Starting on January 1, 2026, several new California employment laws will take effect, including significant changes to California law regarding bonuses paid at the outset of employment and additional workplace protections for employees when interacting with immigration agencies or law enforcement agencies in the workplace.
More information on the new employment laws is available below. This alert covers developments that will affect all or most California employers, but additional laws will impact specific industries and situations. Please reach out to Katherine Forster, Margaret Maraschino and David Moreshead for more information.
**New California Employment Laws**
Minimum Wage Increases Effective January 1, 2026
– California state minimum wage will increase to $16.90 per hour and the salary minimum for California exempt-status employees will increase to $70,304 annually.
– The minimum hourly rate of pay for a computer software employee to qualify as exempt from overtime is $58.85 per hour, or $122,573.13 annually.
– The minimum hourly rate of pay for certain licensed physicians and surgeons to qualify as exempt from overtime is $107.17 per hour.
Ban on “Stay or Pay” Clauses: AB 692 continues California’s focus on banning employment contracts that place a restraint on trade. Beginning January 1, 2026, workers cannot enter into employment contracts or agreements which require the worker to repay the employer for any debt—including a signing or relocation bonus—upon...
Four pharmacies in Hudson County agreed to pay more than $4 million to settle claims that they billed federal healthcare programs for medications they never filled, federal prosecutors said. The ph...