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

In 2019, the State of California introduced a state-managed program that allows employees who work for companies that do not have a retirement savings plan to make contributions through payroll deductions towards their retirement. Since 2019, the state has gradually required larger employers over time to register with CalSavers. This year, employers with fewer than 5 employees must register with CalSavers no later than December 31, 2025. For employers that have a 401k or other qualified plan in place, they still must notify CalSavers through its website that they have such a plan in place. For employers who don’t have... READ MORE

With the holidays upon us, many employers plan holiday parties to celebrate the holiday season with their employees.  While holiday parties can be a great way for the company to celebrate the year and holidays and to spend time together, there are a few important considerations that employers must take into account when planning their holiday party to avoid risk and potential claims that could be raised by employees or third parties. Voluntary v. Mandatory Attendance Although employers will understandably want all of their employees to attend their holiday party, it is important to be clear that attendance is voluntary... READ MORE

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