As we turn the page toward 2026, California employers, including home furnishings retailers, are once again preparing for a fresh round of compliance updates. While this year’s changes are not as sweeping as some in the past, they still require timely attention. If your store has kept up with handbook revisions and HR best practices over the last few years, you’ll likely find the 2026 updates more manageable.
Still, now is the perfect moment to review your employee handbook, refresh internal policies, and ensure your management and HR teams are trained and ready. Several laws have already taken effect as of October 2025, and more are scheduled to take effect on January 1.
Below is a breakdown of the most impactful changes, along with recommendations on what retailers should do next.
Beginning January 1, 2026, California’s statewide minimum wage rises to $16.90/hour.
Keep in mind that many cities, such as Los Angeles, San Diego, and San Francisco, have higher local rates. Always check your specific jurisdiction.
For most executive, administrative, and professional exempt employees, the annual minimum salary jumps to $70,304.
This does not include:
If your business falls under one of those categories, expect higher thresholds.
Signed October 2025...
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