Towards the end of 2025 and into 2026, workers received new protections through new and upgraded employment laws. It’s the role of employment law firms to help employers navigate their workplace compliance responsibilities and protect workers from unfair or illegal treatment in the workplace.
Whether you’re a business owner needing help ensuring compliance with written notices instead of breakroom posters or an employee who believes your rights have been violated, it’s time to take a closer look at the laws and the role of an employment law firm in ensuring compliance through these changes.
AI and Algorithmic Auditors Bias
In October 2025, regulations were added under the Fair Employment and Housing Act to protect job applicants and employees from bias in AI and its algorithms. In 2026, additional rules prohibit the use of automated decision-making tools that discriminate based on any protected characteristic, even if that discrimination is accidental or unintentional.
Companies that use AI are responsible for the actions of the AI they use, even if they purchase the software from a third-party vendor. Companies must test the products for compliance and disclose what training data is used in generative AI systems. The documents and data must be stored for at least 4 years.
Increased Minimum Wage
Effective January 1, 2026, the statewide minimum wage increased to $16.90. However, some employees may qualify for a higher minimum wage. For example, the minimum wage in Los Angeles is $17.87. It’s $17.81 in Los Angeles County (unincorporated). West Hollywood has the highest minimum wage at $20.25.
Fast-food workers earn a minimum wage of $20. Some health care workers earn $18 an hour or more, and that amount increases to $25 an hour on June 1, 2033. Health care facilities must pay employees $21 an hour now, $23 an hour starting June 1, 2026, and $25 an hour starting June 1, 2028.
AB 250: Support for Survivors of Workplace Sexual Assault Cover-Ups
Under AB 250, both the perpetrator and anyone who helps or attempts to cover up a sexual assault are liable. It also extends the statute of limitations for claims to December 31, 2027, and allows victims to revive claims, such as wrongful termination and sexual harassment, related to the sexual assault.
Suppose you lost your job after reporting a manager for sexual assault, and the CEO fired you in 2023. This new law protects you and allows you to file a wrongful termination claim under the extended statute of limitations.
AB 406: Paid Sick Leave for Victims or Family Members of Victims of Violence
Both victims of violence and their family members are entitled to paid sick leave for court appearances and jury service. Starting January 1, 2026, victims and their family members may also take unpaid leave for any court proceedings related to the crime. This includes victims or their family members who need to attend proceedings such as:
- Delinquency hearings
- Pleas
- Post-arrest release decisions
- Post-conviction release decisions
- Sentencing hearings
Employers cannot terminate or penalize a victim or a victim’s family member for taking unpaid leave.
AB 692: The End of “Stay or Pay” Agreements
Have you signed a contract that required you to stay for a set number of months or years, or forced you to repay the company for training costs, relocation expenses, etc.? AB 692 bans those agreements.
Employers need to review all worker contracts and revise any provisions that violate the new law. Retention bonuses must be structured as a new agreement that complies with the law.
AB 858: Extended Protections for COVID-19 Era Displacements
Some companies laid off workers during the pandemic. AB 858 requires companies to notify displaced workers when new positions become available. Those protections were scheduled to end on December 31, 2025, but they’re extended until January 1, 2027.
AB 1340: Sector-Wide Bargaining
As of January 1, 2026, gig workers in transportation, such as Uber drivers, have the right to form, join, or participate in a union. Every three months, transportation network companies must provide the Public Employment Relations Board with information on any driver who completes at least 20 rides in a six-month period.
SB 294: The “Workplace Know Your Rights” Act
Starting on February 1, 2026, employers must provide an annual written notice to all employees that covers their constitutional protections, immigration status, and labor rights. This includes notices of immigration inspections.
Workers are allowed to designate an emergency contact for the employer to use if the worker is detained or arrested. If a worker exercises their constitutional rights, the employer cannot retaliate or discriminate against them.
SB 303: Bias Mitigation
Under this new law, any employee who honestly admits to, tests for, or is assessed as having a personal bias isn’t automatically guilty of discrimination. Bias mitigation training isn’t unlawful discrimination, so employers shouldn’t be concerned about conducting it.
SB 464 and 642: Extra Protections for Gender-Nonconforming and Non-Binary Workers
Despite changes to federal laws, California employers must protect gender-nonconforming and non-binary workers. SB 464 prohibits discriminatory workplace dress codes, protects against discrimination based on gender expression or identity, and requires gender-neutral or single-stall restrooms.
SB 642 sets reporting timelines for annual pay data. Job postings must include pay scale information.
SB 513: Education and Training Records Are Part of Personnel Records
Effective January 1, 2026, employers must include education and training records in an employee’s requested personnel records. These records must be retained for at least 3 years after the employee leaves the company, regardless of the reason for separation. Employees may copy and inspect these records by submitting a written request with 30 days’ notice.
SB 590: Paid Family Leave for a “Designated Person”
Under this law, workers are authorized to take Paid Family Leave (PFL) to care for any severely ill “designated person.” A designated person is anyone with a family-like connection, such as a best friend or a blood relative.
Although SB 590 isn’t effective until July 1, 2028, employers should review their handbooks and establish training programs for their HR departments as soon as possible.
SB 617: Re-Hiring & Cal-WARN
California’s WARN Act requires employers to provide at least 60 days’ notice before a closure, relocation, or mass layoff. While this isn’t a new law, changes went into effect on January 1, 2026.
Employers must now provide contact information for the local workforce development board, CalFresh food assistance, information on all available aid, and whether rapid response services are being coordinated.
SB 648: Wage Theft & Tips
The Labor Commissioner now has the authority to investigate tip complaints under wage theft regulations. Service workers are entitled to 100% of the tips they receive. An employer cannot withhold any percentage of tips.
Changing regulations make it challenging to keep up, but HR departments need to ensure employees know the current rules and how to report suspected violations, such as harassment or discrimination. The attorneys at Shegerian Conniff help business owners develop employee policies and notices that comply with all applicable laws.
If you’re an employee, contractor, or applicant who believes you’re a victim of unlawful treatment, reach out to us. Our employment law specialists review your complaint and help you understand the best steps to take next.
