2026 Employment Law Updates: What Employers Need to Know

As 2026 approaches, California is once again expanding worker protections and reshaping employer responsibilities. From new notice requirements to broader leave rights, the coming year brings updates that business owners should start planning for now. Here’s a quick rundown of what’s changing and how to prepare.

Workplace Know Your Rights Act (SB 294)

California’s new Workplace Know Your Rights Act requires employers to provide written notice to all employees outlining their constitutional rights when interacting with law enforcement at work. Beginning February 1, 2026, this notice must be distributed to all employees annually, and to new hires within one business day of starting work.

The law also adds a new twist to emergency contacts. If an employee authorizes it, employers must notify their designated person if they are detained or arrested while performing job duties. Employees must be given the opportunity to name this contact by March 30, 2026, and the Labor Commissioner is expected to release a template notice by January 1, 2026.

What to do now: Add this to your calendar. Plan to update onboarding packets, revise emergency contact forms, and train supervisors on how to respond if a detainment occurs.

Pay Transparency Update (SB 642)

California’s pay transparency rules are tightening again as of January 1, 2026. SB 642 clarifies that “pay scale” means the good faith range an employer reasonably expects to pay for the position upon hire, not the entire potential pay band. The law also extends the statute of limitations under the Equal Pay Act from two years to three, allowing claims for up to six years of underpayment.

What to do now: Review job postings, pay structures, and job descriptions to ensure the listed range reflects realistic expectations.

Paid Family Leave Expansion (SB 590)

California continues to broaden caregiving protections. Effective July 1, 2028 (yes, really), SB 590 expands the Paid Family Leave (PFL) program to include a “designated person” which is someone not legally or biologically related but who has a family-like relationship with the employee. Employees must identify the person when filing their first claim and provide a declaration under penalty of perjury explaining the relationship (different from the requirements under CFRA).

What to do now: Even though the change doesn’t take effect until 2028, it’s worth reviewing your leave policies to make sure your definitions of “family member” under PFL, CFRA, and Paid Sick Leave align. You should also be prepared for new documentation and communication processes.

Looking Ahead

While there’s still work to be done, 2026 is not shaping up to be quite as eventful as previous years. Most of the upcoming changes refine existing laws rather than overhaul them, but they still deserve attention to stay compliant and avoid last-minute surprises.

This is not an exhaustive list of the updates taking effect, and some industries may see additional requirements or nuances that warrant a closer look. Our consulting team is available to help you review what applies to your organization and ensure your policies and practices are current, compliant, and ready for the year ahead.