As we welcome the New Year, we want to share some of our firm successes and legal updates you should have on your radar for 2026.

The year ahead brings new opportunities, evolving challenges, and important changes across the legal landscape. Our commitment remains the same, to provide compassionate and efficient representation that consistently delivers results for our clients.

We look forward to supporting your legal needs this coming year. On behalf of our entire team, we wish you a healthy, successful, and prosperous New Year.

Year-End Client Successes

Protecting Free Speech and Right to Petition:

Recently a California appellate court ruled in favor of our clients (the Respondents), affirming that the Plaintiff’s lawsuit violated their constitutional rights to petition and free speech. The court confirmed that simply filing a lawsuit—then voluntarily dismissing it or not ultimately prevailing—does not make that lawsuit malicious or without probable cause.

This decision reinforces the vital protections of California’s anti-SLAPP statute (Code of Civil Procedure § 425.16), which safeguards individuals from lawsuits targeting their exercise of First Amendment rights. Both the trial court and appellate court agreed that the Respondents’ prior federal action and TRO were protected activity, and that the Plaintiff failed to prove the claims were illegal or brought without probable cause. To see the ruling, click here:

Why this matters:

This ruling protects every Californian’s right to petition the courts without fear that exercising that right could, by itself, lead to liability—even if a case doesn’t succeed in the end.

If you believe you’re being sued for exercising your free speech or petition rights, contact Thakur Law Firm, APC to discuss whether California’s anti-SLAPP statute may apply to your situation.

Class Action & PAGA Defense Successes:

We are proud to share a major 2025 milestone for our firm, the successful resolution of two significant Class Action and Private Attorneys General Act (PAGA) matters on behalf of our clients. One case, involving hundreds of members, was resolved for $1.6 million, despite an initial demand of $36 million. These outcomes reflect our strategic approach, disciplined advocacy, and unwavering commitment to protecting our clients’ interests while achieving practical, cost-effective resolutions.

New 2026 California Employment Law Updates and Reminders

As California continues to lead the way in progressive employment legislation, businesses must stay informed of evolving requirements. In 2026, significant updates to employment laws have and will continue to impact industries across the state. This article provides an overview of the key legislative changes, their implications, and practical guidance for compliance. Here is a brief overview of the most notable changes coming in 2026. Unless otherwise noted, the new laws take effect on January 1, 2026.  

Minimum Wage

• State minimum wage: $16.90/hour effective January 1, 2026.
• Exempt salary threshold: $70,304 annually.
• Fast food workers: $20/hour minimum; exempt salary must be twice that rate.
• Healthcare workers: Must earn at least 1.5× the applicable healthcare minimum wage or 2× state minimum wage.
• Local minimum wage increases may also apply.

Pay Transparency & Equal Pay

• Pay scale disclosure: Must be a good-faith estimate of expected pay (SB 642).
• Equal Pay Act:
• Statute of limitations extended to 3 years.
• Recovery may reach back up to 6 years.
• Pay data reporting (SB 464):
• Demographic data must be stored separately from personnel files.
• Job categories expand from 10 to 23 starting January 1, 2027.
• Penalties for noncompliance are now mandatory.

Discrimination & Bias Training

• Statements made in good faith during bias-mitigation training cannot be used as evidence of discrimination (SB 303).

Leaves of Absence

• Victims’ Leave (AB 406):
• Consolidates and expands protections for victims and family members.
• Covers time off for court proceedings related to qualifying crimes.
• Enforcement now handled by the California Civil Rights Department (CRD).
• Paid Sick Leave:
• May be used for qualifying judicial proceedings, jury duty, and witness leave.
• Paid Family Leave (SB 590):
• Expands eligibility to care for a “designated person” (effective July 1, 2028).

Employment Contracts

• Repayment agreements restricted (AB 692):
• Employers generally may not require repayment of bonuses, training costs, or benefits if employment ends.
• Limited exceptions apply (e.g., government loan programs, certain credentials, apprenticeships).

Notice & Recordkeeping

• New annual “Know Your Rights” notice required (SB 294):
• Covers workers’ compensation, immigration protections, concerted activity, and law enforcement rights.
• Must be provided annually and to new hires.
• Employers must:
• Keep notice records for 3 years.
• Offer employees the option to designate an emergency contact by March 30, 2026.
• CalWARN notices updated (SB 617).
• Training records must include detailed course and certification information (SB 513).

Collective Bargaining

• PERB jurisdiction expanded (AB 288):
• Allows PERB to hear certain private-sector labor disputes when the NLRB cedes jurisdiction.
• Currently under legal challenge.
• Rideshare drivers (AB 1340):
• Gain unionization rights under PERB beginning in 2026.
• Companies must report driver data quarterly.

Wage & Hour

• Petroleum & refinery workers: Rest-period exception made permanent (AB 751).
• Meal period exceptions expanded to water corporations under CBAs (SB 693).

Displaced Workers

• COVID-19 hospitality worker recall rights extended to January 1, 2027 (AB 858).

Wage Enforcement

• Unpaid wage judgments (SB 261):
• Employers may face penalties up to 3× the judgment if unpaid after 180 days.
• Plaintiffs entitled to attorney’s fees.
• Public prosecutors may enforce judgments.
• Tips enforcement expanded under the Labor Commissioner (SB 648).

Vetoed Bills (Not Law)

• Immigration-related leave expansion (AB 1136).
• Automated decision system regulations (SB 7), though existing CRD regulations still apply.