2025 brought California employers a wave of new legal obligations, updated rules and regulations, and significant court decisions that will require thoughtful planning in 2026. There are 9 new labor laws impacting most employers, plus 8 key court cases. In addition, employers are seeing increased immigration enforcement activity by ICE, including more frequent I-9 audits.
A consistent theme in both recent legislation and case law is clear:
- Employers who invest in proactive compliance are in the best position to reduce risk and avoid costly penalties.
These developments require employers to review and update policies, practices, and payroll administration.
For every new labor law, regulation, or court case, employers should ask three key questions:
- What is the new legal requirement?
- How does it affect my company?
- What do we need to do to comply?
Over the next two months, I will highlight several of the new 2026 labor laws that will affect most employers, regardless of size or headcount.
SB 294 – WORKPLACE KNOW YOUR RIGHTS ACT
SB 294 imposes new written notice requirements and protections for workers, with a particular focus on immigration- related practices and interactions with law enforcement in the workplace.
ANNUAL WRITTEN NOTICE REQUIREMENT
Employers must provide an annual written notice to each current employee that explains:
- Workers’ protections against unfair immigration- related practices, and
- Their constitutional rights when interacting with law enforcement in the workplace.
The first notice must be provided on or before February 1, 2026. The Labor Commissioner (DLSE) is expected to publish a template notice by January 1, 2026.
EMERGENCY CONTACT REQUIREMENT
In addition, employers must:
- Notify an employee’s designated emergency contact if the employee is arrested or detained at work, if the employee has authorized this contact; and
- Give employees an opportunity to designate and authorize this emergency contact no later than March 30, 2026, or at the time of hire for employees hired after that date.
PENALTIES
Violations may result in civil penalties of $500 per employee, with certain failures subject to penalties of up to $10,000 per employee.
REQUIRED CONTENT OF THE WRITTEN NOTICE
The new written notice must advise employees of their rights in several key areas, including:
- Wage and hour laws
- Health and safety protections
- Workers’ compensation
- Unemployment insurance
- Paid sick days • Immigration inspections
- Protection against retaliation
- Union organizing rights
- Data privacy
- Emergency and disaster protections
- Constitutional rights when interacting with law enforcement at work
WHAT SHOULD EMPLOYERS DO NOW?
To prepare for SB 294’s requirements, employers should:
- Obtain the template notice
- Distribute the notice on time
- Update emergency contact procedures
- Roll out the new designation form
- Train managers and supervisors
- Incorporate into onboarding: Ensure that both the written notice and the updated emergency contact designation form are included in your onboarding process for all new hires after March 30, 2026.
NEED HELP NAVIGATING THE NEW 2026 LABOR LAWS?
JorgensenHR conducted two Labor Law Update Webinars on December 3 and 4. If you would like a copy of the recording and slide deck, please contact us: info@jorgensenhr.com
661-600-2070.
We are here to help you understand what has changed, how it affects your organization, and what concrete steps you need to take to stay compliant.
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