California Passes New Employment Laws - HR ALERTS
- Regina Dyerly, SHRBP, PHR
- 1 day ago
- 2 min read
California Passes Multiple New Employment Laws
Effective: November 1, 2025
California has enacted several new employment laws that will impact employers over the next few years. These measures expand reporting obligations, broaden family leave eligibility, increase wage theft penalties, and more.
Key Updates
1. Pay Data Reporting (SB 464)
Effective: January 1, 2026 (recordkeeping); January 1, 2027 (expanded reporting)
Expands required job categories in annual pay data reports from 10 to 23 federal job classifications.
Employers must begin collecting and storing demographic data separately from personnel files starting in 2026.
2. Expanded Paid Family Leave (SB 590)
Effective: July 1, 2028
Expands California Paid Family Leave to cover care for a “designated person,” defined as a blood relative or someone with an equivalent family-like relationship.
The employee must identify and attest to their relationship with the designated person when first requesting leave.
3. Civil Penalties for Wage Theft (SB 261) SB261 is a climate related financial risk bill)
Effective: January 1, 2026
Employers will face a civil penalty of up to three times the unpaid wage judgment amount if it remains unpaid after 180 days.
4. Debt Repayment Restrictions (AB 692)
Effective: January 1, 2026
Prohibits “stay-or-pay” contracts that require employees to repay employers or third parties for training costs if they leave within a certain timeframe, with limited exceptions (e.g., tuition assistance, apprenticeships).
5. Worker Outreach Program (SB 578)
Establishes a California Workplace Outreach Program to promote awareness of employee rights, focusing on low-wage industries with higher rates of violations.
Vetoed Legislation
Governor Gavin Newsom vetoed AB 1136, which would have allowed five days of unpaid leave for immigration-related proceedings, citing conflicts with existing state leave laws. He invited lawmakers to reintroduce a revised version next year.
Get day-to-day updates on California Passes New Employment Laws visit the Vida HR Knowledge Center (Vida HR Clients Exclusive).
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