Governor Gavin Newsom signed 794 out of 917 bills this year, including several affecting labor and employment. Key new laws are highlighted below; most will become effective January 1, 2026. Of note, AB 406, which expands the reasons for use of California Paid Sick Leave under the Healthy Workplaces Healthy Families Act of 2014 (HWFA) was effective in part on October 1, 2025. Some of these new laws will not require compliance until 2027, such as SB 464, which expands Pay Data Reporting, or 2028, such as SB 590, which expands the Paid Family Leave program. While not all of the laws below will impact every employer, it is important for employers to determine those that are applicable to their business to avoid penalties or litigation.

AB 250 – Extension of the Statute of Limitations for Sexual Assault Claims
This new law takes effect on January 1, 2026, and permits adult survivors of sexual assault to file a lawsuit between January 1, 2026 and December 31, 2027, if it would have been previously barred by the statute of limitations. The lawsuit may be against either an individual perpetrator or an institution engaged in or attempting a “cover-up” of a sexual assault. This new law defines “cover-up” as a “concerted effort to hide evidence relating to a sexual assault that incentivizes individuals to remain silent.” This new statute of limitations also applies to related claims arising from the sexual assault, including wrongful termination and sexual harassment.

AB 288 – PERB...

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