As California employers enter 2026, employment law compliance is no longer just about having policies in place—it is about being able to prove that the company took documented, reasonable steps to comply with the Labor Code before problems arose. Despite the 2024 PAGA reforms, PAGA filings continued to rise through 2025, and courts are now scrutinizing whether employers can demonstrate proactive compliance efforts to cap penalties and reduce exposure.
A comprehensive employment law audit is one of the most effective ways to meet that standard. When done correctly, an audit helps ensure policies reflect current law, managers are trained on day-to-day compliance obligations, required records are properly maintained, and new statutory requirements—such as updated notice and wage thresholds—are implemented on time. Just as importantly, a well-documented audit creates the evidentiary record employers now need to defend PAGA claims and take advantage of penalty caps under the reformed statute.
Below are five key areas California employers should be reviewing in 2026, along with practical questions designed to identify gaps, prioritize corrective action, and strengthen compliance systems before enforcement or litigation occurs.
1. Hiring Practices
Seoul Seodaemun Police Station is investigating a case involving YouTuber Kim Ou-joon, who was reported for allegedly spreading false information claiming that Prime Minister Kim Min-seok did not ...