New Rights, More Pay: 2026 California Employment Laws You Need to Know

California has long been a forerunner in establishing robust protections for workers, and the upcoming year is no exception. As we head into 2026, a wave of new legislation is set to shift the landscape of the workplace, placing more power — and potentially more money — into the hands of employees. 

At Glaser Labor Law, we believe that an informed workforce is an empowered one. Understanding these changes is the first step toward ensuring you receive the fair treatment and compensation you deserve.

The latest round of California employment law changes addresses everything from your paycheck to the role of artificial intelligence in hiring. Whether you are an hourly worker in the service industry or a salaried professional, these updates impact your daily work life. We have broken down the critical legal updates taking effect in 2026 so you can navigate the new year with confidence.

1. A Boost to Your Paycheck: Minimum Wage and Salary Increases

One of the most immediate changes you might notice in 2026 is a bump in your pay. The state has raised the minimum wage to $16.90 per hour for all employers, regardless of company size. This increase is designed to help wages keep pace with the cost of living, providing immediate relief for hourly workers across the state.

If you are a salaried employee classified as “exempt” (meaning you are not eligible for overtime pay), this change affects you too. In California, the minimum salary threshold for exempt status is tied to the state minimum wage. Consequently, starting in 2026, the minimum annual salary requirement for exempt employees rises to $70,304.

If your current salary falls below this new threshold, your employer generally has two options: raise your base salary to meet the new requirement or reclassify you as a non-exempt employee, which would make you eligible for overtime pay and breaks.

2. Closing the Gap: Enhanced Pay Transparency

Building on previous transparency laws, 2026 introduces stricter rules under SB 642 and SB 464. These updates are a win for fair pay, designed to make it harder for wage gaps to hide in the shadows.

The new laws clarify the definition of “pay scale” and broaden what constitutes “wages,” leaving less room for ambiguity when employers list salary ranges. Furthermore, large employers now face increased reporting requirements. They must store demographic pay data separately, which allows for better tracking of wage disparities across different groups. 

For employees, this means greater protection against wage discrimination and more transparency when you apply for a new job or negotiate a raise.

3. Humans Over Algorithms: Limits on AI in the Workplace

As technology evolves, so does the potential for bias. Recognizing this, California has enacted SB 7 to place guardrails on how employers use Artificial Intelligence (AI).

Starting in 2026, employers are restricted from relying exclusively on AI for critical employment decisions, such as hiring, firing, or promotions. While AI can still be used as a tool to assist in these processes, the law mandates human oversight. 

This change is crucial for protecting employees against algorithmic bias, ensuring that a computer program isn’t the sole decision-maker determining the trajectory of your career.

4. Freedom to Move: Bans on “Stay-or-Pay” Contracts

Have you ever felt trapped in a job because you feared owing your employer money for training? AB 692 puts an end to that fear. This new statute bans most contracts that require employees to repay training costs or bonuses if they leave the company — provisions often called “stay-or-pay” clauses.

This is a significant victory for employee mobility. It removes the financial handcuffs that keep workers in jobs they want to leave. Employers who violate this rule face significant penalties, ensuring that your right to seek better opportunities is protected.

5. Power in Information: Expanded Access to Personnel Records

Under SB 513, your right to know what is in your personnel file just got stronger. The law has broadened the types of records employers must provide upon request.

In addition to standard performance reviews and employment documents, you now have the right to access records related to your education and training. Accessing these documents empowers you to verify that your skills and certifications are accurately recorded, which can be vital when seeking promotions or proving your qualifications.

6. Know Your Rights: Mandatory Standalone Notices

It is hard to exercise your rights if you don’t know what they are. SB 294 aims to close that knowledge gap by requiring employers to provide standalone notices regarding employee rights.

These notices must be distinct — not buried in a 100-page handbook — and must include critical information such as emergency contacts. This ensures that in a crisis, or when you simply need to check your entitlements, the information is readily available and easy to find.

7. Fairness for Service: Stronger Protections for Tipped Workers

For those in the service industry, SB 648 introduces robust new protections for tipped workers. While specific details can be complex, the core objective of this legislation is to ensure fair treatment regarding tip distribution and wage practices. This update reinforces the principle that tips earned by service staff belong to them, tightening the rules to prevent wage theft and unfair pooling practices.

How to Protect Yourself in 2026

Laws are only as good as their enforcement. To make the most of these new protections, we recommend taking a few proactive steps:

• Check Your Pay Stubs: Verify that your hourly rate or salary reflects the new 2026 minimums ($16.90/hour or $70,304/year).
• Review Your Contracts: If you have signed an agreement regarding training repayment, know that AB 692 may render those repayment clauses void.
• Request Your File: Use your new rights under SB 513 to request a copy of your personnel records, ensuring your training history is accurate.

If you suspect your rights are being violated, or if your paycheck doesn’t look right, seeking professional advice is your best course of action.

Staying Ahead of the Curve

The legal updates for 2026 represent a significant step forward for California workers. From higher wages and fairer contracts to protection against AI bias, these laws are designed to create a more equitable workplace. However, navigating California employment law can be complicated. 

At Glaser Labor Law, we are dedicated to helping you understand these changes so you can advocate for yourself effectively. Stay informed, check your pay stubs, and never hesitate to ask questions about your rights. If any of the new rights afforded to you in 2026 have been violated, contact us for help.

Glaser Labor Law

With deep roots in Southern California, Glaser Labor Law combines a focus on workplace rights with proven success in broader legal matters. Joel Glaser and his team bring decades of litigation experience to ensure every client receives strong, results-driven representation.