For years, California businesses have used “stay-or-pay” agreements as a safety net. The logic was simple: if we invest thousands in your signing bonus, relocation, or training, you should stay long enough for us to see a return. If you leave early, you pay us back. But under AB 692, that safety net is largely gone. Effective January 1, 2026, California heavily restricts or outright bans contracts requiring employees to repay certain “debts” upon leaving a job. Regulators increasingly view these provisions as unlawful restraints that discourage employees from leaving their jobs. What Agreements Could Create Problems? If your employment... READ MORE

California employers are already familiar with pay transparency laws, but SB 642 adds new requirements businesses should not overlook. Effective January 1, 2026, the law expands pay transparency rules and increases the importance of accurate, consistent compensation practices. One major change impacts job postings. If your business has 15 or more employees, job listings must now include a realistic “good faith” salary or hourly wage range you actually expect to offer upon hire. In other words, broad or overly flexible ranges that do not reflect a real starting point may create problems. SB 642 also expands what may be considered... READ MORE

If you’ve been meaning to circle back on the new 2026 employment laws, this is your reminder. One of the most overlooked updates under California’s Workplace Know Your Rights Act (SB 294) came with a key deadline: March 30, 2026. By that date, employers were required to give all current employees the opportunity to designate an emergency contact to be notified if they are detained or arrested during work or while performing job duties. If you didn’t implement this—or aren’t sure if you did—you’re not alone. But this is one area worth addressing now rather than later. Why it matters... READ MORE

As the first quarter comes to a close, now is the time for employers to step back and evaluate whether key compliance areas are on track. Many businesses implement updates at the start of the year—but Q2 is often when gaps begin to surface. A proactive review now can help reduce risk, avoid disruptions, and keep your operations running smoothly. Key Areas to Revisit Wage and Hour Practices Confirm employee classifications, overtime calculations, and payroll processes are consistent with current requirements. Required Notices and Workplace Policies Ensure required postings, handbook updates, and employee acknowledgments are current and properly documented. Retirement... READ MORE

If you recently received a notice stating that payroll contributions were expected, you are not alone. Many California employers are still working through their obligations under the CalSavers Retirement Savings Program. What Is CalSavers? CalSavers is California’s state-sponsored retirement savings program. It requires employers with five or more employees to either offer a qualified retirement plan or register with CalSavers and facilitate employee participation. The program does not require employers to make contributions. However, employers must enroll eligible employees, process payroll deductions, and remit those contributions each payroll cycle. Why Are You Receiving Payroll Notices? California law requires employers registered... READ MORE

Since we first wrote about California’s regulation of artificial intelligence in employment decisions, the rules are now officially in effect. As of October 1, 2025, California employers must comply with regulations clarifying how the Fair Employment and Housing Act (FEHA) applies to automated decision systems used in hiring, promotions, training selection, and other employment decisions. What Is an “Automated Decision System”? The regulations broadly define automated decision systems to include tools that use algorithms, artificial intelligence, machine learning, or similar data-driven processes to assist or replace human decision-making. This may include: Candidate ranking toolsResume screening softwareVideo interview scoring platformsPredictive analytics... READ MORE

Nonprofits often rely on volunteers to advance their mission. While volunteer support is both valuable and lawful, nonprofits are not exempt from employment laws. Worker classification remains a critical legal issue. Under federal and California law, only nonprofit organizations may use true, uncompensated volunteers. For-profit businesses cannot. Even for nonprofits, however, simply calling someone a “volunteer” does not make it so. If an individual receives compensation, stipends, free services, or other benefits that resemble wages, the relationship may be reclassified as employment. Likewise, if a person performs the same duties as paid staff or works under significant control and supervision,... READ MORE

Effective January 1, 2026, the IRS standard mileage reimbursement rate for cars, vans, pickups or panel trucks increased as follows: 72.5 cents per mile driven for business use (up 2.5 cents from 2025);20.5 cents per mile driven for medical as well as for moving purposes for qualified active-duty members of the Armed Forces (down .5 cents from 2025); and14 cents per mile driven in service of charitable organizations (same as last year). These Rates Apply to All Vehicle Types These rates apply equally “to electric and hybrid-electric automobiles, as well as gasoline and diesel-powered vehicles." California Employers’ Mileage Reimbursement Obligations... READ MORE

In a prior post, we notified clients about the new “Workplace Know Your Rights Act”, effective January 1, 2026, which required employers to provide a new, standalone notice to all current employees, as well as all new employees upon hire, and to all employees annually thereafter. The Official Notice Template Is Now Available The notice template to be issued to employees previously unavailable, is now available on the Department of Industrial Relations (“DIR”) website and are now available in English here and available in Spanish here.  (The template will soon be available in other languages.)  Employers must provide the notice in... READ MORE

Year-end performance reviews are more than a formality. From an employment law perspective, they are one of the most important tools employers have to manage performance, set expectations, and reduce legal risk—but only when they reflect what actually happened during the year. Performance Reviews Are More Than a Year-End Task One of the most common mistakes employers make is treating performance reviews as a once-a-year event. When concerns about attendance, performance, or conduct have surfaced throughout the year but were never documented, a glowing year-end review can undermine future disciplinary action or termination decisions. Inconsistencies between what an employer knew... READ MORE