U.S. headcounts [2] [3].
5. Labor relations and gig workers — new enforcement pathways
California moved to expand state enforcement where federal agencies are inactive: AB 288 and companion measures allow the California Public Employment Relations Board (PERB) to hear certain private‑sector NLRA claims and oversee union processes when the NLRB is unable or unwilling to act; separately, the Transportation Network Company Drivers Labor Relations Act grants certain gig drivers collective‑bargaining and concerted‑activity rights [5] [9] [7]. Employers with workers in gig platforms or NLRA‑covered roles should reassess union‑relations exposure.
6. Contracts, “stay‑or‑pay” clauses and training repayments
AB 692 amends contract‑restraint law to bar many “stay‑or‑pay” repayment provisions and strengthens prohibitions on certain pre‑hire or condition‑of‑employment clauses requiring payment to employers or training providers — a direct change for employers that use tuition‑reimbursement or training-repayment clauses [4] [10].
7. Operational compliance obligations: recordkeeping, notices, emergency contacts
New recordkeeping requirements affect public‑works contractors (AB 963) and others; employers must offer current employees a chance to designate emergency contacts by March 30, 2026 and collect such info from hires going forward. Enforcement mechanisms include the Labor Commissioner, the Civil Rights Department, and civil penalties for unpaid wage judgments and other violations [11] [12] [13].
8. What employers and workers should do now
Employers must inventory which statutes apply by headcount and sector, update job postings to include pay scales where required, prepare to distribute the Labor Commissioner’s mandated notice by Feb. 1, 2026, revise contracts to remove prohibited repayment terms, and tighten pay‑data and personnel‑file practices [2] [3] [4]. Workers should watch for the new Know Your Rights notice and may gain broader organizing or whistleblower protections in specified fields [8] [9].
Limitations and competing views: reporting and firm alerts note some changes may face legal challenges — commentators flag AB 288 as “bold but legally vulnerable,” and employer groups like CalChamber and law‑firm advisories emphasize administrative complexity and increased compliance costs [5] [14]. Available sources do not mention the federal government’s future actions in response to these state laws beyond the litigation risk noted (not found in current reporting).