New California Employment Laws for 2027: What Businesses Need to Know

Employment laws change every year, but some years bring more than routine updates. California's 2027 workplace legislation introduces new requirements involving artificial intelligence, employee privacy, pay reporting, leave administration, workplace safety, and more.

While most of these changes do not require immediate action, now is a good time to review your policies, technology platforms, manager training, and compliance practices.

Leave, Training, and Workplace Safety (SB 1149, AB 1803, AB 2321)

Several of the 2027 updates affect policies and processes many businesses already manage every day.

SB 1149 expands California's bereavement leave protections by allowing eligible employees to take leave for the death of a broader range of individuals, including certain people who have a family-like relationship with the employee. If your handbook contains a bereavement leave policy, now is a good time to review the language and ensure managers understand when additional leave protections may apply.

AB 1803 adds a hate speech component to California's harassment prevention training requirements. Employers generally will not need a separate training program, but existing training content should be reviewed and updated before the new requirement takes effect. If you work with an outside training provider, verify that future training materials address the change.

AB 2321 expands Cal/OSHA's enforcement authority and increases the consequences for interfering with certain workplace safety investigations. Businesses should review incident response procedures, determine who will communicate with investigators, and ensure leaders understand their responsibilities if a serious workplace incident occurs.

Employee Privacy and Workplace Monitoring (AB 1331, SB 690)

AB 1331 limits the use of workplace surveillance and employee-tracking tools in connection with restroom use.

SB 690 reduces exposure to certain website and app tracking claims but does not eliminate broader privacy compliance obligations.

Businesses using GPS tracking, wearables, monitoring software, or mobile-device tracking should review current practices.

Pay, Reporting, and Compensation Updates (SB 1237, AB 2646, AB 1697)

SB 1237 significantly increases penalties for repeat failures to submit California's required pay data reports.

AB 2646 establishes a new agricultural minimum wage structure for covered employers.

AB 1697 delays implementation of California's stay-or-pay restrictions, giving businesses additional time to review training repayment and retention-related agreements.

Use 2027 as an Opportunity to Review Your HR Practices

The biggest HR risks are not always tied to brand-new laws. More often, they involve outdated policies, inconsistent practices, manager training gaps, handbook language that hasn't been reviewed in years, or technology that has evolved faster than internal processes.

The 2027 legislative changes provide a good reason to take a fresh look at how your business manages compliance, employee relations, workplace technology, and day-to-day HR operations.

If you're preparing for these changes and aren't sure where to start, HR Done Right can help.

Whether you need a policy review, manager training, an HR compliance audit, or our Compliance Scorecard and Annual Spot Check, we can help you identify priorities and create a practical plan that fits your business.