California Employment Law Changes in 2026: What Employees Need to Know

By Eugene Bruno on December 23, 2025

California’s employment laws for 2026 introduce important updates aimed at enhancing worker protections, promoting transparency, and ensuring employees have greater control over their pay, schedules, and workplace rights. Many of these changes come from newly enacted laws with official titles passed by the Legislature.

The San Diego employment law attorneys at Eugene Bruno & Associates have put together this guide about what you should know heading into 2026.

Higher Pay Under California’s Minimum Wage Law

As of January 1, 2026, California’s statewide minimum wage increases, raising hourly pay for workers across the state. This increase also raises the minimum salary threshold for employees classified as exempt.

If you are paid a salary but your earnings do not meet the new threshold, you may be misclassified and entitled to:

• Overtime pay
• Meal and rest breaks
• Additional wage protections

Misclassification remains one of the most common wage violations in California.

Expanded Paid Sick Leave Under AB 406

(Healthy Workplaces, Healthy Families Act Expansion)

Assembly Bill 406 expands how employees may use paid sick leave and protected time off. Beginning in 2026, workers may use leave for additional serious life situations, including:

• Attending court proceedings as a victim or family member of a victim
• Jury duty or subpoena-related appearances
• Situations involving domestic violence, stalking, harassment, or other qualifying crimes

These absences are job-protected, meaning employers may not retaliate against employees for using their lawful leave.

New Workplace Rights Notice Required by SB 294

(The Workplace Know Your Rights Act)

Under Senate Bill 294, California employees must receive a written “Know Your Rights” notice explaining key workplace protections. This notice is meant to ensure workers clearly understand their rights related to:

• Wages and pay practices
• Workers’ compensation benefits
• Discrimination and harassment protections
• Leave rights and workplace safety

This law helps close the information gap that often leaves employees unaware of the protections available to them.

Protection From Unfair Employment Contracts Under AB 692

(Ban on “Stay-or-Pay” Agreements)

Assembly Bill 692 prohibits most employment agreements that require workers to pay money back simply because their employment ends. This includes agreements demanding repayment of:

• Training costs
• Bonuses
• Relocation expenses
• Other fees tied to quitting or termination

If you are asked to sign a contract that penalizes you financially for leaving a job, it may be illegal and unenforceable under California law.

Stronger Pay Transparency and Equal Pay Rights Under SB 642

(Pay Equity Enforcement Act)

The Pay Equity Enforcement Act (SB 642) strengthens California’s equal pay and pay transparency laws. These changes help employees:

• See good-faith pay ranges in job postings
• Identify potential wage disparities
• Hold employers accountable for unequal pay

The law also expands protections and enforcement mechanisms for workers facing pay discrimination.

Increased Penalties for Unpaid Wages and Judgments

California is increasing accountability for employers who fail to pay wages or ignore wage judgments. Under updated enforcement laws, employers who do not comply may face significantly higher penalties, giving employees stronger leverage when wages are withheld or delayed.

If your employer owes you wages and fails to pay, the law now provides greater enforcement power and remedies.

Expanded Access to Personnel Records Under SB 513

Senate Bill 513 expands what information employees may access in their personnel files, including education and training records. This helps workers better understand how employment decisions are made and ensures greater transparency.

What California Employees Should Do in 2026

As these new laws take effect, employees should:

• Review pay rates and job classifications
• Read any new workplace rights notices
• Keep copies of employment agreements and pay records
• Speak with an employment attorney if something doesn’t seem right

Speak With an Experienced San Diego Employment Law Attorney Today

California’s 2026 employment laws are designed to give workers clearer rights, stronger protections, and better access to justice. Understanding these changes is the first step toward protecting your income, your job, and your future.

If you believe your rights have been violated, contact our experienced California employment attorneys to help you understand your options and take action.

Call  1-888-BRUNO-88 (1-888-278-6688) for a free consultation.