NEW CALIFORNIA EMPLOYMENT LAWS FOR 2026 By Teresa McQueen, Corporate Counsel
California’s 2025 legislative session introduced important changes impacting employers and employees. Out of a total of 917 bills, 794 became law, including approximately 70 that focused on employment issues. Employers should act promptly to ensure compliance with the new regulations, effective Jan. 1, 2026, unless otherwise specified. California’s minimum wage has increased from $16.50 per hour to $16.90 per hour. The increase also affects the minimum salary threshold for exempt employees, raising it from $68,640 per year (or $5,720 per month) to $70,304 per year (or $5,858.67 per month). Employers must also be mindful of local minimum wage increases. For information on which cities/ counties are set for a January 1 increase, review the UC Berkeley Labor Center’s inventory of city and county minimum wage information. AB 406 – Victims of Violence (Effective Oct. 1, 2025) AB 406 restores and recasts specific Labor Code sections that were deleted by last year’s AB 2499 (expanded employee protections for victims of “qualifying acts of violence” and their family members, aligning these rights with the Fair Employment and Housing Act). AB 406 provides important clarifications regarding jurisdiction over claims between the Division of Labor Standards Enforcement and the Civil Rights Department. The restored Labor Code sections now align with the Fair Employment and Housing Act (FEHA), specifically incorporating existing provisions that allow crime victims to utilize paid sick leave for crime-related purposes. These changes clarify that employees may use paid sick leave for jury duty and for court appearances when serving as witnesses under subpoena, in addition to expanded unpaid leave rights to support victims of serious crimes and their designated family members. The legislation also reinforces employers’ obligations to provide written notice of these rights, maintain strict confidentiality, offer reasonable accommodations and allow the use of accrued paid leave for activities connected to crime or abuse. SB 303 – Bias Mitigation Training (Effective Oct. 1, 2025) SB 303 strengthens an employer’s ability to provide bias mitigation training. Effective Oct. 1, 2025, SB 303 clarifies that an employee’s good-faith participation in bias mitigation training—including self-assessment,
testing, or acknowledgment of implicit biases—cannot, by itself, be considered unlawful discrimination. SB 303 is meant to encourage employers to conduct bias mitigation training, including self-reflection exercises, workshops and facilitated discussions, without fear of legal retaliation or discrimination claims arising solely from those activities. The statute explicitly states that such participation will not constitute unlawful discrimination as long as it’s conducted in good faith and is intended as part of comprehensive bias mitigation training. SB 464 – Employer Pay Data (Job categories expand effective Jan. 1, 2027) SB 464 makes key updates to pay data reporting requirements. Employers must now collect and store demographic data for reporting separately from personnel records. Beginning Jan. 1, 2027, the number of job categories to report will expand from 10 to 23 (See Govt. Code Sec. 12999(b)(1(A-W)). Courts are also now required to impose civil penalties if employers fail to submit reports when requested by the Civil Rights Department, emphasizing the importance of compliance. "SB 303 is meant to encourage employers to conduct bias mitigation training, including self- reflection exercises, workshops and facilitated discussions, without fear of legal retaliation or discrimination claims arising solely from those activities."
6 Western Grower & Shipper | www.wga.com January – March 2026
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