Employment laws in California are set to change dramatically in 2026. At Manukyan Law, we’re dedicated to protecting employees from workplace violations, wrongful termination, wage theft, discrimination, and other forms of mistreatment. That’s why we’ve put together this informative article designed to keep you ahead of the curve and prepared to take advantage of some of the most sweeping worker protections to emerge in California in decades.
California Minimum Wage Increase
Minimum wage in California will increase to $16.90 starting January 1, 2026 as part of ongoing efforts to provide a living wage to all Californian workers. Exempt workers must instead be paid a yearly salary of at least $70,304. These requirements will be in place for all employers regardless of headcount.
Tip Theft Protections (SB 648)
SB 648 provides the California Labor Commissioner with authority to investigate and charge employers suspected of unlawfully withholding tips from employees. Fines include up to $100 per affected employee per pay period, increasing to $250 per employee for each subsequent violation. In addition to these penalties, affected employees must be paid the full amount of the tips withheld.
Vehicle Use Reimbursements (SB 809)
SB 809 clarifies that workers who are required to use their own vehicles as part of their job duties are eligible for reimbursement. As part of an ongoing effort to resolve previous disputes, it also provides protection for certain construction truck drivers who have been reclassified as employees.
Pandemic Recall Right Extension (AB 858)
The California labor code already provides recall rights to workers who were laid off during the COVID-19 pandemic. This bill extends this “right-to-rehire” period to January 1st, 2027, making it easier for workers in affected industries to resume their old jobs.
Increased Unpaid Wage Judgment Penalties (SB 261)
This bill increases the liability that employers with unpaid wage judgments may face. Specifically, the amount owed due to a judgment can increase by up to three times if it remains unpaid after 180 days. Public prosecutors are now empowered to pursue these cases, and liability can now extend to successor entities.
Expanded Leave for Victims of Crime (AB 406)
California already provides paid leave to victims of violent crimes. AB 406 expands these protections to provide paid leave if an employee needs to appear in court in relation to a violent crime committed against themselves or a family member. This legislation is designed to make sure employees have enough time to overcome the results of becoming victims of violent crime without facing financial penalties.
Training Records Required in Personnel Files (SB 513)
Employers in California must already keep detailed personnel records for all of their employees. SB 513 expands the requirements for these files to include records of any training an employee has undergone. These training records must be made available to the employee upon request.
Workplace Know Your Rights (SB 294)
This anti-discrimination measure requires California employers to provide each employee with written notice of their rights as a worker, offered in a language that they can read. This notice will be provided by the California Labor Commissioner by January 1st, 2026. SB 294 also requires employers to notify a designated emergency contact if an employee is arrested or detained while at work.
Increased Paid Family Leave (SB 590)
For the purposes of paid family leave, SB 590 expands California’s definition of “family member” to be any designated blood relation. This bill provides up to eight weeks of paid leave for caring for this person if they become seriously ill.
Additional Pay Data Reporting Requirements (SB 464)
Existing California law already requires employers with more than 100 workers to provide pay and demographic data to the California Civil Rights Department. SB 464 expands these requirements by increasing the applicable job categories from 10 to 23 options. It also requires employers to store demographic data and other personnel records separately.
“Stay or Pay” Bans (AB 692)
“Stay or Pay” refers to workplace arrangements in which employees accrue “debt” that they then must repay should they leave their position. This type of debt is usually related to job training, but it can also cover rehiring and training costs for replacement employees, hiring bonuses, and a variety of other costs related to training or retaining employees. AB 692 makes it illegal for employers to recoup these costs, and it prevents employers from providing contracts that include “Stay or Pay” clauses.
Petroleum Worker Permanent Rest Exemption (AB 751)
AB 751 amends a law due to expire on January 1st, 2026, extending it indefinitely. This law pertains specifically to petroleum workers, and it provides an exception to the state’s general policy against on-duty meal periods. These types of meal periods involve remaining on duty in some capacity even while you’re technically on break, and at petroleum facilities they’re necessary so workers can properly respond to disasters.
Recordkeeping for Public Works Projects (AB 963)
AB 963 expands the reporting requirements for employers engaged in public works projects. Records must now be provided to multi-employer trust funds and labor management committees in addition to the Labor Commissioner’s office. This new law is designed to ensure that laborers engaged in public works projects are paid appropriately and have access to all relevant benefits.
Equal Pay Updates (SB 642)
SB 642 is primarily designed to prevent gender discrimination by requiring that pay scales be the same for similar work regardless of the employee’s gender. This law also establishes a three-year statute of limitation for violations of California equal pay law, and it allows affected employees to recover up to six years of back wages.
Fair Employment Enforcement Changes (SB 477)
SB 477 is designed to help the California Civil Rights Department in protecting employees against discrimination violations by extending timelines and expanding applicable procedures for discrimination claims.
Cal-WARN Notice Requirement Additions (SB 617)
This law expands California’s WARN (Worker Adjustment and Retraining Notification) notice policy in the event of layoffs. Many employers must already provide WARN notices if they intend to conduct layoffs, but SB 617 now requires that additional information be included in these notices, including whether the employer intends to coordinate with workforce agencies and contact information for public benefits providers.
Conclusion: Major Overhaul to Employee Protection
California has already led the nation in employee protection for decades, and 2026 adds to this already-comprehensive framework by making it even harder for employers to cheat, deceive, or exploit their workers. Starting in 2026, California workers will have even more tools at their disposal to fight against discrimination and unfair treatment in the workplace.
Count on Manukyan Law to Protect Your Rights
Even with the new protections now provided by the state of California, standing up for your rights as an employee can be an overwhelming process. At Manukyan Law, we’re well-versed on all the intricacies of California labor law, and we stand firmly on the side of employees seeking restitution for unfair practices in the workplace.
With decades of experience in defending employees from discrimination and exploitation, we’re also up-to-date with California’s ever-evolving worker protection regulations. Count on Manukyan Law to stand by your side as you demand fair treatment, reasonable compensation, and the right to live with dignity and freedom as a worker in California.
