California employment laws every worker must know in 2026 include statewide minimum wage increases, expanded pay equity, and increased employer penalties for unpaid wage judgments. Whether these laws affect you or not, it is smart to understand their significance.
Employment regulations are complicated and constantly evolving. You may have experienced an incident where you believe your employer violated the law. If so, reach out to an attorney who can help you understand the legal actions available to you.
Since 2016, our Los Angeles employment lawyers have advocated for the rights of California workers and their families. We put our clients first. Always. Call today to schedule your free consultation and tell our team about your workplace legal issues.
Statewide Minimum Wage and Salary Increase
Effective January 1, 2026, California’s minimum wage is $16.90 per hour for all employers, regardless of the size of their business. This adjustment reflects the state’s ongoing effort to match worker wages with inflation rates and the cost of living.
In addition to hourly wage increases, the law also raised the minimum salary threshold for employees who are classified as exempt from overtime. To qualify as exempt from overtime, an employee must now earn at least $70,304 annually.
The Know Your Rights Act
Effective in 2026, the Workplace Know Your Rights Act (SB 294) requires employers to provide all employees with an annual written notice describing their workplace rights and protections. Employers were required to distribute this notice to employees by February 1, 2026.
The notice must be delivered in the normal workplace communication method and in languages commonly spoken by employees. In addition to current employees, employers must provide it to all new employees as well.
Specifics outlined in the Know Your Rights Act (and other California laws) include:
- Protections against retaliation
- Workers’ compensation benefits
- Immigration-related rights
- The right to engage in protected concerted activity
- Ban on stay-or-pay provisions
Changes to Pay Equity and Transparency
California expanded its pay equity and pay transparency laws to strengthen protections against wage discrimination and increase transparency. The intent is to reduce unexplained wage gaps and give applicants and employees insight into pay expectations.
Under these changes:
- Employers are required to provide job applicants with the pay scale for the position upon request.
- Upon hire, employers must disclose the pay scale and benefits to new employees.
- Employers must maintain records of job titles and wage information as part of their compliance obligations.
- Employers are prohibited from seeking salary history information from applicants, and using such information is restricted when setting compensation.
Increased Penalties for Unpaid Wages
In 2026, California increased penalties for employers who do not comply with wage judgments. When a court orders back pay for an employee, employers must fulfill the total compensation within a reasonable timeframe.
These changes are intended to make sure employees get the money they are owed without unnecessary delay. If an employer does not satisfy a judgment in a timely manner, daily waiting time penalties may continue to accrue.
Ban on Stay-or-Pay Provisions
California enacted a ban on most stay-or-pay provisions through Assembly Bill 692, effective January 1, 2026. These provisions previously required employees to repay certain costs, like training expenses or sign-on bonuses, if they left their job before a specified period.
With limited exceptions, the change makes it unlawful for employers to require employees to repay a debt or impose financial penalties simply because their employment ended. Such provisions are considered restraints on an employee’s ability to leave a job.
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Consequences for Employers that Violate Employment Laws
California takes workplace laws very seriously, and companies that don’t adhere to them can end up in serious trouble. Employees have the right to file claims with the California Labor Commissioner’s Office or pursue a civil lawsuit if their employers violate employment laws.
In cases of egregious or ongoing violations, failure to comply with wage judgments may lead to liens on business property or suspension of business operations. In some situations, individual owners or managers can be held personally liable.
Get Help From Our California Employment Law Attorneys
In 2026, every worker must know California employment laws, such as the ban on stay-or-pay provisions and the Know Your Rights Act. If you believe your employer has broken the law, reach out to our legal team immediately.
We can intervene on your behalf if:
- You are forced to work in dangerous conditions with obvious workplace safety violations
- You have been injured at work because of the negligent or illegal actions of your employer
- Your employer terminated you under circumstances that violate state or federal laws
- You are facing workplace harassment that your employer causes or will not address
- Wage and benefits violations by your employer have reduced or eliminated parts of your income
- You can prove discrimination in the workplace
- Your employer has retaliated against you for whistleblowing
At Omega Law Group Accident & Injury Attorneys, we stand up for California workers. Let our family take care of your family. Call today to schedule your free, no-obligation consultation and learn more about how we can help you get the justice you deserve.
