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California Employment Law Changes for 2026 - HR ALERTS

California Employment Law Changes for 2026

Effective: January 1, 2026

California has enacted wide-ranging employment law changes for 2026 that significantly impact pay practices, employee classification, privacy, and employment agreements. These changes apply to any employer with one or more California employees, including remote workers, regardless of where the company is headquartered.


Key 2026 California Updates

Pay, Classification, and Transparency (High Priority)

  • Expanded pay transparency requirements and updates to pay data reporting

  • Enhanced equal pay remedies

  • Increased minimum salary for Executive, Administrative, and Professional exemptions to $1,352 per week

  • Inflation-adjusted minimum pay for exempt computer professionals and certain physicians

  • Ban on stay-or-pay provisions in employment contracts


Employee Rights and Workplace Protections

  • Expanded crime victim leave protections

  • Employee access to education and training records within personnel files

  • Additional required information in WARN notices

  • New whistleblower protections for employees of large AI developers


Privacy, Data Security, and Records

  • New California Consumer Privacy Act (CCPA) regulations

  • Revised timelines for employee data breach notifications


Benefits, Payroll, and Disclosures

  • Updates to reproductive health coverage requirements

  • Changes to when creditor garnishment withholdings must begin

  • Required disclosure of financial interests in workers’ compensation-related service providers

  • CalSavers registration deadline for employers with 1–4 employees (effective December 31, 2025)


Worker Classification and Labor Relations (Targeted Impact)

  • Changes to independent contractor exemptions for certain occupations

  • New organizing rights for certain gig workers


What Employers Should Do Now

Employers with California employees should begin reviewing pay practices, exempt classifications, employment agreements, privacy policies, and workforce notices well ahead of 2026 to reduce compliance risk.


Get day-to-day updates on California Employment Law Changes for 2026 visit the Vida HR Knowledge Center (Vida HR Clients Exclusive).

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