California 2026 Employment Laws
Legal Disclaimer
This page provides general information about California employment laws and is not legal advice. Laws are subject to interpretation and change. For specific legal guidance, consult a licensed California employment attorney. SafeReq provides compliance screening tools but does not certify legal compliance.
SB 1162
CriticalCalifornia Pay Transparency Act
Effective: January 1, 2023 (Ongoing Enforcement)
Summary
SB 1162 established California's foundational pay transparency requirements, mandating that employers with 15 or more employees include pay scales in all job postings. This law requires disclosure of salary or hourly wage ranges that employers reasonably expect to pay for positions.
Key Requirements
- Employers with 15+ employees must include pay scales in all job postings
- Applies to internal postings, external postings, and third-party platforms (LinkedIn, Indeed)
- Pay scale must be visible on the posting itself (not via link or QR code)
- Employers must provide pay scales to current employees upon request
- Maintain job title and wage history records for 3 years post-termination
Why It Matters
SB 1162 is the backbone of California pay transparency enforcement. Non-compliance results in fines up to $100 per violation (first offense) and $200 for subsequent violations. Enforcement remains active in 2026 with increased scrutiny on job posting compliance.
Statute: Cal. Labor Code § 432.3
SB 642
CriticalPay Equity Enforcement Act
Effective: January 1, 2026
Summary
SB 642 amends California's Equal Pay and Pay Transparency laws by redefining "pay scale" to require employers to disclose "a good faith estimate of the salary or hourly wage range that the employer reasonably expects to pay for a position upon hire." The law also expands the definition of "wages" to include all forms of compensation: bonuses, stock, stock options, profit sharing, benefits, and more.
Key Requirements
- Expanded definition of "wages" to include bonuses, stock, benefits, and all compensation forms
- Must disclose good faith estimate of pay range expected upon hire
- Inclusive gender protections covering non-binary employees
- Extended statute of limitations: 3 years to file claims (up from 2 years)
- Employees can recover compensation for up to 6 years prior to filing
Why It Matters
SB 642 closes loopholes in SB 1162 by expanding what constitutes "wages" and requiring comprehensive disclosure. Job postings that omit material compensation elements (bonuses, equity, benefits) now create increased Equal Pay Act liability and PAGA exposure.
Statute: Cal. Labor Code § 432.3, § 1197.5
AB 692
CriticalBan on Training Repayment Agreement Provisions (TRAPs)
Effective: January 1, 2026
Summary
AB 692 prohibits "stay-or-pay" employment contract provisions that require workers to repay employers for training costs, relocation stipends, or other expenses if employment ends. This law extends California's existing ban on worker non-competes to encompass training repayment agreements (TRAPs).
Key Requirements
- Prohibits contracts requiring workers to repay training costs if employment ends
- Bans penalties, fees, or debt collection initiation upon termination
- Limited exceptions: transferable educational credentials, sign-on bonuses (with strict terms), approved apprenticeships
- Sign-on bonus repayment must be prorated over max 2 years with 5-day lawyer review period
- Violations result in statutory damages of at least $5,000 per employee plus attorney fees
Why It Matters
Job postings that mention training repayment obligations or imply financial penalties for leaving create immediate AB 692 violations. Even indirect language suggesting cost recovery exposes employers to class action and PAGA liability. Single violations can trigger costly lawsuits.
Statute: Cal. Bus. & Prof. Code § 16608, Labor Code § 926
SB 294
ImportantWorkplace Know Your Rights Act
Effective: January 1, 2026
Summary
SB 294 establishes the Workplace Know Your Rights Act, requiring employers to provide a stand-alone written notice of workers' rights to every employee upon hire and annually to all employees. Template notices became available January 1, 2026, and employers had until February 1, 2026 to comply with initial distribution.
Key Requirements
- Provide written notice of workers' rights to all new hires and annually to existing employees
- Notice must cover: workers' compensation, immigration inspection rights, protection against immigration-related practices
- Must include: right to organize unions, engage in concerted activity, constitutional rights with law enforcement
- By March 30, 2026: Allow employees to designate emergency contact for arrest/detention notifications
- Template notice provided by state; employers must use official format
Why It Matters
SB 294 creates affirmative disclosure obligations that employers cannot delegate or ignore. Failure to provide required notices creates per-employee violations with enforcement through Labor Commissioner. Non-compliance can be used as evidence of bad faith in retaliation and discrimination claims.
Statute: Cal. Labor Code Part 5.6 (§ 1550 et seq.)
FEHA
ImportantFair Employment and Housing Act (Ongoing Compliance)
Effective: Ongoing (Strengthened Enforcement 2024-2026)
Summary
The California Fair Employment and Housing Act (FEHA) prohibits employment discrimination based on protected classes. Recent enforcement guidance emphasizes scrutiny of job posting language that could be interpreted as discriminatory.
Key Requirements
- No language suggesting age preferences (e.g., "recent graduate," "digital native")
- Avoid gender-coded language or assumptions
- No requirements that disproportionately impact protected classes
- Include Equal Employment Opportunity (EEO) statements
- Provide reasonable accommodation statements
Why It Matters
While not new for 2026, DFEH enforcement of FEHA violations in job postings has intensified. Language that seems neutral can create liability if it has disparate impact on protected groups.
Statute: Cal. Gov. Code § 12900 et seq.
PAGA
ImportantPrivate Attorneys General Act (Enhanced Exposure)
Effective: Ongoing (2026 Reform Implementation)
Summary
The Private Attorneys General Act (PAGA) allows employees to sue for Labor Code violations on behalf of the state. Job posting violations (pay transparency, discriminatory language) are increasingly common PAGA claims.
Key Requirements
- Any Labor Code violation in job postings can trigger PAGA liability
- Pay transparency violations are common PAGA targets
- Penalties: $100 per aggrieved employee per pay period (initial), $200 (subsequent)
- Class action exposure with significant financial risk
Why It Matters
PAGA turns individual posting violations into potential class actions. A single non-compliant job posting reused across multiple openings can create substantial liability.
Statute: Cal. Labor Code § 2699
Screen Your Job Postings for Compliance Risks
SafeReq analyzes your job requisitions against these California employment laws, identifying potential compliance risks before you post. Get detailed findings with statute citations and actionable guidance.
Critical Statutory Checks
Automated detection of violations for SB 1162, SB 642, AB 692, and other critical requirements
High severity Risk Guidance
FEHA, PAGA exposure analysis, and elevated-risk language identification
Audit-Ready Reports
Professional PDF reports with statute citations and example language
Additional Resources
California Legislative Information
Official source for California bills, laws, and legislative updates
Visit leginfo.legislature.ca.govCalifornia Civil Rights Department (CRD)
Official enforcement agency for FEHA and employment discrimination laws
Visit calcivilrights.ca.govCalifornia Labor Commissioner
Enforcement of wage and hour laws, including pay transparency requirements
Visit DIR Labor Standards EnforcementCalifornia Employment Law Guide
Comprehensive overview of California employment regulations
Visit Department of Industrial Relations