The Governor recently signed new laws impacting California employers in 2026.  Below is a discussion of these new employment laws. Increased California Minimum Wage and Exempt Employee Salary Requirement Increases Beginning January 1, 2026, the California minimum wage will increase to $16.90 per hour. This will also increase the exempt employee salary requirement to $70,304.00. The City of Los Angeles minimum wage will remain at $17.87 per hour until its next scheduled increase on July 1, 2026. The Workplace Know Your Rights Act This new law, SB 294, establishes the “Workplace Know Your Rights Act” under which an employer will... READ MORE

A new California law, AB 692, will prohibit employer agreements entered into with their employees beginning January 1, 2026, that requires employees to repay costs or pay penalties when their employment ends.  However, there are key exceptions to this new law's prohibitions, including tuition reimbursement and retention bonus repayment so long as certain conditions are met.  Tuition reimbursement:  California will allow tuition reimbursement agreements to be enforced only if the following conditions are met: The agreement is set forth in a document other than the offer letter or employment contract. The amount to be owed must be specifically set forth before... READ MORE

Many employers are now using Artificial Intelligence (AI) to make or assist in making employment decisions, such as hiring, promotions, selection for training programs, or similar activities. Some examples of how AI is used in this context are screening resumes for particular terms or patterns; direct job advertisements or recruiting materials to targeted groups; assessing applicants’ or employees’ skills through questions, puzzles, games, or challenges; and analyzing audio or video recordings to evaluate, categorize, or recommend applicants or employees. The new regulations issued by the California Civil Rights Department and which came into effect October 1, 2025, prohibit employers from... READ MORE

As of July 1, 2024, all California employers (with limited exceptions) are required to implement a Workplace Violence Prevention Plan (WVPP) under Labor Code Section 6401.9—a law stemming from SB 553, which was passed in 2023. This sweeping legislation mandates written protocols, employee training, and workplace violence incident tracking—and is enforceable by Cal/OSHA. If you’re not compliant or unsure whether your WVPP is sufficient, you may be subject to citations and penalties for violations.  Click here to read our firm's original article with more details What Employers Must Have in Place: A written WVPP, either integrated into your Injury &... READ MORE

If you have exempt outside sales employees (like those who work on commission and are regularly out meeting customers), a new California court decision just made it easier to understand how to calculate their paid sick leave. The Issue There’s been confusion about how to calculate paid sick leave (PSL) for these employees — especially whether you should include commissions in the calculation. The Court’s Answer The court ruled: You can pay sick leave at their base hourly rate (excluding commissions) — as long as that’s how you pay them for other types of paid time off (like vacation or... READ MORE

You’d think it would be simple: your business entity is registered with the State, so you’re good to go. But here’s a catch that’s tripping up many business owners—resulting in penalty notices they never expected. If your entity lists a city as its headquarters, you need a business license in that city—even if you don’t actually “work” there. That includes situations like: Forming an LLC or corporation and using a corporate mailbox (UPS Store, PO Box with a street address, etc.) as your HQ address.Filing your Statement of Information with the Secretary of State showing a city you don’t physically... READ MORE

As many workplaces pivoted to remote operations during COVID-19, requests to continue working from home have become more common—even after offices reopened. But a recent California Court of Appeal decision offers a critical reminder: denying remote work is not discriminatory if the employee does not have a qualifying disability. In Allos v. Poway Unified School District (2025), the court upheld the dismissal of a former employee’s claims of disability discrimination and retaliation after her employer declined to approve her full-time remote work request. The key reason? She failed to prove she had a disability under California’s Fair Employment and Housing... READ MORE

Key Legal Updates Every California Employer Should Revisit Now As Q3 begins, it’s a smart time for California employers to check in on recent legal changes and workplace practices. With several new developments in wage law, arbitration, and summer hiring, here’s what you should be reviewing to stay compliant—and protect your business from costly missteps. 1. Arbitration Agreements: Presentation Matters More Than Ever A recent California Court of Appeal case (Velarde v. Monroe Operations, LLC) reinforced that how you present arbitration agreements can determine whether they’re enforceable. Even if an employee signs the agreement, it may be thrown out if... READ MORE

Why California LLCs Shouldn’t Set It and Forget It Your Operating Agreement is more than just a startup document—it’s the legal blueprint for how your LLC runs. Yet far too many business owners treat it like a one-time formality, only to realize later that it no longer reflects reality… usually when there's a problem. Here’s what you need to know about when—and why—to update your Operating Agreement, and how a business attorney can help keep your LLC protected. What Is an Operating Agreement (And Why Does It Matter)? For California LLCs, an Operating Agreement outlines how your business is owned,... READ MORE

A recent decision by the California court of appeal in Velarde v. Monroe Operations, LLC set forth the importance for employers to present arbitration agreements to employees in a fair and non-coercive manner.  Although employers can require that employees sign an arbitration agreement as a condition of employment or condition of continuing employment, the manner in which the arbitration agreement is presented to employees is critical to being able to enforce the arbitration agreement once it’s been signed.  Specifically, the Velarde court found on a motion to compel arbitration filed by the employer that the arbitration agreement was procedurally unconscionable,... READ MORE