WHAT CALIFORNIA EMPLOYERS NEED TO ADDRESS NOW
As we move into 2026, the compliance landscape continues to get more complex—and more expensive to ignore. The employers we work with aren’t struggling because they don’t care… they’re struggling because the rules keep changing.
Here are the 10 biggest risks we’re seeing right now:
1. Immigration Enforcement & Workplace Raids (SB 294)
With increased enforcement activity, employers are at risk if they don’t have a clear I-9 and ICE response plan in place.
Risk: Fines, disruption, reputational damage
Reality: Most front desks still don’t know what to do if ICE shows up.
2. “Stay-or-Pay” Agreements Backfiring (AB 692)
Many employers use signing bonuses, relocation agreements, or training repayment clauses.
Risk: These agreements may now be unenforceable—or worse, illegal.
3. Pay Transparency & Pay Equity Claims (SB 642)
California continues to lead the way on pay equity.
Risk: Job postings, compensation inconsistencies, and internal equity issues can trigger claims quickly.
4. Pay Data Reporting Expansion (SB 464)
The reporting requirements are becoming more detailed and more scrutinized for employers with 100 or more employees.
Risk: Inaccurate or incomplete data can lead to audits and penalties—and expose pay inequities.
5. Wage & Hour Liability Is Still Exploding
Wage and hour claims remain the #1 source of lawsuits.
Risk areas:
- Misclassification (exempt vs. non-exempt)
- Meal & rest break compliance
- Off-the-clock work
6. AI in Hiring & HR Decisions
Employers are increasingly using AI tools for screening, recruiting, and performance decisions.
Risk: Bias, lack of transparency, and non-compliant decision-making tools.
7. Workplace Violence Prevention & Safety Compliance (SB 553 + OSHA)
California is doubling down on workplace safety.
Risk: Missing or outdated Workplace Violence Prevention Plans (WVPP) and training requirements.
8. Leave of Absence Mismanagement
Between CFRA, FMLA, ADA, pregnancy disability leave, and local laws…
Risk: One misstep can trigger a wrongful termination or disability discrimination claim.
9. Outdated Handbooks & Policies
We still see employers using policies that are 3–5 years old.
Risk: Non-compliant policies = automatic exposure in any claim or lawsuit.
10. Not Having Enough HR Support
This is the underlying risk behind all the others.
Risk:
- HR Director leaves
- HR team is overwhelmed
- No strategic HR guidance
Result: Issues don’t get addressed until they become expensive problems.
WHAT SMART EMPLOYERS ARE DOING IN 2026
The companies that are staying ahead are:
- Conducting proactive HR audits
- Updating policies and handbooks annually
- Training managers consistently
- Having a clear plan for ICE, leave, wage & hour, and investigations
- Leveraging fractional or outsourced HR support to fill gaps
HOW JORGENSENHR HELPS
At JorgensenHR, we step in when employers need experienced HR leadership—quickly and effectively.
Whether that means:
- Supporting your existing HR team
- Stepping in when an HR leader leaves
- Conducting a comprehensive HR audit
- Providing ongoing fractional HR support
We help you reduce risk, stay compliant, and focus on running your business.
If you’re not sure where your biggest risks are, that’s usually the biggest risk of all.
Let’s schedule a brief call to identify where you may be exposed:
https://calendly.com/barry-jorgensenhr/intro-call
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