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LEGISLATION & PUBLIC POLICY - KATHLEEN HOLM, Chair
Key New Laws Taking Effect in 2026
California will implement several significant new laws in 2026. These new laws reflect California's ongoing commitment to improving workplace conditions, enhancing employee rights, and addressing emerging challenges in technology and labor practices.
Workplace Know Your Rights Act (SB 294): Employers must provide written notice to all employees about their rights, including workers' compensation benefits and protections against unfair immigration-related practices. This notice is required by February 1, 2026, and annually thereafter.
Amendments to the Equal Pay Act (SB 642): This law expands the definition of wages to include benefits and non-salary compensation, imposes stricter pay scale requirements in job postings, and extends the statute of limitations for pay equity violations. It aims to promote greater pay transparency and prevent undercutting of pay requirements.
Transparency in Frontier Artificial Intelligence Act (SB 53): This law requires employers developing advanced AI systems to implement safety and transparency measures, including whistleblower protections for employees who report unsafe practices related to AI.
Ban on "Stay-or-Pay" Contracts (AB 692): California will prohibit many "stay-or-pay" contracts, which require employees to pay back training costs if they leave the company. This law aims to enhance employee mobility and protect workers from financial penalties.
Minimum Wage Increase: The minimum wage in California will increase to $16.90 per hour starting January 1, 2026. This change will also raise the minimum salary threshold for overtime exemption to $70,304.
Data Breach Notification Requirements (SB 446): California will require organizations to notify individuals of data breaches within a strict 30-day timeframe, enhancing consumer protection against data privacy violations.
(Above article from Yemela Bell-Gomez,
San Bernardino District Chair of Legislation & Public Policy)
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