California is ushering in a new year with a sweeping set of employment laws designed to enhance worker protections and expand employer responsibilities. Starting January 1, 2026, businesses must prepare for significant changes covering pay transparency, worker rights notices, leave laws, wage regulations, and labor relations.
These updates come amid increasing regulatory focus on workplace fairness, equity, and compliance, urging employers to act promptly and strategically to adjust policies and practices to avoid penalties and foster a compliant, productive work environment.
One of the landmark changes is the Workplace Know Your Rights Act, effective February 1, 2026. Employers in California must now provide each employee a standalone written notice highlighting critical labor rights, including workers’ compensation, protections during immigration agency inspections, rights to organize or unionize, and constitutional protections related to interactions with law enforcement at the workplace. This notice must be given upon hire and annually thereafter—ensuring employees are continuously informed of their legal protections.
A major pivot in California employment law is the expansion of pay transparency and equal pay obligations under the Pay Equity Enforcement Act (SB 642). Employers with 15 or more employees are required to include a “good faith estimate” of the salary or wage range in every job posting. The...
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