As we move toward 2026, California employers face a number of significant new labor and employment laws. Staying ahead of these changes is critical for compliance, employee relations, and operational planning. Below are several of the most notable laws coming into effect — and why you should plan to join our annual Employment Law Update webinar on December 10th for full guidance.
What’s Coming in 2026
Pay-Scale Disclosure & Equal-Pay Enhancements (SB 642): Employers must update job postings and internal communications to include a “good-faith estimate” of salary or hourly wage at hire. SB 642 also extends the statute of limitations under the California Equal Pay Act to three years and allows recovery of lost wages for up to six years.
Annual “Know Your Rights” Employee Notice (SB 294): Beginning February 1, 2026, employers are required to provide all employees – including new hires – with an annual notice detailing worker protections, including immigration-related rights, and informing employees about designating emergency contacts in case of workplace detainment. Employers must also maintain related records.
Ban on Certain “Stay-or-Pay” Contracts (AB 692): Effective January 1, 2026, this law restricts employer agreements that require employees to repay training or hiring bonuses upon termination, except under specified conditions. A review of current incentive and bonus agreements is advised to ensure compliance.
Expanded Enforcement & Private-Sector Collective Bargaining Rights (AB 288): The California Public Employment Relations Board (PERB) will extend its jurisdiction to handle unfair-practice charges in select private-sector settings and oversee union elections under specific circumstances, calling for a reassessment of labor relations strategies.
Broader Pay-Data Reporting & Mandatory Penalties (SB 464): Stricter penalties will apply for noncompliance with pay-data reporting obligations, with an increased number of required job categories beginning in 2027.
Additional Updates: These include an expanded victims’ leave law (AB 406), enhanced reporting requirements for layoffs and relocations (SB 617), and increased penalties for unpaid wage judgments (SB 261).
These legislative updates go beyond administrative adjustments—they influence recruiting, wage structuring, contract terms, recordkeeping, and labor relations. Delaying updates to policies and processes can expose your organization to compliance risks, costly litigation, and penalties. Taking proactive steps now paves the way for seamless implementation and operational stability in 2026.
To help you fully prepare for these changes and more, we invite you and your team to join me, Diana Dix, and Derek W. Paradis, Partner at Higgs | Fletcher | Mack for the Annual Employment Law Update Webinar on December 10th at 10:00 am (PT).
During this session, we will:
- Break down each key law effective in 2026
- Address common mistakes that lead to liability
- Provide practical compliance strategies.
This webinar is designed for HR professionals, operations managers, and business leaders alike—anyone responsible for managing employment compliance and risk. Don’t wait until January 2026 – the best time to prepare is now.
Secure your spot today and empower your team with the insights needed to navigate the evolving California employment landscape confidently. At Cavignac, we are committed to helping you protect what matters most by delivering clear, actionable guidance you can trust. We look forward to partnering with you on this journey toward compliance and operational success.
