2026 California Employment Law Updates
Suggested Action Plan:
- If your company is facing a potential WARN Act situation, seek assistance from your attorney or CAHR Consultant to assist with preparing notices and communications to employees and other appropriate external government and regulatory stakeholders.
E. SB 590 — Paid Family Leave (Designated Person)
Effective July 1, 2028, PFL eligibility expands to include a designated person, defined as someone related by blood or someone with a relationship equivalent to family.
- Attestation under penalty of perjury is required.
- Employees continue to have 8 weeks of PFL benefits.
Suggested Action Plan:
- Update family leave definitions and leave policies in employee handbooks
F. SB 642 — Pay Equity Enforcement Act- Amendments to California’s Equal Pay Act
Key changes:
- New “pay scale” definition: good-faith estimate of salary/wage range at hire.
- Expanded definitions:
- “Opposite sex” → “another sex”
- “Wages” → includes all forms of pay, such as bonuses, stock, allowances, lodging reimbursements
- Statute of limitations: 3 years
- Recovery period: up to 6 years
Suggested Action Plan:
- Audit job postings and pay scale disclosures for compliance
- Conduct a pay equity analysis including all forms of compensation
- Document legitimate, non-discriminatory reasons for pay differentials
- Train HR and managers on updated definitions and expectations
G. SB 464 — Pay Data Reporting Expansion
Beginning May 2027:
- Employers must classify workers under the 23 SOC categories, replacing the 10 EEO-1 categories.
- Courts must impose civil penalties for failure to file.
- Demographic data must be stored separately from personnel files.
Suggested Action Plan:
- Applicable employers required to file the EEO-1 report shall avoid penalties by filing the report on time!
H. AB 858 — Rehiring & Retention Rights for Displaced Workers
Extends COVID-era recall protections to Jan 1, 2027, for employees working in:
- Airport hospitality/service providers
- Building service contractors
- Event centers
- Hotels with 50+ rooms
- Private clubs
Key employer obligations:
- Must offer open positions first to laid-off qualified workers, based on seniority.
- Must notify workers within 5 business days via mail (and by email/text if available).
- Workers must have 5 business days to respond.
- If not rehiring due to qualifications, employer must provide written notice.
Suggested Action Plan:
- Keep an updated seniority list and document your compliance with the timelines of the statute.
- Train HR and managers about this recall obligation